Brazilian Soy Giants Withdraw from Amazon Conservation Pact, Sparking Deforestation Concerns

Major Soy Companies Abandon Amazon Soy Moratorium

Major Brazilian soy companies, including global traders such as ADM, Bunge, Cargill, Cofco, and Louis Dreyfus Company, have announced their withdrawal from the Amazon Soy Moratorium. The Brazilian Association of Vegetable Oil Industries (ABIOVE), which represents these firms, confirmed the decision on Monday, January 5, 2026. This move marks a significant shift in conservation efforts and has immediately drawn criticism from environmental organizations concerned about increased deforestation in the Amazon biome.

The Amazon Soy Moratorium: A Legacy of Conservation

Established in July 2006, the Amazon Soy Moratorium was a voluntary agreement aimed at preventing the commercialization of soy grown on land deforested in the Amazon after a cut-off date of July 22, 2008. This landmark pact was a collaborative effort between the private sector, represented by organizations like ABIOVE and the Brazilian National Association of Grain Exporters (ANEC), and civil society groups, including Greenpeace and the Amazon Environmental Research Institute (IPAM).

The Moratorium has been widely credited with significantly reducing soy-related deforestation in the Amazon. Reports indicate that between 2006 and 2023, the area dedicated to soybeans in the Amazon biome grew by 427% without causing new deforestation. During the same period, 97.6% of deforestation was not associated with soybean farming. The agreement utilized rigorous third-party audits and satellite monitoring to ensure compliance and promote supply chain transparency.

Reasons Behind the Withdrawal

The primary catalyst for the withdrawal is a new tax law, Law 12,709/2024, enacted by the state of Mato Grosso, Brazil's largest soy-producing state. This law, which took effect on January 1, 2026, eliminates tax incentives for companies that adhere to the Soy Moratorium. To preserve their tax benefits, members of ABIOVE informed the state of their decision to exit the pact.

Mato Grosso Governor Mauro Mendes welcomed ABIOVE's decision, describing it as a 'victory' for the state's soy producers. He argued that the Moratorium imposed stricter rules than Brazil's national environmental legislation. Farmer groups, such as Aprosoja-MT, also supported the withdrawal, claiming the agreement was illegal and unfair. ABIOVE, in its statement, acknowledged the 'undeniable legacy' and 'unequivocal positive results' of the Moratorium but expressed confidence that Brazil's domestic legislation would 'ensure that Brazilian soy maintains its high socio-environmental standards.'

Environmental Concerns and Future Outlook

The withdrawal has been met with strong condemnation from environmental organizations. WWF Brazil stated that the decision 'weakens one of the most effective instruments for combating deforestation in the country' and exposes farmers to increased climate risks. Greenpeace criticized the move, warning it could violate promises made to investors and international markets. Glenn Hurowitz, founder and CEO of Mighty Earth, remarked that the decision could lead to the loss of 'one of the biggest conservation successes in history.'

Critics argue that dismantling the Moratorium could lead to increased deforestation and higher greenhouse gas emissions, potentially undermining Brazil's climate targets under the Paris Agreement. While ABIOVE members are now individually responsible for their conservation commitments, the collective withdrawal from the Moratorium raises significant questions about the future of deforestation-free soy production in the Amazon.