Regenerative agriculture: collaborative hubs in territory with linkages
Regenerative agriculture: collaborative hubs in territory with linkages
Business Model Description
A disaggregated business model with emphasis on innovation and product seeding that targets collaborative hubs in the territory with linkages.
Expected Impact
Promote regenerative practices in agricultural activities that can raise productivity and gender inclusion.
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: Cañas
- Costa Rica: Cañas
- Costa Rica: Cañas
- Costa Rica: Tilaran
- Costa Rica: Tilaran
- Costa Rica: Tilaran
- Costa Rica: Upala
- Costa Rica: Upala
- Costa Rica: Upala
Sector Classification
Food and Beverage
Development need
Address 254.19 square km of priority cropland for decabornization. Improve productivity of the agricultural subcluster.
Policy Priority
Promote inclusive and sustainable development.
Gender inequalities and marginalization issues
High percentages of unemployed working-age women (5.02 potential gender index).
Investment opportunities introduction
The subclusters of this pole are expected to be enhanced by the TELCA corridor. Chorotega Triangle.
Key bottlenecks introduction
177.9 km of roads in poor condition, 250.66 square km with access problems to energy substations, 334.93 square km without 4G connectivity, 234.14 km with gaps in social development.
Food and Agriculture
Development need
Sustainably improve agricultural productivity, ensuring the regeneration of soils and natural resources.
Policy Priority
Regenerative agriculture can replenish soil nutrients and produce sustainably.
Gender inequalities and marginalization issues
The territorial regenerative development approach can facilitate the inclusion of women and improve the inhabitants' quality of life.
Investment opportunities introduction
Cocoa and vegetables (lettuce, tomato, sweet chili, cabbage, among others).
Key bottlenecks introduction
Reduced diversification of production, lack of value-added, and scarcity of key organizational linkages.
Agricultural Products
Pipeline Opportunity
Regenerative agriculture: collaborative hubs in territory with linkages
A disaggregated business model with emphasis on innovation and product seeding that targets collaborative hubs in the territory with linkages.
Business Case
Market Size and Environment
< USD 50 million
Between 2011-2015 Cocoa exports grew 32%. Since 2014 the vegetable market has grown 15%.
In 2018, the nationally certified area of organic spices and vegetables was 237 ha (11, 13).
As of 2016, international cocoa bean prices exceeded $3,000 per ton, and world production was 4.5 million tons (12).
As of 2019, 68.33% of tomato farms mainly use chemical fertilizer. As of 2019, 92.59% of cabbage farms mainly use chemical fertilizer. The world production of organic vegetables reached 676,000 ha (11).
Indicative Return
In the Huetar Caribe Region, the reported cocoa yield is 0.6 per hectare (12).
Currently, there are excellent genetic materials or clonal varieties (clones) that show high yields and high tolerance to the main diseases that limited the development of cocoa cultivation in Costa Rica: Monilia (Moniliophthoraroreri) and MazorcaNegra (Phytophthorasp) (8).
The selling price of organic products per unit marketed is higher than the price of a conventional product. It was determined that the percentage difference in prices for carrots was 28.57%, celery 40%, 25% for coriander, 33.33% for lettuce, and 66.67% for broccoli. It was also evident that conventional products had a higher total cost of production than organic products (7).
Investment Timeframe
Medium Term (5–10 years)
Cocoa fruit production begins at 2-4 years, yields increase every year until 8 to 10 years, stabilizes between 11-15 years, and is maintained from 16 to 30-35 years (17).
Depends on the vegetable. The production cycle of lettuce can vary between 40 days and three months. The production cycle of greenhouse tomatoes is eleven months. The typical life cycle of sweet chili can vary from 6 to 12 months.
Ticket Size
The approximate cost for the initial investment in a farm that starts its transition towards organic production is USD 1940 However, if the person already has the inputs, the key costs are Biodigestor USD 235 and compost bin USD 240.
Market Risks & Scale Obstacles
Market - High Level of Competition
Capital - Requires Subsidy
Market - Highly Regulated
Impact Case
Sustainable Development Need
Address 254.19 square kilometers of priority cropland for decarbonization. Improve the productivity of the agricultural subcluster.
Gender & Marginalisation
To promote the sustainable increase in the productivity of women-owned agricultural 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
15.3.1 Proportion of land that is degraded over total land area
Carbon emissions from pole's exports: 0.86%.
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
Gender inequality and/or marginalization
Planet
Corporates
Outcome Risks
Weak linkages to commercialize the product in specialized markets.
Impact Risks
Provide technical and financial support to producers to consolidate their production.
Impact Classification
What
Increasing agricultural yields and productivity.
Risk
Lack of linkages to access niche markets to place produce in.
Impact Thesis
Promote regenerative practices in agricultural activities that can raise productivity and gender inclusion.
Enabling Environment
Policy Environment
Territorial Economic Strategy for an Inclusive and Decarbonized Economy 2020-2050 in Costa Rica: Transform agriculture through R&D&I towards technological innovations (1).
National Decarbonization Plan 2018-2050: Promoting efficient agri-food systems that generate low-carbon export goods and local 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 (16).
PIEG: Women's land tenure and private property 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. There are also financial incentives from Article 38 of Law 8591, which correspond to 0.1% of the single fuel tax.
Fiscal incentives: Law 7210, Free Trade Zone Regime Law; Law 7092, Income Tax Law, which gives differentiated treatment to MSMEs and SMEs.
Other incentives: Specialized support from MAG's Organic Production Department. Family Orchards Project led by MAG in Tilarán. Family Fair of Producers 2018 in Upala.
Regulatory Environment
Law 7779, Law of Use, Management and Conservation of Soil: Promote the implementation and control of improved practices in the systems of use that avoid erosion or other forms of degradation of the soil resource (4).
Law 7064, Law for the Promotion of Agricultural Production and MAG: Promote the production of agricultural goods by encouraging 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).
Law for the Development, Promotion, and Encouragement of Organic Agriculture and Livestock Activities Nº 8591 and Regulation Nº 29782-MAG, Organic Agriculture Regulation (6).
Marketplace Participants
Private Sector
EARTH University, National Chamber of Organic Agriculture (Canagro), local fairs, Jugar del Valle, Fundación Neotrópica, Asociación Creciendo Juntos, Cooperativa de Producción y Consumo Ruta de la Vida Ecológica (ECOOVIDAR.L), Asociación de Productores Orgánicos de la Zona Norte.
Government
SFE, MAG, SINAC, MEIC, COMEX, MINAE /COBODES, CENADA, INA, Territorial Councils-INDER, Public Universities.
Target Locations
Costa Rica: Cañas
Costa Rica: Cañas
Costa Rica: Cañas
Costa Rica: Tilaran
Costa Rica: Tilaran
Costa Rica: Tilaran
Costa Rica: Upala
Costa Rica: Upala
Costa Rica: Upala
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) Asamblea de Costa Rica (1998) Ley Nº 8591, Ley de Desarrollo, Promoción y Fomento de la Actividad Agropecuaria Orgánica.
- (7) Arce (2019) ANÁLISIS COMPARATIVO DE PRECIOS Y COSTOS DE PRODUCCIÓN DE HORTALIZAS CULTIVADAS DE MANERA ORGÁNICA Y CONVENCIONAL. Revista UCR de Agronomía Costarricense 44(2).
- (8) Chacon (2019) SITUACION ACTUAL DEL CULTIVO DE CACAO EN COSTA RICA. Oficina Nacional de Semillas.
- (9) Presidencia (2021) 165 FAMILIAS DE TILARÁN DESARROLLAN HUERTAS CASERAS PARA HACER FRENTE A AFECTACIONES POR LA PANDEMIA. Comunicado oficial.
- (10) PROCOMER (2016) CHOCOLATE DE UPALA SE VENDE EN EUROPA Y CANADÁ. Comunicado oficial.
- (11) PROCOMER (2020) Alimentos orgánicos frescos y procesados. Dirección de Inteligencia Comercial
- (12) PROCOMER (2016) OPORTUNIDADES COMERCIALES PARA LA EXPORTACIÓN DE CACAO. Dirección de Inteligencia Comercial
- (13) PROCOMER (2020) COVID-19 IMPULSA LA COMERCIALIZACIÓN DE ALIMENTOS ORGÁNICOS. Comunidado oficial.
- (14) INEC (2019). Encuesta Nacional Agropecuaria 2019.
- (15) BCCR (2021). Exportaciones FOB Totales por Producto. Matriz de datos.
- (16) MAG (2018) Plan de intervenciones estratégicas 2019-2022.
- (17) CATIE (2021). Unidad Bioestadística. Matriz de Datos.
- (18) CEDECO (2021). Servicios de Investigación de demeanda, oferta y consumo de productos orgánicos.