How agriculture in Latin America is responding to Covid-19

Latin America is a vast and extremely important region for global food production. Brazil, for example, produces more than twice the amount of coffee beans than any other country, and is also the world's largest exporter of soybeans. Chile leads the production of fresh grapes worldwide and accounts for 21,7% of the volume exported globally, in addition to being the leader in the export of fresh blueberries, plums and dried apples. This highlights the global importance of the region and its relevance for maintaining high standards for food production throughout the chain. In the midst of a global crisis, this becomes twice as important - and twice as difficult.

This is the challenge our food supply chains face in the face of COVID-19, whose effects in Latin America are widespread and continuing to grow. But the coronavirus is not just intensifying the challenges we face; it also forces us to accelerate the changes that could ultimately solve them.

COVID-19 is a double problem. First, we need to ensure safe working conditions for farmers and rural workers at a time when they depend on labor. For example, during the harvest period, if a producer does not get enough people to work on his land, he may lose a large part of his production that year. The second aspect is how exports will be affected. In terms of international trade, Latin America can be divided into two categories: on the one hand, countries that typically export agricultural products, such as Brazil or the Southern Cone countries; and, on the other, countries that need to import agricultural products and energy supplies, which are mainly found in the Caribbean.

According to the Food and Agriculture Organization of the United Nations (FAO), in crisis situations such as COVID-19, this first group of countries may have their revenues harmed if they cannot meet export demand, or if partners export authorities do not allow certain products to be shipped due to border closures. On the other hand, countries in the second group, which cannot satisfy their own needs without imports, could suffer the effects resulting from this discontinuity: lack of supply or price fluctuations.

The economic impacts may persist for some time. Due to the new coronavirus, the forecast is for an increase in poverty in Latin America (of the order of 3,5% this year alone, according to ECLAC). This will change food purchasing habits. If people have less income, they will be able to buy less or buy cheaper food. Therefore, local markets will feel the effects.

Efforts are being made to address these risks, such as stabilizing food prices, increasing supply and facilitating logistics to promote the proper functioning of food chains. Through these efforts, we have seen several trends emerge, with some changes happening more quickly:

• The digital transformation of agriculture is accelerating. We were already talking about digital tools - but in many countries in this region, not all farmers could use this technology or even have access to the internet. The adoption of digital technologies was happening gradually, but now it is really being accelerated. Governments and companies are actively seeking new partnerships and policies that will bring digital tools to more farmers. These tools can help farmers improve production in the field, as well as sell their products on the market, at a time when they cannot invite negotiators to come to their farms.

• Reinforcement of good agricultural practices, especially in terms of food and worker safety. Once again, technology can play an important role here. A great example comes from the Brazilian retail sector that uses blockchain technology in the Food Tracking and Monitoring Program, RAMA. More than 57 large retailers are part of it, making this tool essential to guarantee transparency and food safety of fresh products for more than 28 million consumers per day in Brazil.

• The mechanization of cultivation methods is beginning to arouse greater interest. Previously, many producers dismissed the concept of autonomous agricultural machines as “something of the future”. COVID-19 has challenged farmers and they have had to change their entire plan regarding how they utilize seasonal labor. Thus, we are starting to see them becoming more interested in options based on artificial intelligence, for example, which give them support in the event of a labor shortage.

While these trends have real positive potential, they also bring their own challenges. The first is how to ensure that farmers are trained to use new tools correctly and to their maximum potential. We can talk about the power of blockchain systems for agriculture, but there are workers on farms who may not even know how to read. Technological progress must go hand in hand with social development that guarantees access to education for all.

There is also the issue of small farmers. They often need to sell their produce from the previous day so they can put food on their plate tomorrow. They can't afford a "gap" in the process. Therefore, we need to ensure that new technologies accommodate these farmers as well. If we achieve this, they will have better access not only to technologies and services, but also to the people who buy what they produce with greater added value. If we don't do so, they will be left behind and social inequalities will only increase.

These changes will happen, and their effects will go far beyond allowing us to get through the coronavirus crisis - they could revolutionize the entire food chain in Latin America. But, in addition to the change, we also need people with enough knowledge to make it work.

The next step is to create collaboration: new partnerships with national and regional organizations, and other members of the food chain, to face economic and social challenges. With these partnerships, we can ensure that the agricultural tools of the future are implemented and used to their fullest potential, especially by small farmers.