Unravelling business models’ sustainability opportunities: the case of horticultural farmers in Cartago, Costa Rica

The agricultural sector plays a key role in shaping the transition towards sustainable food systems. However, agricultural producers face dual pressures: they must mitigate environmental burdens and ensure their businesses remain financially viable. Based on a case study in Latin America, this paper investigates the environmental and economic implications of implementing agroecological practices while addressing market barriers and opportunities for sustainable business models for smallholders.
The Agroecology Criteria Tool was used to evaluate the most promising cooperative producer, guiding subsequent research steps based on their practices. The Environmental Life Cycle Costing then enabled comparison of this producer’s performance with the business-as-usual scenario, supporting the internalisation of environmental externalities by monetising carbon and water footprints. Subsequently, a market analysis clarified the current commercial context, and the Sustainable Business Model Canvas identified strengths and weaknesses in a co-designed, tailored business model proposal.
The results suggest that agroecological practices reduce environmental externalities and material costs but increase labour intensity. At the same time, market context analysis reveals both structural constraints, such as price asymmetries and limited access to competitive channels, and growing opportunities driven by the demand for sustainable products. These findings were further analysed in the Sustainable Business Model Canvas design process and incorporated into a sustainable value proposition. Together, they provide a pragmatic approach that can guide the development of science-based business model proposals to support horticultural farmers in Central America in their transition to more sustainable food systems.