Expansion of sustainable coffee production

Coffee production

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Expansion of sustainable coffee production
Expansion of sustainable coffee production
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SectorMost 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
Food and Agriculture
Business Model Description

Coffee production and processing, utilization of harvesting equipment for optimized yield, the renovation and planting of coffee plantations to boost national output, and establishment of coffee shops for both local consumption and international sales through exports.

Expected Impact

The use of sustainable production practices in the coffee sector will increase its productivity, resilience and increase market participation.

How is this information gathered?
Updated: 4 Jan, 2024 Date of Production: 7 Sep, 2023
Dominican Republic
Indicative ReturnDescribes 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).
15% - 20% (in IRR)
Investment TimeframeDescribes 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.
Medium Term (5–10 years)
Market SizeDescribes 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.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
< USD 500,000
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) Decent Work and Economic Growth (SDG 8) Partnerships For the Goals (SDG 17)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1)

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Sector Sources
  • 1) Nieto, A. M. & Reyes, G.E., 2019. Food security and Imports in Latin America and the Caribbean between 1992 and 2016. https://www.revistaespacios.com/a19v40n38/a19v40n38p01.pd 2) ONE, 2022. General Report ENHOGAR 2021. https://www.one.gob.do/publicaciones/2022/informe-general-enhogar-2021/?altTemplate=publicacionOnline 3) IPC, 2023. IPD Dominican Republic Acute Food Insecurity Situation October 2022 - February 2023 and Projection for March - June 2023. https://www.ipcinfo.org/ipc-country-analysis/details-map/en/c/1156125/ 4) Law 1-12 National Development Strategy 2030. https://mepyd.gob.do/estrategia-nacional-de-desarrollo-2030/ 5)ONE, 2019. 25% of women own land in the DR. https://www.one.gob.do/noticias/2019/un-25-de-mujeres-es-propietaria-de-tierras-en-rd/ 6) Central Bank, 2023. Dominican Republic Economic Report 2022. https://www.bancentral.gov.do/Publicaciones/Consulta 7) DGA, 2022. Trade Magazine of the Dominican Republic in 2022. https://www.aduanas.gob.do/estadisticas/informes-boletines/ 8) IICA, 2021. Dominican Republic: implementing NDC in the agriculture sector. https://repositorio.iica.int/bitstream/handle/11324/20776/BVE22088524e.pdf?sequence=5&isAllowed=y 9) MEPYD, 2017. Losses caused by natural phenomena between November 2016 and September 2017. https://mepyd.gob.do/wp-content/uploads/drive/UAAES/Topicos%20de%20Coyuntura/Perdidas%20provocadas%20por%20los%20fenomenos%20naturales%20entre%20noviembre%202016%20y%20septiembre%202017.pdf 10) ONE, 2020. The importance of the agricultural sector in economic activity and in the generation of employment generation. https://www.one.gob.do/media/0d1ilonh/bolet%C3%ADnpanoramaestad%C3%ADstico101laimportanciadelsectoragropecuarioenlaactividadecon%C3%B3micamar-abr2020.pdf "11) National Plan for Food and Nutritional Sovereignty and Security 2023-2026. https://sinassan.gob.do/documentos-tecnicossection-container-sinassan/ " 12) Strategic Agricultural Sectorial Plan of the Dominican Republic 2020/2030 -Vision 2050-. https://agricultura.gob.do/transparencia/wp-content/uploads/2022/12/Plan-Estratgico-Sectorial-Agropecuario-2020-2030-RV21-05-2020.pdf 13) ProDominicana, 2022. Dominican Republic's investment guide 2022. https://prodominicana.gob.do/Documentos/Guia%20de%20inversion%20RD%20ingles%202022%203%20(1).pdf 14) World Bank, 2020. Arable land (% of land area) - Dominican Republic. https://data.worldbank.org/indicator/AG.LND.ARBL.ZS?locations=DO 15) World Bank, 2022. Arable land (hectares) - Dominican Republic. https://data.worldbank.org/indicator/AG.LND.ARBL.HA?locations=DO 16) Superintendency of Banks, 2023. Agricultural credit accounts for 11.5% of the financial system's commercial loan portfolio. https://www.sb.gob.do/prensa/credito-agropecuario-representa-el-115-de-la-cartera-comercial-del-sistema-financiero/
IOA Sources
  • 17) Kiwelu, L., 2022. Profitability Analysis of Coffee Production among Adopters and Non-Adopters of Improved Coffee Varieties in Mbinga and Mbozi Districts. https://ijisrt.com/assets/upload/files/IJISRT22MAY980_(1)_(1).pdf 18) Gomes, L.C. et al., 2020. Agroforestry systems can mitigate the impacts of climate change on coffee production: A spatially explicit assessment in Brazil. https://www.sciencedirect.com/science/article/pii/S0167880920300438 19) Bermudez, S., Voora, V. & Larrea, C., 2022 Global Market Report – Coffee prices and sustainability. https://www.iisd.org/system/files/2022-09/2022-global-market-report-coffee.pdf 20) INDOCAFE, 2022. Coffee production and exports Report 2022. https://www.indocafe.gob.do/transparencia/index.php/estadisticas/category/1108-diciembre 21) Hernández Álvarez, Z. & Ramos Álvarez, M., 2020. The Optimal Time to Invest in a Coffee Agribusiness Company (an Application of the Real Options Theory). https://www.scielo.org.mx/scielo.php?script=sci_arttext&pid=S1665-53462020000100123 22) International Trade Center, 2022. The Coffee Guide 2022. https://intracen.org/sites/default/files/media/file/media_file/2022/06/29/itc_coffee_4th_report_20211029_es_web.pdf 23) Ministry of Agriculture, 2019. Estimated Costs of Production of Agricultural Crops and Livestock Products 2019. https://agricultura.gob.do/wp-content/uploads/2022/09/Costos-Estimados-de-Produccin-de-Cultivos-Agrcolas-2019.pdf 24) ONE, 2019. Cost of production of the main agricultural products at current prices, by year, 1999-2019. https://www.one.gob.do/media/kkxb01do/1-7-costos-estimados-de-produccion-seg%C3%BAn-a%C3%B1o-1999-2019.xls 25) Kinati Debelo, B., 2017. Constraints and Opportunities in the Coffee Supply Chain: Value Chain Analysis from Coffee Farmers to Exporters – Case of some selected Districts of Illu Aba Bor Administrative Zone, Oromia, Ethiopia. https://www.ijsrp.org/research-paper-0817/ijsrp-p6877.pdf 26) CEPAL, 2020. Fortalecimiento de la cadena de valor de café en la República Dominicana: en respuesta al cambio climático. http://repositorio.cepal.org/bitstream/handle/11362/46433/S2000894_es.pdf?sequence=1&isAllowed=y 27) Devoney, M., 2022. How much of the final price of a cup of coffee do farmers receive? https://perfectdailygrind.com/2022/09/how-much-of-the-price-of-a-cup-of-coffee-do-farmers-receive/ 28) FiBL Statistics, 2021. Key indicators on organic agriculture worldwide. https://statistics.fibl.org/world/key-indicators.html 29) MEPYD, 2021. National Multiannual Plan for the Public Sector 2021–2024. https://mepyd.gob.do/publicaciones/plan-nacional-plurianual-del-sector-publico-2021-2024/ 30) Banco Mundial , 2022. GDP per capita growth (annual %) - Dominican Republic. https://data.worldbank.org/indicator/NY.GDP.PCAP.KD.ZG?locations=DO 31) Comisión ODS, 2021. National Voluntary Report 2021. https://mepyd.gob.do/wp-content/uploads/drive/DGIP/Informe%20nacional%20voluntario/Informe%20Nacional%20Voluntario%202021-RD.pdf 32) ITC, 2023. Trade Map – Trade Statistics for Internaional Business Development. https://www.trademap.org/Index.aspx t 33) Law No. 16-95 on Foreign Investment. https://prodominicana.gob.do/wp/wp-content/themes/ceird/ceirdpdf/Ley-16-95-sobre-Inversion-Extranjera.pdf 34) Law No. 84-99 of August 6, 1999, on Re-activation and Promotion of Exports, and its Implementing Regulation No. 213-00. https://www.aduanas.gob.do/media/2186/84-99_reactivacion_y_fomento_de_las_exportaciones.pdf" 35) Decree No. 31696 https://faolex.fao.org/docs/pdf/cos177960.pdf 36) Ministry of Agriculture. Land Tenure and Agrarian Reform, containing the laws, codes and decrees of the decree. https://agricultura.gob.do/wp-content/uploads/2018/10/Leyes-Sobre-Tenencia-de-Tierras-y-Reforma-Agraria.pdf and https://agricultura.gob.do/wp-content/uploads/2018/10/Leyes-Sobre-Tenencia-de-Tierras-y-Reforma-Agraria.pdf