August 26, 2005

USDA: Costa Rica livestock and products annual report 2005

Costa Rica's cattle herd is increasing after a long period of decline. A cutback on cow slaughter is part of the reason for higher cattle numbers.

Domestic beef consumption and exports are down from previous years. 

The Costa Rican government has initiated a program through Banco Nacional de Costa Rica to help the small cattle farmers in Costa Rica. This program will help farmers increase their herds through the purchase of bulls and through artificial insemination.

Major challenges in the packing industry include poor infrastructure and economies of scale. The facilities in use are up to thirty years old, which leads to high operational costs. Only 3 slaughterhouses are approved for exporting to the United States.

Pending the approval of CAFTA-DR by the Costa Rican government, prime and choice cuts along with offals from the U.S. would enter the country duty-free immediately while a 15-year tariff phase-out would impact all other U.S. beef products entering the market.

If passed in Costa Rica, CAFTA-DR would affect the beef industry less in the short run than the long run. It would benefit U.S. exporters through equivalency determination and immediate tariff elimination for offals and prime and choice cuts.

For the full USDA report, click here .