1.3 Sectors in Argentina Contributing to Argentina’s Bioeconomy
Argentina has seen significant economic ups and downs in recent years. A century ago, its income per person was nearly 92% of the average in the top 16 economies, but now it’s dropped to around 43%. The country’s agricultural strength, thanks to its fertile land and low population density, played a big role in its early prosperity. But managing agricultural exports while nurturing local industries has been a tough balance, leading to back-and-forth policies. Argentina’s economic story has been a mix of periods focused on international trade and times of inward-focused policies. After the demand drop in 1929, the country became more self-reliant economically. Then, post-World War II, it leaned into import substitution policies, which continued through different governments until the 1980s, marked by high inflation. The 1990s saw more global trade but ended in a debt default in 2001. From 2002 to 2010, the economy grew due to rising commodity prices, despite restraints on imports and taxes on exports. But growth slowed between 2009 and 2014 due to various economic reasons. In 2015, the new government started making changes, like removing some controls, simplifying trade procedures, and fixing economic data. To manage finances, they put a temporary tax on all exports in 2018. These fluctuations caused trade percentages to vary, dropping from 36% in 2005 to 21% in 2016. In 2016, agriculture made up 8% of the GDP, while the entire agro-industry sector accounted for about 32%. The agro-food industry, which was 64% of exports in 2016, heavily affects Argentina’s finances. The country’s farming relies on extensive land use, machines, and modern tech. This means fewer people work in agriculture compared to other places, only about 2% in 2016. But when you consider the whole agro-food and industry sector, it contributes a lot more to employment, ranging from 18% to 35%.
Argentina’s food and drink market is expected to grow a lot. More people, more money to spend, and folks wanting fresher, healthier food are driving this growth. But rules and changing prices for materials might slow it down. More restaurants, fast food spots, and delivery apps like Grubhub and Caviar are making it easier for people to get food, helping the industry grow. People wanting healthier, organic, and fresh food are a big reason for the market’s growth. Globally, the food and drink industry is huge, hitting about $7 trillion in 2020. Changes in how people live, more interest in organic food, and how we buy things are making this industry bigger. Argentina’s food and drink companies are changing with these trends. They’re making more ready-to-eat foods, keeping the market lively. Analysts are looking at different parts of Argentina’s food industry, like bread, pasta, meat, and fruits, to see how things will change by 2026. They’re comparing Argentina’s market to others nearby to see how well it’s doing. This report also talks about food and drink markets in other places around the world, like Asia Pacific, Europe, Middle East Africa, North America, and Latin America. It gives info on Argentina’s people and money stuff to guess how the food and drink markets will change.
Biotechnology, often hailed as the frontier of technology’s future, is undergoing rapid expansion in Argentina. The country allocates more than $80 million to research and development, a figure comparable to nations with intermediate economic statuses, some of which even surpass Argentina’s per capita GDP. Argentina stands as the world’s third-largest producer of biotech crops, contributing 14 percent of the global output, trailing only behind the United States and Brazil. With over 200 biotech companies generating revenue exceeding $2 billion, Argentina’s biotech sector spans diverse domains like human health, animal health, food processing, and agriculture. Despite Argentina’s economic and political fluctuations over recent years, these biotech firms have remained resilient, experiencing minimal setbacks and drawing attention from prominent investment entities within the country. This passage essentially talks about the rapid growth and success of biotechnology in Argentina. It highlights the significant investments made in research and development, the country’s substantial contribution to global biotech crop production, the diversity of the biotech sector in various fields, and the resilience of these companies in the face of economic and political challenges.