The GDP of Brazilian biodiesel manufacturing recorded R$ 10.5 billion in 2021, approximately 2% of the entire Brazilian agroindustry.

The data are part of an unprecedented partnership between the Brazilian Association of Vegetable Oil Industries (ABIOVE) and the Center for Advanced Studies in Applied Economics (Cepea), which will make quarterly surveys on the generation of GDP, jobs and foreign trade related to the activities of the soybean and biodiesel chain.

Indirectly, taking into account the aggregation of value performed by activities and services that act so that biodiesel reaches the final consumer (production processes, trade, transportation and other services necessary for the movement of the product), the activity contributed to the generation of a GDP of R$ 20.3 billion.

Considering its intersectoral threads, it is evaluated that for every R$ 1 more production of biodiesel manufacturing activity, R$ 4.4 are added to the economy as a whole. This is a relevant multiplier effect: demand shocks in the sector more than quadruple its value in terms of final impact on total Brazilian production. 

Job Creation 

It is estimated that by 2021, about 19,000 people were employed in biodiesel activity directly (involving from salaried employees to employers). 

97% of the direct jobs generated were formal (signed work card), compared to the rate of 86% for formalization in the agroindustry in general. On average, the salary paid in the sector reached R$ 2,408 per month. This value was about 16% higher than the average salary in the Brazilian agroindustry. It is worth mentioning that well-paid jobs are generated outside the major centers, contributing to the development of the interior of the country. 

Biodiesel production presents important threads with activities that are major generators of jobs. Thus, it is estimated that for every R$ 1 more production of biodiesel manufacturing activity, 33 jobs are added in the economy as a whole. 

Source: Notícias Agrícolas