Major Brazilian grain tradersexit Amazon conservation pact

Leading Brazilian grain traders and processors have announced their withdrawal from a nearly 20-year-old pact designed to protect the Amazon rainforest from deforestation linked to soy farming. The move was reported by Reuters, citing industry representatives and authorities in the state of Mato Grosso.

The agreement, known as the Soy Moratorium, prohibits signatory companies from purchasing soybeans grown on Amazonian land deforested after July 2008. Mato Grosso Governor Mauro Mendes said the Brazilian Association of Vegetable Oil Industries (Abiove) had formally informed the state government that it and several major traders were leaving the pact.

Abiove’s membership includes global agribusiness companies such as ADM, Bunge, Cargill, Cofco and Louis Dreyfus. In a subsequent statement, the association confirmed it had “initiated discussions” to exit the agreement. On Monday, around two-thirds of companies that previously participated were no longer listed on the Soy Moratorium’s official website.

Environmental groups strongly criticized the decision. WWF described the withdrawal as a major setback for environmental protection in Brazil, warning that it weakens one of the country’s most effective tools to combat deforestation and exposes farmers to growing climate risks. Greenpeace also condemned the move, saying it breaks commitments made to investors and international markets.

Farmer group Aprosoja-MT, which represents producers in Mato Grosso and has long pushed for an end to the pact, welcomed the announcement, calling it a victory. Abiove said companies would now be individually responsible for meeting their own conservation commitments, adding that the monitoring legacy and expertise built over nearly two decades would not be lost.

Tags: Brazil, soybean