JBS generates 2.1 percent of Brazil's GDP
To determine these percentages, calculated in the 2020-2021 biennium, the researchers considered various factors: the initial effect (from the company units themselves), the direct effect (relationship with direct input suppliers), the indirect effect (impacts throughout the supply chain), and the income effect (driver of economic activity). With production units present in over 130 municipalities, JBS significantly adds to wealth creation in the nation's interior regions. The study, led by Eduardo Amaral Haddad and Carlos Roberto Azzoni, along with the collaborative effort of Ademir Rocha, André Squarize Chagas, Fernando Salgueiro Perobelli, Inácio Fernandes de Araújo, Leonardo Merlini, and Pedro Acioly, spanned the entirety of 2022.
The research concluded that the positive impacts of JBS's activities reverberate into neighboring cities due to the effect on jobs and wages. "JBS drives increased productivity in the municipalities where it is located, fostering economic growth across all of the regions it operates in", the study adds.
Using public and private information, researchers gauged the scale of the production chain around all the activities linked to the company and determined the importance of each group of activities through input-output modeling analysis - a technique that seeks to map the economy as a series of interconnected sectors. The calculations encompassed production, capital, household consumption, exports, inputs, labor, land, and other contributing factors. The analysis covered 67 sectors and 127 products.
"For us, as we approach our 70th anniversary in 2023, this study holds great importance as it underscores the positive impact the food industry has on the country. It generates a multitude of direct and indirect jobs and boasts an extensive chain of suppliers and customers, driving a large portion of the economy", says Gilberto Tomazoni, the Global CEO of JBS.
JBS directly employs 145,000 individuals across its units, distribution centers, and offices. However, the number of job opportunities stemming from the company's production chains is much broader: the Fipe study reveals a total of 2.9 million people involved. A concrete example of how a JBS production unit impacts job creation can be seen in the municipality of Barra do Garças, in the state of Mato Grosso (MT). For every 100 jobs there, another 597 are created within input suppliers, 227 within the state, and 370 throughout the rest of Brazil.
In the realm of indirect effects, which encompass the impacts along the entire supply chain, an extra 1,175 jobs are created, 319 in the state of Mato Grosso (MT) and 856 in other states of the country. The next stage, the income effect - a driver of economic activity - creates an additional 451 job opportunities: 83 within the state of Mato Grosso and an additional 368 across the country. In total, 2,323 jobs stem from 100 job openings in the municipality of Barra do Garças (MT).
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