Agriculture at a crossroads

As the world marks UN World Soil Day under the theme “Healthy Soils for Healthy Cities”, it is a timely reminder that our future depends on the ground beneath our feet. More than 95% of global food production depends on soil – yet degradation, erosion, and chemical overuse threaten this vital resource. This is not just an environmental issue; it is a food and health crisis.

After a week visiting growers across Chile - grapes, mandarins, lemons, avocados, hazelnuts, and other crops - the message from producers was unmistakably clear: healthy soils are the foundation of resilient food systems. From small family farms to export-oriented producers, we repeatedly saw how soils rich in soil organic matter (SOM) supported more robust crops, greater productivity, and superior quality.

Scientific evidence increasingly confirms soils with higher SOM not only improve water retention, nutrient cycling and plant vitality - they often also produce more nutrient-dense food. Numerous studies now show that crops grown in healthier soils contain higher levels of essential micronutrients, antioxidants, and phytonutrients.

And this matters far beyond agriculture. There is strong, well-established evidence that consuming highly nutritious foods significantly improves human health outcomes. Nutrient-dense diets are associated with lower risks of chronic diseases, including cardiovascular disease, type 2 diabetes, several cancers, cognitive decline, and conditions linked to gut health and immunity. This connection - healthy soils → nutritious food → healthier people - is one of the most consistent findings in nutritional science.

The relevance of this link is amplified by global trends: healthcare spending continues to rise sharply. Worldwide health expenditure has grown from roughly USD 4.2 trillion in 2000 to nearly USD 9.8 trillion in 2022 (WHO; World Bank), outpacing GDP growth in many countries. As societies grapple with the rising burden of chronic disease, investing in soil health is no longer just an environmental priority - it is a public health strategy.

On this World Soil Day, the lesson is simple but profound: if we want healthier people and more resilient food systems, we must start with the ground beneath our feet.

Agriculture faces a dual challenge

Feeding a growing global population while improving not only its environmental footprint but also producing healthier food. Production remains heavily reliant on conventional farming methods – monocultures, intensive use of chemicals, and high-water consumption. The consequences are depleted soils, declining biodiversity, and an alarming dependence on scarce resources.

Yet it is not just the environment that suffers - global diets reflect the system’s shortcomings. Most people consume too little fruit and vegetables to meet dietary recommendations. According to the United Nations Food and Agriculture Organization (FAO), this deficiency fuels micronutrient shortages and diet-related diseases such as obesity, diabetes, and cardiovascular conditions.¹ Meanwhile, rising incomes are driving demand for sustainably produced, nutrient-rich food. By 2050, global food production may need to increase by up to 56%, but volume alone is not the answer.² The real challenge is to transform agriculture into a system that is not only productive but also resilient and resource-efficient – one that regenerates soil, conserves water, takes biodiversity into account and ensures long-term healthy food security.

The limits of conventional agriculture

The world’s appetite for food is growing, driven by two powerful forces:

1. POPULATION GROWTH: The global headcount is expected to reach 9.8 billion by 2050, placing immense pressure on food production.³

2. SHIFTING CONSUMPTION PATTERNS: Rising incomes and an expanding middle class in emerging markets are fueling demand for resource-intensive protein sources such as meat and dairy.

At the same time, greater awareness of nutrition and health is boosting the appeal of fresh, high-quality produce, like fruit and vegetables.

Yet while global food production provides ample calories, it falls short in delivering proper nutrition. Modern diets remain heavily skewed towards a handful of staple crops – wheat, rice, maize, soy, and potatoes – which are rich in energy but lack essential micronutrients. According to FAO, the global supply of fruit and vegetables remains below recommended levels, contributing to widespread deficiencies in vital vitamins and minerals. FAO dietary guidelines advise a minimum intake of 400 grams of fruit and vegetables per person per day, yet current production levels are insufficient to meet the needs of the entire global population.⁴ Addressing this shortfall requires not just more food, but a fundamental shift in what is grown. Expanding and diversifying fruit and vegetable production will be critical to closing the nutrient gap and ensuring food security that extends beyond mere caloric sufficiency.

In its bid to meet rising demand, conventional agriculture has expanded rapidly over recent decades, leaning heavily on monocultures, synthetic fertilizers, pesticides, and large-scale irrigation. While this has boosted yields, it has also inflicted severe environmental damage:

• SOIL DEGRADATION: Intensive use of chemical fertilizers disrupts soil microbiology, diminishing long-term fertility and reducing the soil’s ability to absorb and retain nutrients. Over time, this depletes its productive capacity. (SLM Partners, 2024).

• BIODIVERSITY LOSS: Pesticides do not discriminate, wiping out not only pests but also vital pollinators such as bees and natural predators that help control infestations. Chemical runoff further disrupts aquatic ecosystems, contaminating rivers and lakes and threatening fish, amphibians, and freshwater biodiversity.

• CLIMATE CHANGE: Industrial agriculture is responsible for up to 29% of global greenhouse gas emissions (IPCC, 2019).⁵ Nitrogen-based fertilizers release nitrous oxide, a greenhouse gas hundreds of times more potent than carbon dioxide, accelerating global warming.

• WATER SCARCITY: Expanding irrigation has put severe strain on water resources, particularly in arid regions where groundwater reserves are being depleted at an unsustainable rate (FAO, 2021).

Conventional farming has driven impressive productivity gains, but at an ever-rising cost. Without a shift toward more sustainable methods, the long-term viability of global food production is in question.

Regenerative farming practices as a solution

Regenerative farming practices have emerged as a compelling alternative to conventional methods, delivering tangible benefits for soil health, biodiversity, and a reduction in chemical dependency. In contrast to conventional systems, regenerative approaches prioritize long-term resilience and yield stability, all while enhancing essential ecosystem functions. This approach is particularly crucial for fresh produce – a linchpin in dietary diversity and nutrition.

• SOIL REGENERATION AND CARBON SEQUESTRATION: By enhancing soil organic matter, regenerative practices capture carbon dioxide and improve soil structure. This not only boosts water retention and optimizes nutrient cycles but also reduces reliance on chemicals and curbs erosion (SLM Partners, 2024).

• ELIMINATION OF CHEMICAL INPUTS: Scaling back synthetic fertilizers and pesticides helps restore natural soil balance, prevents erosion, and mitigates water contamination. Techniques such as composting, cover cropping, and integrated pest management foster a diverse soil ecosystem and encourage a gradual shift towards sustainable alternatives.

• DIVERSIFIED CROP ROTATIONS AND AGROFORESTRY: Rotating crops mitigates the risks inherent in monocultures, bolstering resistance against pests and diseases. Moreover, integrating trees into agricultural systems creates beneficial microclimates, enhances biodiversity, and further contributes to carbon sequestration (FAO, 2021).

• SUSTAINABLE WATER MANAGEMENT: Methods including mulching, reduced tillage, and rainwater harvesting improve water-use efficiency, lessening dependence on artificial irrigation and reducing drought vulnerability.

• NUTRIENT DENSITY AND ECONOMIC RESILIENCE: Evidence suggests that produce cultivated using regenerative methods often exhibits higher nutrient density. Coupled with more stable long-term yields and lower operational costs, these farms frequently secure premium prices through sustainable certifications (IPCC, 2019).

In essence, regenerative agriculture offers a blueprint for a food system that is both environmentally sustainable and economically robust – a stark contrast to the diminishing returns of conventional, chemically dependent methods.

Latin America – the globe's garden

Latin America plays a vital role in global agriculture, supplying over 16% of the world’s food exports (FAO, 2022).⁶ The region’s diverse climate zones, multiple growing seasons, and abundant natural resources make it a backbone of global food security and a focal point for sustainable transformation in agriculture.

As the world’s largest net food exporter, Latin America is uniquely positioned to meet rising global demand for fresh produce. It holds one-third of the planet’s arable land and benefits from an ideal year-round growing climate. These natural advantages present significant opportunities for investors to drive sustainable agricultural transformation while capitalizing on expanding international markets.

Yet the region faces considerable challenges:

• Deforestation and soil degradation due to unsustainable agricultural expansion

• Water scarcity and inefficient irrigation, despite Latin America’s wealth of freshwater resources

• Rising climate risks for producers – especially smallholder farmers – as extreme weather events become more frequent

Overcoming these obstacles requires investment in scalable, sustainable agricultural models. While many farms in the region are already transitioning toward more responsible practices, the shift demands targeted capital, knowledge transfer, and market-driven incentives.

By backing forward-thinking agricultural enterprises in Latin America, investors can accelerate the adoption of sustainable farming, enhance food security, and strengthen rural economies - all while positioning themselves in a high-growth, future-proof market.

¹ Background | Dietary guidelines | Food and Agriculture Organization of the United Nations ² Dimensions of need - Feeding the world: The search for food security ³ World population projected to reach 9.8 billion in 2050, and 11.2 billion in 2100 | United Nations ⁴ Fruit and vegetables – your dietary essentials ⁵ IPCC Special Report on climate change ⁶ FAO/OECD: Latin America and the Caribbean will account for 25 % of global agricultural and fisheries exports by 2028