The labor market in the soybean and biodiesel production chain in Brazil

The soybean production chain and global geopolitical context

The soybean and biodiesel production chain in Brazil is deeply intertwined with the global geopolitical landscape, both influencing and being shaped by trade conflicts, international environmental agreements, and energy policies. As the world’s leading producer and exporter of soybeans in their natural state and a major player in global exports of soybean by-products, Brazil holds a pivotal role in the supply of these commodities, particularly to key economies such as China, the European Union, and the United States. Geopolitical dynamics significantly impact the demand for Brazilian soybeans and by-products, thereby influencing the labor market in the sector, as seen in investment flows, labor demand, and regional development.

Brazilian soybeans are a crucial asset for global food security, playing a vital role in both animal and human nutrition. In recent years, trade tensions between China and the United States have enhanced Brazil’s position as the primary soybean supplier to China, driving employment across the production chain, particularly in the primary sector.

However, Brazil’s increasing reliance on the Chinese market also increases its vulnerability to shifts in trade tariffs or sanctions, which could directly affect jobs and earnings in the production chain. Additionally, the European Union’s environmental policies impose restrictions on products associated with deforestation, requiring adjustments in agricultural practices to maintain global market competitiveness.

Biodiesel production is also embedded within this geopolitical context, especially in relation to the global energy transition. As countries strive to reduce dependence on fossil fuels, Brazil has significant opportunities to expand its biofuel production. Policies such as the mandatory blending of biodiesel with diesel, along with incentives for the energy transition, have bolstered both direct and indirect employment in the sector.

Employment evolution in the soybean and biodiesel production chain

Data from Cepea shows that the number of people employed within the production chain increased from 1.14 million in 2012 to 2.32 million in 2023, reflecting the expansion of production and the growing global demand for soybeans and their by-products. The agri-services sector experienced the most significant absolute growth, rising from 793,000 to over 1.6 million people employed during this period. The primary sector (soybean cultivation) also saw notable growth, from 214,000 to 479,000 jobs, driven by the expansion of planted areas and mitigated by the adoption of technologies that enhance productivity and reduce the need for low-skilled labor.

The formalization of employment and the rise in educational levels were also noteworthy. Cepea data show that the share of workers with a high school diploma increased from 39.72% in 2012 to 46.58% in 2023, while the proportion of workers with higher education rose from 17.37% to 26.26% over the same period. The increasing mechanization and automation of the production chain is expected to further reduce the demand for low-skilled jobs, elevating the need for specialized professionals and emphasizing the importance of investments in education and workforce development.

The gender distribution within the workforce remained stable between 2012 and 2023, with men representing 65% and women 35% of the total workforce. While female participation remained consistent, the growing number of women employed in the production chain highlights the success of inclusion initiatives in agribusiness, as well as the role of mechanization, which reduces the need for heavy manual labor traditionally performed by men.

Economic policies have been instrumental in supporting employment in the sector. The mandatory biodiesel blending requirement has spurred production and generated both direct and indirect jobs. Furthermore, incentives for biofuels have promoted sustainable development and sector growth. Other measures, including the enhancement of logistics infrastructure and improved access to rural credit, have facilitated greater investment in technology and expanded production capacity.

Trends and challenges

The sector is poised for continued evolution, driven by further automation and digitalization, which will reduce the need for low-skilled labor and elevate the demand for specialized workers. Promoting the inclusion of women and youth in the workforce will be crucial, achieved through targeted training programs and incentives. Regarding production, key challenges include adapting to climate change and ensuring the sustainability of agricultural expansion in line with the expectations of global trade partners.

Brazil occupies a strategic, yet vulnerable, position within the global geopolitical landscape of soybean and biodiesel production. The sector’s success will depend on the country’s ability to diversify markets, meet sustainability standards, and strengthen policies aimed at fostering qualified employment. Employment growth in the sector mirrors the dynamics of production and technological adoption, resulting in increased demand for skilled labor and improved wage conditions. The challenge will be to balance modernization with social inclusion, ensuring that an increasing number of workers benefit from opportunities and promoting a sustainable and competitive agribusiness on the global stage.