According to a report by the FAO and OECD, Latin America and the Caribbean are expected to see a 12% increase in agricultural and fisheries production over the next decade, although the growth rate will be slower compared to previous years.
The report emphasizes that crop production will contribute the most to this growth, with a projected increase of 17%, while livestock and fisheries will experience more moderate growth rates of 11% and 10% respectively.
The FAO and OECD highlight the significance of exports for sustained agricultural growth in the region, as Latin America is expected to account for over 30% of global exports of key commodities such as corn, soybeans, sugar, beef, poultry, and flour by 2032.
However, the report cautions that the continued growth of Latin American and Caribbean crops depends on maintaining an open global market.
The region’s agricultural prosperity also hinges on trade relations with various parts of the world, which present both opportunities and risks for producers.
Climate change poses another challenge to agricultural production in the region.
Latin America, particularly Brazil already dominates global soybean production, and its share is expected to increase to 54% by 2032.
However, the report warns that the impact of climate change, including more frequent droughts and natural disasters like fires, could hinder production.
Additionally, the region faces the task of addressing poverty, as extreme poverty rates reached 13.8% in 2021, the highest in over 25 years.
Food availability and calorie intake have stagnated since 2015 due to factors such as declining income levels, macroeconomic instability, the pandemic, and rising prices.
The report concludes by highlighting the high sugar consumption in the region, which remains nearly 65% above the global average.
Overall, while Latin America and the Caribbean are projected to experience agricultural growth, challenges such as trade volatility, climate change, poverty alleviation, and unhealthy food consumption need to be addressed for sustainable development in the sector.