Agriculture with sustainable practices.

Regenerative agriculture: collaborative innovation and product seeding

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Regenerative agriculture: collaborative innovation and product seeding

Country
Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Agriculture
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
16%, 0.8%, 3%, 15% yield per ha of Plantain, Beans, Corn, and Cassava (8).
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
As of 2017, Plantain supply at buyer's prices was ₡35,069 million (USD 68 million) (14).
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
The approximate cost for the initial investment in a farm that begins its transition towards organic production is USD 1.9 million. However, if the person already has these inputs, key costs are Biodigester USD 233,000 and compost bin USD 236,000 (11).
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Life on Land (SDG 15)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Responsible Consumption and Production (SDG 12) Zero Hunger (SDG 2)

Business Model Description

A disaggregated business model with emphasis on innovation and product seeding that aims at collaborative hubs in the territory with linkages.

Expected Impact

Decarbonized cropland and revitalize agriculture so it can be more inclusive towards women.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

Disclaimer

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Country & Regions

Explore the country and target locations of the investment opportunity.
Country
Region
  • Costa Rica: Guápiles
  • Costa Rica: Guápiles
Learn more

Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Food and Beverage

Development need
Address 119.96 square kilometers 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.

Sub Sector

Food and Agriculture

Development need
Improve agricultural productivity in a sustainable way, 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
Cassava, plantain, beans, corn, and banana.

Key bottlenecks introduction
> Reduced diversification of production and lack of value-added. >Low capital investment (public and private).

Industry

Agricultural Products

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Regenerative agriculture: collaborative innovation and product seeding

No-till farming, biodiverse polycultures, soil conservation, mulch, and anti-erosion barriers; use of compost, biofertilizers, and organic bio-controllers; activated biochar with microorganisms; holistic management of livestock; and edible forests.
Business Model

A disaggregated business model with emphasis on innovation and product seeding that aims at collaborative hubs in the territory with linkages.

Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

Market Size (USD)
Describes the value in USD of a potential addressable market of the IOA.

As of 2017, Plantain supply at buyer's prices was ₡35,069 million (USD 68 million) (14).

CAGR
Describes the historical or expected annual growth of revenues in the IOA market.

Between 2017 and 2019, Plantain, Beans, Corn and Cassava tons produced decreased between 9-35% (7).

Critical IOA Unit
Describes a complementary market sizing measure exemplifying the opportunities with the IOA.

67.000 Plantain tons, 8.000 Bean tons, 13.000 Corn tons, 99.000 Cassava tons produced by 2019 (7).

As of 2019, 51.9% of farms mainly use chemical fertilizer (7, 9). In 2018, 8,964 ha of certified agricultural products were reported, 3% more than in 2017. The supply is mainly based on fresh fruits such as bananas (37%) and pineapple (20%), as well as cocoa (18%), sugar cane (9%), and coffee (7%), while processed products are mainly based on juices, jams and purees from organic fruits (12).

Indicative Return

ROI
Describes an expected return from the IOA investment over its lifetime.

16%, 0.8%, 3%, 15% yield per ha of Plantain, Beans, Corn, and Cassava (8).

GPM
Describes an expected percentage of revenue (that is actual profit before adjusting for operating cost) from the IOA investment.

Organic agriculture reduces losses of 25% in seeding and transplanting operations (17).

The benefits of employing organic and regenerative agriculture depend on the crop to be treated and on the consolidation of the chains that allow the product to be placed in a market interested in this type of production.

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Short Term (0–5 years)

Each plantain harvest cycle begins between 10-11 months after planting.

Each bean cycle reaches physiological maturity at an average of 95 days and harvests maturity at 100 days after planting.

The corn cycle is very variable and can be up to 232 days.

Each cassava cycle has a duration of 10 to 14 months.

Each banana phenological cycle lasts an average of 404 days.

Ticket Size

Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.

The approximate cost for the initial investment in a farm that begins its transition towards organic production is USD 1.9 million. However, if the person already has these inputs, key costs are Biodigester USD 233,000 and compost bin USD 236,000 (11).

Market Risks & Scale Obstacles

Market - High Level of Competition

Organic products have a higher price than conventional products, so price competition may be challenging in non-specialized markets.

Capital - Requires Subsidy

To finance the initial investment, producers often require support capital.

Market - Highly Regulated

Organic production certifications are required (e.g. organic certification for agricultural products, biosuisse).

Impact Case

Read about impact metrics and social and environmental risks of the investment opportunity.

Sustainable Development Need

Address 119.96 square kilometers of priority cropland for decarbonization. Improve the productivity of the agricultural subcluster.

Gender & Marginalisation

To revitalize agriculture practiced by women in this cluster so that it becomes a source of low-cost income.

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

Life on Land (SDG 15)
15 - Life on Land

15.3.1 Proportion of land that is degraded over total land area

Current Value

Carbon emissions from exports from the cluster: 3.48%.

Target Value

By 2050, promote highly efficient agri-food systems that generate low-carbon goods for export and local consumption.

Secondary SDGs addressed

Responsible Consumption and Production (SDG 12)
12 - Responsible Consumption and Production
Zero Hunger (SDG 2)
2 - Zero Hunger

Directly impacted stakeholders

People

According to the 2014 Agricultural Census, in the province of Limón, 7339 farms use agroconservationist practices (7).

Gender inequality and/or marginalization

Of the total number of farm managers in Limón, 6.67% are women (7, 9).

Planet

Exports from this pole produce 3.48% of carbon emissions.

Corporates

The agriculture subcluster represents 61.80% of the companies in this cluster.

Indirectly impacted stakeholders

People

People living in the pole could be exposed to fewer herbicides and fertilizers, improving their quality of life.

Gender inequality and/or marginalization

Empowerment of rural women is key to reducing inequality and poverty.

Planet

Global reduction of carbon emissions through the use of more efficient production tools.

Corporates

The value chain associated with the agricultural subcluster.

Outcome Risks

Weak linkages to commercialize the product in specialized markets.

Impact Risks

Technical and financial support to producers to consolidate their production.

Impact Classification

B—Benefit Stakeholders

What

Increasing agricultural yields and productivity.

Risk

Lack of linkages to access niche markets for product placement.

Impact Thesis

Decarbonized cropland and revitalize agriculture so it can be more inclusive towards women.

Enabling Environment

Explore policy, regulatory and financial factors relevant for the investment opportunity.

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 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: 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 (8). There are also financial incentives from Article 38 of Law 8591 that 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.

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 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 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 (12).

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

Discover examples of public and private stakeholders active in this investment opportunity that were identified through secondary research and consultations.

Private Sector

EARTH University, National Chamber of Organic Agriculture (Canagro), local fairs, Jugar del Valle, Neotrópica foundation, etc.

Government

SFE, MAG, SINAC, MEIC, COMEX, MINAE /COBODES, CENADA, INA.

Target Locations

See what country regions are most suitable for the investment opportunity. All references to Kosovo shall be understood to be in the context of the Security Council Resolution 1244 (1999)
country static map
rural

Costa Rica: Guápiles

The main export products of the region are bananas, pineapple, and cassava (81.8%), ornamental flowers and plants (2.7%), for a subtotal of 84.5%; also processed products of agricultural origin, such as juices and purees (4.01%) for a total of 88.6% of regional exports (16, 17).
rural

Costa Rica: Guápiles

As of 2014, 13.7% of agricultural producers in the canton of Pococí and 17.5% in the canton of Siquirres were women. In the province of Limón, 20.1% were women (7, 9).

References

See what sources were used to establish the investment opportunity’s data and find resources that could be consulted to explore more.
    • (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) INEC (2019) Encuesta Nacional Agropecuaria 2019.
    • (8) SEPSA (2019) Comportamiento de la cartera de crédito para actividades agropecuarias.
    • (9) INEC (2015) VI Censo Nacional Agropecuario RESULTADOS GENERALES
    • (10) UCI (2018) Costa Rica será el primer HUB a nivel global para desarrollo regenerativo territorial. Universidad para la Cooperación Internacional
    • (11) CEDECO (2005) SONDEO DE FINCAS CON POTENCIAL DE TRANSICIÓN HACIA LA PRODUCCION ORGANICA EN REGION CARIBE Y SARAPIQUI . Con respaldo de MINAE y SINAC
    • (12) PROCOMER (2020) Alimentos orgánicos frescos y procesados. Dirección de Inteligencia Comercial
    • (13) PROCOMER (2020) COVID-19 IMPULSA LA COMERCIALIZACIÓN DE ALIMENTOS ORGÁNICOS. Comunidado oficial.
    • (14) BCCR (2021). Exportaciones FOB Totales por Producto. Matriz de datos.
    • (15) COMEX. Exportaciones totales 2007-2021. Esportaciones de Bienes Cifras Globales.
    • (16) MAG. Plan Regional de Desarrollo Agropecuario y Rural 2015-2018, Región Huetar Caribe.
    • (17) MAG (2018) Plan de intervenciones estratégicas 2019-2022.