Dear Friends,

Many of us are coming to the realization that collectively we are entering some seriously challenging times.  We are seeing tectonic changes at a global level and these are having profound repercussions on our industry.  The stability and predictability of inputs we’ve long taken for granted are now uncertain.  Let’s take but a few examples…

The dollar to euro exchange rate. 

Since its introduction the euro has had superior in value to the dollar.   $1.25… $1.15… $1.10.  $100 worth of pupae that once cost an exhibitor 86 euros now costs 100 euros now with the exchange at parity.  Where will the euro go in the times to come?  The fact is, dollar-priced pupae are increasingly expensive in Europe.  

The dollar to colon exchange rate.

CRES’ decades-long policy has been to base the prices paid to the breeders on the dollar.  Pupae are paid to the breeder in colones at the exchange rate of the day.  As the dollar appreciated over the years, from C500/$1 to C690 at the beginning of this year, the breeders benefitted.  CRES earns its income in dollars, so why shouldn’t the breeders?  This year, however, in the past eleven months, the dollar has fallen from C690 to today’s rate of C592.  Breeders that once received C69,000 for $100 worth of pupae, now receive C59,200. 

Then there’s inflation.

There’s the official rate we learn of through the media.  Concurrently, there is the real inflation rate that we all experience in our daily lives.  Depending on where one lives,  one might be told that inflation is running at 7% or 9%.  It’s highly unlikely the officially pronounced rates are true as there are vested interests that want us to believe it’s so.  By using the same metric that were used in the 1970’s, we might find that the rising cost of living in many countries approaches 20%.

Then there’s the cost of fuel.

Our industry is reliant on energy – the diesel that powers the vehicles, jet fuel for the planes, natural gas that heats our exhibits and offices.  Blame who you will for the situation we find ourselves, we are in an unprecedented situation whose repercussions may not be fully appreciated still by all.

We won’t belabor these observations.  Opinions and personal experiences will vary.  Nevertheless, we would like to share with you how CRES has decided to adjust – insofar as it can – to the 2023 season.

• Starting 1 January, all of CRES’ pupae will experience a $0.05 increase.  This increase, about 2%, is exceedingly modest given what we’ve shared above.  At the same time, we realize that everyone is struggling, and we don’t want to compound the pain more than we absolutely must.
• The entirety of this $0.05 price increase will be passed on to the breeders with each pupae purchase.  CRES will retain none of this adjustment.
• Additionally, CRES will match your $0.05 increase paid to the breeders with $0.05 of its own.  Thereby the breeders will be receiving not $0.05 but rather $0.10 more per pupa. 

Shipping costs are likely to experience further adjustments at random moments this coming year.  CRES cannot guarantee the shipping costs for any period of time.  We reserve the right to change the shipping costs as they are imposed on us.  Of course, we will inform you of these changes as they arise.

We hope that you understand CRES’ predicament, as we appreciate yours, in our search for compromise positions that satisfy no one.

With best regards, as ever,

Sergio Siles