Brazil’s soy industry withdraws from Amazon deforestation pact, risking forest loss

Brazil’s soy industry association ABIOVE said this week it is withdrawing from the “soy moratorium,” a voluntary pact that has, for nearly 20 years, covered how major traders source soy grown in areas tied to Amazon deforestation.

The announcement has shaken confidence in the agreement’s survival, with environmentalists and government officials saying the withdrawal essentially ends the moratorium even though no participant has formally declared it over. “If they withdrew from the pact, then a marriage with only one husband or only one wife is no longer a marriage, right?” André Lima, secretary for deforestation control and land‑use planning at Brazil’s Environment Ministry, told The Associated Press.

Lima added that “I understand that, as of now, the moratorium has come to an end,” indicating the government views the end of participation as the effective conclusion of the arrangement. The industry withdrawal also complicates President Luiz Inácio Lula da Silva’s pledge to end deforestation by 2030, according to the report.

Brazil is the world’s largest soybean producer, accounting for about 40% of global crops. The country produced 171.5 million metric tons of soybeans in the 2024–25 season, according to the U.S. Department of Agriculture, and ABIOVE’s members include some of the biggest global traders, including Cargill, Cofco International, Bunge, Amaggi and JBS.

The Amazon rainforest is described as playing a critical climate-regulating role well beyond South America, and scientists warn that forest loss could accelerate global warming and disrupt agriculture as far away as the U.S. Midwest and parts of Europe. The soy moratorium has been widely credited with helping curb rainforest loss by aiming to prevent soy expansion on newly cleared Amazon land.

The moratorium was launched in 2006 as a response to pressure from environmental groups and international buyers. It is a voluntary commitment rather than law, and major soy traders agreed—later endorsed by the Brazilian government—to stop purchasing soy grown on Amazon land cleared after July 2008.

In 2016, the moratorium was renewed without an end date, with the agreement remaining in force until members concluded it was no longer necessary. The monitoring system relied on satellite monitoring and government farm registry data to detect new deforestation in the Amazon biome, with traders required to cut off purchases from farms found in violation and independent auditors reviewing supplier lists annually.

Supporters point to measurable results for municipalities tracked by the pact. According to Imaflora, deforestation declined by 69% between 2009 and 2022, and soybean crops in the Amazon increased by 344% during the same period; Imaflora said the crop rise was mostly driven by bringing fields previously used for cattle ranching into soybean production.

Industry arguments for leaving have focused on how the pact interacts with state tax incentives and environmental rules. The report says major soy traders linked to ABIOVE withdrew after legislation in Mato Grosso ended tax benefits for companies participating in the pact as of Jan. 1, a change affecting Brazil’s top soy-producing state.

Lucas Beber, president of the state’s Soy Producers Association, told AP that companies in the agreement receive about 4 billion reais ($743.5 million) a year in tax incentives, according to state estimates. Lima, from the Environment Ministry, said the moratorium completed a successful 20-year cycle but that companies would remain barred from buying soy grown on illegally deforested land and would face penalties if they did.

In a statement, ABIOVE said it had begun the withdrawal process and described the moratorium as a nearly 20-year effort with an “undeniable legacy.” The association also said the legacy of monitoring and expertise developed over nearly 20 years would not be lost, and that each organization would individually meet strict global-market demands while relying on Brazilian authorities to implement a new regulatory framework tied to the country’s international commitments.

Still, the exit has raised concern among groups that backed the pact. Ana Paula Valdiones of the Mato Grosso-based policy watchdog Observa-MT said “The weakening or end of the soy moratorium could lead to increased deforestation, whether through the direct conversion of remaining native vegetation, the expansion of the agricultural frontier or land speculation,” linking a potential end of the agreement to multiple pathways for expanding forest clearing.

Greenpeace also said the end of the commitment could fuel unchecked soy expansion in the Amazon, driving up deforestation and Brazil’s greenhouse gas emissions. A preliminary study by the nonprofit Amazon Environmental Research Institute said ending the moratorium could raise deforestation in the Amazon by up to 30% by 2045, the report said, while Lima disputed the estimate, saying he was unfamiliar with its underlying assumptions.

Lima said soy market growth would likely increase legal deforestation, which he estimated currently accounts for about 10% to 15% of total forest loss. He also said overall deforestation could still continue to fall—though more slowly—if Brazil keeps up enforcement efforts.