Buying from smallholder farmers strengthens food security in Latin America and the C’bean

A United Nations study shows that directing public food purchases to local family farmers can boost production, diversify diets, and generate inclusive economic growth.

 

The new report, Improving food security and nutrition through local public food procurement from smallholder farmers, presented by the World Food Programme (WFP), the Food and Agriculture Organization of the United Nations (FAO) and the Economic Commission for Latin America and the Caribbean (ECLAC), reveals the transformative potential of public food purchases from small producers to strengthen food security and nutrition in Latin America and the Caribbean.

 

Smallholder farming accounts for 81 per cent of agricultural holdings in the region yet faces persistent challenges such as low productivity, limited market access, and vulnerability to extreme weather events. By channeling public spending toward this sector, governments can create structured demand that stimulates production, diversifies diets, and generates inclusive economic growth.

 

In 2024, Latin America and the Caribbean saw a reduction of 1.5 million people who were no longer suffering from hunger. However, the region still faces significant challenges: 181.9 million people cannot afford a healthy diet, and rural poverty remains a serious concern.

 

In light of this scenario, United Nations agencies presented a report showing how local procurement offers a cost-effective solution by leveraging public budgets and providing nutritious food while fostering economic and social development.

 

The presentation event was opened by the FAO’s Assistant Director-General and Regional Representative for Latin America and the Caribbean, Rene Orellana Halkyer, who highlighted that “promoting the local public food procurement produced by smallholder farmers has become a key policy for moving in that direction. This strategy links government demand with local production and redefines how public spending can drive development and improve nutrition in the region. However, smallholder farming faces structural barriers such as low productivity, limited market access, and high climate vulnerability, which calls for policies like public procurement.”
For her part, Lola Castro, WFP Regional Director for Latin America and the Caribbean, noted that “Public procurement from smallholder farmers is more than a supply mechanism — it is a powerful policy tool for inclusion and resilience.

 

“Short chain and zero kilometre foods multiply economic opportunities for communities, safeguard culinary heritage and contribute to public health, since produce is picked at peak ripeness and has a shorter travel time from the farm to the consumer, resulting in greater nutritional value,” she added.

 

The study shows that countries that dedicate part of their public food procurement budgets to source from local smallholder farmers see significant gains: participating producers are able to increase their incomes up to 106 per cent, while female participation in public food markets has surged from 23 per cent to 61 per cent, proving that these policies can advance equity; countries like Honduras and Guatemala generated 478 jobs for every million dollars invested.

 

This approach transforms public spending into a powerful engine for rural development, creating stable markets for small-scale farmers and promoting inclusive economic growth.

 

Marco Llinás, director of the Productive and Business Development Division at ECLAC, explained: “Connecting producers to markets is not enough; policies are needed that strengthen their productive, technological, and organisational capacities. Only in this way can they improve their productivity, integrate into dynamic and sustainable value chains, and increase their income, while simultaneously boosting production, reducing prices for consumers, and contributing to ensuring food security for the population.”

 

The report indicates that to scale the impact of public procurement, it is crucial to leverage the synergies between public procurement and other productive development efforts in areas such as science, technology, innovation, technology extension, human capital, financing, and quality.

 

Furthermore, the publication provides information and references so that policymakers, development agencies, and civil society can continue to promote evidence-based, systemic approaches that integrate local public food procurement into national food security and rural development strategies.

(PR)