FAO Backs Cooperatives to Boost Rural Development in LatAm

FAO is calling for greater investment in enabling conditions to support cooperatives and promote inclusive rural development in Latin America and the Caribbean (LAC).

To mark the International Day of Cooperatives on July 5 and the World Day of Rural Development on July 6, FAO is spotlighting the role of agri-food cooperatives in advancing better production, nutrition, environmental stewardship, and livelihoods across LAC. The agency’s approach focuses on enabling investment, such as public goods, institutional frameworks, governance, data systems, human capital, and catalytic resources, to create the structural conditions necessary for further investment. 

FAO identifies rural cooperatives as essential drivers of food security, structural inclusion, and sustainable agrifood systems. The region is home to over 28,000 rural cooperatives representing more than 6 million people, many of whom are family farmers. These organizations contribute to local production, job creation in rural areas and participatory governance.

To enhance the impact of cooperatives, the organization is promoting the Hand-in-Hand (HiH) Initiative. The program supports the design of investment plans aimed at increasing income, improving nutrition and strengthening resilience to climate change among poor rural populations. According to FAO, the initiative has helped governments prioritize public-private investments, coordinate stakeholders and mobilize approximately US$1.75 billion in the region between 2022 and 2024.

Looking ahead, FAO is preparing for 2025, which the United Nations has declared the International Year of Cooperatives. The agency aims to use this milestone to advance rural inclusion and food system transformation.

In support of this effort, FAO signed a four-year memorandum of understanding with the International Cooperative Alliance (ICA) in November 2023. The agreement outlines five priority actions, including resource mobilization for the cooperative model, promotion of the Model Law on Agri-Food Cooperatives by the Latin American and Caribbean Parliament (PARLANTINO), knowledge dissemination, collaboration between cooperatives, and the development of innovative associative models.