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Palm Oil Export Fuels Costa Rica’s Economy

Article Summary:

A 168% increase in the world price of palm oil in the last six years has helped Costa Rica see a rebound in a once failing crop.

Photo Credit: Nacion

Original Article Text From Nacion via Google Translate :

Rising World Price of Oil drives Local Industry

A 168% increase in world price of palm oil between 2006 and 2012 prompted the national productive sector, which achieved strong growth in area planted and exports.

In 2006, the average value of the oil in Rotterdam (main market) was $ 422 a tonne. In the first two months of 2012 reached $ 1,134 a tonne, while in 2011 stood at $ 1,125, according to a study of the Information System and Market Intelligence (SIIM), the National Production Council (CNP).

The good health of the market is due to renewed pressure for the use of this product in the production of biofuels, said yesterday Alberto Alvarez, general manager of Farmers Cooperative Palma (Coopeagropal).

Impact. High prices caused exports from Costa Rica go up 118,707 tons of oil in 2008 to 169,152 tons in 2011.

72% of Costa Rica’s exports are sent to the Mexican market, very demanding and this branch is not in production. But in recent years emerged as very good markets the UK, which already buys 7% of the total, and Nicaragua, where he sends 10% of exports, but not crude oil but refined (for human use).

The biggest export is due to better yields and an expansion of planted area. In 2006 there were 48,406 hectares and in 2011 was passed to 60,000 hectares, according to the CNP.

Fresh fruit production also reflects the improvement. In 2007 the country harvested 825,000 tons and in 2011 the total volume amounted to 1,050,000 tons.

Traditionally, oil palm plantations were located in the central Pacific (cantons of Parrita and Aguirre) and the southern region (cantons Brokers, Osa and Golfito).

The new expansion has already hit many areas in the Caribbean coast, where processing plants have also installed.

Alvarez explained that in Costa Rica the planting grows because changed farming land, rice and even coffee per tree.

Coopeagropal has a total of 623 members, almost all of them with small plantations in the south.

Link to Original Article:

From Nacion

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