Brazilian soybean producers and the government have reacted strongly against Danone’s decision to cease sourcing soy from Brazil, citing concerns over deforestation regulations. Here are the key points:
Danone’s Decision: The French dairy company announced it would source soybeans from Asian countries instead of Brazil, in anticipation of new European Union regulations requiring companies to demonstrate that their products do not come from deforested land.
Response from Farmers: Aprosoja Brasil, the farmers’ association, criticized Danone for its lack of understanding of Brazil’s agricultural practices, labeling the move as discriminatory. They suggested that Brazilian producers may begin to boycott Danone and other global brands.
Government Reaction: Brazil’s agriculture ministry described the EU legislation as “arbitrary, unilateral, and punitive,” emphasizing the country’s commitment to environmental standards while demanding fair treatment in international trade.
Danone’s Position: Danone’s Brazilian unit stated it continues to purchase soybeans that comply with both local and international regulations, although the company’s headquarters did not provide immediate comments on the backlash.
EU Deforestation Regulation: Set to take effect on December 30, the regulation will impact imports of commodities like soy, cocoa, and coffee. The EU Commission has proposed a 12-month delay for implementation.
Deforestation Concerns: While Brazilian law mandates preservation of legal reserves, deforestation rates remain high, particularly in the Cerrado savanna, despite some improvements under President Lula’s administration.
Potential Actions: Aprosoja suggested that the Brazilian government could file complaints with the World Trade Organization and seek compensation from the EU for losses incurred due to the new regulations.