Advancing sustainable farming practices across Latin America

Sustainability in agriculture is a pressing concern globally, with Latin America playing a pivotal role due to its vast agricultural output and unique environmental assets. The region’s diverse farming practices, ranging from expansive soybean plantations to small-scale family farms, necessitate tailored approaches to sustainable development. In this article, we delve into the current state of agricultural sustainability in Latin America, drawing insights from our expert, Pilar Kuriyama, Country Manager of Control Union – Peru, who has over two decades of experience in sustainability certifications.

The imperative of sustainable agriculture in Latin America

Latin America’s agricultural sector is at a crossroads, balancing the need for economic growth with environmental stewardship. The Food and Agriculture Organization (FAO) warns that 75% of soils in Latin America and the Caribbean face degradation issues, leading to economic losses estimated at USD 60 billion annually [1]. This degradation threatens not only the environment but also the long-term viability of agriculture in the region.

In response, there is a growing emphasis on sustainable practices. For instance, Brazilian farmers are pioneering regenerative agriculture techniques to combat climate change impacts on coffee farming. These methods include reduced chemical use, biological pest control, and integrated agroforestry, leading to enhanced soil health and resilience against extreme weather.[2]

Evolving commitments to sustainability

Historically, Latin American producers focused on export markets like Europe and North America have been more attuned to sustainability concerns, driven by stringent international standards. Recently, large local supermarket chains have begun establishing their own quality standards, using sustainability as a market differentiator. This shift reflects a broader regional trend towards embracing sustainable practices.

Kuriyama notes that the internal market for sustainable products is expanding, with a greater understanding of the requirements for exporting agricultural products. This awareness is driving producers to adopt more sustainable practices to meet both local and international demands.

The role of sustainability certifications

Sustainability certifications are instrumental in enhancing market access and credibility for Latin American agricultural products. They assure international buyers of the quality and sustainable production methods employed. For example, certifications like Rainforest Alliance and the Roundtable on Sustainable Palm Oil (RSPO), Round Table on Responsible Soy Association (RTRS) are crucial for producers in the Amazon region, ensuring that products such as cocoa, coffee, palm and soybeans are produced in ways that respect the forest.

Beyond market access, aligning practices with certification standards can lead to tangible benefits, including reduced product loss, improved worker safety, increased productivity, and lower end production costs. Kuriyama emphasizes that adjusting practices to comply with certification standards provides guidelines that can lead to these improvements.

Impact of the EU-Mercosur Agreement on Certification Demand

The EU-Mercosur trade agreement, finalized after 25 years of negotiation, aims to create a free-trade zone between the EU and South American countries, impacting a market of over 700 million people. [3] This agreement is expected to influence certification demand in the region, likely leading to stricter measures and higher demands for sustainability certifications, thereby encouraging producers to implement more sustainable practices.

Additionally, the recent inauguration of Chancay’s Port in Peru is anticipated to boost exports of Latin American commodities to the Asian market. Given the varying quality and sustainability requirements across Asian countries compared to Europe or North America, there is an expected increase in the pursuit of certifications throughout the region.

Challenges and opportunities in obtaining and maintaining certifications

Latin American producers face some challenges in obtaining and maintaining sustainability certifications:

• Regulatory discrepancies: There is often a gap between local and international laws regarding sustainability. Producers must navigate these differences to comply with both sets of regulations.

• Resource constraints for small and medium producers: The costs and complexities associated with certifications can be prohibitive. Forming cooperatives allows farmers to share resources and knowledge, making certification more accessible.

Addressing these challenges presents opportunities. Aligning local laws with international standards can streamline compliance, and government support in the form of financial assistance, training, and resources can offset certification costs and encourage sustainable practices.

Conclusion

Sustainability in Latin American agriculture is not merely a regulatory requirement but a pathway to long-term viability and market competitiveness. By embracing sustainable practices and obtaining relevant certifications, producers can access new markets, enhance product quality, and contribute to environmental conservation.

At Control Union, with our global network of experts, we are well-positioned to support these efforts, ensuring that certification services remain up-to-date and region-specific.

As the global demand for sustainable products continues to rise, Latin American agriculture stands at a pivotal moment. The decisions made today will shape the future of the region’s agricultural landscape, balancing economic growth with environmental stewardship.

Sources

[1] FAO warns: Three-quarters of soils in Latin America and the Caribbean are at risk. (2024, April 12). FAO-RLC. https://www.fao.org/americas/news/news-detail/suelos-en-riesgo/en

[2] Slavin, T. (2024, September 16). The Brazilian farmers who are trying to keep the world in its coffee habit despite climate change. Reuters. Retrieved February 5, 2025, from https://www.reuters.com/sustainability/land-use-biodiversity/brazilian-farmers-who-are-trying-keep-world-its-coffee-habit-despite-climate-2024-09-16/

[3] Reuters. (2024, December 6). Eu, Mercosur leaders react to free trade deal. Retrieved February 5, 2025, from https://www.reuters.com/world/eu-mercosur-leaders-react-free-trade-deal-2024-12-06/