Rising Food and Agricultural Costs Strain Households and Exporters in Latin America

In El Salvador, the cost of the expanded basic food basket rose to $516.42 in May, roughly twice the minimum wage for commerce workers. The increase reflects broader inflation pressures, with 22.5% of households now unable to afford the basket and an estimated 459,000 families facing extreme or relative poverty.

Brazil’s record soybean harvest, up 8.8 million tonnes, is keeping road freight rates high. Despite the end of the peak harvest, transport prices remain near February–March levels, driven by strong grain demand and elevated diesel costs across key states such as Mato Grosso, Goiás and Paraná.

In Colombia, a rapid 23% appreciation of the peso has cut export earnings for coffee, flowers, banana, palm oil, sugar and avocado producers. The sectors, which generate about USD 10.3 billion and support roughly 2.5 million formal and informal jobs, warn that the currency’s strength erodes competitiveness and could jeopardise rural employment. Exporters have called for exchange‑rate hedging, financing lines and policy support to mitigate the impact.