156 | Latin America and the Caribbean (LAC) Report

they can comply with rules of efficiency and standards and certification requirements.
     Genetically modified organisms are used more frequently by a growing number of producers throughout LAC. The costs of using these technologies are reduced and thus their use becomes more widespread throughout the region. At the outset of the period, the use of transgenic organisms that leads to an increase in use of environmentally harmful inputs, such as herbicides, for instance, causes conflicts with all those who defend environmental protection within and outside the region. Towards the middle of the period, some cases of contamination in units producing biopharmaceuticals cause a wave of social rejection of this type of biotechnology. However, the introduction of new agricultural varieties adapted to hostile environments and of transgenic organisms capable of acting as bio-remedials (for instance, in cases of contamination of the soil by toxic substances) or of preventing soil erosion lead to the dissemination of transgenic organisms and their acceptance by LAC and its markets.
     The major production systems, which are highly technified serve external and internal markets. These systems are an integral part of large production chains; they are highly coordinated and have an in-depth knowledge of the markets served and consumer demands. Most of the small farmers, and also some groups that in the beginning of the period practiced subsistence agriculture, manage to insert themselves in some of these chains or to participate in certain market niches, with the production of goods, such as frog legs, for a very limited public. The number of subsistence producers is sharply reduced.
     Since the very beginning of the scenario, plentiful resources are allocated to promote and disseminate use of know-how in agricultural production systems. The production systems receive considerable resources to improve their economic efficiency and product quality, especially in the form of credits and know-how, rather than land. The goal is to increase the productivity of agricultural production systems. Moreover, some of these systems also provide one or several environmental services, which are encouraged in many LAC countries by the end of the period.
     Due to the influence of climate change, some regions begin to experience problems in purchasing water in the quantity and with the regularity needed to ensure the effective performance of their production systems.
     Large productive systems that use modern production and management methods succeed in operating with great efficiency and use advanced processes to produce highquality products. Thus, they also become more competitive. A large component of know-how and technology is incorporated
into these products and processes. Although the external market still prefers commodities to differentiated products, the latter go to the broad LAC internal market. This situation does not change until the end of the period, when a few important developed markets begin importing a greater percentage of differentiated products from LAC.
     The production systems of small farmers are inserted in the major chains by private national or transnational corporations as suppliers of inputs. They are also inserted as producers of raw materials in other chains (or in other words, as independent components that are not coordinated

 

by another component, as is the case in the first situation described). These small systems are dedicated to producing commodities or a few differentiated products.
     The vast majority of these independent production systems inserted in production chains are also successful overall. However, this is not the case in situations in which unforeseen factors, such as rising temperature, natural disasters, or epidemics, threaten the performance of these systems.

3.4.5.1.4 Results of interaction among the systems
The improved performance of productive activities, especially in terms of economic efficiency, begins to have a positive effect on income inequality. The need to substantially improve the quality of products and services and to pay more attention to their environmental consequences generally has a good effect on market prices.

During this period, there is generally a considerable increase in the indicators of greater social equality. Access to education, employment, health, and food security improve. In a few LAC countries, this progress is more limited.
     Positive changes are recorded in urban food security and safety indicators, because there is a better understanding and monitoring of the handling, packaging, and processing of foods. The incorporation of environmental adaptability in many varieties and strains leads to a widespread increase in the availability of food, and thus to a decrease in prices for urban consumers.
     In the beginning of the period, agriculture in both rich and poor countries is heavily based on exploitation of ecosystems to produce processed foods or raw materials. In other words, the products generated are commodities or differentiated products and always derived from human action on nature. Little by little, starting in Europe and then in the United States, global agriculture is diversified and begins to include environmental services as one of its functions. These services range from protection of water sources, carbon sequestration, and protection of habitats for pollinators, such as birds and bees, to the reduction of pollution generated in agriculture and simple conservation of plant and animal species. As a result, there is an improvement in indicators for environment sustainability in agriculture.

3.4.5.2 2016-2030

3.4.5.2.1 Context of AKST systems and agricultural
production
Free global markets are consolidated. Biosecurity and environmental protection barriers are further strengthened. Competition for markets gives priority to product differentiation obtained by incorporating environmentally friendly technologies. LAC increases its participation in these markets. Consumers throughout the world are willing to pay higher prices for products linked in some way to environmental protection initiatives. Thus, certification that products are developed by organizations that provide an environmental service of some kind is a factor adding to the value of the product.

LAC still participates in commodity markets, especially food commodity markets, where rich countries are major importers, since in some of those countries agriculture has disappeared. This group of countries continues to use, when