FAO, CAF Present New Strategy to Boost Agricultural Prosperity

FAO in Latin America and the Caribbean hosted the launch of the Agricultural Prosperity Strategy by the Development Bank of Latin America (CAF). This initiative is part of a broader collaboration under a Memorandum of Understanding signed between the two organizations in November 2024, aiming to promote rural community well-being, food security, and sustainable development.

Máximo Torero, Chief Economist and Regional Representative ad interim for Latin America and the Caribbean, FAO, noted that while Latin America and the Caribbean are among the few regions with the potential to meet SDG 2: Zero Hunger, it still faces significant hurdles in transforming its agricultural sector. Around 6.2% of the population suffers from hunger, and healthy diets are costly, averaging US$4.56 per person per day. Additionally, 40% of agricultural production is lost to pests and diseases, emphasizing the urgent need for comprehensive, sustainable solutions.

"We cannot address these challenges with isolated solutions. We must integrate sustainable practices across the entire production chain. Investing in this sector supports ecosystem restoration, market stability, and community well-being," Torero said.

The Agricultural Prosperity Strategy presented by CAF aims to increase investments across the entire agricultural value chain, with plans to reach US$8.5 billion by 2030, effectively doubling CAF’s investment in the sector. This initiative will leverage CAF’s full range of financial and knowledge services, in collaboration with strategic partners like FAO, IICA, WFP, and IFAD, to strengthen the region with global solutions.

Sergio Díaz-Granados, Executive President, CAF, emphasized that the new strategy would foster deeper investment and collaboration, especially with global partners. A high-level technical dialogue followed, featuring key ministers from Chile, Uruguay, and Colombia, who discussed the challenges and opportunities within the agricultural sector.