FAO Warns on Hunger Costs in Latin America

FAO warned that the costs of neglecting the fight against hunger and malnutrition may exceed those of implementing solutions to ensure food security and improve nutrition in Latin America and the Caribbean.

The costs incurred by inaction in addressing the impact of hunger and malnutrition represent an average of 6.4% of the regional GDP, whereas the average expenditure required to provide access to healthy diets stands at 1.5% of the GDP, revealed the study, "Financing for Food Security and Nutrition in Latin America and the Caribbean," jointly developed by FAO, the Economic Commission for Latin America and the Caribbean (ECLAC), the World Food Programme (WFP), and the Inter-American Institute for Cooperation on Agriculture (IICA).

Mario Lubetkin, Deputy Director-General and Regional Representative, FAO for Latin America and the Caribbean, pointed out that food expenditure represents 22% of the regional GDP, making it imperative to align social, economic, and trade policies with the goals of improving food security and nutrition.

In 2023, the region saw 4.1 million people affected by hunger, with the prevalence of moderate to severe food insecurity reaching 43.8%. Moreover, the study highlights disparities in the cost and affordability of healthy diets across subregions. The Caribbean tops the list with a cost of US$4.4 per person, followed by South America with US$3.8, and Mexico and Central America with US$3.6. 

According to the report, 57% of the Caribbean population was not able to access a healthy diet due to its high cost in 2023. Meanwhile, the figures stood at 22.2% for Mexico and Central America, and 20.6% for South America.

José Manuel Salazar-Xirinachs, Executive Secretary, ECLAC, highlighted that the incidence of poverty and food insecurity in the region is higher among women, indigenous populations, and people living in rural areas. "It is imperative to promote inclusive public policies and to better target public spending, capable of directly impacting vulnerable populations," he noted. 

Additionally, Salazar-Xirinachs pointed out that currently, more than 50% of financial assistance in Latin America and the Caribbean is allocated to households with per capita incomes above the poverty line.

Lola Castro, Regional Director of WFP for Latin America and the Caribbean, underscored that food insecurity in the region stems not from a lack of healthy food but from mismanagement and distribution issues. FAO data estimates that around 11.6% of food is lost in Latin America and the Caribbean every year, which is equivalent to 220Mt of food. Moreover, the economic losses amount to US$150 billion.

"This region has the most expensive healthy diet in the world. It is unacceptable that the most vulnerable populations continue to pay such a high cost due to malnutrition, overweight and obesity, or the double burden of malnutrition when the continent produces enough food to feed its entire population," stated Castro.

FAO's "The State of Food and Agriculture 2023" report highlights that the economic burden of obesity and other malnutrition-related ailments account for nearly 9% of the GDP across 150 countries, including 23 in Latin America and the Caribbean. In Mexico, public spending to address these issues amounts to 6.9% of the national GDP.