How Is Costa Rica's Coffee Industry Protecting Workers?

Thousands of migrant coffee pickers in Costa Rica will now receive workplace accident insurance, and the illness and maternity insurance program started in 2021 keeps expanding. Migrant workers make up more than 75 percent of the seasonal harvest labor force, most arriving from Nicaragua and some from Panama, according to La Nación.

The coffee industry there faces price volatility, a weaker exchange rate, and climate change. Prices fell from $3.20 per pound in January 2022 to $2.30 in December 2023, the dollar lost 27 percent against the colón over 18 months, and the harvest is expected to drop 12.6 percent, the smallest crop in a century. Plantations are also giving way to housing development.

Costa Rica's coffee industry is facing the combined pressure of price volatility, a weakening exchange rate, and climate change, while an important breakthrough has been made in protecting the rights of migrant workers who support the harvest. According to La Nación, thousands of migrant coffee pickers will receive workplace accident insurance, and the illness and maternity insurance program launched in 2021 will also continue to expand. Migrant workers make up more than 75% of the country's seasonal harvest labor force, most of them from Nicaragua, with some from Panama. In the Central Valley, CoopeLibertad, a cooperative made up of nearly 1,200 producers, emphasizes both social responsibility and quality. At the same time, coffee prices fell from $3.20 per pound to $2.30 in 2023, the dollar depreciated 27% against the colón in 18 months, and the harvest is expected to decline 12.6%, the smallest crop in a century. Front Street Coffee continues to monitor developments in producing regions and sustainable development in the industry.

Recently, La Nación reported that thousands of migrant coffee harvest workers will now be included in the workplace accident insurance system, while the illness and maternity insurance program launched in 2021 has also been further expanded. The reason driving this change is that migrant workers now account for more than 75% of Costa Rica's seasonal harvest workforce.

Coffee has long been an important pillar of Costa Rica's economy, but coffee plantations are gradually being replaced by new residential development projects. Behind this trend is the combined result of multiple factors, including volatility in the international coffee market, a weakening dollar, climate change, and labor supply difficulties.

Some exporters point out that abundant global coffee supply may lead to lower prices in the future, and the premium space for Costa Rican coffee may also narrow. In December 2023, the country's coffee price was still 65% higher than the market average, but it had fallen from $3.20 per pound in January 2022 to $2.30 in December of that year. In addition, over the past 18 months, the U.S. dollar has depreciated 27% against the Costa Rican colón, significantly eroding export profits.

Currently, among the 20,000 workers who migrate with the harvest season across Costa Rica, migrants account for 75%, most of them from Nicaragua and some from Panama. November, December, and January are the most intense harvest periods, and these laborers are crucial to the operation of the industry. Harvesting is usually done by families, supporting the entire coffee supply chain. Costa Rica is also committed to ensuring that growers earn more than intermediaries and exporters.

CoopeLibertad, a cooperative in Costa Rica's Central Valley made up of nearly 1,200 coffee producers, has a manager who says that in the current challenging period, Costa Rican coffee must uphold social responsibility, environmental responsibility, and high-quality standards. Migrant workers now feel that they are highly valued, and prioritizing the social sustainability of Costa Rican coffee is of great significance and also helps enhance the country's reputation in the international coffee market. These efforts are precisely what distinguishes Costa Rican coffee from other producing regions in the world, providing fair and favorable conditions for pickers and ultimately benefiting the entire coffee industry.

The deputy director of the Costa Rica Coffee Institute (ICAFE) said that establishing fair relations in the industry relies on a unique legal framework. New insurance benefits for coffee workers have already been designed, and health insurance was first introduced three years ago to provide illness and maternity protection for pickers and their families.

In 2023, changing weather patterns forced the harvest to begin earlier, disrupting the travel plans of seasonal workers and reducing production efficiency. At the same time, protests in Panama blocked roads, preventing workers from traveling from Panama to Costa Rica. Honduras also saw a large outflow of migrants, leading to a labor shortage for harvesting coffee cherries there and creating a competitive situation with Costa Rica. Combined, these factors are expected to cause the harvest to decline 12.6%, estimated at 1,672,881 bushels. This will be the smallest harvest in nearly a century, less than half the harvest volume in 2000. Once implemented, the insurance program will significantly enhance Costa Rica's competitiveness and also benefit the long-term development of the country's coffee industry. Front Street Coffee recommends that enthusiasts continue to follow social responsibility practices and quality performance in Costa Rican producing regions.

The above content is compiled by CoffeeHunters, a coffee news website.