8 months ago
Top Soy Traders Exit Amazon Deforestation Pact
A group of big soybean companies in Brazil, called Abiove, is leaving a 19-year-old agreement called the Soy Moratorium.
This agreement was meant to stop farmers from growing soybeans on land in the Amazon that was cut down after 2008.
The companies say the agreement did its job, but some farmers and the state of Mato Grosso didn't like it because they thought it was too strict.
The state even passed a law that took away tax benefits from companies that followed the agreement.
Environmental groups are sad because they think this will lead to more trees being cut down in the Amazon.
The companies say they are leaving because they want to follow the new laws and get the tax benefits back.
Abiove, representing major soybean traders, is exiting the Soy Moratorium, a 19-year-old pact to protect the Amazon from deforestation.
The moratorium prohibited sourcing soybeans from Amazon lands deforested after 2008.
The decision comes amid criticism from farmers and changes in state laws, including the removal of tax benefits for traders adhering to the moratorium.
The state of Mato Grosso enacted a law removing tax benefits from traders supporting the pact, with a Supreme Court decision partly favoring the state.
Environmental groups like WWF Brazil criticize the withdrawal, stating it undermines efforts to combat deforestation and the climate crisis.
- Who
- Abiove, representing major soybean traders like Archer-Daniels-Midland Co., Bunge Global SA, Cargill Inc., and Louis Dreyfus Co.
- What
- Withdrawal from the Soy Moratorium, a pact to protect the Amazon from deforestation.
- Where
- Brazil, specifically the Amazon region and the state of Mato Grosso.
- When
- Announced on Monday, with discussions initiated regarding withdrawal.
- Why
- The moratorium was seen as having fulfilled its role, and there was increasing criticism from farmers, along with changes in state laws and tax benefits.
Key facts
- Organization
- Abiove
- Members
- Archer-Daniels-Midland Co., Bunge Global SA, Cargill Inc., Louis Dreyfus Co.
- Agreement
- Soy Moratorium
- Year Established
- 2006
- Key Provision
- No sourcing soybeans from Amazon lands deforested prior to 2008
- State Involved
- Mato Grosso
- Supreme Court Decision
- November 2023, partly in favor of Mato Grosso
- Effective Date of Law Change
- January 1, 2024
Quotes
Abiove
A group representing major soybean traders including Archer-Daniels-Midland Co., Bunge Global SA, Cargill Inc., and Louis Dreyfus Co.
“the agreement created in 2006 'fulfilled its historical role'.”
livemint.com
WWF Brazil
An environmental nonprofit
“'The Soy Moratorium was not abolished by legal imposition: it still exists, but it was consciously undermined by the voluntary decision of companies to withdraw. In doing so, these companies signaled their willingness to prioritize access to tax incentives funded with public resources, to the detriment of tackling deforestation and taking responsibility for the climate crisis.'”
livemint.com
