Agribusiness responsible for 3 out of every 10 AR$ of Added Value in Santa Fe province
Agribusiness also accounts for 70% of Santa Fe’s general products. The activities that make this economic area have strategic importance, equivalent to that of mining, oil, or tourism for other jurisdictions.
Valued at constant prices, the share of the Gross Geographical Product (GGP) of the Province of Santa Fe, proved to be in 2020, 10.7% of the National Gross Added Value (GVA). The weight of Santa Fe’s participation in the national economy increased almost one percent in the last 10 years, when in 2010 it was registered at 9.2%. The involvement Santa Fe’s economy in the national total coincides with the growth of the agro-industrial sector within the productive matrix. The increase in the participation of Santa Fe in 2020 continued to occur because the activity of the province of Santa Fe, predominantly agribusiness, fell less during the pandemic.
The Agroindustrial Sector, which includes both those that produce primary agricultural goods as well as companies that industrialize these raw materials, has a preponderant weight in the province’s economy. In fact, it is the provincial economic sector that has the greatest participation in the national economy is that of Agriculture and Livestock, whose GNP reaches 16.9% of the country’s total production.
In total, during 2020 the Agroindustrial Sector concentrated in 32% of the Gross Product generated by Santa Fe; that is, $3 of every $10 pesos of Value Added that the province generated corresponded to the activity of the agro-industrial chains. If we focus only on the goods-producing sector, and exclude services from the equation, we see that the sector represented 69% of its Gross Production Value in 2020, the highest value reached in the analyzed series. This indicates that the sector is extremely important for Santa Fe if we compare it with other regional economies such as Mining and Oil in the provinces of Neuquén (39% of GDP) or San Juan (10.4% of total GDP).
It is necessary to clarify that in this calculation only companies and individuals whose activity directly concerns the productive activities of the identified sectors are considered; that is, for example, an accounting consultant who provides his services exclusively to agricultural companies would not be included in this calculation, but rather his activity is considered to be part of the Professional Services category. This implies that the actual impact of the sector is even more important and transversal to the entire provincial economy.
In terms of relative importance, the Manufacture of Food Products and Beverages sector is the one with the greatest weight within the chains in terms of production value, concentrating 45% of the Added Value produced by the Agroindustrial Chains in Santa Fe, this is followed by the Agricultural Crops sector, which accounts for almost 30% of it, with Animal breeding representing just over 11%.
The Agrifood Industry per se, except for the origination of its raw materials, concentrated 54% of the manufacturing sector’s GDP in the reference year. If we add the other sectors related to Agroindustries (i.e. cotton, agricultural, tobacco, and wood industries, among others), 69% of the manufacturing sector in Santa Fe is presented. That is, $2 of each $3 pesos in added value generated by the Santa Fe industry corresponds to manufactures of agricultural origin.
Source: https://bcr.com.ar/
Photo: REUTERS/Stringer
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