Attachments
FOOD SECURITY SNAPSHOT
- Paddy production in 2024 estimated to contract for third consecutive year
- Import requirements for 2024/25 marketing year (July/June) forecast above average
- Stable rice prices in November and December 2024
Paddy production in 2024 estimated to contract for third consecutive year
The 2024 main paddy harvest was completed last December and production is estimated at a below-average level for the third consecutive year. In August 2022, the government introduced the Ruta del Arroz reforms, eliminating reference producer prices of paddy, ceilings and floors on wholesale and retail prices of rice, and reducing custom duties on rice imported outside existing trade agreements from 35 to 3.5-4 percent . As a result of a reduction in the profitability of rice cultivation, rice production sharply fell below the pre-reform five-year average, by about 30 and 60 percent, respectively, in 2022 and 2023 as farmers significantly reduced sowings and opted for more profitable crops. The 2024 main crop planted area, concentrated in Chorotega, Pacífico Central and Brunca regions, is estimated to remain below the average. Above-average precipitation amounts, associated with tropical cyclones Rafael and Sara, were reported in the November to December 2024 period, affecting about 1 million people and damaging essential infrastructures . Abundant rainfall amounts, localized landslides and floods delayed harvesting operations and caused crop losses across the country, further constraining rice production.
Planting of the 2024 minor paddy season is nearing completion, amid persistent above-average precipitations across the main producing Chorotega, Pacífico Central y Brunca regions. High soil moisture levels hampered sowing operations and curtailed early crop development. Weather forecasts point to above-average rainfall amounts continuing in the February to April 2025 trimester, which usually coincides with the dry season, curbing production prospects.
Import requirements for 2024/25 marketing year (July/June) forecast above average
Cereal import requirements in the 2024/25 marketing year (July/June) are forecast at 1.51 million tonnes, about 10 percent above the five-year average. This primarily reflects the growing demand for yellow maize by the domestic feed sector and of rice for human consumption, amid the large decline in domestic production.
Stable rice prices in November and December 2024
Retail prices of rice were nearly stable in November and December 2024, but they remained about 5 percent higher than the previous year and about 10 percent above December 2021 levels, in line with the contraction in domestic production and elevated export prices prevailing over the past two years in the country’s main rice suppliers, Brazil, the United States of America and Uruguay.
Despite a 12 percent monthly increase in December 2024, retail prices of black beans were about 5 percent below their level of one year before, mainly due to abundant imports that increased domestic supplies.