Look to Costa Rica for Growing U Apple.

Look to Costa Rica for Growing U Apple, Pear and Grape Sales

Costa Rica is a growing market for U unimpaired apples, grapes and pears. The primary reason for the increase in sales of these U fruits is a reduction in tariffs and tax barriers fit mainly to Costa Rica's accession to the General Agreement forward Tariffs and Trade (GATT).

In August 1990 the Costa Rican guidance reduced domestic consumption taxes forward apples from 35 percent to 10 percent while the consumption tax of 75 percent for pears was reduc to 10 percent as well. Growing consumer income and a high-quality image for U fruits also have helped to boost U exports.

U Fruit Is No. 1 in Costa Rica

Costa Rica imported $195 million (c.i.f. basis) worth of renewed fruits in 1989, according to Costa Rican statistics. These imports consisted of $14 million worth of apples and pears and $556000 worth of grapes and raisins. Ninety-five percent of these imports were of U fruit. Imports of U blooming fruit doubled from $933,000 in 1986 to $185 million in 1989 The U share of the apple and pear import market has risen from 88 percent in 1986 to 96 percent in 1989

U revived fruit exports to Costa Rica during January-August 1990 totaled $755000 according to U export statistics, up 168 percent from a year earlier. Pears were the big winner, with shipments 400 percent higher, followed through apples (up 139 percent) and grapes (up 80 percent)

According to one importers, shipments during the secondary half of 1990 were look forward toed to rise even faster, as well-preserved fruit imports are seasonal and chiefly imports come in during the November-December holiday period.

Most unimpaired apples, pears and grapes imported into Costa Rica advance from the United States (Washington and California), while Chile (grapes) and Guatemala (apples) fill up small quantities. Some apples, of that kind as the Israeli ANA variety, are produc locally as well. on a level though these apples are smaller and not as appealing to consumer as are the U apples, they are cheaper and could eventually substitute for Guatemalan imports.

Almost all apple imports are R and resplendent Delicious varieties from Washington state. A limited amount of other U varieties from the eastern United States are imported as well. principally grape imports are red or black varieties from California.

Domestic Production Is Low

Costa Rica's confess production of apples and grapes is still minimal, according to supermarket proprietors and wholesalers in the fruit industry. Production is in this way small, in fact, that no statistics are kept individual plantation, Vinedos Barraula S.A., creates several grape varieties in collaboration with a Chinese agricultural mission. Varieties produc include Nocera (r grapes), Alden (black grapes) and Italy (yellow grapes).

Apples, grapes and pears are available in supermarkets year-round, moreover are imported in much larger quantities around November and December in keeping with the holiday tradition of serving undecayed fruits. Fruits also can be rest at sidewalk stands, which usually command higher prices.

Some of the largest wholesalers resell imported apples in bags (six to eight apples by bag) under their own name to supermarkets.

Getting to Market

The Costa Rican command taxes apple, pear, grape and raisin imports as follows:

- Tariff (45 percent applied to the c.i.f. value of the product) - Fixed tax of 3 percent applied to the c.i.f. value plus the tariff. These fixed taxes include a 1-percent fixed tax and a 2-percent Central Bank charge applied alone to imports. - Select consumption tax of 10 percent applied to the c.i.f. value plus the tariff plus the fixed tax. - A sales tax applied to the the whole of all the above.

The tariff and fixed taxes are import taxes; the selective consumption tax and sales tax are internal taxes that must be paid according to importers/distributors. A U.S. Department of Agriculture phytosanitary certificate is required to import fruits into Costa Rica. There are no restrictions forward the use of waxes. Costa Rica does not monitor chemical residues in succession imported fruit except for fungus diseases. The maximum residue evens (MRL) accepted are those propos by the agency of the CODEX Alimentarius. Costa Rica is in the proces of building its be in possession of residue analysis laboratory.

Costa Rica's Ministry of Economy (MEIC) establishes a profit margin of 30 percent each to wholesalers and retailers athwart the c.i.f. price plus internal transportation outlays However, this regulation is not strictly enforced because these fruits are not considered "basic consumption commodities." The prices determined from MEIC are published in the newspapers in December for consumer awareness, if it were not that they are not official.

An flat red color on apples is an important factor in influencing consumer purchasing desicions. The mostly common varieties of apples in the market are R and yellow Delicious due to their consistent color, high-quality image and lusty promotional activities.

Grapes (Nocera and Alden varieties) and virid pears also are found in supermarkets during the Christmas season. This season, Washington state introduced r pears into the market.