Back

Amazon Soya Moratorium Under Review in Brazil Amidst Environmental and Economic Discussions

Source Article
Generated on:

The Amazon Soy Moratorium, a long-standing agreement prohibiting the sale of soya grown on land cleared in the Brazilian Amazon after 2008, is currently subject to review. This moratorium has been cited by some as a factor in the reduction of deforestation rates in the region. However, groups representing farming interests in Brazil, supported by some politicians, are advocating for its termination.

Arguments for Lifting the Moratorium

Critics of the moratorium contend that it represents an anti-competitive arrangement, allowing a limited number of companies to dominate the soya trade in the Amazon. Vanderlei Ataídes, president of the Soya Farmers Association of Pará state, stated that the moratorium impedes agricultural development, noting that while soya cultivation is restricted on cleared land, other crops like corn, rice, and cotton are permitted. This perspective suggests a need for increased land use flexibility for various agricultural products.

The Justice Ministry in Brazil has indicated that there may be evidence supporting claims of anti-competitive behavior related to the moratorium. This has led to a request for the Supreme Court to investigate the agreement.

Arguments for Maintaining the Moratorium

Environmental organizations have expressed concerns that rescinding the ban could lead to an increase in land clearing for soya cultivation in the Amazon rainforest. Scientists studying the region have reported that existing deforestation, combined with climate change impacts, is pushing the Amazon toward a potential ecological "tipping point," beyond which the forest may struggle to sustain its current ecosystem.

Brazil is the world's leading producer of soya beans, which are a significant component in animal feed globally. Approximately 10% of the soya imported into the UK, used for livestock feed, originates from the Brazilian Amazon. Major UK food retailers and companies, members of the UK Soy Manifesto, support the moratorium, stating it contributes to deforestation-free supply chains for soya. A World Wildlife Fund survey indicated that 70% of UK respondents support governmental measures to remove illegal deforestation from supply chains.

The Brazilian government exhibits internal divisions on the issue. While the Justice Ministry acknowledges potential anti-competitive evidence, both the Ministry of the Environment and the Federal Public Prosecutors Office have publicly defended the moratorium.

Background and Impact

The Amazon Soy Moratorium was established nearly two decades ago as a voluntary agreement. It involved farmers, environmental organizations, and major global food companies, including commodity firms like Cargill and Bunge. This initiative followed a campaign by Greenpeace that highlighted the use of soya from deforested areas in animal feed. Signatories pledged not to purchase soya cultivated on land deforested after 2008.

Prior to the moratorium, the expansion of soya cultivation and cattle ranching were identified as primary drivers of deforestation in the Amazon. Following its implementation, forest clearance rates reportedly decreased significantly, reaching a low in 2012. Deforestation rates later increased under subsequent administrations but have since shown a decline during the current presidency. Bel Lyon, chief advisor for Latin America at the World Wildlife Fund, estimated that suspending the moratorium could make an area comparable in size to Portugal available for deforestation.

Local Observations and Scientific Research

Local farmers, such as Raimundo Barbosa in Boa Esperança, have described changes in local climate patterns. Barbosa, who cultivates cassava and fruit, noted that cleared forest areas experience higher temperatures and reduced rainfall, affecting water availability in rivers.

Scientific studies, including those conducted as part of the Large-Scale Biosphere-Atmosphere Experiment (LBA), monitor the Amazon's environmental changes. Bruce Fosberg, an Amazon specialist involved with the LBA, has observed that parts of the rainforest may be approaching a "tipping point." This threshold signifies a state where the ecosystem might no longer sustain its functions, characterized by reduced moisture release from trees and a subsequent decrease in rainfall, creating a feedback loop of increased tree mortality. The potential long-term outcome includes the conversion of vast rainforest areas into savannah or dry grassland, leading to significant carbon emissions and disruptions to weather patterns and biodiversity.

Economic Development and Incentives

Brazil is preparing to launch a new railway system extending from its southern agricultural regions into the rainforest area. This railway is projected to lower transport costs for soya and other agricultural products, potentially creating additional economic incentives for land clearing.