The region is facing an unprecedented food crisis: a growing number of people are struggling with severe or moderate food insecurity in Central America, more than the average for Latin America and the Caribbean and, in some cases, over 10% of the population.
San José, March 18, 2024 (IICA). The volatility of international food and fertilizer prices, its impact on domestic markets in Central America, and increasing food insecurity in these countries sparked by multiple crises in the global context, make it imperative that innovative policies be adopted to strengthen the resilience of agrifood systems and contribute to food and nutrition security in the region.
This was the conclusion reached by more than 20 specialists who took part in the workshop “Food Security and Agriculture: An analysis of the transmission of food and fertilizer prices in Central America,” organized by the World Bank and the Inter-American Institute for Cooperation on Agriculture (IICA) in a joint effort to address and seek solutions to the critical challenges of food security and agricultural resilience in Central America.
Gathered at IICA’s Headquarters in San José, Costa Rica, the participants included the Deputy Minister of Agriculture of Guatemala, Nick Kenner Estrada; the Deputy Minister of Economic Development of Honduras, Cinthya Arteaga; the Director General of IICA, Manuel Otero; high-level policymakers and implementers from Costa Rica, El Salvador and Panama; the leader of the World Bank’s Sustainable Development Program in the region, David Tréguer; and representatives of regional institutions such as the Central American Integration System (SICA), the Executive Secretariat of the Central American Agricultural Council (SECAC), and the Central American Bank for Economic Integration (CABEI).
It was emphasized during the event that such high levels of poverty and hunger have not been seen in the region for 15 years. In Latin America and the Caribbean, 82 million people live in extreme poverty, while 43.2 million (16% of the population) face hunger, in a context in which annualized food inflation has surpassed six percent in the region. Furthermore, it is clear from the consumer price index that food price inflation has been higher than general inflation.
The participants in the meeting shared their points of view and made a commitment to work together towards equitable and sustainable solutions designed to reduce these numbers, for which regional and international collaboration is key.
“Recent food price inflation has hit producers and consumers hard, especially in rural communities, where fluctuations in agricultural and fertilizer prices have squeezed profit margins. It is vital to analyze government responses to food price fluctuations and their effectiveness. We need to push for innovative policies that strengthen the resilience of our agrifood systems and contribute to food and nutrition security,” observed the Director General of IICA, Manuel Otero.
The speakers at the event also underlined the fact that domestic food price inflation in Central America is not driven by price movements in international markets. The food security crisis in the region appears rather to be driven by domestic considerations: a key challenge for the subregion will be to make its domestic markets efficient again, and create effective policies and resilient mechanisms in the long term.
“In recent years, the food security indicators of all the Central American countries have worsened. The urgency of the crisis demands immediate responses, but it is also vital to adopt long-term measures that strengthen the region’s resilience. At the World Bank, we are committed to collaborating in the reorientation of public policies that promote the competitiveness, efficiency and resilience of domestic markets, thereby contributing to inclusive sustainable development in the region,” said World Bank Program Leader David Tréguer.
The participants in the workshop highlighted the tenacity of the region’s farmers and agrifood sector, as well as the importance of continuing to support agriculture as a key driver of sustainable development, food security and economic stability in the countries of the region.
The organizers compiled actions and policy recommendations from the Central American nations represented with a view to developing a research agenda for public goods that would make it possible to turn the current food insecurity situation around.
“The Ministry of Agriculture’s sectoral plan has five short-term objectives: to increase productivity, food availability, and physical and economic access to food; to facilitate access to productive infrastructure and technological innovation; to promote inclusive value chains; to advance the sustainable management of natural resources; and to provide specialized services to ensure that food is safe,” explained the Deputy Minister of Agriculture of Guatemala, Nick Kenner Estrada.
“Domestically speaking, we have a lot to do and correct. Assistance and extension programs are being coordinated. We have to find ways of supporting production and ensuring that it is marketed efficiently, and that there are no distortions reflected in final prices for the consumer. Other issues include the entire MSME approach, the connection with industrial policy, and the need to tap the internal potential,” concluded the Deputy Minister of Economic Development of Honduras, Cinthya Arteaga.
The workshop “Food Security and Agriculture: An analysis of the transmission of food and fertilizer prices in Central America” is part of the joint efforts of the World Bank and IICA to transform food systems, guarantee a safe, nutritious food future for all, and address the root causes of food insecurity in Central America.
More information:
Joaquín Arias, Coordinator of the Observatory of Public Policies for Agrifood Systems (OPSAa) of IICA.
joaquin.arias@iica.int
