Agribusiness opportunities and investment in Nicaragua.From the FUNIDES study "Commercial forest plantations in Nicaragua: Incentives, barriers and opportunities":
Executive Summary
FUNIDES has identified 107 potential products for productive diversification, of which 11 are in the category of "wood" and "wood products". To achieve diversification and increase the sophistication of the products produced by the forestry sector in Nicaragua, a critical mass must be reached in order to cover the costs of research and development, as well as the technification of the process of transforming the raw material and generating profit in order to attract more investment.
The most sustainable source for this matter are commercial plantations, which in turn fulfill an important environmental function, taking pressure off the natural forest. In the present study, it is proven that the incentives to the forestry sector can make the difference for a project to be financially acceptable from the point of view of the investors. In the same way, forest certification can contribute to the profitability of commercial plantations. The study identifies barriers and opportunities for companies in other business lines that want to venture into the development of plantations, making use of tax incentives.
