Abstract
Abstract: In the early 2000s, sugarcane experienced high growth in Brazil and Mato Grosso do Sul experienced the highest growth, with a 398%% increase. We analysed the impact of the sugarcane industry on formal employment and wages in Mato Grosso do Sul between 2008 and 2014. We used a Normalized Concentration Index (nCI) decomposed into Location Quotient (LQ), modified Hirschman Herfindahl Index (HHm), and Relative Participation (RP). Data were collected in the Annual Report on Social Information (RAIS). The nCI allows a general perception of concentration since LQ and HHm give greater weight to small municipalities with few activities, and the RP underestimates the importance of industry for these same municipalities. Thus, the municipality of Dourados, the second largest in the state, had an RP of 9%, but low LQ and HHm. The sugarcane industry plays an essential role in the economy of small towns, where it generates most of the formal jobs, with higher salaries. However, the impact is concentrated in a few small cities. Another effect is the fast disappearance of the benefits of the sugarcane industry in areas where processing units were closed. The dependence of the sugarcane industry in small municipalities is a concern whose solution should be further studied.
Highlights
Agriculture and livestock farming have faced great challenges across the globe since the beginning of the twenty-first century
In 2008, the world was in a financial crisis, which had a strong impact on international markets for ethanol and sugar, ending a cycle of expansion for this industry in Brazil
The Relative Participation (RP) decreased from 60% to 57% between 2008 and 2010, before growing in the period and reaching 70% in 2014
Summary
Agriculture and livestock farming have faced great challenges across the globe since the beginning of the twenty-first century. In addition to the need to produce more in the same space, producers will face new challenges, like climate change, which introduces concerns about energy consumption and an increasing need for renewable energies, part of which can be produced from agricultural raw materials. Among the main crops used for energy production, sugarcane can be highlighted because of its great historical importance in Brazil. Great international interest in ethanol has motivated production facilities, which have increased their production. These producers were surprised by the 2008 international crisis, which reflected the slowdown in the sector (Cezarino & Liboni, 2012). After 2008, some companies closed; the sector is still considered one of the most important in Brazilian agriculture
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