The Organization for Economic Cooperation and Development (OECD) and the Food and Agriculture Organization of the United Nations (FAO) earlier this month released the OECD-FAO Agricultural Outlook 2019-2028, signalling the prospect of continued growth of Latin America’s agricultural sector for the immediate future. The report expresses confidence in agricultural exports for the region, especially in the areas of high value fruits and vegetable crops.
According to the report, “strong growth opportunities in high value fruit and vegetable crops provide opportunities for smallholders,” opportunities which will extend to distributors, investors, and large-scale exporters as well.
The report also notes some general trends in agricultural development and demographics, highlighting a trend towards urbanization that is consistent with worldwide patterns. “ Latin America has…become increasingly urban, with 80.4% of its 644 million inhabitants living in urban areas.” This trend, according to the report, will need to be offset by improvements in technology and infrastructure in order to maintain growth in production capacity.
As supply chains become more integrated in the region, transparency and traceability will become factors that set businesses apart from their competition. The introduction of wireless technology will make this process easier, says the report.
The report also affirms strong support of female empowerment in the region, citing it as critical to the success of an increasingly “feminised” industry. The report expresses the “need for targeting female farmers to improve their access [to] education, credit and extension services.”
Placing a focus on changing consumer demand, the report highlights the growth of export markets in the developed world. “Preference changes towards higher consumption of tropical fruits in developed regions, particularly in the case of avocado, should meanwhile stimulate a further expansion in trade,” said the report. In addition, the report states that “in high-income countries, growing awareness of health and sustainability issues is increasingly shaping consumer decisions.” This development strongly favors businesses which have implemented environmentally friendly practices.
This is certainly welcome news for us at Farmfolio. Having made a firm commitment to sustainable agricultural development, we are poised to lead the charge into the coming decade. Specializing in high value fruit, the exact sector that report predicts to see the most growth in the near future, we are confident that Latin America’s continued success will be our success as well.
In light of the report, our strategy moving forward is clear – we will continue to promote integrated supply chains, sustainable agriculture, and female empowerment. It is with great enthusiasm that we are looking forward to the growth of our business as well as the growth of the beautiful and enchanting region in which we operate.