Introduction:Costa Rica’s coffee industry is facing one of its most challenging periods in recent years. In January this year, exports plummeted by nearly 28% year-on-year, and the full-year projection could see a decline of up to 13%. Adverse weather conditions, a global oversupply of Arabica coffee, and the upcoming implementation of the European Union’s stringent deforestation-free regulation (EUDR) have created a climate of hesitation among international buyers. Adding to the complexity, hydrocarbon contamination in tap water across parts of the capital San José not only poses health risks to residents but may also affect the soil quality of future coffee plantations. This article takes you behind the scenes to explore how export declines, regulatory changes, and environmental crises are intertwining to reshape the coffee-growing landscape of this Central American powerhouse.
According to the latest data from the Costa Rican Coffee Institute (ICAFE), coffee exports in January 2024 dropped sharply by 28%, with just 60,757 bags (each weighing 60 kilograms) shipped. This decline was driven primarily by two factors: continuously poor weather leading to reduced harvests, and an oversupply of Arabica coffee on the global market, which has put downward pressure on international prices. Notably, the full-season (2023/24) export forecast has been revised downward to approximately 1.3 million bags, marking a drop of nearly 13% compared to the previous cycle.
In terms of export markets, the United States and the European Union remain the largest buyers of Costa Rican coffee. However, theEuropean Union Deforestation Regulation (EUDR), set to take effect at the end of 2024, has become a new variable in the trade chain. This regulation requires all agricultural products entering the EU—including coffee and cocoa—to provide complete traceability proof of being produced without causing deforestation. Non-compliance can result in heavy fines. With an 18 to 24-month transition period built into the regulation, many importers are choosing to delay orders until more operational details become clear—even as some producing countries have already invested heavily in compliance systems.
Parallel to trade policy shifts is a sudden environmental crisis. Since the end of January 2024, residents in multiple cantons of San José Province, the capital region, have reported that their tap water emits a gasoline-like odor and has caused symptoms such as vomiting and diarrhea. Official investigations by the local water and sewage authority (AyA) confirmed that the water supply has indeed beencontaminated with hydrocarbons, and they urgently advised the public to refrain from using the water for drinking, cooking, or washing (even boiling does not make it safe). Although a research team from the University of Costa Rica (UCR) preliminarily ruled out the presence of gasoline or diesel, the exact source of the contamination remains under investigation.
Even more concerning is the potential long-term impact of this water contamination on future coffee cultivation. Industry experts point out that if hydrocarbons seep into the surrounding soil, they could not only damage soil structure and reduce permeability but also alter its physical properties and microbial activity—key factors that influence how coffee tree roots absorb nutrients and resist disease. In the long run, the flavor stability and yield of coffee from core production areas near San José, such as the renowned micro-region of Tarrazú, could face potential risks.
For coffee enthusiasts, these origin-level disruptions are worth close attention. It is advisable to monitor the ongoing performance of high-altitude regions like Tarrazú, observing whether processing methods evolve or flavor profiles show noticeable shifts—all of which reflect real changes in the local agricultural environment. Keeping track of these details will help you fine-tune parameters (such as water temperature and grind size) during pour over or other brewing methods, thereby better highlighting the terroir characteristics of the coffee.
The above content is compiled by CoffeeHunters, a coffee news website.
