New Licenses Fuel Growth in Costa Rica’s Hemp Industry

Ministry of Agriculture Issues 57 Hemp Cultivation Licenses in Costa Rica

The Ministry of Agriculture and Livestock (MAG) in Costa Rica has issued 57 licenses for the cultivation and production of hemp derivatives, marking significant progress in the country’s legal hemp industry. The first license was granted on November 8, 2022, and the most recent was issued on September 3, 2024. Each license is valid for six years, allowing for a sustainable period of cultivation and production in line with the country’s growing interest in hemp.

Licensing and Geographic Distribution

According to data from MAG, the majority of licenses have been granted in the regions of San José and Guanacaste, reflecting a strong interest in hemp cultivation in these areas. These regions are seen as favorable for hemp cultivation due to their climate and agricultural infrastructure. The government’s licensing initiative aims to establish Costa Rica as a key player in the hemp market, both for industrial and research purposes.

The issuance of these licenses follows the implementation of a law in early 2022 that legalized the cultivation of hemp in Costa Rica. Hemp, a versatile plant used for its fibers, seeds, and oil, is gaining global attention for its industrial applications and potential health benefits. Costa Rica’s new legal framework has opened the door for local businesses and research institutions to explore these possibilities.

Pioneers in Hemp Licensing: Ingenio Taboga and Public Universities

The first license was awarded to Ingenio Taboga, a company at the forefront of the country’s hemp industry. Since obtaining its license, Ingenio Taboga has been leading the commercial production of hemp derivatives in Costa Rica.

In addition to private companies, two public universities, the Universidad Nacional (UNA) and the Tecnológico de Costa Rica (TEC), also applied for and were granted licenses to conduct research on hemp. In August 2023, UNA became the first educational institution to secure a license for hemp research. This milestone underscores the importance of academic involvement in the development of the hemp industry in Costa Rica.

Hemp Research at Universidad Nacional

Since receiving its license, Universidad Nacional has focused its efforts on studying the development and properties of hemp. The university’s research includes investigating techniques to optimize hemp cultivation by modulating physiological processes in the plant. This research is based on two hemp varieties from Canada, providing insights into how different environmental factors can impact the growth and quality of hemp in Costa Rica.

Jorge Herrera, Vice Rector of Research at UNA, highlighted the importance of collaboration between state entities, businesses, and academic institutions to advance the industry. He emphasized that this partnership could accelerate the process of hemp development in the country, paving the way for faster innovation and commercialization of hemp-derived products.

Costa Rica’s Emerging Hemp Industry

With 57 licenses now granted and active research projects underway, Costa Rica is poised to become a significant player in the global hemp industry. The legal cultivation of hemp is expected to provide economic opportunities, particularly in rural areas like Guanacaste, where agricultural expansion is key to economic development.

The collaboration between private companies and academic institutions, such as Ingenio Taboga and UNA, is a promising step toward unlocking the potential of hemp for both industrial use and scientific research. As the hemp industry continues to grow, more innovations and applications of hemp products are likely to emerge, benefiting a wide range of sectors from agriculture to pharmaceuticals.

As the industry evolves, the role of MAG in regulating and supporting hemp cultivation will remain critical. By providing clear guidelines and facilitating research, the government can help ensure the industry develops sustainably and contributes to the country’s economy in meaningful ways.