The Free Market Can’t Prevent Latin America’s Coming Food Crisis
Even before COVID-19 hit Latin America in earnest last month, one-third of the region’s population was facing food insecurity. Now, as the economy contracts under lockdown and supply chains falter, overhauling the continent’s market-driven food system is more necessary than ever.

Monopoly power is a problem that not only looms large in the daily operations of the agro-food system, but also in the government’s capacity to respond to the hunger crisis.
One of the most dramatic aspects of the global coronavirus pandemic is that beyond the short term, it threatens to generate a prolonged food crisis in Latin America. Across the continent, the food security of millions is at stake as already fragile supply chains meet hard borders and logistical challenges, as well as a wave of mass layoffs due to economic contraction. Although figures confirm that so far there have not been any significant disruptions in the food supply, several organizations have warned of trouble to come.
Moreover, the United Nations Economic Commission for Latin America and the Caribbean (CEPAL) has estimated a 5.5 percent contraction of the South American economy in 2020 – the largest contraction in its history. Such a recession, the CEPAL suggests, could lead to 11.5 percent unemployment, which would mean an increase of 11.6 million unemployed compared with 2019.
In Chile, the Minister of Agriculture has assured cities that the country has enough food stocks to make it through the winter. But hunger and undernourishment, as numerous studies show, are not a direct effect of a lack of availability of food, but of a lack of money to pay for it. It’s for this reason that protests against hunger have erupted across Santiago in the last few days, sparking state crackdowns as well as a renewed wave of national outrage against the Piñera government.