Agriculture in Latin America and the Caribbean: Context, Evolution and Current Situation | 31

 

generate products and services for household consumption
(Farah, 2004ab).

          The non-traditional agricultural export sector, favored by neoliberalism, has opened up salaried employment opportunities mainly for women in the rural sector. Nonetheless, these jobs are often seasonal, poorly paid and performed in precarious conditions (Deere, 2005). In the greenhouses
for flowers and vegetables in Ecuador, Guatemala, Mexico and Colombia, for example, labor is mostly female and the contracts are short-term but renewed time and again. In Colombia, 80% of the flower workers are women and they
generally earn the minimum wage, which covers only 45% of a family’s basic needs. In Chile, Argentina and Brazil, women are contracted for seasonal positions in the production of fruit for export. Thus, for example, the employment of women in the fruit sector in Chile quadrupled from 1982 to 1992 and was concentrated in temporary jobs, such that 75% of women in the agricultural sector in Chile work under temporary contracts, harvesting fruit more than 60 hours a week during the harvest season. Of these women, one in three earns less than the minimum wage.

Market Trends. Over the last 30 years, with the accelerated pace at which the markets for Latin American products and markets worldwide, have been changing, the commercial formats of quotas and preferences have increasingly become a thing of the past. As a result, markets are fully engaged in a process of transformation in the trade arrangements between
countries and between regions and a collapse in tariffs and import duties has accompanied the elimination of quotas and preferences, pointing towards more competitive global markets with a prevalence of value-added, comparative advantages, quality goods and services, as well as safe foods, traceability and biosecurity.

          This transformation in the region, with tariff barriers being replaced by technical barriers, accords less importance to the volume of production in relation to factors such as efficiency and productivity. This process of abrupt change in markets has resulted not only from geopolitical changes that have produced an international dynamic in which the market approach prevails, even among countries and regions that are not on the same wavelength politically, but also from consumers themselves imposing conditions and requirements. There is a growing trend among consumers in the region towards a more conscientious, intelligent and differentiated culture of consumption with respect to the foods, cosmetics and medicinal products they consume, as well as the services they demand.

          This change in the functional structure of markets has resulted in a series of challenges and opportunities for Latin American agriculture. Among these opportunities, mention can be made of the emergence of new market niches such as the organic, ecologically-sound, ethnic and functional markets, as well markets based on ethical-social considerations (for example, the fair trade market). This range of products may be produced by the small- and medium-scale producers of the region, since the volumes are not necessarily
very high and what is most important is the type and denomination of origin of products. It is for that reason that many small- and medium-scale producers from countries

 

 

Box 1-6. Medicinal herbs and plants in the Caribbean
The Caribbean is habitat for 2.3% (7,000) of all endemic plants worldwide, and 2.9% (779) of the vertebrate species of the world, even though it accounts for only 0.15% of the earth’s land mass. Hence the Caribbean is classified as one of the most important “hotspots” in the world (Myers et al., 2000). In 1988 Norman Myer defined a hotspot as a region of the earth characterized by exceptional levels of endemic species: A hotspot should be habitat for at least 1,500 species of vascular plants (the Caribbean has at least 2.3% = 7,000 plants), which represent 0.5% of the total of endemic
plants in the world (as of 2000). A hotspot must also have lost at least 70% of its original endemic species. The Caribbean has met this requirement because of major deforestation, soil erosion and water pollution. In countries such as Haiti and the Dominican Republic, only 5% and 17%, respectively, of their cover remains.

          The natural wealth of the Caribbean has not been economically exploited, even though one sees a trend towards the popularization of medicinal herbs and plants, reflected in the number of products available on the shelves of pharmacies, natural products and health stores, aromatherapy establishments and supermarkets (Denzil Phillips International, http://www.denzil.com/).

          Currently, the Caribbean is known primarily for a small number of products derived from medicinal and aromatic herbs, despite the abundance of species. The range of products includes teas, exotic drinks made of herbs, traditional herbal remedies, nutraceutics, phytomedicines, essential oils, plant extracts such as cosmetics, condiments, tinctures, liquid extracts and functional foods. Among the best-known products are pepper, nutmeg and chili peppers. Progress has also been made in adding value; some of the better-known products include Angostura, Pickapeppa Sauce, Busha Browne’s and Walkerswood.

          The biggest beneficiaries of the wealth from Caribbean spices mostly devolve to the approximately 90 firms that import dry herbs from the region to markets Europe, the United States and Japan. Some 85% of the herbs are exported as dry herbs. The global market for herbs is estimated at US$12 billion, with the trade in raw extracts coming to US$8 billion.

such as Guatemala, Nicaragua, El Salvador, the Dominican Republic, Peru and Colombia have been able to become international suppliers and position themselves in markets as demanding as those of Europe, Japan and the United States. Relevant cases include coffee, cacao, banana, oriental vegetables, fruits and aromatic herbs (Salas-Casasola et al., 2006) (See Box 1-6).

          The challenges posed by the markets’ new structure include competitiveness, regulations and marketing strategies and structures, even in those niche markets. A large number of countries in the region are trying to access the niche