A farmers’ lobby in Brazil is pushing for the termination of a two-decade-old agreement that prevents grain traders from purchasing soybeans grown on deforested land in the Amazon rainforest. Aprosoja-MT, a prominent soybean farming group based in western Mato Grosso state, argues that the deal has created an unfair market, benefiting some while disadvantaging farmers who adhere to Brazil’s forest code.
In a statement issued Wednesday, Aprosoja-MT criticized the agreement for fostering what it described as a “purchasing cartel,” and formally requested the country’s antitrust watchdog, CADE, to intervene. The group claims that the Amazon soy moratorium, signed by major global grain traders like ADM and Bunge in the mid-2000s, has resulted in losses amounting to 20 billion reais (approximately C$4.75 billion) for the state.
The moratorium, which began in 2008, prohibits traders from buying soybeans produced on land in the Amazon that was cleared after that year. The agreement followed a surge in deforestation during the early 2000s, prompting concerns from companies that feared further restrictions. While the moratorium is voluntary for the traders, it has been credited with significantly reducing deforestation rates in the Amazon, the world’s largest rainforest and a crucial carbon sink in the fight against climate change.
Aprosoja-MT’s complaint to CADE comes after years of unsuccessful negotiations. Earlier this year, lawmakers in Mato Grosso passed legislation that removes tax incentives from companies supporting the moratorium. The lobby group has pledged to continue advocating for farmers affected by the policy.
Meanwhile, environmental groups have voiced concerns that grain traders may seek to weaken the moratorium. Trader lobby Abiove confirmed it is in ongoing discussions but did not provide details.
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