The goal of agribusiness is to bring an agricultural product to market. It involves all the necessary steps such as production, processing and distribution.
The sector supports the growth of agribusiness, which is essential for economic growth.
Agribusinesses can potentially improve agricultural productivity.
This is one of the reasons why governments often provide subsidies to agricultural businesses.
By the way, the sector plays a crucial role in the growth of developing countries.
Agricultural activities also contribute to improving the food security system and sustainable food production.
However, it is worth mentioning that many agricultural activities increase greenhouse gas (GHG) emissions, contributing to global warming.
This is precisely why innovation is important for the sector and is essential to address these problems.
What are the 5 sectors of agribusiness?
The agricultural market is divided into five main productive sectors, namely: inputs, production, processing and transformation, distribution and consumption, and support services.
Input sector : includes all products and services necessary for azerbaijan whatsapp data agricultural production, such as seeds, fertilizers and pesticides;
Productive sector : corresponds to the production of crops and livestock;
Processing and transformation sector : comprises industries that receive raw materials from the production sector and transform them into intermediate or final products, such as the food processing industry;
Distribution and consumption sector : this sector is responsible for making products available to the final consumer, through marketing and distribution channels;
Support services sector : includes all services necessary for the proper functioning of the agricultural market, such as financial, insurance and consulting services.
Agribusiness in Latin America
Thirty percent of the world's population works in agriculture, a sector that includes nearly 500 million producers who are responsible for 50 percent of the food consumed on the planet. Agriculture, including crops, livestock, aquaculture, fisheries and forests, is the sector that employs the most people in the world, the largest economic sector in many countries and, in addition, is the main source of food and income for those living in extreme poverty.
Agriculture is important to many regional economies, accounting for between 5 and 18 percent of GDP in 20 Latin American and Caribbean countries, and an even larger share when the broader contribution of all food systems is taken into account.
Agribusiness in Brazil
It is no exaggeration to say that one of the pillars of the Brazilian economy, in addition to its industrial infrastructure, is based on the agricultural market.
By 2016, according to data from the Ministry of Agriculture, Livestock and Supply (MAPA), the Brazilian planted area had grown by 53% in 25 years.
Production, for its part, boomed by 260%, while productivity soared by around 135% in the same period.
The study “ Agribusiness Projections 2018/2019 – 2028/2029” , developed by MAPA, shows some interesting and striking perspectives on the subject.
In 2019, Brazil recorded the second-largest grain harvest in its history through May, with 236.7 million tons produced.
The study also projects that Brazilian grain production will increase from 236 million tons in 2019 to just over 300 million tons in 2029.
Furthermore, the planted area is estimated to grow by 15.3% by 2029, representing an increase of more than 10 million hectares in ten years.
Still according to the study, the 5 main Brazilian grains are rice, beans, corn, soybeans and wheat.
The importance of agriculture in the country's economy
To understand what agribusiness is, it is necessary to understand that the sector has a great weight in the Brazilian GDP (Gross Domestic Product), being one of the main anchors of the country's economy.
This is largely due to the agricultural potential of our lands, a factor that we have explained in the data above.
In 2020 alone, according to the Brazilian Confederation of Agriculture and Livestock ( CNA ), the agricultural market accounted for 26.6% of the year's total GDP.
It was the largest participation in the sector's history.
However, according to estimates by the Center for Advanced Studies in Applied Economics ( Cepea ), the agribusiness has everything to exceed 30% of Brazil's total GDP in 2021.