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SAN JOSÉ, Costa Rica – The United Nations International Fund for Agricultural Development (IFAD) will co-finance a new program with US$20 million to promote sustainable agriculture, strengthen producer competitiveness, and modernise agricultural institutions in Costa Rica. The initiative is expected to positively impact 90,000 people.
The “Program for Sustainable and Competitive Agriculture in Costa Rica,” to be implemented by the Ministry of Agriculture and Livestock over six years, will enhance sustainable production of coffee, sugarcane, and livestock; invest in infrastructure modernisation for efficient water use; and establish a refrigerated warehouse in central canton of Puntarenas to serve small and medium-scale fishers. Additionally, it will facilitate producer inclusion in a traceability system to access more markets, among other actions.
Minister of Agriculture and Livestock, Víctor Julio Carvajal Porras, emphasised: “IFAD’s contribution adds to the US$120 million approved by the World Bank days ago, meaning approximately US$140 million will be invested in the agricultural sector over the next five years. This is a clear signal of the Chaves Robles Administration’s commitment to improving the living conditions and agribusiness opportunities of thousands of people who, with their effort, dedication, and spirit, work 365 days a year to bring food to our tables. Because it is not just about saying that the agricultural sector is important, it is about proving it through actions and facts that generate changes enabling sustainable production, resilient to climate changes, with an inclusive approach for vulnerable populations.”
Enrique Hennings, IFAD Country Director for Costa Rica, noted: “We highlight the Ministry of Agriculture and Livestock’s strong commitment to this innovative and comprehensive project, which will work alongside small and medium-scale producers to promote agricultural practices that conserve ecosystems and strengthen production. It will also create better opportunities to market products, allowing producers and their families to achieve greater economic stability.”
In addition to the financial support approved by IFAD’s Executive Board, the rural development agency backs this effort with its technical knowledge and experience with small-scale producer communities, especially relevant in areas like the inclusion of women and youth.
Sustainable Production
IFAD’s co-financing will help small and medium-scale coffee, sugarcane, and livestock producers access both technical assistance and financing to adopt production practices that generate fewer greenhouse gas emissions, within the framework of Nationally Appropriate Mitigation Actions (NAMAs). Globally, agri-food systems are responsible for one-third of emissions contributing to global warming, making agriculture a sector with enormous potential to combat climate change.
For coffee crops, the program will promote planting disease-resistant varieties to protect production, which is vulnerable to the effects of changing climate conditions. It will also support planting shade trees to improve soil quality and using bio-inputs as an alternative to agrochemicals. This includes biological pest control using insects and fertilisation techniques based on organic compost.
Through the environmental services payment mechanism, producers can receive financial compensation for emission reductions resulting from adopting sustainable practices.
The project also aims to modernise irrigation systems in areas vulnerable to water scarcity and flooding. This includes enhancing water storage capacity, automating currently manual mechanisms, and introducing control systems to apply the exact amount of water required by crops, leading to more efficient and effective use of the natural resource.
Reaching Customers
To improve competitiveness, producers will have access to a digital traceability platform that will allow them to generate necessary information to obtain certifications. This way, they will be able to sell their products in local and international markets, with the opportunity to obtain higher prices.
In the Central Pacific region, a refrigerated plant will be built to store fish, maintaining the cold chain between the port and the market, thereby creating better conditions for product marketing.
Institutional Modernisation
The project also includes modernising the digital infrastructure of the Ministry of Agriculture and Livestock to better serve producers. It will promote the digital registration of small and medium-scale farmers as a means to improve coordination between institutions and will offer technical assistance services through digital extension.
The program supports the implementation of the Public Policy for the Costa Rican Agricultural Sector 2023–2032 and follows the Program for Results model—the first of its kind implemented by IFAD in Latin America and the Caribbean—which means that disbursements will be linked to the achievement of concrete goals across the project’s various components.
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IFAD is an international financial institution and a United Nations specialized agency
Based in Rome – the United Nations food and agriculture hub – IFAD invests in rural people, empowering them to reduce poverty, increase food security, improve nutrition and strengthen resilience. Since 1978, we have provided more than US$25 billion in grants and low-interest loans to fund projects in developing countries.
