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
Main agents of the sector
Industrial Sugar and Alcohol Production
Fuel Distributors Service Stations
Ethanol Exportation
Sugar Cane Field
•70 thousand sugar cane producers
• 422 Sugar Mills/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 region US$ 2,258
Per capita GIP SE region US$ 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 )
(thousand people) Source: Oliveira, F.C.R. (2009) Agriculture 2,667,600 93,3 69,4 366,8 528,4 122,9 148,4 259,0 116,5 24,5 0,0 100,0 200,0 300,0 400,0 500,0 600,0 Rice Ban ana Coffee Sugar cane Citro s Cas sava Corn Soy a Grap es
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 19 81 19 82 19 83 19 84 19 85 19 86 19 87 19 88 19 89 19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07
N u m b er o f E m p lo y ees S u g a r C an e P ro d u c tio n
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%
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
Growth of Mechanical Harvesting Sao 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
Agriculture 3.9
Average schooling
Brazil, 2007
3.9 3.5 3.6 4.2 4.9 2.8 3.4 5.4 5.9 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Rice Banana Coffee Sugar ca ne Citros Cass ava Corn Soya Grap es 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 Banana Coffee Sugar ca ne Citros Cass ava Corn Soya Grap es 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 Average Schooling
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 Banana Coffee Sugar ca ne Citros Cass ava Corn Soya Grap es 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 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 Bracket 1981 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 Wages
Brazil and regions, 2007
Earning Equations Sugarcane Employees
Variável Exp 2006
Explanatória Coeficiente Efeito % no rendimento
Constante 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
São Paulo: Pensions granted in farming (excluding sugarcane), and in sugarcane, 2005
All farming excluding sugarcane Sugarcane All workers
during 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%
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
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
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 Sistema
Agroindustrial 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 canadeaçúcar 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.
