Recovery will occur in most countries, but will be subject to changes in climate and levels of international demand more than ever before.
Santiago, Chile, April 27, 2010. According to a document prepared by the FAO Regional Office for Latin America and the Caribbean (LAC), the Economic Commission for Latin America and the Caribbean (ECLAC) and the Inter-American Institute for Cooperation on Agriculture (IICA), the outlook for 2010 is for agricultural production to recover significantly in most the countries of the region, subject more to changes in climate and levels of international demand (still being affected by the recession) than to international prices.
The joint document “The Outlook for Agriculture and Rural Development in the Americas: a perspective on Latin America and the Caribbean 2010,” will be presented to the member countries of FAO at its 31st Regional Conference, being held this week (April 26-30) in Panama City, Panama.
Referring to the current macroeconomic context, Salomon Salcedo, FAO Senior Policy Officer, said “We are already seeing the first signs of economic recovery, including increases in international trade in the region, especially exports to emerging economies in Asia, and a reactivation of labor markets.”
He added that the rate of recovery of both the developed and developing economies augured well for agriculture in LAC regaining the rate of growth observed from 2000 to 2007. Nonetheless, the key challenge for LAC is how to ensure that the recovery from the current crisis translates into economic development in the medium and long terms.
Adrian Rodriguez, of the Agricultural Development Unit of ECLAC, noted that it is important that agriculture recover because statistics show a significant increase in poverty in 2008, mostly in rural areas, and a further increase in 2009 as the crisis deepened.
According to Salcedo, “With an integrated vision of the rural milieu and agriculture, policies aimed at the development and promotion of production will have the desired socioeconomic impact and contribute to economic recovery and promote rural development.”
Outlook for agriculture in the region
- Agriculture: According to a survey conducted during preparation of the report, in 2009, agricultural production increased in 24 of the 34 countries surveyed, decreased in 7 and stood still in 3.
Rafael Trejos, of IICA, said “Even though there was an important drop in international prices for agricultural raw materials in late 2008, throughout 2009, agricultural production was healthy in most of the countries of the region thanks to the application of countercyclical policies, to a slight recovery in prices and to a positive outlook for growth, especially in the developing economies.”
As a result of increased demand for raw materials, especially on the part of economies in Asia, relatively higher and more volatile prices than those of the last decade can be expected in the medium term.
- Livestock: The report states that the livestock sector in the region grew by almost 4% annually in recent years, twice the average worldwide. However, it also mentions several challenges to be met, especially environmental problems and support for small-scale farmers, in response to the creation of more market opportunities and to growing demand worldwide.
Salcedo added, “Technology to increase productivity without degrading the soil exists, but the rate of adoption is low because many countries lack policies to facilitate investment in the livestock sector.”
- Fisheries and aquaculture: Commercial and small-scale fishing in the region has already reached or exceeded the maximum sustainable levels of production for the most important species Therefore, increases in harvests are not expected in the near future.
Aquaculture has the potential to meet growing demand for fisheries products, which is concentrated in countries such as Chile, Brazil, Ecuador and Mexico, and in species such as salmon, shrimp, tilapia and carp.
Salcedo added, “However, in order to strengthen the institutions of the sector, it is necessary to acquire information systems, conduct research and supervise and protect ecosystems and their resources.”
- Forests: The document identifies the need to strengthen policies and institutions related to the forestry, to enable the sector to do more to combat climate change and rural poverty, and benefit from new financial initiatives and mechanisms aimed at halting deforestation and encouraging the conservation of biodiversity.
FAO Regional Conference
The outlook for agriculture in the region will be one of the topics discussed at the 31st FAO Regional Conference. The meeting, to be held on April 26-30, in Panama City, Panama, will be attended by high-level delegations from all FAO member countries in LAC.
For further information
ECLAC, FAO, IICA Document: “The Outlook for Agriculture and Rural Development in the Americas: a perspective on Latin America and the Caribbean 2010”: http://www.iica.int/esp/prensa/Documents/Informe_ProduccionAgricolaALC_Esp.pdf (Spanish only)
31st FAO Regional Conference for Latin America and the Caribbean: http://su.pr/1FJSdh
Press contacts
Lucas Tavares: lucas.tavares@fao.org, (562) 923 2176, (569) 91001739
Benjamín Labatut: benjamin.labatut@fao.org, (562) 923 2174
Rodrigo Flores: rodrigo.flores@fao.org, (526) 923 2248
