Paradox: mechanization and social inclusion

Márcia A.F.D. Moraes ESALQ/University of Sao Paulo/Brazil

www.esalq.usp.br/gemt

Workshop on the Impact of New Technologies on the Sustainability of the Sugarcane/Bioethanol Production Cycle

CTBE -

Campinas -

Brazil May 14-15th

–

2009

Main agents of the sectorIndustrial Sugar and Alcohol Production

Fuel Distributors

Service Stations

Ethanol Exportation

Sugar Cane Field• 70 thousand sugar cane producers

• 422 SugarMills/Ethanol

Distileries

•

32 thousand units for both ethanol and gasoline• Prices: on the free market

• 160 Distributors•Ethanol gasoline blend can only be carried out by certified distributors

• 1.27 billion gallons in 2008

Fonte = MAPA –

MME –

MDIC -

2005

528 thousand employees

•

567 thousand

employees

Production and Job Position in 2007

Operating Sugarcane Mills

Sugarcane Mills under construction

Jobs in Sugar cane production (2007): 528,433

North & Northeast

South &Center

Industrial Units

78 298

Job Positions

49% 51%

Ethanol Production

8% 92%

Sugar Production

13% 87%

Per capita GIP NE regionUS$ 2,258

Per capita GIP SE regionUS$ 6,354

Southeast migration influx

Per capita GIP SP state US$ 7,3845

•Survey of socioeconomic information in the PNAD database

•PNAD -

National Household Sample Survey

•Carried out by the Brazilian Institute for Geography and

Statistics –

IBGE (Federal Government )

Data

(thousand people)

Source: Oliveira, F.C.R. (2009)

Agriculture 2,667,600

93,369,4

366,8

528,4

122,9148,4

259,0

116,5

24,50,0

100,0

200,0

300,0

400,0

500,0

600,0

Rice

Banana

Coffee

Sugar can

e

Citros

Cassa

va

Corn

Soya

Grapes

Number of Employees Brazil, 2007

Source: Prepared based on data provided by PNAD (several years)

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

1000000

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

N umber o f E mp loyees S ug ar C ane  P roduc tion

861 thou employees 224 mi ton

528 thou employees 493 mi ton

Evolution of the Number of Employees and of the Sugar Cane Production

Production Increase: 120%Employment Reduction: 38.7%

Years Total NNE CS

1981 625,016 392,481 232,535

1985 860,661 483,055 377,606

1996 639,146 296,144 343,002

1999 461,508 184,481 277,027

2002 455,502 241,493 214,009

2004 494,076 245,050 249,026

2005 519,197 268,759 250,438

2006 532,263 263,291 268,972

2007 528,423 209,412 319,021

Variation -15,45% -36,44% +37,19%

Sugarcane: Evolution of the Number of Employees in the NNE and CS regions

Source: Prepared based on data provided by PNAD (several years)

Growth of Mechanical HarvestingSao Paulo State

2006/07 2020/21

Sugarcane Production (million tons) 299 544

Mechanically harvested area 40% 100%

Employees of Manual harvesting (th) 189,6 0

Employees of Mechanical harvesting (th) 15,5 70,8

Employees of Industry 55,3 75,3

Total 260,4 146,1

Source: UNICA, 2007 Reduction of 114 th jobs

Decrease in the workforce -

SP

Agriculture 3.9

Average schoolingBrazil, 2007

3.93.5 3.6

4.2

4.9

2.8

3.4

5.45.9

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Rice

Banan

a

Coffee

Sugar ca

ne

Citros

Cassa

va

Corn

Soya

Grapes

Source: Oliveira, F.C.R. (2009)

Agriculture 5.7%

Percentage of machinery operators Brazil, 2007

2.1%

40.5%

3.1%0.6%

6.0%6.3%4.2%

0.0%

12.9%

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

Rice

Banan

a

Coffee

Sugar ca

ne

Citros

Cassa

va

Corn

Soya

Grapes

Source: Oliveira, F.C.R. (2009)

Source: Prepared based on data provided by PNAD.

Sugarcane: Average Schooling -

2007

77.2% of the workers in sugarcane crops in Brazil have up to 4 years of school

23.9% (that is, about 126 thousand workers ) are illiterate

4.2

3.0

5.0 5.1

0.0

1.0

2.0

3/0

4.0

5.0

6.0

BR NNE CS SP

Ave

rage

Sch

oolin

g

Agriculture 36.7%

Agriculture formal workforce Brazil, 2007

50.2%

62.1%

9.7%2.5%

59.6%

80.7%

35.4%

26,.%27.0%

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

Rice

Banan

a

Coffee

Sugar ca

ne

Citros

Cassa

va

Corn

Soya

Grapes

Source: Oliveira, F.C.R. (2009)

Sugarcane: number of formal and informal workers.

Brazil, NNE, CS and São Paulo, 2007

Source: Prepared based on data provided by PNAD.

Source: Prepared based on data provided by PNAD

10-15 95,576 15.3 4,025 0.8

15-20 128,578 20.6 51,236 9.7

20-30 134,033 21.4 196,301 37.2

30-40 106,516 17.0 118,932 22.5

40-50 84,041 13.4 107,448 20.3

50-60 51,886 8.3 38,797 7.3

> 60 24,396 3.9 11,694 2.2

Total 625,016 100.0 528,433 100.0

Age Bracket1981 2007

Number of Employees total % Number of

Employees total %

Sugarcane: Number of employees by Age Bracket

Number of workers

Yearly average salary (US$)

Wage/National Wage*

Brazil 528,433 284.10 45.6%

NNE 209,412 197.26 7.3%

CS 319,021 340.82 74.7%

SP 194,923 375.48 92.5%

Source: Prepared based on data provided by PNAD –

in US$ 2007

* National Minimum Salary for 2007 was US$ 195.08

Sugarcane: Number of employees and wages. 2007

Source: Prepared based on data provided by PNAD 2007.

Sugar and Ethanol WagesBrazil and regions, 2007

Earning EquationsSugarcane Employees

Variável Exp 2006Explanatória Coeficiente Efeito % no rendimentoConstante 2,9260

Pessoas do sexo feminino -0,2325 -20,74

Idade/10 0,2929

(Idade/10)2 -0,0337

Escolaridade <=9 anos 0,0212 2,14

Adicional para Escolaridade > 9 anos 0,0709 9,65

Log (horas trab/semana) 0,6779

Filiação Sindicato 0,2019 22,38

Região Norte-Nordeste -0,4294 -34,91

Número de observações 962

São Paulo: Pensions granted in farming (excluding sugarcane), and in sugarcane, 2005

All farming excluding sugarcane SugarcaneAll workersduring 2005

507,380 220,517

Total pensions

granted

634 0.125%

(of all workers)

170 0.077%

(of all workers)

Pensions granted for

sickness or disability

80 0.016%

(of all workers)

11 0.005%

(of all workers)

Distribution of

pensions by age

group, in years

(% of all pensions)

≤

17

18 to 24

25 to 29

30 to 39

40 to 49

50 to 64

≥

65

0.0%

0.5%

1.1%

3.3%

8.4%

67.0%

19.7%

≤

17

18 to 24

25 to 29

30 to 39

40 to 49

50 to 64

≥

65

0.0%

1.2%

3.5%

3.5%

23.5%

57.1%

11.2%

Source: Moraes, M.A.F.D.; Ferro, A. (2008)

Internationalization of ethanol and better exposure to the external market induced companies to adopt more strict norms

Better observance to labor and environmental legislation

Labor laws applied: reduction in underaged workers and betterments in labor conditions

Ban of field fires and consequent mechanization of harvesting procedure:

reduction in the number of employees, despite growth in production

FINAL CONSIDERATIONS

Greater formalization

SP outstands the other states

Schooling: problem in the Brazilian agriculture

Despite betterments in the indicators of schooling for rural workers, the number of low schooling and illiterate employees in the sector is still alarming

Difficult replacement due to mechanization

Negative impact in the origin region

Need for public policies and private strategies

Literacy and requalification of workers

FINAL CONSIDERATIONS

MORAES, M.A.F.D. O mercado de trabalho da agroindústria canavieira: desafios e oportunidades

–

Economia Aplicada, São Paulo, v. 11, n. 4, p. 605-619, out-dez

2007

MORAES, M.A.F.D.

Indicadores do Mercado de Trabalho do SistemaAgroindustrial da Cana-de-Açúcar do Brasil no período 1992-2005. Estudos Econômicos, São Paulo, v. 37, n. 4, P. 875-902, out-dez 2007

HOFFMANN, R. e OLIVEIRA, F.C.R.

Remuneração e características das pessoas ocupadas na Agro-Indústria Canavieira no Brasil, de 2002 a 2006. Piracicaba, Abril 2008 -

site www.esalq.usp.br/gemt/content.php

HOFFMANN, R. e OLIVEIRA, F.C.R. Evolução da remuneração das pessoas empregadas na cana-de-açúcar e em outras lavouras, no Brasil e em São Paulo -

site www.esalq.usp.br/gemt/content.php

Bibliography

MORAES, M.A.F.D. e PESSINI, M.

Analysis of the labor market of the Brazilian sugar alcohol sector. Maio, 2004

MORAES, M.A.F.D. O mercado de trabalho da agroindústria canavieira: desafios e oportunidades

–

Economia Aplicada, São Paulo, v. 11, n. 4, p. 605-619, out-dez

2007

MACEDO, I. C. e CARVALHO, E.P. A energia da Cana-de-açúcar –

Doze estudos sobre a agroindústria da cana-de-açúcar no Brasil e a sua sustentabilidade. –

São

Paulo: Berlendis & Vertecchia: ÚNICA, 2005

MORAES, M.A.F.D. e FERRO, A.R. Relatório de Pesquisa –

Grupo de extensão em mercado de trabalho –

Projeto: Indicadores de Mortalidade e de Aposentadorias.

ESALQ/USP Abril, 2008

MORAES, M.A.F.D. e FIGUEIREDO, M.G.Relatório de Pesquisa –

Grupo de extensão em mercado de trabalho –

Projeto: Migração expontânea de

trabalhadores no setor Sucroalcooleiro. ESALQ/USP Abril, 2008

Bibliography

OLIVEIRA, F.C.R de. Ocupação, emprego e remuneração na cana-de-açúcar e em outras atividades agropecuárias no Brasil, de 1992 a 2007. Dissertaçao (Mestrado) –

Esalq/ USP, 2009.

http:www.esalq.usp.br/gemt

Grupo

de Extensão e Pesquisa Mercado

de

Trabalho GEMTGEMT

Thanks

for your

attention

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