AreaBrazil
Commodity GroupOilseeds, oils and meals
CommoditySoybeans
Date01/11/2014
Policy CategoryProduction
Policy InstrumentEnvironmental policy
DescriptionEndorsed the extension until May 2016 of the industrys voluntary moratorium on trading and financing soybeans grown on illegally cleared land in the Amazon region.
NotesContrary to previous announcements (see MPPU March 14), the countrys oilseed/grain associations decided to renew the moratorium on the trading and financing of soybeans grown on illegally cleared land in the Amazon region. Due to expire in December 2014, the moratorium is now poised to remain in place until May 2016, when Brazils new Forest Code and farm registration system are expected to become fully operational. Reportedly, the Ministry of Environment has called for the renewal on concerns that illegal deforestation was continuing in the Amazon rainforest. According to satellite imagery, in 2013/14, the area of soybeans grown on illegally deforested land has grown for the first time since 2005. Industry sources pointed out that cattle ranching rather than soybean cultivation remains the main driver behind deforestation in the region. Starting January 2015, compliance with the moratorium is going to be monitored through official controls. The moratoriums extension, which should enhance legal certainty and transparency along the soy production/processing system, has been hailed by customers in Europe, where demand for responsibly produced soy products is reported to be on the rise.
