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The exchange rate crisis is hitting Costa Rica’s banana sector



The current trend has a negative impact on competitiveness

Standard Fruit Company de Costa Rica SA announced the layoff of 412 workers from a banana plantation located in the province of Limón, explaining it by the rapid increase in the value of the Costa Rican colon. Juan Carlos Rojas, the company’s legal director, said: “The reason is the sudden appreciation of the Costa Rican colon or the exchange rate, which does not allow the agricultural business to survive.”

The company stressed that the current exchange rate trend adversely affects the competitiveness of Costa Rican bananas, which could result in further layoffs if the exchange rate situation continues or worsens. This decision affected all seven of the company’s banana plantations in the Atlantic region. “Unfortunately, due to the exchange rate and the sudden appreciation that has occurred in Costa Rica, the agricultural sector is in a very difficult competitive situation compared to other countries, and our company has had to lay off 412 people in all the banana plantations we operate in the Atlantic ” Rojas explained.

The company assured that all affected employees received full benefits, emphasizing that the layoffs are a necessary measure for the company’s survival. Although there have been no farm closures, the company indicates that layoffs may also occur in other sectors apart from banana cultivation.

Source: ticotimes.net

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