The Latin American and Caribbean (LAC) region remains a global powerhouse in food production, accounting for about 16% of total global food and agricultural exports and roughly 4% of global imports in 2024, according to the latest data from the FAO, UN Comtrade, and Rabobank. This net export surplus underscores Latin America’s strategic role in global food security and commodity supply chains.
The region remains one of the few areas in the world with significant reserves of untapped agricultural land, particularly in Brazil, Argentina, Paraguay, and parts of Colombia. Expanding this potential responsibly is considered crucial to meeting the projected global food demand for the mid-21st century.
Agricultural Growth and Productivity Trends
Over the past decade, most Latin American countries have achieved steady improvements in agricultural productivity, supported by the adoption of biotechnology, digital agriculture, and advances in irrigation efficiency. However, sustaining this growth is becoming increasingly difficult due to environmental challenges such as deforestation, climate change, and water stress, especially in Brazil’s Cerrado and Argentina’s Pampas regions.
- Brazil: Retains its dominant position as a global top exporter of soybeans, corn, coffee, beef, and poultry. Agribusiness represented 26% of the national GDP in 2024, making it a cornerstone of the Brazilian economy.
- Argentina, despite economic volatility and currency pressures, remains a vital exporter of soy meal, soy oil, and high-value beef. Precision agriculture has expanded rapidly, improving yields across core grain belts.
- Chile: Strengthened its position in fruits, wine, and salmon exports, focusing on high-value and differentiated products.
- Mexico continues as the region’s largest agricultural importer, but it is increasingly exporting value-added products, such as avocados, berries, and processed foods.
Brazil maintains its leading role, accounting for around 43% of the region’s output, followed by Argentina (18%), Mexico (11%), Chile (8%), Paraguay (4%), Uruguay (3%), and other countries making up the remainder. These figures illustrate the region’s export strength and production growth in recent years, affirming Latin America’s significance in global food supply chains.
Smallholder Agriculture and Sustainability
While export-oriented agribusiness drives much of the region’s trade performance, smallholder farmers (around 14 million across LAC) still produce close to half of the region’s food supply. Improving their productivity and income remains key to both social stability and sustainable growth. The Inter-American Development Bank (IDB) and regional initiatives, such as the 2023 “AgTech for Inclusion” program, are investing heavily in technologies that connect small producers to digital markets and climate-smart solutions.
Agricultural Structure and Regional Differences
Landholding patterns continue to reflect historical patterns of inequality. Large-scale, capital-intensive farms dominate production in Brazil, Argentina, and Uruguay, whereas smaller, family-based holdings are prevalent in Peru, Colombia, Ecuador, and Central America. This dual structure defines most national agricultural systems and affects access to technology, finance, and export markets.
- In Brazil, agriculture accounts for approximately 6% of the GDP but employs only 10% of the workforce, while the broader agribusiness sector contributes more than 25% of the GDP.
- In Bolivia, Guatemala, and Paraguay, the agricultural sector still represents 11–22% of GDP and employs 30–40% of the labour force, reflecting a more traditional rural economy.
- Paraguay continues to expand mechanised soybean and beef production, becoming a key regional exporter.
Environmental and Climatic Considerations
Climate impacts, including severe droughts in southern South America (2020–2023) and water shortages in the Andean valleys, have accelerated investment in irrigation, water storage, and crop diversification. At the same time, international scrutiny over Amazon deforestation and methane emissions from cattle has increased pressure on regional governments and exporters to adopt sustainable practices and certification systems.
Outlook Beyond 2025
Looking forward, Latin America’s global role in feeding a growing population will depend on:
- Expanding yields through science-based innovation and soil management.
- Balancing export growth with forest and water conservation commitments.
- Strengthening rural livelihoods to reduce inequality and migration pressures.
- Developing regional logistics, including bioceanic corridors and ports such as Chancay in Peru and Porto Central in Brazil, to enhance export competitiveness.
Latin America’s mixture of large-scale, export-oriented agribusiness and millions of smallholder producers gives it unique dual importance: both as a key global supplier and as a region whose rural transformation is vital for inclusive growth and ecological balance.
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