September 24, 2020

JBS plans to monitor its cattle supply chain for deforestation by 2025

The world's biggest meatpacker JBS SA said it will monitor its cattle supply chain for deforestation by 2025 to combat Amazon rainforest destruction, Reuters reported.

JBS SA and other Brazilian meatpacking companies are being criticised for increased deforestation in the Amazon, as cleared land are used to raised cattle.

JBS' announcement is part of its BRL 1 billion (~US$182.77 million; BRL 1 = US$0.18) fund to improve social and economic development in the Amazon.

Gilberto Tomazoni, JBS global CEO, said the company will invest BRL 250 million (~US 44.6 million) by 2025 and a further BRL 250 million by 2030, depending on donations. Other third party companies are expected to collaborate on the project, with investments of up to BRL 500 million (~US$ 89.3 million).

In 2019, an area the size of Lebanon was deforested in the Amazon.

JBS and other Brazilian meatpackers said it will not obtain cattle from farms that have deforested the Amazon without permission, but previously they have only monitored the final ranch that supplies cattle. Indirect suppliers further down the supply chain have avoided these checks.

JBS said it will use blockchain to monitor 100% of its indirect cattle suppliers by 2025.

Tomazoni said 50,000 of its direct suppliers are already monitored, adding that no other company including JBS can currently monitor indirect suppliers.

The company aims to launch the system by next year beginning in Mato Grosso state.

-      Reuters