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- Place of Agriculture in the World Economy
- Top Five Agricultural Countries
- Other Countries in the Ranking
Place of Agriculture in the World Economy
Despite the hype around artificial intelligence and virtual reality that our age seems to be immersing itself in, the present remains the unwavering dominance of agriculture in the global economy. This is both a source of food for the ever-growing world needs and the basis of income for exporting countries. According to FAO, the agricultural sector employs 67% of the world's population. It accounts for almost 40% of GDP and more than 40% of global exports. And analysts are confident that the importance of this sector will only increase in the future.
In addition to food, the industry supplies the global market with such important categories of goods as fuel, raw materials, and fiber. It can provide states with stable internal economic development with the correct use of available natural resources, modern technologies and regulatory policies. Which countries managed to take the lead through profitable agricultural production?
Top Five Agricultural Countries
World experts assessed the agricultural potential of the countries and compiled the top 5 leading producers for 2023, which included China, India, the USA, Brazil and Russia. According to rough estimates, their total production volume should be more than $3.8 trillion. Of course, the analysis takes into account the dependence of the agro-industrial complex on weather and climatic conditions, which can vary greatly in different countries, and includes a percentage for force majeure, but even with such assumptions, the main supplies of agricultural goods are accounted for by the top five agricultural countries.
- China
A universal country in terms of agriculture, since the soil conditions and climate in the territory are very diverse, hence the opportunity to grow a wide range of marginal crops that are in demand on the world market (from wheat to rice and millet). 7% of the world's arable land is located here, the country feeds 22% of the world's population. The agricultural industry relies on family farms, which account for more than 80%. They are the ones who procure the bulk of the products. At the same time, there is significant support from the state; huge funds have been invested in modernizing the industry. Productivity is increased through the introduction of advanced technologies, including precision farming. And it's paying off: China has maintained its status as the world's largest agricultural producer for many years, with output expected to reach $1.14 trillion in 2023.
- India
If you believe the statistics, more than half of the country’s total population receives income from agriculture, and its share in GDP is 18%. In recent years, the country's authorities have purposefully intensified efforts aimed at developing the national agro-industrial complex and supporting priority sectors. India managed gradually to reach the 2nd place in terms of production of dried fruits, the 3rd - for fish, and the 5th - for poultry. The sector's annual growth rate is recorded at 11%. Farms now produce more than 70% of agricultural output, and if supported they can increase productivity. Therefore, India is expected to take second place in the ranking in 2023, with a projected output of $905 billion.
- USA
The United States of America have traditionally been one of the world leaders in the production of high-margin crops such as soybeans and corn. Wheat is also grown here, for which there is constant demand on the market. A feature of the sector is its dependence on large commercial holdings, rather than on private farms, which are drivers of technology, constantly introducing innovations in cultivation technologies (from scientific soil analysis to computer technologies) and increasing overall productivity. Due to this, in 2023, the United States are projected to produce agricultural products worth $829 billion and firmly occupy third place in the top. Separately, it is worth noting the well-developed export instruments, which allow for successful diversification of the supplies geography.
- Brazil
Soybeans, coffee and beef are main products of the Brazilian agro-industrial complex that almost everyone can name. The listed goods are historically associated with this country, since it is always the leader in terms of production volume. But in recent years, Brazil has been actively increasing its potential in other areas, for example, in the corn, for which it seriously competes with the United States. In the current field season, the acreage under the crop has been expanded to record levels, accordingly, one of the largest historical harvests, if not the largest, is expected. Here, of course, weather conditions are important, but so far the forecast in this area remains positive. The core of the agricultural industry are agricultural holdings that rely on highly intensive agronomic practices. Due to this, in 2023, it is planned to reach a volume of $573 billion.
- Russia
Russia has unique natural and soil conditions, as well as an abundance of resources for growing a variety of crops in different regions. In recent years, the country has secured its status as a leading producer of wheat, barley and sunflower. And, despite the hitting Western sanctions, it continues to increase exports. Last year alone, growth was 12% ($41.6 billion) compared to the previous season. And the entire agro-industrial complex showed serious positive dynamics in 2022 - the agricultural production index amounted to 110.2%. And certain areas set their own historical records, for example, the country harvested record 158 million tons of grain.
The Ministry of Agriculture of the Russian Federation predicts that from July 2023 to June 2024, Russia will export 55 million tons of grain, of which 45 million is wheat. And there are real reasons to trust these figures, since from May 1 to May 15, 2023 alone, more than 2 million tons have already been supplied to foreign markets, which significantly exceeds the previous reporting period.
And all is well with the level of self-production with regard to basic types of food:
- Grain - 185.4%. For grains, domestic needs are completely covered, which allows exporting large volumes and maintain a leading position in the world top.
- Meat - 101.6%. The result of decades of focused work, starting with the ban on the import of "Bush legs". Now the country produces more poultry meat than the population can consume. A jump can also be noted in the production of other types of meat.
- Fish – 153%. To assess the dynamics, just look at the operational summary of Rosstat: in January-May 2023, production volume amounted to 1.8 million tons, which is 5.5% more than last year’s level for the period under review. The catch is growing steadily.
- Vegetable oil - 211%. Last season there were also record numbers, which could make Russia a leading supplier.
- Sugar – 103.2%. The industry is actively developing, and the problems here are no longer self-sufficiency, but overproduction, low prices, the need to modernize the technical base and search for new markets.
So far, only milk (85.7%) and vegetables (89.2%) do not cross the 100% level. But targeted work is being carried out, including in terms of selection and replacement of foreign seed material of strategically important crops with domestic seeds. All this allows forecasting total production in the region of $500 billion in 2023.
Other Countries in the Ranking
Everything is clear with the top five: these countries are focused on modernizing their agricultural sector and investing huge amounts of money in this to get the same return. And in the next few years, it doesn't look like anyone will be able to move them from their leading position. However, the agricultural race for a place in the world ranking is also taking place between other countries. Thus, the 6th place is occupied by France, which is known not only for its vineyards and their products, but also for significant harvests of wheat and barley. Canada is in the 7th place, where wheat, barley, rapeseed are successfully grown, and vegetable growing is also well developed. The 8th place is held by Australia, which has a wide variety of crops in its portfolio, including wheat, barley and sugar cane.
We can definitely conclude that all countries where there are conditions for intensifying agriculture consider this industry a priority. This can be easily seen in the growth rates of production both in individual areas and across the entire sector. Hence, analysts are confident that the contribution of agriculture to the world economy will continue to increase.
