Production of by-products of the Paraguayan coconut or mbocayá
Production of by-products of the Paraguayan coconut or mbocayá
Business Model Description
Invest in the production of Paraguayan or mbocayá coconut by-products for national demand or export from:> Reforested plantations of mbocayá> Purchase of mbocayá from small producers and / or indigenous people By-products can include: biomass, oils, food for human consumption, animal feed, cosmetics, soaps, organic fertilizers, factory fuels, sanitary products
Expected Impact
Increasing the use of sustainably sourced inputs, benefiting the environment and indigenous people in the production chain
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
- Paraguay: Paraguarí
- Paraguay: Itapúa
- Paraguay: El Chaco
Sector Classification
Renewable Resources and Alternative Energy
Development need
58% of the electricity supply corresponds to hydroelectricity and 27% to biomass (firewood, charcoal, and vegetable residues). The remaining 15% are imported hydrocarbons because there is no oil or natural gas production in the country (I).
Policy priority
The Ministry of Public Works and Communications has developed an Energy Policy with a vision of "Meeting the energy needs of the population and all productive sectors, with criteria of quality, socio-environmental responsibility, and efficiency; energy becoming a factor of economic growth, industrial development, and social progress, within the framework of regional integration (II).
Gender inequalities and marginalization issues
The difficulty in extending conventional electricity networks to very remote rural areas, where the population without electricity access typically resides, is mainly due to technical and economic challenges (III).
Investment opportunities introduction
opportunities were identified to support the sustainable development of the forestry and biofuels subsector (III)
Key bottlenecks introduction
Producing by-products requires high investments mainly due to the need for specialized equipment and technology for processing coconuts into various by-products (IV).
Forestry and Paper
Development need
The participation of the forestry sub-sector in GDP with measurements for 2006, according to FAO, shows Paraguay at 3.6%. Additionally, 46% of the primary energy generated in Paraguay is destined for export (V).
Policy priority
The Ministry of Public Works and Communications has developed an Energy Policy with a vision of "Meeting the energy needs of the population and all productive sectors, with criteria of quality, socio-environmental responsibility, and efficiency; energy becoming a factor of economic growth, industrial development, and social progress, within the framework of regional integration (II).
Gender inequalities and marginalization issues
The difficulty in extending conventional electricity networks to very remote rural areas, where the population without electricity access typically resides, is mainly due to technical and economic challenges (III).
Pipeline Opportunity
Production of by-products of the Paraguayan coconut or mbocayá
Invest in the production of Paraguayan or mbocayá coconut by-products for national demand or export from:> Reforested plantations of mbocayá> Purchase of mbocayá from small producers and / or indigenous people By-products can include: biomass, oils, food for human consumption, animal feed, cosmetics, soaps, organic fertilizers, factory fuels, sanitary products
Business Case
Market Size and Environment
USD 100 million - USD 1 billion
In Paraguay, exports of vegetable oils reached USD 210 million, an amount that for January-October 2008 has already been exceeded (2).
Indicative Return
10% - 15%
A pre-feasibility study for the creation of a coconut shell-based activated carbon plant in Tumaco, Colombia, in 2013 obtained an IRR of 14.44% after 10 years (3).
Investment Timeframe
Medium Term (5–10 years)
A pre-feasibility study for creating a coconut shell-based activated carbon plant in Tumaco, Colombia, in 2013, used a 10-year term and obtained an IRR of 14.44% (3). > From the cultivation of the mbocayá to its first harvest, five to six years pass (1).
Market Risks & Scale Obstacles
Business - Supply Chain Constraints
Impact Case
Sustainable Development Need
Paraguay experiences one of the most rapid rates of deforestation in Latin America. Between 1990 and 2010, the country's total forest cover reduced by 17%, dropping from around 21.2 million hectares to 17.6 million hectares (4).
According to the Global Forest system, in 2018, 258,779 hectares of lost tree areas were registered throughout the country, while in 2019, the figures show a significant increase, reaching 314,372 hectares destroyed in all the Paraguayan territory (5).
The supply of sustainably produced wood is not enough to meet current demand. According to the biomass balance of this report, there is an annual biomass deficit of between 10 to 13 million tons (6).
Gender & Marginalisation
41.7% of the employed population in rural areas is dedicated to family farming. Half of the population employed in family farming is in a situation of poverty (49.4%), with a higher incidence among women (7).
Expected Development Outcome
Reduce deforestation in the national territory and increase the production and export of products derived from Mbocaya
Reduce the negative impacts on the environment and ecosystems in Paraguay and increase the forest area
Increase the clean energy used and reduce CO2 emissions
Gender & Marginalisation
Increase the income of small producers and / or indigenous people
Primary SDGs addressed
7.2.1 Renewable energy share in the total final energy consumption
9.4.1 CO2 emission per unit of value added
2.3.1 Volume of production per labour unit by classes of farming/pastoral/forestry enterprise size
Secondary SDGs addressed
Directly impacted stakeholders
Gender inequality and/or marginalization
Planet
Indirectly impacted stakeholders
People
Outcome Risks
Deforestation for the production of mbocayá by-products, for example, for biomass (6).
In the case of biomass, the fumes from its combustion contain nitrogen dioxide, suspended particles, sulfur dioxide, and hydrocarbons (8).
Impact Risks
Execution risks: By not having an investment in the sowing process, the production of raw material is affected, and industrial plants cannot work at their full capacity (1).
Stakeholders: The time that elapses between sowing and the first harvest, since from the cultivation of the Paraguayan coconut to its first harvest, five to six years pass (1).
Drop off: When working with small and / or medium producers, coordination and logistics can be a complication, especially for biomass production (1).
Impact Classification
What
Positive impact because of the purchase of mbocayá from small producers and / or indigenous people, and obtaining sustainable biomass sources
Risk
Although the model is based on a solid evidence base, external factors such as longer investment horizons and a lack of raw materials can affect potential impact
Impact Thesis
Increasing the use of sustainably sourced inputs, benefiting the environment and indigenous people in the production chain
Enabling Environment
Policy Environment
The National Development Plan 2030: Its goals include promoting renewable energy, reforestation, and the sustainable management of urban and industrial waste (9).
The National Commission for the Defense of Natural Resources (CONADERNA) - in 2019 it is engaged in preparing a bill to promote the cultivation of Paraguayan coconut, also known by the name of mbokaja in Guaraní (10).
Program to promote production and reforestation with Paraguayan coconut - plans to develop a program to promote production and reforestation with Paraguayan coconut (10).
Financial Environment
The IDB offers loans that promote and finance business models sustainable and market-based that facilitate the participation of private sector companies and others (14).
Law 422/73 establishes that people who carry out forestry activities will enjoy all the releases related to fiscal taxes and exchange surcharges, for the import of equipment, instruments, among others (12).
From the banking sector, the National Development Bank even has a specific credit line for those who want to invest in reforestation. It establishes interests of 15% and a term of up to 7 years to reforest native or exotic wood (15).
Regulatory Environment
Law No. 4309 to promote afforestation and reforestation with coconut or mbokaja (11).
Forestry Law 422 - The exercise of rights over forests, public or private property forest lands, is subject to the restrictions and limitations established in this Law and its regulations (12).
Law 96/92 Legal Framework on Wildlife species of the country - prohibits the hunting and commercialization of wild animals (13).
Marketplace Participants
Private Sector
Bisa (Paraguay), Oisa (Paraguay), Indupalma (Paraguay).
Government
National Development Bank, Ministry of Agriculture and Livestock, Ministry of Industry and Commerce, Development Finance Agency
Multilaterals
USAID, World Bank (WB)
Non-Profit
World Conservation Organization (WWF), Moises Bertoni Foundation, To all lungs, Union of Production Guilds, Paraguayan Industrial Union (UIP).
Target Locations
Paraguay: Paraguarí
Paraguay: Itapúa
Paraguay: El Chaco
References
- (I) GIZ Paraguay. 2011. Ficha Técnica. https://www.bivica.org/files/eficiencia-energetica.pdf (II) Ministerio de Obras Públicas y Comunicaciones. 2020. Presentan hoja de ruta de la Política Energética del Paraguay en panel internacional. https://www.mopc.gov.py/index.php/noticias/presentan-hoja-de-ruta-de-la-politica-energetica-del-paraguay-en-panel-internacional (III) UNDP. 2020. The national human development report. Paraguay 2020. Energy and human development. https://www.undp.org/sites/g/files/zskgke326/files/migration/py/UNDP-PY-engINDH_Py_2020_Summary.pdf (IV) Grass Ramírez JF, Muñoz RC and Zartha Sossa JW. 2023. Innovations and trends in the coconut agroindustry supply chain: A technological surveillance and foresight analysis. https://www.frontiersin.org/articles/10.3389/fsufs.2023.1048450/full (V) Ministerio de Agricultura y Ganadería. 2010. Marco estratégico agrario directrices basicas 2009 - 2018. https://faolex.fao.org/docs/pdf/par144609.pdf
- (1) Daniela Haupenthal. 2019. Producción e industrialización de coco: ¿cómo estamos en Paraguay? https://infonegocios.com.py/y-ademas/produccion-e-industrializacion-de-coco-como-estamos-en-paraguay
- (2) Unidad Técnica de Estudios para la Industria. 2008. Industria Frutihortícola. https://www.mic.gov.py/mic/w/industria/deei/pdf/Perfil_Sect/FrutasHortalizas.pdf
- (3) Carlos A. Orozco. 2013. Estudio de pre-factibilidad para la creación de una planta de carbón activado a base de cáscara de coco en Tumaco y sus alrededores. https://cgspace.cgiar.org/bitstream/handle/10568/66261/OROZCO%202013.pdf?sequence=1
- (4) Interactive Country Fices. s.f. Paraguay Forest. https://dicf.unepgrid.ch/paraguay/forest
- (5) Aldo Benítez. 2020. Paraguay es el segundo país más deforestador de Sudamérica. https://www.lanacion.com.py/pais/2020/06/15/paraguay-es-el-segundo-pais-mas-deforestador-de-sudamerica
- (6) Paul Borsy et al. 2013. Producción y consumo de biomasa sólida en Paraguay. https://www.researchgate.net/publication/305405159_Produccion_y_consumo_de_biomasa_solida_en_Paraguay
- (7) ONU. 2020. Examen Periódico Universal – Tercer Ciclo - Paraguay. https://uprdoc.ohchr.org/uprweb/downloadfile.aspx?filename=8456&file=SpanishTranslation
- (8) José Miguel Muñoz. 2013. La biomasa, una energía no tan limpia. https://elpais.com/ccaa/2013/11/14/andalucia/1384457682_737079.html
- (9) Gobierno del Paraguay. 2014. Plan Nacional de Desarrollo Paraguay 2030. https://www.stp.gov.py/pnd/wp-content/uploads/2014/12/pnd2030.pdf
- (10) CONADERMA. 2019. BUSCAN FOMENTAR LA PRODUCCIÓN DEL COCO O MBOCAJA COMO ALTERNATIVA DE DESARROLLO SOSTENIBLE. https://www.conaderna.gov.py/presidencia/745/buscan-fomentar-la-produccion-del-coco-o-mbocaja-como-alternativa-de-desarrollo-sostenible
- (11) Congreso de la Nación Paraguaya. 2011. Ley No. 4309. https://www.bacn.gov.py/leyes-paraguayas/3680/ley-n-4309-fomenta-la-forestacion-yo-reforestacion-con-cocotero-o-mbokaja
- (12) Congreso de la Nación Paraguaya. 1973. Ley No. 422. https://www.bacn.gov.py/leyes-paraguayas/2370/ley-n-422-forestal
- (13) Congreso de la Nación Paraguaya. 1992. Ley No. 96-92. https://www.mades.gov.py/wp-content/uploads/2018/07/ley_96.pdf
- (14) BID Invest. s.f. Loans, https://www.idbinvest.org/en/solutions/loans
- (15) Banco Nacional de Fomento. 2018. BNF PRESENTÓ SU LINEA DE CRÉDITO PARA FORESTACIÓN A REPRESENTANTES DE FEPAMA Y ASOCIADOS. https://www.bnf.gov.py/noticias/bnf-presento-su-linea-de-credito-para-forestacion-a-representantes-de-fepama-y-asociados-282