Implementing Food Market Reform Programs In Costa Rica: The Cenada Project

The purpose of this paper is to assess the potential effects of CENADA on the present market system and to elaborate on the implementation problems that may be encountered. Because of the author's expected involvement in the implementation of this project and other market reforms, this paper is also intended as a means to provide an adequate working knowledge and familiarity with the field. Bearing this is in mind the following specific objectives are addressed in this paper: 1) To conceptualize the potential contributions of the CENADA project to the modernization of the fruit and vegetable marketing system in Costa Rica; 2) To study the problems encountered in the implementation of similar wholesale market projects in selected Latin American market centers; 3) To formulate the basis for a monitoring system of CENADA's operation and policies; and 4) To suggest specific areas where further studies may aid the implementation of CENADA and other complementary programs. The paper is organized into five chapters elaborating on the above stated objectives. Chapter II will review the current situation and summarize the main components of the CENADA project. Chapter III provides some insights into the problems that have arisen in the implementation of similar projects in selected cities of Colombia, Brazil and Argentina. Emphasis is placed on the reactions of the farmer, retailer and wholesaler to the changes being introduced. The potential implication that these Latin American experiences may have in Costa Rica is then discussed. The last two chapters emphasize the need to regulate CENADA's future operation, its impact on the food system and its potential problems and limitations. Since the project is still in the construction stage, this research paper is based on information gathered from secondary sources and the review of literature related to the problem. The fresh food marketing system lies within one of the most complex environments of the economy. This paper is far from exhaustive in the consideration of the variables involved. Hopefully the effort would be a positive working tool for the identification of future trends and problems in this area.