GALLO PINTO EFFECT?

Ticos consume some 49,000 tons of beans per year. Most are imported as Costa Rica only produces some 14,000 tons. Ronald Reyes/The Tico Times

 

Call it the gallo pinto effect.

Officials from Costa Rica’s Agriculture and Livestock Ministry (MAG) this week warned of a shortage of beans in the country, and issued an order to allow tax-free importation from any country in order to meet an estimated shortage of 21,000 tons needed to supply local demand from July to January.

The country currently has reserves of 3,200 metric tons of black beans and 1,200 metric tons of red beans. But with domestic consumption at 4,100 tons per month, there are barely enough beans for this month. Beans and rice are essential in Ticos’ daily diet.

According to the National Production Council (CNP) a change in agricultural production strategies in Nicaragua – Costa Rica’s main bean provider – severely decreased supplies from that country.

But local producers blame the possible shortage on a requirement of MAG’s State Phytosanitary Service (SFE), which states that all imported beans must be completely clean, without any residue or dirt. The rule this year has prevented some 100 containers of beans – mainly from Nicaragua – from entering the country, producers say.

Alejandro Monge, executive director of the National Association of Bean Industrials (ANIFRI), confirmed that Costa Rica currently produces only 20 percent of all beans consumed in the country, and the remaining 80 percent must be imported from Nicaragua, Argentina and China.

“Strict SFE measures are preventing the entry of imported beans in time to meet current demand,” he said.

The shortage particularly affects red beans. Nicaragua in 2013 supplied 99 percent of Costa Rican red bean imports and 50 percent of all imported beans, according to the CNP.

The situation already is affecting consumers, as the price of red beans this year increased by 10 percent, according to the CNP. Prices likely will continue to increase if the shortage extends longer. The Costa Rican Consumers Association last week asked the Economy Ministry to conduct periodic inspections to prevent price speculation from retailers.

The Grain Industries Chamber agrees with the consumers’ group, forecasting a significant increase in prices in coming months, especially for red beans. They also said in a press release that the situation will not be resolved with MAG’s shortage alert, and they urged the government to modify SFE guidelines and regulations.

ANIFRI requested a change in SFE legislation during a meeting with Agriculture and Livestock Vice Minister Joaquín Salazar. At the meeting they suggested an amendment of legislation to allow up to 2 percent of impurities in imported beans, depending on the grains’ quality. They also suggested fumigation of trucks that might represent contamination risks. However, both sides failed to reach an agreement at the meeting.

ANIFRI will continue pushing for a change in legislation, and in coming days will meet with officials from the Foreign Trade Ministry and the Economy Ministry to propose an amendment of SFE regulations.

 

Originally posted Tico Times

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