A new report by the United Nations World Food Programme (WFP), the Food and Agriculture Organization (FAO), and the Economic Commission for Latin America and the Caribbean (ECLAC) highlights the transformative potential of public food procurement from smallholder farmers to strengthen food security, nutrition, and inclusive economic growth across the region.
Smallholder farmers account for 81 percent of agricultural holdings in Latin America and the Caribbean but continue to face challenges such as low productivity, limited market access, and vulnerability to extreme weather. The report shows that channeling public spending toward this sector creates structured demand that stimulates production, diversifies diets, and generates social and economic benefits for rural communities.
Despite progress in 2024, when 1.5 million people escaped hunger, 181.9 million people in the region still cannot afford a healthy diet, and rural poverty remains widespread. Local procurement provides a cost-effective solution by using existing public budgets to supply nutritious food while supporting sustainable development.
“Public procurement from smallholder farmers is more than a supply mechanism—it is a powerful policy tool for inclusion and resilience,” said Lola Castro, WFP Regional Director for Latin America and the Caribbean. “It multiplies economic opportunities for communities, safeguards culinary heritage, and contributes to public health by delivering fresher, more nutritious food to consumers.”
The report highlights measurable impacts of local procurement programs. In Brazil, participating producers have increased their incomes by up to 106 percent, while in Honduras and Guatemala, every million dollars invested generates 478 jobs. Programs like Brazil’s National School Feeding Programme, which sources over 97 percent of its foods fresh or minimally processed, also boost female participation in public food markets—from 23 percent to 61 percent—demonstrating potential for advancing equity.
Marco Llinás, Director of the Productive and Business Development Division at ECLAC, emphasized the need to pair procurement with broader productive development policies: “Connecting producers to markets is just the first step. Policies must transform farmers’ technological, organizational, and productive capacities, enabling integration into sustainable value chains, improving productivity, and increasing incomes. This will also reduce food prices for consumers and strengthen food security.”
FAO Assistant Director-General and Regional Representative Rene Orellana Halkyer added: “Local public procurement allows governments to link demand with local supply, redefining public spending as a tool to promote development and nutrition. Structural barriers like low productivity, limited market access, and climate vulnerability must be addressed to maximize its potential.”
The report calls on governments, development organizations, and civil society to adopt systemic, evidence-based approaches to integrate local procurement into national strategies for food security and rural development, turning routine public spending into a driver of resilient, inclusive food systems.
