Companies across industries are rethinking where they produce and source. But food and agribusiness can’t always be moved elsewhere. Latin America and the Caribbean offers companies a different path: diversification, quality, competitiveness, and growth by leveraging established regional value chains.

The region plays a key role in global food security. It accounts for an estimated 12.7% of the expected increase in world agricultural production through 2035. Its 670 million consumers also offer companies access to a sizable market.

Firms looking to enter or expand in Latin America and the Caribbean can benefit from an on-the-ground partner that brings together the right long-term financial instruments and expertise to support their growth. IDB Invest, the private sector arm of the IDB Group, works with companies to identify opportunities and turn them into bankable investments. We work with global and local groups, providing anchor financing to mobilize capital, de-risk strategic investments, and offer advisory services that strengthen value chains and support growth. 

IDB Invest supports clients and projects from farm to fork. IDB Invest is present throughout the entire agrifood value chain, from farm inputs to distribution and retail. 

Latin America and the Caribbean’s agrifood strength lies in its geographic and product diversity, with different countries leading key value chains. For example, Brazil, Argentina, and Paraguay lead in grains, oilseeds, sugar, and related products, while Ecuador in bananas and shrimp, and Peru in blueberries and table grapes. In coffee, five of the region’s leading producers together account for a third of global coffee trade. These are just a few examples of the region's broad and diverse agrifood base.

Food Security Through Diversification 

High and volatile input costs, including fertilizers, and extreme weather events ranked among the top perceived risks to EU food supply, according to the latest State of Food Security in the EU assessment. Greater geographic diversification of sources for agrifood products and key inputs can strengthen food systems' resilience. In Latin America and the Caribbean, established value chains provide a foundation for companies to invest and expand. With 570 million hectares of agricultural land, the region holds around 30% of global arable land, much of it still with expansion potential, and holds around 30% of the world’s renewable freshwater. 

Financing Agri-food Value Chains at Scale 

IDB Invest manages over $4 billion in food and agribusiness assets across the region, with more than 50% mobilized to advance value chain development and modernization in 20 countries. This diversified regional footprint highlights IDB Invest’s ability to anchor large-scale investment.

For example, in Peru, we supported Camposol S.A., a leading multinational agribusiness company in renewing blueberry varieties using the company’s proprietary genetics and investing in its avocado operations to improve agricultural productivity. The financing included $50 million from the Japan International Cooperation Agency (JICA) through its Trust Fund Achieving Development of Latin America and the Caribbean TADAC funds and $40 million mobilized through Rabobank.

Also in Peru, we provided up to $35 million in financing to Danper, an agro-industrial company, to increase agricultural production and strengthen its local supply chain, with purchases from local suppliers projected to average $115 million annually between 2024 and 2028. An IDB Invest advisory program also supported women farmers, who supply 30% of the company’s agricultural products and receive technical assistance and a financing program for input purchases.

In Mexico, we granted a $15 million financing package to Prolade, a company that produces sustainable palm oil in accordance with the Roundtable on Sustainable Palm Oil (RSPO) standards. The transaction included a blended finance component and was tailored to the company's cash flows and industry dynamics. It became the first development finance institution to close a deal in the palm oil sector in Latin America and the Caribbean in 15 years.  

Financing innovation is key to strengthening food value chains. IDB Invest’s Originate-to-Share model plays a catalytic role by structuring investments, mitigating risk, and creating opportunities for additional investors to participate, helping viable projects attract capital at scale. 

And What About El Niño? 

El Niño, which is leading to a Super El Niño, is a recurring challenge for the region's food value chain. But preparedness, risk reduction, and resilience can help prevent climate shocks from becoming crises. 

IDB Invest complements the private sector with parametric insurance, flexible clauses, and trade lines sized for a volatile price cycle. Additionally, our food and agribusiness advisory team across 28 countries in the region supports adaptation, irrigation, water efficiency, and resilient genetics as part of our financing packages. We also stress-tested seasonal cash flows and borrowers’ ability to meet financial commitments through the 2027 crop year.

Super Niño events in 1982–83, 1997–98, and 2014–16 show that resilience means being prepared for both risks and opportunities. In parts of the Southern Cone, increased rainfall can benefit corn, soy, and grazing operations. Tighter expected supplies of products such as sugar, Arabica coffee, and beef can also create opportunities for farmers who can maintain production, so financing the winners is also part of preparedness.  

Latin America and the Caribbean is strengthening its role in global food security, after decades of private investment in a diversified food and agribusiness ecosystem. Efficient land and water use, regenerative agriculture, technology, and farm-to-port traceability already support competitive and responsible production across the region. This established foundation creates opportunities for companies to scale, connect to existing value chains, and pursue sustainable growth across the agrifood sector.