FAO bets on investment to advance sustainable livestock development in Latin America and the Caribbean

The Food and Agriculture Organization of the United Nations (FAO) reaffirmed the strategic role of livestock in Latin America and the Caribbean (LAC). This activity sustains 65% of the region’s agricultural population, including 14 million small-scale producers.

This was emphasized during the first Investment Forum for Sustainable Livestock Development held in Guatemala, with the participation of FAO Chief Economist and Acting Regional Representative for Latin America and the Caribbean, Máximo Torero.

“Livestock is a strategic sector for the region’s development. It contributes significantly to food security, rural development, and the generation of employment and income, while also reducing negative externalities,” Torero said in his remarks.

With an annual contribution of USD 171 billion (equivalent to 42% of agricultural GDP), livestock is a cornerstone of food security, providing 54% of the protein and 22% of the calories consumed in the region. Despite accounting for only 8.5% of the world’s population, Latin America and the Caribbean produces 15% of global livestock output, standing out in beef (22%), poultry (21%) and eggs (12%).

Global demand for animal protein is projected to grow from 74 million tons in 2020 to 90 million tons by 2050, driven by population growth and urbanization. Latin America and the Caribbean, along with Africa and Asia, will play a fundamental role in this increased consumption, which creates economic opportunities but also raises significant environmental challenges. A sustainable approach is therefore necessary to balance production, food security, and the conservation of natural resources.

The region’s livestock sector is facing extreme climate events such as droughts in Argentina, Uruguay and Brazil; disease outbreaks like bovine spongiform encephalopathy (BSE), which led to a 10% reduction in Brazil’s exports; and emerging regulations such as the European Union Regulation on Deforestation-Free Products (EUDR), which demands traceability and increases operational costs. Additional sanitary threats such as avian influenza and the screwworm in Central America require greater resilience and regional cooperation.

In 2024, FAO presented more than USD 16.5 billion in investments through its Hand-in-Hand (HiH) Initiative during its Investment Forum. This platform promotes innovative financing mechanisms such as blended finance and green bonds, with the participation of 70 countries and five regional programs in LAC, including the Amazon and the Central American Dry Corridor.

These projects aim to generate employment, increase incomes, and reduce emissions through geospatial analysis and strategic partnerships.

“Through FAO’s Hand-in-Hand Initiative, we are proposing innovative development approaches, identifying territories with high productive potential but also high poverty levels, to promote coordinated investments between the public and private sectors, while ensuring sustainable production,” emphasized Máximo Torero.

Between 2022 and 2024, FAO mobilized USD 1.75 billion in the region, mainly from multilateral development banks (61%) and climate funds. Through technical assistance and alignment with public policies, the organization is strengthening governance and driving investments in rural infrastructure, such as water access and digital connectivity.

Photograph: https://flic.kr/p/2kGUMjq