South American Political Map and What It Means for the Agro Industry
The South American political map provides some insight into the economic and political structure of the region and its effects on the agro industry. Learn more.
The South American Political Map and What It Means for the Agro-Industry
In 2016, Brazil hit its highest level of stocks in over four years. Brazilian stocks have risen over 48 percent and should keep going up as South America focuses on political and economic reform.
This is good news for those looking to invest in the agro industry, or move to a prospering area.
Let’s take a look at the South American political map – specifically Brazil and Argentina – and why the region helps raise stocks and the agricultural industry.
South American Geography
South America has land and water walls such as the Gran Chaco, Pantanal wetland, Atacama Desert, the Andes, and the Amazon.
This geography makes exports a must for the agricultural industry. Not only have exports played a large role for the country, they play a large part internationally as well.
Brazil covers about half of South America and borders the Atlantic Ocean, which gives easy access to ports when it comes to exporting goods.
Argentina is the second largest country in South America and has many ports on rivers and the Atlantic Ocean. Similar to Brazil, Argentina depends on exports when it comes to their gross national product (GNP).
South American Political Map
The geography of the continent gives one reason why the South American political map is the way it is. Brazil is the largest country, which explains why it is emerging as a leader in the agro industry.
Argentina rivals Brazil because of its rich land and history. While Brazil was colonized by the Portuguese, Argentina was colonized by the Spanish. Because of this, the borders between the two countries changed regularly.
In 1952, the National Bank for Economic and Social Development (BNDES) was created in South America and is among the world’s largest banks. BNDES focuses on exports, local production, and infrastructure when it comes to the Brazilian GNP.
How South America Is Expanding
South America is emerging as one of the global leaders in agriculture. Brazil, Uruguay, Chile, and Colombia are the leaders in commercial farms.
New technologies are being brought in to transform previously unusable lands into rich, usable land. These technologies bring in disease-resistant seeds and fertilizers and allow corn and wheat to grow.
There is also a new demand from the high-end market which South America is willing to fill with their 120 million hectares of usable land. Currently, only 100 million hectares are in use, so there is much room for expansion.
Significant Gains in South America
Brazil is ranked fourth – worldwide – when it comes to industry and agriculture. Agriculture is responsible for eight percent of the countries GDP. From 1960 to 2011, Brazil increased its livestock and grain production by 774%.
Argentina focuses on soybean and cereal, where it is among the world’s leaders in these exports. It is also one of the leaders of beef exports.
Gateway to South America
The South American political map shows Brazil and Argentina to be the leaders when it comes to the agro-industry. Geography plays a part as does the history of the continent.
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