Costa Rica Coffee Output Rises 3.5% in 2026

Author: Qahwa World – San Jose

Source: USDA Foreign Agricultural Service – Report CS2026-0004
Date: May 20, 2026

The USDA Foreign Agricultural Service office in San Jose forecasts Costa Rican coffee production for marketing year 2026/2027 to increase marginally to 1.2 million 60 kg bags, a 3.5% rise from the previous year.

Although the next marketing year is expected to be the higher production year under the biennial coffee production cycle, several factors will limit growth. These include a strong local currency, lower coffee prices, higher fertilizer and fuel prices, and potential abnormal weather patterns caused by El Niño.

According to ICAFE (Costa Rican Coffee Institute), the coffee sector is preparing for the continued negative effects of a very strong local currency against the US dollar.

The Costa Rican Colon has appreciated roughly 35% since mid-2022. Since most of the coffee is exported, even at historically high coffee prices, the colon denominated revenue has declined sharply because of the exchange rate, directly affecting farmer profitability.

ICAFE also reported that coffee prices have declined from $574 per 60 kg bag in October 2025 to $378 in April 2026, creating expectations of lower future income.

El Niño Threatens the Next Season

The Costa Rican National Meteorological Institute confirmed that El Niño will most likely affect Costa Rica during the second half of 2026. This could result in a reduction of rainfall of up to 30% of the normal amount in some areas of the country, primarily in the Northern Pacific. Although coffee production areas may not be as negatively affected, the timing of the phenomenon will determine whether the effects are mild or strong on coffee production.

FAS/San Jose expects coffee producers to face continued labor supply challenges. Panamanian workers from the Ngabe Bugle tribes now harvest most of the coffee crop, although Nicaraguans also participate. According to ICAFE, the inflow of field workers has been affected by slow migratory processes, causing uncertainty among growers.

Declining Area and Number of Farmers

According to the latest available area survey from 2022, planted area declined by 11.9% compared to the previous data set from 2018. FAS/San Jose projects MY 2026/2027 area planted to remain unchanged at approximately 83,000 hectares. However, industry sources suggest that some less productive producers may leave the activity altogether or reduce plantation maintenance given the difficult situation.

According to ICAFE, the number of coffee growers in the country declined to 24,653 farmers in MY 2024/2025 from 25,549 in MY 2023/2024. This number is down 48% from ten years ago. Long periods of low coffee prices, aging farmers, and high land prices near urban areas have contributed to the declining number of producers.

Table 1: Estimated MY 2025/2026 Area Planted (hectares)

Coffee Region	2018	2022	Change
Los Santos (Tarrazú)	27,944	28,519	2.1%
Occidental Valley	21,992	18,640	-15.2%
Central Valley	13,327	11,493	-13.8%
Perez Zeledón (Brunca)	13,315	10,617	-20.3%

Exports, Imports, and Consumption

FAS/San Jose projects MY 2026/2027 coffee exports at 1.06 million bags due to expected higher production. MY 2025/2026 exports are projected at 1.02 million bags. ICAFE reported that uncertainty in the Middle East recently pushed international buyers to increase purchases to secure product availability, while buyers were very cautious in late 2025.

The United States has been the main destination for Costa Rican exports for several years, although its market share has declined recently. The US share of total exports was 39.6% in MY 2024/2025, slightly higher than 38% in MY 2023/2024. The European Union is the other large destination.

Domestic consumption is projected unchanged at 320,000 bags in MY 2026/2027, due to slow population growth and relatively high prices. Costa Rica’s population is 5.3 million, with legal immigration low and population growth less than 1% per year. Domestic prices have risen almost 40% since 2022 due to inflationary pressures and higher international coffee prices.

Table 2: Green Coffee Exports by Destination (60 kg bags)

Country	2022/2023	2023/2024	2024/2025
United States	506,098	386,307	454,266
Belgium	128,290	282,162	269,551
Germany	93,990	60,347	57,089
South Korea	28,312	29,164	32,658
Japan	21,022	25,656	23,841
China	12,504	16,384	29,025
Total	1,002,321	1,017,105	1,102,439

EUDR Compliance: Deforestation Free Coffee

ICAFE continues to consolidate the scheme for marketing deforestation free coffee, in compliance with the European Union Green Deal requirements for deforestation free verification. The institution is strengthening its information systems to ensure georeferenced product traceability, to register due diligence statements, and to guarantee informed consent of growers. It also expanded training and technical assistance to producers, mills, and exporters.

On March 14, 2024, Costa Rica exported the first shipment of deforestation and degradation free coffee to Italy as part of a pilot program involving a local cooperative, the United Nations Development Programme, and ICAFE. The pilot involved 69 coffee growers (about 0.3% of all growers). The goal was to develop an effective and practical method for evaluating and documenting Costa Rican coffee compliance with the demanding requirements to be considered deforestation free.

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Author: Qahwa World – San Jose | Source: USDA Foreign Agricultural Service – Report CS2026-0004 | Date: May 20, 2026