Reasons and Consequences of the Sugarcane Agribusinesses Bankruptcy in the State of Paraná

Abstract

This study sought to highlight and analyze the reasons and consequences of the sugarcane agroindustries bankruptcy in the state of Paraná through quantitative and qualitative approaches. In this regard, the dynamic panel data model sought to verify, through the use of secondary data for the period 2007 to 2016, the GDP of 5 cities in Paraná (Cambará, Engenheiro Beltrão, Perobal, Porecatu, and Rolândia), where sugarcane agroindustries existed as driving forces and went bankrupt. The quantitative analysis contributions suggest that the GDP of the five municipalities studied was related to the collapse of the plants in a way. The results of the qualitative method, which had the application of a questionnaire through field research as a tool for gathering information, as pointed out by the ten representatives of the public and private sectors with solid knowledge on the sugar-energy industry (in general), showed the reduction of jobs, income, and collection. As for the factors considered decisive for the closure of the surveyed units, the lack of management was found as the main reason for the failure of the plants.