agro-exporter

The concept of agro-exporter is not part of the dictionary of the Royal Spanish Academy (RAE). In any case, it is a frequently used notion, used in reference to the export of raw materials obtained through agriculture.

To know what the idea of ​​agro-exporter alludes to, therefore, we must first understand what the farming and what is one export. We understand agriculture as the set of techniques, activities and processes that allow to till and cultivate 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 sells in countries different from your 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.

A agro-export economic model, on the other hand, is one that is based on the export of its raw materials, privileging this activity before the industry. 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 their trade balance in imbalance: they get little money from abroad since 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 data of interest, 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 being said about this model, of which a series of advantages and disadvantages stand out. In the first case, the following aspects are considered to be in favor:
-Revitalize the economy.
-Requires little investment.
-It allows obtaining foreign capital that has a positive impact on the country's infrastructures and services.
-Improves and streamlines the economy in a short period of time.

On the other hand, in terms of disadvantages, the following are determined:
-It is considered that it makes the country that bets on the agro-export model too dependent on what happens 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 come to the conclusion 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.