Farming, Biotechnology, and Industrial Economics
Farming Activities
Agricultural activity is the system of land use that encompasses agriculture and livestock. Globally, we can distinguish between countries with industrial-based economies and those with agro-based economies. A farming system is the result of all the natural and human factors societies put in place for food and profit. Among economic activities, agriculture is the most dependent on the physical environment, especially temperature and precipitation patterns.
In most developed countries, environmental dependence is mitigated through the use of drought-resistant seeds or those with shorter growing cycles for colder climates. In contrast, developing countries face serious challenges like nutrient depletion in agricultural soils and inefficient water use, which threaten sustainable production.
Plantation Agriculture
Practiced in Ecuador and other tropical zones of the Americas, Africa, and Asia, plantation agriculture focuses on crops for export. Recent price fluctuations in the international market have forced changes, such as combining several plantations with livestock.
Key characteristics of plantation agriculture:
- Operated by large, often transnational, companies due to high capital investment requirements.
- Agribusiness facilities are installed near the plantations because the goods are perishable or require immediate processing after harvesting.
- Average size of 300 to 400 hectares.
- Requires a highly specialized permanent workforce, supplemented by temporary labor.
- Employs scientific methods, including new varieties, fertilizers, and irrigation.
Subsistence Farming
In this type of economy, families dedicate most of their land and labor to produce goods for their own consumption and basic needs. It is common in warm regions of Latin America, Asia, Oceania, and Africa.
To address challenges, several Latin American countries have implemented land reforms to change the legal and economic structure of agriculture, particularly land ownership, aiming to improve the lives of farmers and encourage them to remain in rural areas.
Types of subsistence agriculture:
- Pastoral Nomadism
- Slash-and-Burn Agriculture
- Rainfed Farming
- Intensive Irrigated Agriculture
Pastoral Nomadism
Characteristic of cold regions in the northern hemisphere, mountainous terrain, and arid zones, it involves moving animals in search of pasture.
Slash-and-Burn Agriculture
Practiced in the tropics, it involves clearing land by fire, unpaid land use, reliance on human labor, basic tools, and short periods of cultivation followed by long fallow periods. To maintain soil fertility, farmers rotate fields rather than crops.
Rainfed Farming
Relies solely on rainfall for moisture, without irrigation. Crop rotation and livestock integration are common practices.
Intensive Irrigated Agriculture
Practiced where land is scarce, it aims for high yields, primarily of cereals and vegetables for local consumption, especially rice, which efficiently feeds a large population in limited space. While a small percentage of the production may be sold, it is still considered subsistence agriculture.
Rice cultivation involves sowing in seedbeds and transplanting seedlings to fields, a labor-intensive process that limits productivity. Another challenge is the division of land into small plots.
Biotechnology
Biotechnology encompasses techniques and procedures used to manipulate living organisms for practical purposes. After World War II, advancements accelerated, leading to the Green Revolution. Biotechnology improves species and converts agricultural products and waste into food and energy. It is dominated by large companies in developed countries.
There is ongoing debate about food biotechnology, with proponents viewing it as essential for increasing agricultural output and opponents raising concerns about potential health consequences.
The Green Revolution
This refers to efforts to boost agricultural production in developing countries by cultivating new cereal varieties, particularly wheat and rice. This required chemical fertilizers, irrigation, and labor-intensive methods, reducing the cost of producing a ton of rice or wheat by about 30%.
Gurdev Singh Khush developed new rice varieties that doubled global production in twenty years. The current goal is to produce more rice with less land, irrigation, pesticides, and herbicides.
Farm Subsidies
Subsidies are government payments that help farmers compete in the international market. This can negatively impact farmers in countries without subsidies, as their products become more expensive and harder to sell.
The Agricultural Firm
Staffing in agricultural enterprises is similar to other businesses. As production processes become more complex, teamwork is crucial.
Technological Level: Sophisticated machinery and computers require increasingly skilled labor. The internet facilitates communication, provides information on machinery, seeds, fertilizers, and market forecasts.
Commercial Level: Farms must meet new marketing standards for food production. Complex systems track products and connect official control organizations to databases via telecommunications and computing. Traceability certification is essential for marketing animal products.
The Industrial Industry
This involves the organized uptake, manipulation, and processing of natural resources and intermediate goods into consumer goods. The industry is constantly evolving towards a globally integrated economic space.
Characteristics:
- Wide discrepancy in industrialization levels between countries.
- Stimulates the development of other activities like raw material production and transportation.
- Influences settlement patterns around industrial areas.
- Varied and complex in developed countries, more localized in developing countries.
- Driven by computing, robotics, electronics, and telecommunications.
- Characterized by mergers and acquisitions of transnational corporations.
The Industry in the 20th Century
Oil and gas were crucial for industrial development, providing energy and raw materials. Early factories in Germany, France, Britain, and the U.S. introduced new work organization, leading to mass production and assembly lines.
Frederick W. Taylor’s scientific work organization system, Taylorism, aimed to optimize time. Fordism, pioneered by Henry Ford, involved assembly lines and increased productivity. Changes included industry concentration, increased productivity, labor savings, and specialized machinery.
Fordism expanded after World War II, fueled by oil. It faced a crisis in the 1970s, giving rise to post-Fordism, driven by scientific and technological advancements.
Industrial Location
Factors influencing industrial location include energy sources, skilled labor, fresh water, proximity to raw materials and markets, and government policies. Early industries were located near raw materials or ports. Today, technology reduces the need for proximity to resources, while access to research, technology services, infrastructure, and skilled labor becomes more important.
Industrial parks in suburban areas offer infrastructure, transportation, and housing for employees.