 | Nicaragua |
INVESTMENT PRESENTATION
THE PROPOSAL
Additionally, a strategic line of investment for the forestry sector is being developed, which will be incorporated into the HIH Program and presented during the second edition of the Investment Forum. The priority areas identified for intervention are Vía Láctea Ampliada for the dairy sector with forestry and five zones for the development of red bean. These regions have significant potential for enhancing agricultural production, increasing productivity, and promoting marketing activities, including stimulating
export and import substitution. Additional information on the interventions in the forestry sector will be shared in the forthcoming weeks.
Poverty
Potential
Efficiency
COMMODITIES AND INTERVENTIONS
Dairy Sector with Forestry
Objective: Development of the Transformation of the Livestock and Forest Productive Matrix in the territory of the Vía Láctea Ampliada.
Location: Areas with potential to strengthen the milk collection and processing process and to develop forest plantations in the territory of the Vía Láctea Ampliada.
Commercial opportunities: Nicaragua can export dairy products with 0% tariffs to: China (Early Harvest Agreement), the United States, Mexico, Chile, the Dominican Republic, the European Union and the Republic of Korea.
Nicaragua can export wood and wood products with 0% tariffs to the markets of Mexico, the United States, the Dominican Republic, the European Union, the United Kingdom, Panama, and Chile.
For the dairy sector with forestry, the planned interventions are as follows:
- Component 1: Farm management with low carbon practices, including forest plantations.
- Component 2: Development of Infrastructure for dairy processing
- Component 3: Capacity development.
The total investment for these interventions is estimated at US$ 84,03 million. The anticipated financial internal rate of return is 19%. The sector interventions aim to benefit approximately 40,210 residents, including 8,042 producers.
The implementation of the sustainability benefits are as follows: employment to be generated: 25,026 and Reduction of emissions in 33.8 million tCO2 eq/ha/year.
Beans
Objective: Adding value and adaptive management of the bean crop.
Location: 5 Bean Development Poles located in: Madriz, Nueva Segovia, Matagalpa and Jinotega.
Commercial opportunities: Nicaragua can export beans with 0% tariff to: China (Early Harvest Agreement), United States, Mexico, Chile, Panama, Cuba and the European Union.
For the bean sector, the planned interventions are as follows:
- Component 1: Farm management with adaptive practices and certified seeds´ production.
- Component 2: Establishment of 5 plants for the collection and transformation of red beans into grain.
- Component 3: Establishment of 5 plants for the processing and marketing of cooked and ground beans.
The total investment for these interventions is estimated at US$82.9 million. The anticipated financial internal rate of return is 42%. The sector interventions aim to benefit approximately 58,813 residents, including 11,763 producers.
The implementation of the sustainability benefits are as follows: employment to be generated: 113,547 and Reduction of emissions 274.5 Ton CO2 eq/ha for 12 years.