Agriculture, Food & Beverage

Embracing Innovation, Sustainability and Excellence

Where Agriculture Thrives

Agricultural biotechnology is one of the fastest-growing sectors in Puerto Rico’s economy, driven by favorable year-round climate, skilled and professional labor, agricultural academic research centers, excellent soil quality, proximity to the U.S. mainland and intellectual property protection. Major players such as Pioneer, Bayer and Syngenta call Puerto Rico home, employing over 2,500 people with a combined estimated operational budget exceeding $75 million. A new generation of farmers is building on the foundation of Puerto Rico’s agricultural community by launching farm-to-table restaurants, developing artisanal food products and embracing sustainable farming techniques. These trends, along with competitive incentives and emerging interest in hemp and medical cannabis, ensure that agriculture in Puerto Rico continues to grow and evolve.

90^%

share of agbiz income is exempt from income taxes

85%

of seeds used in AgBio research around the world pass through PR

^$2.17B

total food, beverage, & tobacco manufacturing GDP.

CONNECT WITH BUSINESS DEVELOPMENT

Companies Already Doing Business in Puerto Rico

Local Connections: Agriculture, Food and Beverage Organizations

A large, professional network of industry associations, educational institutions and local and federal government supports this growing sector.

Food Marketing, Distribution & Industry Association (MIDA)

Hemp Licensing & Inspection Office (OLIC)

INDUNIV Research Consortium

Land Authority of Puerto Rico (ATPR)

Puerto Rico Agricultural Biotechnology Industry Association (PRABIA)

Puerto Rico Department of Agriculture (DAPR)

Puerto Rico Farm Bureau (PRFB)

Rums of Puerto Rico

U.S. Department of Agriculture Puerto Rico Farm Service Agency (FSA)

U.S. Department of Agriculture Animal and Plant Health Inspection Service (APHIS)

University of Puerto Rico – Mayaguez: Agriculture Extension Service

Agricultural Incentives

Bona Fide Farmers are exempt from paying income taxes on 90% of income that comes directly from the agricultural businesses. Eligible activities include:

Raising animals to produce meat, milk, or eggs used for human food, or raw materials for other industries
Agricultural operations that buy raw material produced in Puerto Rico
Activities of the dairy industry
Marine culture, commercial fishing and aquaculture
Commercial production of flowers, plants and ornamental grasses
Cultivation of fruits and vegetables by hydroponic methods
Breeding thoroughbred, racing, riding and fine-step horses
Tillage or cultivation of the land to produce fruits, vegetables, spices and seeds

For more information on the exemption, see Chapter 8 of Act 60 (page 243).

Agricultural Incentives

Bona Fide Farmers are exempt from paying income taxes on 90% of income that comes directly from the agricultural businesses. Eligible activities include:

Raising animals to produce meat, milk, or eggs used for human food, or raw materials for other industries
Agricultural operations that buy raw material produced in Puerto Rico
Activities of the dairy industry
Marine culture, commercial fishing and aquaculture
Commercial production of flowers, plants and ornamental grasses
Cultivation of fruits and vegetables by hydroponic methods
Breeding thoroughbred, racing, riding and fine-step horses
Tillage or cultivation of the land to produce fruits, vegetables, spices and seeds

For more information on the exemption, see Chapter 8 of Act 60 (page 243).

Manufacturing Food and Beverage Products

Food and beverage manufacturing is a major contributor to the local economy. Global giants such as Coca-Cola and Goya, as well as local enterprises like Vaquería Tres Monjitas and Molinos de PR, employ thousands of people and contribute significantly to the island’s GDP.

Cervecera de Puerto Rico sells $176M of its Medalla Light beer every year
World-famous rum distilleries like Bacardi and Serralles (Don Q) and smaller craft producers supply more than 70% of rum sold in the United States, or about half a billion dollars

Puerto Rico’s Agricultural Biotechnology Assets

The University of Puerto Rico at Mayagüez is a land-grant university with a well-developed agricultural sciences research community and several agricultural experimental stations across the island.

A 22,000 sq. ft. facility for agricultural biotech research and training (CEIBA)
Seed research and field trials at several company research stations
Major research and development projects in agricultural products including corn hybrids and other field crops
Favorable weather conditions allow four to five crops to be produced in a year period
Micropropagation and tissue culture facilities