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Multinational in the Poultry Sector Criticizes Public Policies and Points Out Barriers to Hiring in Brazil, Such as Excess Bureaucracy, High Tax Burden, and Dependence on Social Programs.
Businessman Ricardo Faria, founder of Global Eggs and considered one of the largest egg producers in the world, states that the labor shortage in Brazil and the unfavorable economic environment have hindered the development of the productive sector.
He points to state bureaucracy, the high tax burden, and social programs as factors that hinder the sustainable growth of companies.
In an interview granted to Folha de S. Paulo this Sunday (15), Faria made strong criticisms of the current model of public policies aimed at labor and advocated for greater flexibility in formal employment relations as a solution to what he classifies as a “disaster for hiring in the country.”
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Bureaucracy and Hostile Environment for Entrepreneurship
Leading a multinational that produces around 13 billion eggs per year and operates on three continents, Faria compares the challenge of entrepreneurship in Brazil to rowing against the current in a river full of obstacles.
“It’s fallen trees, snakes, alligators. This is the business environment here,” he told Folha. He criticizes state actions that, according to him, hinder market functioning.
“While the government raises taxes in times of crisis, companies need to cut costs,” he added.
According to the businessman, the shortage of qualified labor and bureaucratic obstacles prevent Brazilian companies from having the same agility and operational efficiency observed in the United States or Europe.
Criticism of Bolsa Família and the New Generation of Workers
One of the central points of the interview was Faria’s criticism of the Bolsa Família program, which, according to him, would be creating dependency among part of the economically active population.
“People are addicted to Bolsa Família. We can’t even train them because they are trapped in the program,” he stated.
He also highlighted a behavioral change among younger individuals, who have rejected the traditional employment bond with formal contracts.
“Today, many do not want to work eight hours a day in the same place anymore. They seek flexibility, something that the formal model no longer allows.”
This combination of factors, according to him, deepens the difficulty in hiring workers in the country, especially in the operational sectors of industry and agribusiness.
Difference Between Entrepreneurship in Brazil, the U.S., and Europe
When comparing business environments between continents, Faria is categorical: “In the United States, you open a company in two hours and close it in an hour and a half. Here, it takes months.”
He also reported that in the U.S., a worker in the egg sector can earn up to US$ 20 per hour, with the freedom to set their workload.
In Europe, according to him, the scenario is stable and transparent, while in Brazil, legal insecurity and excessive regulations make the business process extremely risky.
These factors contribute to the growth of a phenomenon that, as he reinforces several times, is visible: the deficit of formal workers in the country, which exacerbates the labor shortage in Brazil.
Labor Justice and Legal Insecurity
The businessman is concerned about what he sees as a setback in the achievements of the labor reform passed in 2017.
According to him, even after the enactment of new laws, isolated court decisions have invalidated rules, generating uncertainty among employers.
“The Judiciary sometimes acts as if there is no Parliament. Brazil continues to have one of the most rigid labor laws in the world,” he stated.
For Faria, the result of this instability is the discouragement of formalization and the intensification of informality, further fueling the difficulty in hiring workers in the country.
Tax Pressure and Decision to Leave Brazil
Ricardo Faria transferred his tax residence to Uruguay while maintaining his Brazilian nationality.
He denies that the change is related to measures from the current Minister of Finance, Fernando Haddad, and justifies the decision as a strategy to manage the 80% of his business that is outside Brazil.
He criticizes the recent increase in the IOF and claims that he has not conducted financing in the country for at least two years.
According to Faria, Brazil punishes companies that want to grow, with progressive taxes and little incentive for innovation.
“We have created a culture where it’s better to stay small. If you want to grow, the tax burden completely changes. This stifles business ambition and further strengthens the labor shortage in Brazil.”
Political Funding and Polarization
Although he claims to keep a distance from public contracts, Faria revealed that he makes donations to the campaigns of candidates with a liberal profile, such as Kim Kataguiri (União Brasil-SP) and Marcel Van Hattem (Novo-RS).
He advocates that the business community should not distance itself from politics but should also not align completely with it.
Regarding political polarization, he was categorical: “This dispute between right and left drains public debate and prevents the construction of concrete solutions.”
Increase in Egg Prices and Supply Crisis
The businessman also commented on the recent increase in egg prices, which has become a national debate topic.
According to him, the increase was specific, caused by bird mortality during extreme heat and increased consumption during Lent.
President Lula even stated that he would like to “find the scoundrel who raised the price of eggs,” which Faria downplayed.
“I wasn’t even in Brazil. I was in the middle of an acquisition. I found out days later. Lula has always been an enthusiast of Brazilian companies abroad.”
He concludes by highlighting that the Brazilian poultry sector maintains sanitary standards superior to those of many countries, and that cases like the avian flu in the U.S. — where 50 million chickens were slaughtered — reinforce the solidity of national production.
With so many structural challenges, how can Brazil overcome the labor shortage and return to generating quality jobs?
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