Regenerative agriculture: collaborative innovation and product seeding
Regenerative agriculture: collaborative innovation and product seeding
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.
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Country & Regions
- Costa Rica: Guápiles
- Costa Rica: Guápiles
Sector Classification
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.
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).
Agricultural Products
Pipeline Opportunity
Regenerative agriculture: collaborative innovation and product seeding
A disaggregated business model with emphasis on innovation and product seeding that aims at collaborative hubs in the territory with linkages.
Business Case
Market Size and Environment
As of 2017, Plantain supply at buyer's prices was ₡35,069 million (USD 68 million) (14).
Between 2017 and 2019, Plantain, Beans, Corn and Cassava tons produced decreased between 9-35% (7).
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
16%, 0.8%, 3%, 15% yield per ha of Plantain, Beans, Corn, and Cassava (8).
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
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
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
Capital - Requires Subsidy
Market - Highly Regulated
Impact Case
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
15.3.1 Proportion of land that is degraded over total land area
Carbon emissions from exports from the cluster: 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
Weak linkages to commercialize the product in specialized markets.
Impact Risks
Technical and financial support to producers to consolidate their production.
Impact Classification
What
Increasing agricultural yields and productivity.
Who
Small farmers and exporters.
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
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
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
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) 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.