What does Agro-Export Mean?

The concept of agro – exporter is not part of the dictionary. In any case, it is a notion of frequent use, used with reference to the export of raw materials obtained through agriculture.

To know what the idea of ‚Äč‚Äčagro-exporter alludes to, therefore, we must first understand what agriculture is and what an export is. We understand agriculture to mean all the techniques, activities and processes that enable tillage and cultivation of the land and thus achieve the obtaining of natural raw materials. Export, meanwhile, is the sale of goods abroad.

This means that an agro-export company produces raw materials that it markets in countries other than its own. Suppose an Argentine company is engaged in the cultivation, storage, and sale of soybeans. If you sell your production to China, to cite an example, it can be said that it is an agro-export company.

An agro-export economic model, on the other hand, is one that is based on the export of its raw materials, favoring this activity before the industry. The nations that develop an agro-export economy are dedicated to selling abroad what their fields produce (vegetables, fruits, meat, etc.) and import products already processed or made through industrial processes. Because industrial products have higher added value, these agro-exporting countries have an unbalanced trade balance: they get little money from abroad because they sell cheap raw materials, and they send a lot of money abroad because they buy expensive products.

From the aforementioned agro-export model, we can highlight a series of interesting data, among which are the following:
-It is believed that it appeared for the first time in the second half of the 19th century and specifically in what was Latin America.
-It is established that Argentina was one of the countries that in those early stages gave more importance to the aforementioned model and used it to grow and create commercial connections within and outside the continent.

Much has been said and is said about this model, which highlights a number of advantages and disadvantages. In the first case, among the aspects considered to have in favor are the following:
-Revitalizes the economy.
-Requires little investment.
-It allows raising foreign capital that has a positive impact on the country’s infrastructure and services.
-Improves and streamlines the economy in a short period of time.

On the other hand, the following are determined in terms of disadvantages:
-It is considered that it makes the country that bets on the agro-export model too dependent on what is happening in the world.
-It is determined among its main aspects against that it is not a viable long-term model.
-Also those who study it conclude that it causes inequality at the regional or population level.
– Fluctuations and situations are generated with the value of what is exported that can make the agro-export model end up drowning the country and even bankrupt it if it wants to maintain its business and be competitive.