Biodiesel, Family Farm and Social Inclusion in Brazil

The Brazilian biodiesel market has become the 3rd largest producer of biodiesel, and the 2nd largest consumer in the world. With the increase of the mixture to B7 (7%) in 2014, this market will increase more than 40% of their production in the coming years, making energy source that will advance further in the Brazilian energy matrix. The National Program for Production and Use of Biodiesel (PNPB) has a social goal and it is considered an innovative model that obliges the detaining power plants Social Fuel Seal to acquire raw materials coming from the family farm. In contrast, companies have exemption from federal taxes and a guaranteed market in the auctions. The objective of this study was to analyze the evolution of the biodiesel market in Brazil and the social issues of PNPB in its first decade of existence. Despite this performance in the biodiesel market conjuncture for the period from 2005-1014, the goals of social inclusion in NPPB are disappointing. Analyses of the data indicate that the biodiesel market is booming, but social policy PNPB need to be revised due to the enormous disparity among the Brazilian regions.