2025 is not just any year. The UN has proclaimed it as the International Year of Cooperatives, a recognition of the transformative impact of these organizations on the economy, society, and the environment. In a world where rural inequality persists and opportunities for economic growth are often concentrated in cities, cooperativism emerges as a key solution to generate employment, innovation, and well-being in the most underdeveloped areas.

In Costa Rica, cooperativism has been much more than a simple business organization structure. It has represented an economic alternative capable of empowering entire communities and becoming the engine of rural development. Cooperatives not only directly benefit their members but also generate a productive chain that impacts the entire region, strengthening local economies and promoting a more equitable distribution of wealth. They have also been one of the main sources of employment in rural areas, guaranteeing economic stability and better living conditions for thousands of families.

So, the question is clear: How can we further enhance the impact of cooperativism for the country's development?

Cooperatives as Engines of Development

Cooperatives in Costa Rica have a long history and have proven to be an effective solution to the challenges of the rural economy. Cooperatives enable small and medium-sized producers to access markets, technologies, and financing, promoting economic equity and social welfare.

In the case of Costa Rica, agroindustrial cooperatives are, in some areas, the main generators of employment and development. Without them, many rural communities would not have many viable opportunities for economic growth or access to formal employment, which would accentuate the inequality gap between urban and rural areas. The job stability they provide is key to preventing the migration of the young population to the cities in search of employment.

Economic Impact: Employment Generation and Productive Linkages

Cooperatives have been key to generating formal employment in rural areas. In Costa Rica, FAC's agroindustrial cooperatives have more than 22,000 members and generate more than 8,500 direct jobs, in addition to an estimated 20,000 indirect jobs. These jobs especially benefit rural communities, where access to formal employment is often limited and where cooperativism represents one of the few sustainable labor alternatives.

In addition, cooperatives contribute to the productive chain through the purchase of domestic inputs, generating a positive impact on other sectors of the economy. It is estimated that spending on national purchases by FAC-affiliated cooperatives exceeds ₡804,000 million annually, which boosts the local and national economy. This shows that the benefits of cooperativism are not only direct but also indirect, as they generate a productive chain within the area, benefiting small suppliers, local businesses, and related services.

Environmental and Social Benefits of Cooperativism

Beyond their economic impact, cooperatives also play a crucial role in environmental and social sustainability. Many cooperatives have adopted sustainable production practices, promoting the efficient use of resources and reducing their environmental footprint.

For example, CoopeVictoria R.L., a coffee cooperative in Greece, has implemented cleaner production processes and invested in renewable energy to reduce its environmental impact. They use biofuels in all agricultural machinery, reducing emissions by 80% and reducing dependence on traditional fuels.

Similarly, CoopeTarrazú R.L., located in the Los Santos region, is the first cooperative to export deforestation-free coffee to Europe, complying with the future requirements of the European Green Pact. CoopeTarrazú also develops social programs in education for girls and provides community welfare through a care network for children under 12 years of age, strengthening the social fabric and improving the quality of life in the region.

From the social point of view, cooperatives have also promoted education, training, and community development programs. Many of them invest in local infrastructure, improving the quality of life of their members and their communities.

Innovation and the Future of Cooperativism in Costa Rica

The current challenge for cooperatives is their repositioning through innovation. The digitalization of processes, access to advanced technologies, and the incorporation of new management tools can improve the efficiency and competitiveness of cooperatives. In addition, there are opportunities for cooperatives to venture into emerging sectors such as the circular economy and renewable energies.

The International Year of Cooperatives 2025 is an opportunity to reflect on how to strengthen this model and enhance its impact. Cooperatives have demonstrated their capacity to transform the country economically, socially, and environmentally. However, their long-term sustainability will depend largely on their ability to improve their internal management, optimize processes, and adapt to the new challenges of the global environment.

The Future of Cooperativism: How to continue strengthening it?

The International Year of Cooperatives 2025 provides us with an opportunity to rethink and strengthen this model. Cooperatives have demonstrated their capacity to generate economic, social, and environmental impact, but there is still a long way to go. We invite you to share your vision and proposals on the future of cooperatives in Costa Rica: What strategies could help maximize their reach? How can we further boost their competitiveness and innovation?

For a more detailed approach, we invite you to review the full study here.