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Biodiesel production represented 2% of the entire GDP of the national agribusiness in 2021

Posted by Rafael Moro

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The Brazilian GDP from biodiesel production totaled R$ 10.5 billion in 2021, approximately 2% of all Brazilian agro-industry. These data are part of studies generated through a partnership between Cepea (Center for Advanced Studies in Applied Economics), from Esalq/USP, and Abiove (Brazilian Association of Vegetable Oil Industries). 

Indirectly, taking into account the added value carried out by activities and services that work so that biodiesel reaches the final consumer (production processes, trade, transport and other services necessary for the movement of the product), the activity contributed to the generated a GDP of R$ 20.3 billion.

Considering their intersectoral linkages, it is estimated that for every R$ 1 more in production from the biodiesel manufacturing activity, R$ 4.4 is added to the economy as a whole. Researchers from Cepea and Abiove emphasize that this is a relevant multiplier effect: demand shocks in the sector more than quadruple their value in terms of the final impact on total Brazilian production.

GENERATION OF JOBS – Cepea and Abiove estimate that, in 2021, around 19,000 people were directly employed in the biodiesel activity (involving from salaried employees to employers). Almost all (97%) of the direct jobs generated were formal (signed work permit), against a rate of 86% for formalization in agribusiness in general. On average, the salary paid in the sector reached R$ 2,408 per month, about 16% higher than the average for Brazilian agribusiness. Researchers point out that well-paid jobs are generated outside the large centers, contributing to the development of the interior of the country.

Biodiesel production has important links with activities that generate jobs. Therefore, it is estimated that for every R$ 1 more in production from the biodiesel manufacturing activity, 33 jobs are added to the economy as a whole.