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 belgium whatsapp data gricultural 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 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 environmental impacts caused by the growth of agribusiness in Brazil
By understanding what agribusiness is and its entire relationship with the Brazilian industry, it is possible to see that the sector has grown a lot in recent years.
The development of this industry, which by default exploits natural resources, has caused environmental impacts.
For example, beef production is responsible for around 18% of greenhouse gas emissions, according to data from the Food and Agriculture Organization of the United Nations (FAO) published by The Guardian .
In addition, the expansion of soybean plantations to meet external demand has forced producers to clear forests and other green areas, which contributes to global warming.
Another problem is the pollution of rivers by pesticides, which directly affects aquatic life and can also harm human health.
For all these reasons, it is clear that the sector needs to be more responsible and aware in order to ensure the sustainability of the planet.
One way to do this is to invest in clean technologies , such as agroecology , which reduces pesticide use and deforestation.
Another is to promote agroforestry , a technique that integrates plants of different species in the same space, offering various environmental benefits.
It should be noted that these are just a few of many possible solutions.
The important thing is that the Brazilian agricultural market is willing to change to ensure a sustainable future for all.