Precision agriculture: Big data solutions
Precision agriculture: Big data solutions
Business Model Description
A disaggregated business model with emphasis on infrastructure and process management to improve the efficiency and competitiveness of the producer.
Expected Impact
Help implement sustainable practices to cope with adverse environmental effects while improving land productivity.
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: Guápiles
- Costa Rica: Guápiles
Sector Classification
Food and Beverage
Development need
Address 119.96 square km of priority cropland for decarbonization. Improve the productivity of the agricultural subcluster.
Policy Priority
Promote a resilient system with the potential to adapt to climate change.
Gender inequalities and marginalization issues
High percentages of unemployed working age women (5.17 potential gender index).
Investment opportunities introduction
The subclusters of this pole are expected to be enhanced by the TELCA corridor.
Key bottlenecks introduction
108.26 km of roads in poor condition, 274.85 square km with access problems to energy substations, 141.62 square km without 4G connectivity, 238.74 km with gaps in social development.
Technology
Development need
Make use of R&D to transform the agricultural sector, improving productivity in a sustainable way.
Policy Priority
Make use of the knowledge-based economy to mitigate and improve soil management.
Gender inequalities and marginalization issues
Promote R&D&I activities that improve the competitiveness of agricultural women's production activities.
Investment opportunities introduction
pineapple, banana, cassava, papaya.
Key bottlenecks introduction
Reduced diversification of production and lack of value-added. Low capital investment (public and private).
Professional and Commercial Services
Pipeline Opportunity
Precision agriculture: Big data solutions
A disaggregated business model with emphasis on infrastructure and process management to improve the efficiency and competitiveness of the producer.
Business Case
Market Size and Environment
USD 1 million in cumulative exports of Pineapple, Banana, Cassava and Papaya in 2021 (6).
Exports grew 12.85% (Pineapple), 3.77% (Banana), 13.45% (Cassava), 35.62% (Papaya) (6, 7, 12, 19).
3 million pineapple tons produced in 2014, 2.2 million banana tons in 2019 (7, 12, 17).
Pineapple corresponds to one of the three main export products of Costa Rica to 2019 (18).
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 (7, 12).
The cassava crop is one of the main crops that has been developed worldwide as a substitute for human food due to the increase in prices of crops such as wheat and corn (primary sources for the development of cereals). In Costa Rica, cassava has both national (CENADA) and international (USA) markets (10).
Pococí papaya accounts for more than 90% of Costa Rican production and is the first Costa Rican papaya that has been exported (16).
Indicative Return
77.4%, 15%, and 100% yield per ha of Pineapple, Cassava, and Papaya (16).
The use of technology can reduce costs by 17% and increase working capacity by 23%.
The benefits of adopting precision agriculture will vary from one agricultural enterprise to another. Each company must evaluate the benefits of the PA in the medium term when reducing input requirements and improving its productivity (fertilizers, plant protection products, seeds) (13).
Short-term profitability is higher in higher value-added crops than in crops with little processing, and it is greater the more factors of production we can control with variable dosing techniques (15).
Investment Timeframe
Short Term (0–5 years)
Each pineapple cycle, between planting and harvesting, can last from 16 to 18 months.
Each banana phenological cycle lasts an average of 404 days.
Each cassava cycle has a duration of 10 to 14 months.
Each papaya harvest cycle can take from 8 to 20 months.
Ticket Size
The cost ranges from USD 3.57-17.85 per ha, adding USD 47.6 per ha for more advanced solutions (13). Small-scale implementation is possible with low costs (free software) (13). A large-scale implementation may require an initial investment of USD 10,000.
Market Risks & Scale Obstacles
Business - Supply Chain Constraints
Specialized training
Impact Case
Sustainable Development Need
Address 119.96 square kilometers of priority cropland for decarbonization in this development stage.
Gender & Marginalisation
To revitalize the agriculture practiced by the women of this area to become a source of income, using low-cost or free technology on small production scales.
Expected Development Outcome
Increase the Social Development Index (SDI) in this development pole.
Gender & Marginalisation
Decrease the gaps in the Potential Gender Index in this development pole.
Primary SDGs addressed
15.3.1 Proportion of land that is degraded over total land area
Carbon emissions from pole exports: 3.48%.
By 2050, promote 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
Gender inequality and/or marginalization
Planet
Corporates
Outcome Risks
Overexploitation of soils due to increasing yields per hectare.
Less labor hours per hectare could reduce labor requirements.
Impact Risks
Guarantee continuous follow-up and training for the producer so that they complete the process successfully and do not give up.
Impact Classification
What
Increased yields and agricultural productivity.
Who
Small farmers and exporters.
Risk
Fear of change with new technologies due to lack of knowledge.
Impact Thesis
Help implement sustainable practices to cope with adverse environmental effects while improving land productivity.
Enabling Environment
Policy Environment
Territorial Economic Strategy for an Inclusive and Decarbonized Economy 2020-2050 in Costa Rica: Transforming agriculture through R&D towards technological innovations (1).
National Decarbonization Plan 2018-2050: Promote efficient agro-food systems that generate low-carbon goods for export and local consumption (2).
Strategic interventions plan 2019-2022: Boosting sustainable and competitive production through innovation, access to technology, implementation of good production and manufacturing practices, value addition, and associativity (10).
PIEG: Land tenure and private property for women are fundamental factors in the fair and equitable distribution of wealth (3).
Financial Environment
Financial incentives: Of the funds placed by the Development Banking System in 2019, 45.09% went to agricultural activities. Additionally, it placed ₡719.6 current million (USD 1,390 million) in the Rural Credit System (8).
Fiscal incentives: Law 7210, Free Trade Zone Regime Law; Law 7092, Income Tax Law, which gives differential treatment to MSMEs and SMEs.
Other incentives: AGRINNOVACION 4.0 seeks to improve agricultural productivity and sustainability through human capital formation, applied research, technology transfer, and specialized support.
Regulatory Environment
Law 7779, Soil Use, Management, and Conservation Law: Promote the implementation and control of improved practices in use systems that prevent erosion or other forms of soil resource degradation (4).
Law 7064, Law for the Promotion of Agricultural Production and MAG: promote the production of agricultural goods by a stimulus to producers to increase production (5).
Export Guide: Exporting a product or service involves a series of procedures such as exporter registration, technical notes or exit permits, certification of origin (11).
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).
Target Locations
Costa Rica: Guápiles
Costa Rica: Guápiles
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) BCCR (2021) Exportaciones FOB Totales por Producto. Matriz de datos.
- (7) INEC (2019) Encuesta Nacional Agropecuaria 2019.
- (8) SEPSA (2019) Comportamiento de la cartera de crédito para actividades agropecuarias.
- (9) MAG (2015) Plan Regional de Desarrollo Agropecuario y Rural 2015-2018, Región Huetar Caribe.
- (10) MAG (2018) Plan de intervenciones estratégicas 2019-2022.
- (11) PROCOMER (2021) Guía de exportación. Trámites y requisitos.
- (12) INEC (2015) VI Censo Nacional Agropecuario RESULTADOS GENERALES
- (13) Satorra, J (2018) ¿Es rentable la Agricultura de Precisión? New Ag International
- (14) IDAE (2010) Ahorro y eficiencia energética en la agricultura de precisión. Gobierno de España.
- (15) Valero, U (2016) Agricultura de precisión: conceptos y situación actual. Universidad Politécnica de Madrid
- (16) UCR (2019) Papaya Pococí: un fruto perfecto de la innovación científica UCR-INTA. Comunicado de prensa.
- (17) Morales, L (2018) Producción y rendimiento del cultivo de la piña (ananas comosus) en Costa Rica, periodo 1984-2014. Revista Agronegocios, 4(2). TEC
- (18) COMEX. Exportaciones totales 2007-2021. Esportaciones de Bienes Cifras Globales.
- (19) SNITTA (2022). Visor de datos estadísticos. Uso y Cobertura del Suelo.