The way we produce food is at the heart of some of the current main global challenges. We are witnessing increasing social inequalities and the accentuation of hunger around the world, especially in Africa, Asia, Latin America, and the Caribbean. At the same time, malnutrition and effects of climate change are endangering both the health of people and nature, putting life and the planet itself at risk. In general, specialists agree that the solutions to the current crisis involve the transformation of hegemonic food production chains (globalized and industrialized) and the strengthening of more territorialized food systems. The present paper reflects on how the territorial approach (extensively promoted by the State in Latin America countries in the 21st century) can be collaboratively used to create territorial food markets that are more autonomous, sustainable, and connected with nature and territorial resources. Our hypothesis is that territorial development reinforces more sustainable food systems that increase the resilience of territories facing the current challenges of rural development. The methodology involves a thematic and selective literature review, the analysis of secondary indicators, and conducting online interviews. Our analysis focused on Latin America, one of the most advanced areas in territorial development policies. We situated our research in the Borborema Territory (Paraíba, Brazil), which is a significant case study for understanding the dynamics of territorialization (and deterritorialization) of agroecological production systems that are geared towards family farming. It is also, in our opinion, a concrete case that suggests how territorialized and more localized food systems show greater resilience in the face of adversity, which can be observed in the territorial actors’ ability to react to deterritorialization drivers that are emphasised in periods of crisis. Our main findings suggest that territorial development, by placing territory, resources, and territorial actors and institutions at the core of rural development strategies, reinforces territorialized food systems centred in small circuits of production–consumption. These alternative food systems not only contribute to social and environmental sustainability but enhance territorial development by expanding opportunities for territorial actors by diversifying the territorial economy and creating more crisis-resilient territories.