July 25, 2006

Cargill to stop buying Brazilian soy from deforested lands for two years

Cargill Inc. and the other leading soybean businesses in Brazil have agreed to stop buying soy from newly deforested land for two years, the company announced on Monday (Jul 24). 

The company's action follows threats by authorities that might force a closure to its US$20 million port in the country.

Critics of soy producers have warned that the crop has become a major threat to the Amazon River basin.

The action is to be followed by increase monitoring, stricter enforcement of an existing forest code and collaboration with rural groups and the federal government to develop new rules for operations within the Amazon region.

Cargill spokeswoman Lori Johnson said this is a critical first step.

Greenpeace and other environmental groups have been waging a public-relations campaign against Cargill, Archer Daniels Midland and Bunge over soy production in the Amazon.

The environmentalists say deforestation has accelerated to a rate equal to a soccer field every 8 seconds, and attribute some of the acceleration to the growing demand for soy production.

Cargill is a frequent target of Greenpeace as the company has a larger presence than other agribusinesses operating in the region, including a port facility at Santarem, Brazil which is in danger of being shut down by disenchanted locals.

Cargill's opening of the port was supposed to bring in jobs and revenue for the people in the area. After years of waiting, locals and authorities were frustrated that the perceived benefits failed to materialise. Meanwhile, soy producers have been illegally cutting down forests in areas near the port to grow soy for the company.