This study analyzes how firms along the Latin American and Caribbean agrifood supply chain responded to innovations during the COVID-19 pandemic, the heterogeneity of these responses across different segments of the supply chain, and how these responses evolved over time.
Data were gathered from agribusinesses in 22 Latin American and Caribbean countries through two online cross-sectional surveys. The first was conducted in 2020, and the second in 2022 with reference to 2021. Probit regressions identified business characteristics associated with innovation. Comparisons were made between the two reference years, as well as between temporary and continuous types of innovation.
The study finds that over 70% of agribusinesses implemented innovations, demonstrating firms’ adaptive capacity. Although most innovations were longer-term, continuing into 2021, many were only temporary. The likelihood of adopting longer-term innovations was associated with the agrifood segment, the stage of the supply chain, receipt of continuous external support, access to credit, and positive expectations regarding future business conditions.
Further research could broaden the analysis of agribusiness innovation in Latin America and the Caribbean by examining in greater detail the types of innovations implemented and the motivations behind longer-term innovation investments. Future studies should focus on exploring the causal effects of support programs, access to credit, and future business perspectives on innovation within the agribusiness sector.
This study comprehensively analyzes business responses along the Latin American and Caribbean agrifood supply chains. It also represents one of the first longer-term quantitative assessments, as it examines responses from the first and second years of the pandemic.
