Farming of aquatic organisms in coastal areas
Farming of aquatic organisms in coastal areas
Business Model Description
Businesses that use novel and eco-friendly processing technologies that extend the shelf-life of seafood products, that do not rely on additives or heat treatment, and recirculate aquaculture systems, to reduce food loss, ensure food security for future consumer sand waste from farm-to-fork.
Expected Impact
Generate a strong economic boost in coastal areas by optimizing marine resource management and modernizing the aquaculture model.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Costa Rica: Gulf of Nicoya
Sector Classification
Food and Beverage
Development need
Sustainable aquaculture produces less waste and lower carbon-nitrogen footprints than the agriculture production sector. So there is a need for sustainable development in aquaculture, which has the potential to address the challenges aquaculture facing today. The Gulf of Nicoya can become a coastal center and primary nautical stairway for the country's blue economy.
Policy Priority
Promote a resilient system with potential for adaptation to climate change.
Gender inequalities and marginalization issues
The prioritized region has a high percentage of unemployed women of working age and a high gender inequality index (0.43).
Investment opportunities introduction
The "Sustainable Development Program for Fisheries and Aquaculture in Costa Rica", supported ny the World Bank, will generate a strong economic boost in a sustainable manner in coastal areas by optimizing marine resource management and modernizing the fishing and aquaculture model.
Key bottlenecks introduction
174.94 km of roads in poor condition, 183.31 square km with access problems to energy substations, 206.74 square km without 4G connectivity, 85.17 km with gaps in social development.
Food and Agriculture
Development need
Costa Rica has a marine area that is 10 times larger than its territory, 92% is sea. Sustainable aquaculture growth is key to easing pressure on wild fish stocks, which are globally under stress as a result of overfishing.
Policy Priority
Healthy oceans are also part of the national agenda related to the National Decarbonization Plan, where we will become an economy independent of fossil fuels, contributing to climate change mitigation and adaptation and strengthening food security.
Gender inequalities and marginalization issues
Women are encouraged to own and manage their farms to improve the income and nutrition of their families.
Investment opportunities introduction
The World Bank approved a loan for 75.1 million dollars to support the sustainable management of the fishing sector in Costa Rica
Key bottlenecks introduction
Limited production volumes to export and achieve economies of scale and lack of technology adoption to achieve product quality and process productivity
Agricultural Products
Pipeline Opportunity
Farming of aquatic organisms in coastal areas
Businesses that use novel and eco-friendly processing technologies that extend the shelf-life of seafood products, that do not rely on additives or heat treatment, and recirculate aquaculture systems, to reduce food loss, ensure food security for future consumer sand waste from farm-to-fork.
Business Case
Market Size and Environment
USD 100 million - USD 1 billion
The potential for oyster farming in the country is widely known, and it is expected that the number of farms dedicated to oyster aquaculture will double or triple (7).
Despite the country's marine resources and increased global demand, fisheries and aquaculture production, estimated at USD 113 million in 2018, represents a small and declining part of the Costa Rican economy — about 0.3% of its total GDP.
Indicative Return
> 25%
For an 8-pond project with a production of 8,664 kg per cycle, the IRR can be 30% (6)
Investment Timeframe
Short Term (0–5 years)
An initial investment of USD 185,000 is required to achieve a production capacity of approximately 10,500 kg of oysters per yea. However, the initial investment is significantly reduced as long as infrastructure and R&D alliances with public universities and other institutions are promoted.
Ticket Size
USD 1 million - USD 10 million
Market Risks & Scale Obstacles
Strategy
Training
Capital - Requires Subsidy
Market - Highly Regulated
Impact Case
Sustainable Development Need
Consolidate the Gulf of Nicoya as a coastal center and primary nautical stairway for the country's blue economy.
Gender & Marginalisation
Despite their participation in aquaculture, less than 6% of women own a fish farm. Encourage women to own and manage their farms to improve the income and nutrition of their families.
Expected Development Outcome
Generate an economic boost to coastal areas, optimize the management of marine resources and modernize the fishing and aquaculture model. To increase the Social Development Index (SDI) in this development pole.
Gender & Marginalisation
To decrease the gaps in Gender equality by encouraging women to be owners and decision-makers in the farms they work at.
Primary SDGs addressed
14.7.1 Sustainable fisheries as a proportion of GDP in small island developing states, least developed countries, and all countries. In particular, the proposed aquaculture is terrestrial and therefore conserves the marine biodiversity of the Gulf.
By 2022, the economic activity "Agriculture, forestry, and fishing" is projected to contribute 1.7 trillion colones to Costa Rica's GDP and increase at a rate of 2.3% (16).
By 2050, foster highly efficient agri-food systems that generate low-carbon goods for export and local consumption.
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Indirectly impacted stakeholders
People
Planet
Corporates
Outcome Risks
Not being able to guarantee a stable and continuous production flow due to a lack of alliances and linkages.
Overexploitation of the sea if compliance with recommended environmental limits is not guaranteed.
Impact Risks
Guarantee alliance and advice with the Marine Mollusks Station of the UNA, MAG, INAMU, and others.
Impact Classification
What
Sustainable aquaculture to take advantage of human capital with the willingness to engage in fishing activities
Who
Local fishers and exporters that benefit from higher prices and a smaller risk of contracting diseases.
Risk
Loss of harvest and potential consumer poisoning.
Impact Thesis
Generate a strong economic boost in coastal areas by optimizing marine resource management and modernizing the aquaculture model.
Enabling Environment
Policy Environment
Territorial Economic Strategy for an Inclusive and Decarbonized Economy 2020-2050 in Costa Rica: Consolidate a coastal center with blue economy opportunities in the Osa Peninsula.
National Decarbonization Plan 2018-2050: Promoting efficient agri-food systems that generate low-carbon export goods and local consumption.
Financial Environment
Financial incentives: Of the funds placed by the Development Banking System in 2019, 45.09% went to agricultural activities.
Fiscal incentives: Income tax law that gives differentiated treatment (reduced income tax) for those MSMEs and SMEs working in agroindustrial and aquacultural activities.
Other incentives: Costa Rica has the largest oyster purification plant in Central America. In addition, there is a project to promote aquaculture and a source of employment for women in the Gulf of Nicoya, with MTSS, IMAS, INA, INCOPESCA, SENASA, and the UNA (7).
Regulatory Environment
Law 8436, Fishing and Aquaculture Law: To promote and regulate fishing and aquaculture activities in the different stages of capture, extraction, processing, transportation, commercialization, and sustainable use of aquatic species.
SENASA / INCOPESCA: Temporary bans on the extraction and marketing bivalve mollusks (mussels, clams, oysters, etc.), both farmed and wild.
Local and international certifications: Certficado de Buenas Prácticas de Uso de Medicamentos Veterinarios (SENASA) regulates the use of marine ingredients in medicine (9).
Marketplace Participants
Private Sector
Parque Marino del Pacífico, Grupo Acuacorporación Internacional S.A., PMP Foundation, COOPE ISLA CHIRA R.L., COOPEACUICULTORES R.L. de Isla Venado, Fishermen's Association of Santa Elena, Paquera Aquaculture Association, MARTEC.
Government
ECMAR-UNA, UTN, Núcleo Náutico Pesquero del INA; INCOPESCA; Programa Nacional de Acuícultura de SENASA -MAG, INAMU.
Target Locations
Costa Rica: Gulf of Nicoya
References
- (1) MIDEPLAN (2021) Estrategia Económica Territorial para una Economía Inclusiva y Descarbonizada 2020-2050 en Costa Rica
- (2) Gobierno de Costa Rica (2018) Plan Nacional de Descarbonización 2018-2050.
- (3) Asamblea de Costa Rica (2005) Ley de Pesca y Acuicultura, Nº 8436.
- (4) INEC (2015) VI Censo Nacional Agropecuario. CARACTERÍSTICAS DE LAS FINCAS Y DE LAS PERSONAS PRODUCTORAS.
- (5) MEIC (2016) Diagnóstico sobre el mercado de la carne de pescado en Costa Rica
- (6) CEDEÑO (2007) Estudio de factibilidad financiero e investigación de mercado de un proyecto de tilapias para establecer en la zona de Turrialba. Universidad de Costa Rica
- (7) Presidencia (2021) TRES PROYECTOS DE ACUICULTURA Y TURISMO GENERAN EMPLEO A 32 MUJERES EN EL GOLFO DE NICOYA. Comunicado oficial.
- (8) SEPSA (2019) Informe de Gestión del Sector Agropecuario, Pesquero y Rural Mayo 2018 – Abril 2019
- (9) SENASA (2019) Dos granjas de acuicultura reciben certificacion en buenas practicas en el uso de medicamentos-veterinarios
- (10) Valverde y Alfaro (2014) Productividad y rentabilidad del cultivo de camarones marinos en el Golfo de Nicoya, Costa Rica. Revista Ciencias Marinas y Costeras.
- (11) FAO (2016) Costa Rica iniciará el proceso para ordenar, fortalecer y dar sostenibilidad a su acuicultura. Comunicado oficial.
- (12) OCDE (2019) Resultados y recomendaciones clave de la evaluación de las políticas de la pesca y acuicultura en Costa Rica por el Comité de Pesca de la OCDE.
- (13) OPESCA (2009). Diagnóstico del cultivo y extracción de moluscos en Centroamérica. Informe regional.
- (14) FUNDAME (2018). La Empresa Ostricola: Sistema Productivo Y Rentabilidad. Capítulo 6.La ostricultura.
- (15) INCOPESCA (2019). PLAN ESTRATÉGICO DE LA ACUICULTURA INCOPESCA 2019-2023.
- (16) BCCR (2021). Exportaciones FOB Totales por Producto. Matriz de datos.