Latin America and the Caribbean (LAC) aspire to become the world's food basket.
With abundant land, water, and natural resources, LAC is the world's largest net exporter of agricultural products. However, it still needs enormous growth to meet the nutritional demands of an ever-growing global population. The sector needs greater and better financing, increased competitiveness, and improved efficiency while adapting to climate change and protecting the environment, all without neglecting small producers.
CHALLENGES AND OPPORTUNITIES
Latin America and the Caribbean (LAC) hold one third of the world's drinking water and has a large amount of potentially arable land in addition to tremendous biodiversity. LAC is home to 34% of the world's flora and 27% of all mammals. The region has the means to become a global leader in agribusiness.
However, to achieve this it faces multiple challenges. It needs to increase competitiveness and access to water and improve efficiency, all within the context marked of climate change. Variations in rainfall patterns and droughts will put the region to the test. Agribusiness must also take small producers into account, integrating them in the value chain to achieve a fair balance between production and land use. The region needs comprehensive solutions that take multiple factors into account.
The agribusiness sector is fertile ground for IDB Invest.
We assist and finance agribusiness in Latin America and the Caribbean through long-term loans and supply chain instruments. We focus on increasing installed manufacturing capacity, productivity, and optimal use of resources, including renewable energy. We incorporate gender equality initiatives and work with companies that are committed to small producers.
In Latin America and the Caribbean, family businesses account for 80% of agricultural producers, 40% of production, and two thirds of agricultural employment. However, 14 million small producers are poor and the majority of them cannot access financing. We work with financial institutions, agricultural cooperatives, and anchor companies to expand access to financing, promote rural development, and integrate small producers in the value chain.
IDB Invest makes a difference by betting on sustainable, competitive, and innovative business models. We seek investments that rely increasingly on renewable energies and improved water use. We promote fair workplaces that value inclusion and diversity.