Local Food Purchases: A Powerful Tool to Combat Hunger and Boost Economies in Latin America & the Caribbean
A new report reveals that prioritizing local food purchases from small producers offers a cost-effective and impactful strategy to strengthen food security, improve nutrition, and stimulate economic growth across Latin America and the Caribbean.
A collaborative report released by the World Food Program (WFP), the Food and Agriculture Organization of the United Nations (FAO), and the Economic Commission for Latin America and the Caribbean (ECLAC) highlights the transformative potential of shifting public food procurement towards small-scale family farms. These farms, representing 81 percent of agricultural holdings in the region, often struggle with low productivity, limited market access, and vulnerability to climate change.
Despite recent progress – with an estimated 1.5 million fewer people facing hunger in 2024 – a staggering 181.9 million individuals in Latin America and the Caribbean still cannot afford a healthy diet, and rural poverty remains a significant concern. “Public purchases from small producers are more than a supply mechanism: they are a powerful tool for inclusion and resilience,” stated a senior official from the WFP. “Inclusive local purchasing multiplies economic opportunities for communities, safeguards culinary heritage and contributes to public health, since products are harvested at their optimal point and have a shorter travel time from farm to consumer, resulting in greater nutritional value.”
The benefits of prioritizing local producers are substantial. Countries like Brazil, which allocates a significant portion of its public food purchasing budget to family farms, have seen participating producers increase their income by up to 106 percent. Furthermore, for every million dollars invested in this approach, approximately 478 jobs are created, as demonstrated in Honduras and Guatemala. This strategy effectively transforms routine government spending into a catalyst for rural development, fostering stable markets for small-scale farmers and driving inclusive economic growth.
The positive impacts extend beyond economic gains. Brazil’s National School Feeding Program, which sources over 97 percent of its food from local farms offering fresh or minimally processed options, is demonstrably improving the nutritional intake of millions of students. Moreover, the program has significantly increased female participation in public food markets, rising from 23 to 61 percent, showcasing the potential for these policies to promote gender equity.
To maximize the impact of public procurement, the report emphasizes the need to integrate it within broader productive development policies. This includes fostering synergies with initiatives focused on science, technology, innovation, and workforce development. As Marco Llinás, Director of the Productive and Business Development Division of ECLAC, explained, “it is not enough to connect producers with markets; policies are required that strengthen their productive, technological and organizational capacities.”
Currently, approximately 3 percent of total public spending – roughly 0.3 percent of Gross Domestic Product – is allocated to food purchases. Leveraging this existing budget to prioritize family farming presents a unique opportunity to fortify food systems, enhance resilience, and generate lasting social impact throughout the region.
The FAO echoes this sentiment, with a representative noting that local public purchases represent “a key policy to move in this direction, since they allow the State’s demand to be articulated with local supply, redefining the way in which public spending can boost development and nutrition.” However, addressing structural barriers like low productivity, limited market access, and climate vulnerability remains crucial for success.
The report urges policymakers, development agencies, and civil society organizations to adopt evidence-based, systemic approaches that integrate local procurement into national food security and rural development strategies. This collaborative effort is essential to unlock the full potential of local food systems and build a more sustainable and equitable future for Latin America and the Caribbean.
You can download the full report [here](link to report).
The World Food Program leads global efforts to combat hunger and build pathways to peace, stability, and prosperity. Follow them on X (formerly Twitter) at @wfp_es and on WhatsApp. The FAO is dedicated to ending hunger internationally, ensuring access to sufficient, quality food for all. Follow them on X at @FAOAmericas.
