Costa Rica’s National Production Council and IICA step up joint efforts to ensure fair prices for farmers in the Central American country

San José, Costa Rica, 15 November 2024 (IICA). Costa Rica’s National Production Council (CNP) and the Inter-American Institute for Cooperation on Agriculture (IICA) signed a general technical cooperation agreement at IICA Headquarters in San José aimed at developing an econometric model for setting benchmark prices for farmers and suppliers who do business with the Institutional Supply Program (PAI).

The first action to be implemented under the agreement is the development of a methodology for calculating fair and transparent benchmark prices for agricultural products marketed via the CNP’s Institutional Supply Program (PAI).

This tool will make it possible to optimize decisions related to food purchases and food distribution.

María Febres, IICA Representative in Costa Rica, and Gerardo Duarte, the CNP’s Executive President, took part in the ceremony held to sign the agreement, where they explained that the two institutions will work together to develop a methodology for setting benchmark prices for agricultural products, taking into account production, collection, processing, distribution and marketing costs, as well as climatic, economic and financial variables.

CNP staff will receive training in the methodology’s implementation, so that benchmark prices can be updated regularly.

This first step in the process, which will be completed within 13 months, calls for an investment of approximately 35 million Costa Rican colones and technical and operational collaboration from IICA, which will provide specialists, facilities, and technological platforms. For its part, the CNP will provide the necessary information and designate the technical personnel required.

Gerardo Duarte emphasized the importance of the agreement, explaining that it will enable the CNP to strengthen the PAI for the benefit of small and medium-sized farmers, and help improve transparency in the price-setting processes for institutions that acquire agricultural products via the program, such as the Ministry of Justice and the Ministry of Public Security.

“This project marks only the beginning of a collaborative relationship, as there plans to strengthen many of the CNP’s institutional procedures in the future,” Duarte added.

María Febres stressed that the agreement was drawn up in response to a specific request for price-setting methodologies for the PAI, and reaffirms IICA’s commitment to supporting its member countries.

Febres also emphasized that additional agreements could be signed to further strengthen this support for the agriculture sector, to make it more competitive and afford farmers equitable access to markets.

IICA’s technical and operational collaboration will enable the CNP to achieve the transparent and equitable marketing of agricultural products in Costa Rica.

More information:
Institutional Communication Division.
comunicacion.institucional@iica.in