Latin America lives a paradox. It is a leading region in the production of fruits, vegetables, fish and meat on a global scale and exports hundreds of billions of dollars worth of food each year. But it is also the region where food has become more expensive, which is why almost 57 million people go hungry. The problem has worsened since the covid-19 pandemic, when the region’s vulnerabilities were exposed, including underinvestment in the development of its own fertilizers.
Although inflation, both general and food inflation in particular, has increased throughout the world, the magnitude of the increase in Latin America and the Caribbean is much greater than in other regions, according to data from the United Nations Food Organization. and Agriculture (FAO). The average food inflation rate for the region reached 43.9% in September 2022, well above, for example, the 30% registered in Asia, the region with the second highest food inflation in the world.
The phenomenon is related to several factors. The depreciation of the currencies in the respective countries impacts the price of those imported foods. The increase in the price of fuels, also on a global scale, affects transportation and distribution. In addition, the war in Ukraine has also had an important effect since Russia is one of the main suppliers of fertilizers to Latin America and the war has complicated both the production and the purchase of these products since February of last year.
The region is a net exporter of food. Latin America accumulates 14% of the world production of agricultural and fishing products. Brazil and Argentina have opted for transgenic technologies to multiply their crops, while in Mexico, businessmen from sectors such as avocados have invested in strong advertising campaigns abroad to market their product. A report by the Economic Commission for Latin America and the Caribbean (Cepal) ensures that the region annually exports products worth 160,000 million dollars. 87% of this amount is destined for other regions of the world; only the remaining 13% stays in producing countries.
This is one of the reasons why it is paradoxical that 49.4 million people in Latin America and 7.2 million in the Caribbean go hungry, according to ECLAC data. On April 5, Mexico led a video call with six heads of state and two ministers from the region to reach an agreement on the reduction of tariffs that could result in lower prices of basic products. The idea was to seek “joint solutions to the price pressures and shortages present in the region,” as well as “strengthening regional integration and trade,” according to the alliance’s statement.
“To address a potential food security and hunger crisis, countries can implement a series of integrated policy responses,” the United Nations Development Program (UNDP) recommended in a report published Tuesday. “Farm support programmes, such as providing farmers with seeds, fertilizers and tools, as well as training and infrastructure, such as irrigation systems, can help improve food production.”
Social protection policies, beginning with feeding programs in schools or vouchers or monetary transfers, can help the low-income population to access nutritious food, said the multilateral. “Price regulation policies can ensure that food is available and accessible at affordable prices,” the agency said.
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