RED 2026 - Chapter 2: The agricultural sector in Latin America and the Caribbean

Agriculture and livestock play a significant role in the economies of Latin America and the Caribbean. Together, they account for nearly 6% of the region’s value added, 15% of employment, and 17% of exports. If the agro-industrial complex is also taken into account, its share of value added approaches 10%, well above the 3% recorded in OECD countries. In turn, the agricultural sector accounts for about 45% of rural employment, underscoring its importance to the economic dynamics of these regions. This chapter presents a description of the agricultural sector in the region based on a conceptual framework regarding the determinants of production. To that end, it documents the evolution of production, the use of factors such as land, labor, and machinery, as well as the sector’s productive structure and its links to other activities and to foreign trade. This characterization highlights the marked heterogeneity of the sector’s production units across and within countries in terms of management models, scale, and type of production, and serves as the starting point for the analysis of agricultural productivity and policies aimed at strengthening its sustainable development.

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