The World Food Programme (WFP), the Food and Agriculture Organization (FAO), and the Economic Commission for Latin America and the Caribbean (ECLAC) have released a report highlighting the potential of local public food procurement from smallholder farmers to strengthen food security and nutrition in the region. Smallholder farms, which account for 81 percent of agricultural holdings in Latin America and the Caribbean, face ongoing challenges such as low productivity, limited market access, and vulnerability to climate shocks. By directing public spending toward these producers, governments can stimulate production, diversify diets, and promote inclusive economic growth.
In 2024, the region achieved a reduction of 1.5 million people suffering from hunger, yet significant challenges remain: 181.9 million people cannot afford a healthy diet, and rural poverty continues to affect many communities. The report emphasizes that local procurement offers a cost-effective strategy, using public budgets to provide nutritious food while fostering social and economic development.
FAO’s Rene Orellana Halkyer noted that public procurement links government demand with local production, redefining the role of public spending in driving development and improving nutrition. Similarly, WFP’s Lola Castro highlighted that sourcing directly from smallholder farmers not only creates economic opportunities and strengthens inclusion but also preserves culinary heritage and enhances public health by reducing the time from farm to consumer, which maintains nutritional value.
The study found that countries dedicating a portion of public food procurement to local smallholders see measurable benefits. Participating farmers can increase their incomes by up to 106 percent, female participation in public food markets has risen from 23 percent to 61 percent, and countries like Honduras and Guatemala generated 478 jobs for every million dollars invested. This approach effectively transforms public spending into a driver of rural development and inclusive growth.
ECLAC’s Marco Llinás emphasized that connecting farmers to markets is insufficient without policies that strengthen their productive, technological, and organizational capacities. Enhancing these capacities allows farmers to integrate into sustainable value chains, increase incomes, boost production, reduce consumer prices, and contribute to broader food security.
The report also underscores the importance of combining public procurement with broader development efforts, including science, technology, innovation, capacity building, financing, and quality improvement. It provides guidance for policymakers, development agencies, and civil society to adopt evidence-based strategies that integrate local public food procurement into national approaches to food security and rural development, amplifying both economic and nutritional outcomes.
