A trade association representing major agri-food groups wants to walk away from the Amazon soy moratorium.
Abiove, a trade body for soy processors and traders, is looking to leave the pact, which was set up in 2006 to protect the Amazon rainforest.
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The state government of Mato Grosso, the largest producer of soy in Brazil, announced yesterday (5 January) it had been informed by Abiove that the trade association was leaving the agreement.
Mato Grosso has reportedly started to withdraw tax benefits from companies that had signed up to the moratorium.
In a statement, Abiove, which counts companies including ADM, Bunge, Cargill and JBS as members, confirmed it had “begun negotiations” to exit the pact.
Abiove said the agreement “fulfilled its historical role over almost two decades, leaving an undeniable legacy that consolidated Brazil as a global reference in sustainable production”.
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By GlobalDataJust Food has asked the industry body why it is looking to leave the pact and what its exit may mean for the sustainability of soy production in Brazil.
Uncertainty emerged late last year about the future of the Amazon soy moratorium.
CADE, Brazil’s anti-trust watchdog, had wanted to suspend the agreement, citing concerns over companies sharing information. However, in late August, a judge in Brazil issued an injunction suspending CADE’s move to halt the moratorium. CADE then ruled the pact could stay until 31 December.
CADE’s initial move had angered environmental pressure groups, with one campaigner calling the decision “the biggest example of punching yourself in the face in conservation history”.
Brazil’s Ministry of Environment and Climate Change had also “expressed concern” at the watchdog’s stance.
In a statement issued yesterday, WWF said Abiove’s reported decision “weakens an historic agreement to combat deforestation in the Amazon, increases legal uncertainty and compromises climate stability, the reputation and the position of Brazilian agribusiness in national and international markets”.
The NGO argues the agreement has “established itself as the most effective multi-sectoral agreement for decoupling the expansion of soy farming from deforestation in the Amazon”.
WWF added: “It is crucial to clarify that the soy moratorium has not been abolished by legal imposition: it still exists but it has been consciously undermined by the voluntary decision of companies to withdraw, despite having full legal possibility to remain.
“In doing so, these companies chose to distance themselves from a solution widely recognised internationally as a benchmark on the climate agenda and signalled a willingness to prioritise access to tax incentives funded with public resources, to the detriment of tackling deforestation and assuming responsibility for the climate crisis.”
