Brazilian Soy Traders Exit Amazon Deforestation Moratorium
Brazil's top soy traders, led by Abiove, have exited a longstanding Amazon deforestation moratorium due to tax law changes in Mato Grosso. This move raises concerns over increased forest loss and ESG compliance risks.
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In a significant shift for Amazon rainforest conservation, leading Brazilian soy traders have announced their withdrawal from a nearly 20-year-old agreement that prohibited the purchase of soybeans grown on deforested Amazon land. The decision was driven by a recent tax law change in Mato Grosso, effective January 1, 2026, which eliminated financial incentives for companies participating in the moratorium.
The Brazilian Vegetable Oil Industries Association (Abiove), representing major global players such as Archer-Daniels-Midland Company , Bunge Limited , Cargill Incorporated , COFCO International , and Louis Dreyfus Company , announced the move on January 5, 2026. This development marks the end of one of the most effective mechanisms for curbing deforestation in the Amazon, a region increasingly threatened by agricultural expansion.
