Agribusiness is the term that encompasses all economic activities related to agriculture and livestock, from production, processing to sale of products.
Also called agro, agribusiness is one of the largest markets in the world. It is responsible for producing tons of food products, generating millions of jobs, but also for causing serious environmental damage.
Brazilian agribusiness is of international importance, Brazil is the main world exporter of several products. Therefore, agro is a very relevant sector for the economy (as well as politics) of the country.
Agribusiness in Brazil
It can be said that agribusiness in Brazil began with agricultural production during colonization, in the 16th century. Products like sugar cane and the coffee, produced with the exploitation of slave labor, were the economic base in the period.
Over the years, the country has gone through several stages in agribusiness, including the diversification of products and also the growth of livestock.
But it was only after 1960 that Brazilian agriculture entered a
modernization process, which made possible, years later, the strong internationalization of the market.Currently, Brazil is one of the world's largest producers of food products, such as soy, corn, sugar, coffee, orange, chicken and beef.
It is considered one of the pillars of the Brazilian economy, especially with regard to products intended for export. It is estimated that more than 20% of the Gross Domestic Product (GDP) is related to agro activities. China and the United States are among the main buyers of Brazilian food.
Brazilian agribusiness is also responsible for generation of millions of jobs in the country. According to the Center for Advanced Studies in Applied Economics (Cepea), in 2022, the sector employed more than 19 million people.
On the other hand, agribusiness in Brazil has caused several environmental problems, such as land clearing covered with forest for agricultural/livestock production, and consequently the loss of biodiversity in the affected regions.
In addition, agriculture also causes soil depletion by excessive use of land and the cultivation of only one type of food, in addition to the use of fertilizers, herbicides and antibiotics, which end up contaminating both the soil and the water nearby and the air.
Characteristics of agribusiness
Agribusiness is an important sector worldwide, because it is directly linked to production and food industry.
As it is a huge market, with high productivity and large technological investments, its characteristics are related to these particularities.
Discover the main characteristics of agribusiness:
- Medium and large land holdings;
- agriculture of monoculture (only one product is grown);
- High productivity;
- Modern and mechanized production process;
- Strong investments in science and on technology to increase production;
- High environmental impact.
agribusiness sectors
As agribusiness is a gigantic market, which encompasses all activities related to agriculture and livestock, it is divided into three major sectors.
The sectors qualify the branches of activities from cultivation or animal husbandry to the arrival of the product in the hands of consumers. Find out what they are:
- primary sector: are rural producers, who grow food or raise animals;
- secondary sector: this is the agroindustry, responsible for the industrialization of agricultural products;
- tertiary sector: is responsible for the distribution and sale of products to final consumers.
See too what is agriculture.
