Agribusiness, known as agribusiness in English, it is a productive and economic system responsible for the integration and functioning of sectors related to products and by-products of agricultural and livestock activities.
However, agribusiness goes far beyond the countryside. This large production chain involves the cultivation of products, banks (financing), activities scientific, climatology, equipment and fertilizer industry, exporters, transport and even the business.
Agribusiness in Brazil: how does it work and what is its impact on the economy?
In Brazil, agribusiness arrived in the 1950s and is considered one of the sectors responsible for the rise and sustainability of the country's economy.
This entire system encompasses the three main sectors of the economy that are responsible for putting the entire agricultural chain into operation. Are they:
- Farmers: are owners of small, medium or large rural areas. They are responsible for developing any type of agricultural activity, whether in raising cattle, growing and harvesting fruits and vegetables, fishing, among others;
- Agricultural inputs: this sector is responsible for providing all the necessary tools and financing for agricultural activities. In this case, the banks, responsible for financing new technologies acquired by the producers and industries that produce tools such as fertilizers, all machinery, chemicals, and others;
- Commerce and Distribution: this is a step that directly affects the consumer, as it is responsible for processing, distributing and marketing the products.
These three important steps build a production system that enables development and sustaining the Brazilian economy, ranging from the jobs generated to the commercialization and consumption of products.
This scenario of impact of agribusiness on the country's economy reached its mark in the 1960s, when Nellore cattle were imported into the country. Its differential was the quick response to zootechnical stimuli
It was from that year that the agricultural sector began to expand and grow, mainly because the Brazilian companies involved in the field adopted strategic analyzes in their management.
As a result of this growth, in the 1970s the Brazilian Agricultural Research Company, Embrapa, responsible for helping the exponential growth of Brazilian agribusiness.
Today Brazil is considered one of the countries that produce the most food on the planet. In 2017, for example, the sector had the largest share of the Brazilian GDP, 23.5% of the total, according to the Agricultural Confederation of Brazil.
In terms of Brazilian exports, agribusiness is also very strong, almost a quarter of all wealth produced in the country and almost half of product exports come from rural areas Brazilian companies.
The main products exported by Brazil are:
- Soy;
- chicken meat;
- beef;
- sugar;
- cellulose;
- coffee;
- soybean meal.
All these data indicate that agribusiness is one of the most responsible for development and sustaining the Brazilian economy, placing the country as a world power in production farming.
The current scenario and criticisms of Brazilian agribusiness
One of the factors that most contributes to a strong agribusiness in Brazil is the climate. The abundant rainfall allows for up to two crops a year in many regions. The soils are favorable and fertile for production, as are the reliefs.
As a result, the stimulus for discovering new technologies in the field and for young entrepreneurship began to grow in the sector.
Companies named as technology hub and startups transformed Brazilian agribusiness, investing in efficiency and innovation in agriculture and livestock
Some examples are machines controlled by artificial intelligence, seeds created in laboratory, the use of digital tools in crop management, precise weather conditions, among others.
Agribusiness is increasingly receiving investments and taking large proportions since its arrival in Brazil. With its expansion, some criticisms about financial inputs and environmental irresponsibility began to emerge. The main criticisms are:
- Logging;
- Poor distribution of land, which generates the great conflict between the activists of the Sem Terra Movement and the large landowners;
- Pollution through machinery;
- High levels of pesticides in food;
- Invasion of indigenous lands, among others.
There are large movements and activism engaged in environmental and financial causes. In most cases, the main objective is to fight for a sustainable agribusiness.
See also the meaning of:
- Agriculture;
- Agriculture;
- Organic agriculture;
- Pesticides;