Posted 18.08.2022
As a B2B company selling products in the agricultural sector, you play a key role in economic growth. That’s because the agricultural sector is considered by many to be the backbone of the economy.
We will take a look at the factors that contribute to this ideology but first, let’s get a good grounding of what we mean when we talk about agriculture…
While we will mainly be discussing agriculture that produces food, such as fruit and vegetable crops and livestock rearing, it’s important to remember that the agricultural sector covers so much more than that.
The agricultural sector also includes forestry, dairy farming, beekeeping and more.
According to the Institute of Entrepreneurship Development, the agriculture industry contributes to more than half of the National Income in developing countries. The percentage is smaller in developed countries, but still incredibly important. This showcases just how vital farming is for economic development.
Agriculture can arguably be considered the great equaliser. Every country, regardless of whether it’s underdeveloped, developing or developed, requires food to survive.
There is a myriad of industries that are dependent on agriculture, they take the crops grown or the livestock reared and make them edible, sell them or use them for medicine.
Some of the industries that could not operate without this sector include but are not limited to:
And more.
There are numerous ways agriculture contributes to a variety of industries, some of these include:
Farms that produce crops for food can increase the food security of the country they are based in, whether they are growing crops or raising livestock.
Agricultural production of specific fruits and vegetables that can’t be grown in other climates provides vital negotiating power during exports, particularly if there is a considerable demand for these goods from other countries.
This is one way that farmers can directly contribute to the development of the country where the land is based.
Additional ways include creating a source of income and job security for local people in rural areas, raising incomes and increasing the wealth of a developing country.
Many of the countries that have achieved high-income status did so by first investing in the agriculture sector. According to the International Food Policy Research Institute, China saw a speedy growth in GDP per capita due to an economic transformation that relied heavily on agriculture.
Developed countries must continue to ensure food and nutrition security as well as their financial security through continual agricultural productivity.
Developed countries have the luxury of focusing less on producing enough to ensure food, nutrition and raw material in their own country as they will already be producing sufficient quantities in this aspect.
Now, they can focus on more commercial aspects to further increase their national income. They can spend resources on looking towards the exchange market and developing the country’s’ agribusinesses that operate at scale nationally and internationally.
This is quite a top-level view of why agriculture is the backbone of the global economy but we hope we’ve helped you better understand just how important the sector you supply to is and, as an extension, how essential your B2B brand is.
Evolve Trader works with numerous B2B companies operating within both the agricultural and the food and beverage sectors. Our solutions work to improve your customer experience and free up your time while ensuring smooth running at all times.
If you’d like to find out more and discuss how we can help your brand better serve the farming sector, please complete this form and we will be in touch.
Image by Bruno /Germany from Pixabay
