Agri-food production will become the main driving force behind Venezuela’s economic equilibrium. More and more companies are devoting time, resources and efforts so that the Venezuelan agro-industrial sector is not only strengthened but also plays a leading role in the country’s economy.
Increased demand for food: How new technologies are helping people locate their food
Oil production and exports have been the nation’s main sources of income for decades. However, given the current plummeting prices of this non-renewable resource in the international market, Venezuelan producers believe that there is a great future in the agro-industrial sector.
Agroindustry is known as an activity that combines the two main economic activities of human beings. Agroindustry is undoubtedly the center of human economic production since it is based on the generation of agricultural resources and their corresponding manufacturing, industrialization and commercialization.
The impact of agriculture and industry on resource and energy generation
This type of industry can generate everything from very simple resources such as fruit jams to energy such as that which can be obtained from soybeans. The combination of agriculture and industry is a recent phenomenon that has made it possible to change the productive structure of human beings.
If we bear in mind that since prehistoric times, human beings have been able to develop crops and thus obtain their food (which in turn helped them to become independent from nature), it should come as no surprise that today this is still the main activity through which we obtain food and a large part of the resources we use in our daily lives.
However, agribusiness, as we know it, is not so old and results from the creation and generation of machines that allow the transformation of a natural product into an industrialized product with a superior manufacturing process. This phenomenon arises from the processes of the industrial revolutions that have taken place in the last centuries of our history.
Why is agribusiness essential to the lifestyle we have today?
If we think about it, up to this point we have briefly defined what agribusiness is, but we must dedicate a few words to point out its importance for our current way of life. In this sense, agribusiness has generated such changes in human populations that we could no longer live without it so simply.
The insatiable demand for food and other elements by societies all over the planet has made agribusiness the basis of our subsistence.
Agribusiness makes it possible to complexify the raw material that can be obtained from crops or even from livestock activities, to give them a higher value and at the same time allow them to become another element.
But at the same time, it is necessary to point out that agroindustry allows this to be done massively and on a large scale, making it possible to move from an artisanal level of production to an industrial one, where food or resources reach an enormous number of people all over the planet.
The demand for food is expected to increase by 70% in the next 50 years
New technologies focus on the importance of people knowing the traceability of the food they consume. Agribusiness has become socially and economically important in Latin America.
Because it responds to the basic needs of the population, this sector has been impacted by trends such as the use of agrotechnology that are redesigning its future and creating both challenges and opportunities for the operation of organizations.
Anticipated food shortages in the coming years have become the main concern for agribusiness and the companies involved in the agribusiness chain.
However, agribusiness represents an investment opportunity for the business sector regardless of whether they are small, medium, or large organizations, as it provides profitability while implementing actions that contribute to combating resource scarcity.
Sustainable Food Production
Companies in this sector understand the food needs of consumers to implement actions that increase the efficiency of production, making it more environmentally friendly and achieving profitability for the entire value chain.
By being profitable, agriculture can develop a business model focused on stakeholders, as well as on efficiency and on how to transform the use of natural resources to enter a global circular economy, taking advantage of specialized technologies in this sector.
Agrotechnology or agrotech has to do with precision agriculture and has been implemented in the planting and harvesting processes; however, its development has allowed the existence of systems that, through satellites and drones, can establish the optimal moment for the application of agrochemicals and agro fertilizers.
Thanks to this technology, the level of response are faster and more efficient. Its use focuses on the importance of people knowing the traceability of the food they consume and its impact on the planet.
Agrotech: Leveraging parametric insurance to reduce weather risk in crop investment
In addition, agrotech seeks to turn parametric insurance into an asset to help protect crops, mitigating the risks derived from the climate that impact the investments and finances of companies in the sector.
These new trends represent great opportunities for organizations to be efficient around innovation and the requirements that are occurring in agribusiness, to generate a circular economy and add value to the production of inputs.
It is important to highlight that governments have begun to reward from a tax perspective those companies that demonstrate a circular economy, to promote this type of action.
The future of agribusiness is opening the way for companies to manufacture more natural products and have products based on new technologies that have been developed within the sector.
In short, food production is going to become the first driving force toward the economic balance of the country and we Venezuelans are prepared and capable of doing so.