May 31, 2022

Companies in Brazil Move Forward Their Goal of Zero Deforestation

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

Large international grain companies in Brazil such as ADM, Bunge, and Cargill have been heavily involved in developing a system of monitoring their grain suppliers with the goal of minimizing or eliminating deforestation on farms in the Amazon Region that produce grain that is sold to the companies.

The grain companies started their monitoring system called the Soybean Moratorium more than a decade ago when they pledged not to purchase any grain from land in the Amazon Region that was illegally deforested as defined by Brazilian law. The problem with the system was they could not distinguish grain from direct suppliers and indirect suppliers. Apparently, they now have developed a system that can track both direct and indirect suppliers and if any of the grain was produced on illegally deforested areas.

ADM announced last week that will be able to track 100% their suppliers in Brazil, Argentina, and Paraguay by 2025 instead of their original goal of 2030. ADM also announced that they will reduce their greenhouse gas emissions in Brazil by 25% by 2035.

Bunge recently announced that over the past year they were able to double the number of indirect suppliers they could track in the cerrado region of Brazil from 30% to 60% and by 2025, they anticipate there will be zero illegal deforestation on land owned or rented by any of their grain suppliers.