Green biotechnology with ornamental plants, cocoa and spices
Green biotechnology with ornamental plants, cocoa and spices
Business Model Description
Open business model that creates and captures value through systematic collaboration with external partners (public universities, INTA, etc.).
Expected Impact
Promote economic activities that use green biotechnology, and increase the productivity of women-owned farms.
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: Cahuita
- Costa Rica: Cahuita
Sector Classification
Food and Beverage
Development need
Build this pole into the largest port complex in Central America.
Policy Priority
Promote a resilient system with potential to adapt to climate change.
Gender inequalities and marginalization issues
The pole has an average percentage of unemployed women of working age (4.2 potential gender index).
Investment opportunities introduction
Main port of the country (Limón-Moín) and Brunca-Caribbean corridor. It is expected that the cluster will be strengthened with the implementation of the TELCA corridor.
Key bottlenecks introduction
125.94 km of roads in poor condition, 208.44. km with access problems to energy substations, 409.96 km without 4G connectivity, 506.48 km with gaps in social development.
Food and Agriculture
Development need
Contribute from a low-emission agricultural sector to the transition to a bio-economy based, among other things, on direct use and sustainable transformation of biological resources, including biomass residues generated in agricultural and agro-industrial processes.
Policy Priority
Green biotechnology contributes to mitigating climate change by generating more environmentally sustainable production inputs.
Gender inequalities and marginalization issues
The biotechnology industry, in general, tends to employ a high percentage of women.
Investment opportunities introduction
Cocoa, ornamental plants, and spices (such as pepper).
Key bottlenecks introduction
High costs of in-house laboratories.
Biotechnology and Pharmaceuticals
Pipeline Opportunity
Green biotechnology with ornamental plants, cocoa and spices
Open business model that creates and captures value through systematic collaboration with external partners (public universities, INTA, etc.).
Business Case
Market Size and Environment
In 2017 the supply of ornamental plants (flowers and foliages) at buyer prices was USD 69 million (8).
Exports of ornamental plants increased by 12% in 2015 (25). In 2021 exports increased 31% (2).
In 2021 revenues increased from USD 56.6-75.5 million, with 2020 (2).
Like national production, the Northern Huetar Region has shown accelerated growth in the export of non-traditional products, in which ornamental plants (mainly marginatas, aralias, and pleomelle) stand out (7).
As of 2016, international cocoa bean prices exceeded USD 3,000 per ton, and world production was 4.5 million tons (20).
Costa Rican pepper has great potential because it has a value greater than 7% piperine, while in other countries such as India they range from 3 to 6% (22). The main production areas are located in Atlantic Zone, in the Northern Zone, and in the South Pacific (5).
As of 2019, 98.4% of total production was for sale. The main destination of production is directly abroad, representing 98.9% of the total sold. (9, 11).
Vanilla is a species of high economic importance due to its commercial value. Therefore, vanilla producers are interested in improving the techniques of growth and propagation of these orchids, to obtain the highest possible yield (17).
Indicative Return
For green pepper, the average expected yield is 7.8 t/ha, and in vanilla is 1.2 t/ha max.
There is a huge potential market to tap into biocontrols: In 2016 Costa Rica imported USD 2.7 million in biocontrols. Although 92% of companies indicated that they are interested in acquiring biocontrollers produced in the country, the local supply is limited (25). Because of their low cost, bioferments are an alternative option to reduce external inputs and production costs (7).
Investment Timeframe
Medium Term (5–10 years)
Ornamental plants: Varies according to the species.
Cocoa fruit production begins at 2-4 years. Yield increases every year until 8 to 10 years, stabilizes between 11-15 years, and is maintained from 16 to 30-35 years (27).
The most important harvests of black pepper are harvested between the third and seventh years of age, and the productive life can last from fifteen to twenty years (4, 5).
Each banana phenological cycle lasts an average of 404 days.
Vanilla: Growth occurs during the first two years, flowering occurs in the third year, and from this moment on, the plant produces fruit annually.
Ticket Size
The cost of using green biotechnology depends on the input to be used, the species to be treated, the volume of the crop, and the environmental conditions.
Market Risks & Scale Obstacles
Business - Supply Chain Constraints
Distrust
Market - High Level of Competition
Capital - Requires Subsidy
Market - Highly Regulated
Impact Case
Sustainable Development Need
Constitute this pole in the port complex with the broadest scope of all Central America.
Gender & Marginalisation
Promote the sustainable increase in productivity of women-owned farms.
Expected Development Outcome
To increase the Social Development Index (SDI) in this development pole.
Gender & Marginalisation
To decrease the gaps in the Potential Gender Index in this development pole.
Primary SDGs addressed
2.5.1 Number of plant and animal genetic resources for food and agriculture secured in either medium- or long-term conservation facilities
Carbon emissions from pole exports: 1.64%.
By 2050, foster highly efficient agri-food systems that generate low-carbon goods for export and local consumption.
15.3.1 Proportion of land that is degraded over total land area
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Indirectly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Outcome Risks
Overexploitation of soils by increasing yields per hectare.
The reduced need for labor hours per hectare could reduce labor requirements.
Genetic manipulation of species carries risks of impact on native biodiversity that must be considered in each case.
Impact Risks
Ensure continuous follow-up and training for producers to complete the process successfully and do not give up.
Impact Classification
What
Increased agricultural productivity.
Who
Small farmers and exporters.
Risk
Fear of change with new technologies due to lack of knowledge.
Impact Thesis
Promote economic activities that use green biotechnology, and increase the productivity of women-owned farms.
Enabling Environment
Policy Environment
Territorial Economic Strategy for an Inclusive and Decarbonized Economy 2020-2050 in Costa Rica: Transforming agriculture through R&D&I towards technological innovations (1).
National Decarbonization Plan 2018-2050: Promoting efficient agri-food systems that generate low-carbon goods for export and local low-carbon consumption.
Strategic interventions plan 2019-2022: Promote sustainable and competitive production through innovation, access to technology, application of good production and manufacturing practices, value addition, and associativity (5).
PIEG: Women's land tenure and private property are fundamental factors in the fair and equitable distribution of wealth (3).
National Bioeconomy Strategy Costa Rica 2020-2030: Attract foreign investment in the green (agricultural), blue (aquatic resources), gray (bioremediation), and white (industrial) biotechnology sectors.
Financial Environment
Of the funds placed by the Development Banking System in 2019, 45.09% went to agricultural activities. In turn, in the Rural Credit System -INDER- placed ₡719.6 million current (USD 1.4 million) (10).
Law 7210, Free Trade Zone Regime Law; Law 7092, Income Tax Law, which gives differentiated treatment to MSMEs and SMEs.
Other incentives: Multiple projects and academic research units at CATIE, public universities, EARTH University, and INTA working in agricultural extension with local producers for technology transfer.
Regulatory Environment
Law 7779, Soil Use, Management, and Conservation Law: To promote the implementation and control of improved practices in the use of systems that avoid erosion or other forms of soil resource degradation.
Law 7064, Law for the Promotion of Agricultural Production and MAG: Promote the production of agricultural goods by encouraging producers to increase production.
Law 7778, Biodiversity Law: Authorization for basic bioprospecting research, obtaining or commercialization of genetic materials or biochemical extracts of biodiversity elements, as well as their associated knowledge to persons or institutions, national or foreign.
Law 7664, Phytosanitary Protection Law: regulating the import, export, research, experimentation, mobilization, multiplication, industrial production, commercialization, and use of transgenic materials and other genetically modified organisms for agricultural use or their products.
Executive Decree N°37561MAG-MEICCOMEXRTCA65.05.61:11.Microbiological pesticides for agricultural use.Requirements for registration, in force since June 2013.
Marketplace Participants
Private Sector
EARTH University, Indigo Drones Company, CORBANA, National Union of Cooperatives of the Atlantic Zone S.A.
Government
School of Agricultural Engineering of the Technological Institute of Costa Rica (TEC), Ministry of Agriculture and Livestock (MAG), National Biotechnology Program of SENASA, National Commission for Biodiversity Management (CONAGEBIO).
Target Locations
Costa Rica: Cahuita
Costa Rica: Cahuita
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) INAMU (2018) Política Nacional para la Igualdad Efectiva entre Mujeres y Hombres 2018-2030, PIEG
- (4) Asamblea de Costa Rica (1998) Ley 7779, Ley de Uso, Manejo y Conservación de Suelos.
- (5) Asamblea de Costa Rica (1997) Ley 7064, Ley de Fomento a la Producción Agropecuaria y MAG
- (6) PROCOMER (2017) OFERTA DE BIOCONTROLADORES DE ORIGEN COSTARRICENSE. Como insumo para la producción agrícola.
- (7) MAG (2017) Guía técnica para la producción agropecuaria sostenibe en fincas integrales.
- (8) BCCR (2021) Exportaciones FOB Totales por Producto. Matriz de datos.
- (9) INEC (2019) Encuesta Nacional Agropecuaria 2019.
- (10) SEPSA (2019) Comportamiento de la cartera de crédito para actividades agropecuarias.
- (11) INEC (2015) VI Censo Nacional Agropecuario RESULTADOS GENERALES
- (12) Asamblea de Costa Rica (1998). Ley 7779, Ley de Uso, Manejo y Conservación de Suelos.
- (13) Asamblea de Cpsta Ric (1997). Ley 7064
- (14) Ley de fomento a la Producción Agropecuaria
- (15) MAG (2008) Programa Regional de Producción de Alimentos para los ciclos 2008-09 al 2010-2011. Sector Agropecuario de la Región Brunca
- (16) Morales, L (2018) Producción y rendimiento del cultivo de la piña (ananas comosus) en Costa Rica, periodo 1984-2014. Revista Agronegocios, 4(2). TEC
- (17) Vargas (2018). Los secretos de la vainilla. UNED
- (18) Barrera et al (2009). CARACTERIZACIÓN DE LOS SISTEMAS DE PRODUCCIÓN DE VAINILLA (Vanilla planifolia A.) BAJO NARANJO Y EN MALLA SOMBRA EN EL TOTONACAPAN.
- (19) Chacon (2019). SITUACION ACTUAL DEL CULTIVO DE CACAO EN COSTA RICA. Oficina Nacional de Semillas.
- (20) PROCOMER (2016) Guía del sector de ciencias de la vida. Esencial Costa Rica
- (21) MAG (1991). Pimienta. Dirección General de Investigación y Extensión Agrícola
- (22) Gonzalez (2017). Efecto de tratamientos biológicos sobre pimienta. UCR.
- (23) FAO (2021). FAOSTAT. Crops and livestock products. Costa Rica.
- (24) Morales, L (2018). Producción y rendimiento del cultivo de la piña (ananas comosus) en Costa Rica, periodo 1984-2014. Revista Agronegocios, 4(2). TEC
- (25) PROCOMER (2016). Guía del sector de ciencias de la vida. Esencial Costa Rica
- (26) Monge et al (2013). Factibilidad de la producción depimienta (Piper nigrum) en La Virgende Sarapiqui, Heredia, Costa Rica. TEC.
- (27) CATIE (2021). Unidad Bioestadística. Matriz de Datos.