A new study published by the Commission to Promote Competition (COPROCOM) reveals that the price Costa Ricans pay for sugar and its by-products is up to 50% higher than international market prices. The research, conducted by Fernanda Viecens, a consultant for the Inter-American Development Bank (IDB), is part of the changes Costa Rica must implement after joining the Organization for Economic Cooperation and Development (OECD). The study highlights that the current structure of sugar production in Costa Rica, entirely controlled by the Sugar Cane Agricultural Industrial League ( ), is the primary cause of these elevated prices.
LAICA is a non-state public entity that oversees the entire sugar production, distribution, and commercialization chain in Costa Rica. “Since there are no competitors and entry is restricted by barriers, the power to counteract LAICA’s actions is almost nil. Additionally, competitors wouldn’t have access to input sources (cane) outside of LAICA’s scheme,” the study notes.
The investigation concludes that LAICA’s structure inevitably leads to higher prices for consumers of sugar and all sugarcane products. The study also mentions that LAICA’s role in the process is unique to Costa Rica and is not seen in other countries. LAICA sets the “quotas” for sugar mills, determining how much each mill will process.
They also establish prices, influenced by the international market. Furthermore, sugarcane producers in Costa Rica are required to b.