Brazil Protects Rainforest With Amazon Soy Ban

Environmentalists are praising Brazil’s new environment minister for reaching an agreement with the grain processing industry to ban purchases of soy from deforested Amazon until July 2009.

"This same initiative will be extended to two other sectors — the timber sector and the beef sector," said Environment Minister Carlos Minc.

Minc’s initiative is essential to the protection of the world’s largest rainforest. Deforestation in the region quickened in the past months as world grain prices continue to set record highs, environmentalists said.

The moratorium is a commitment by the local Vegetable Oils Industry Association (Abiove), which includes big crushers such as Cargill Inc, Bunge Ltd, ADM Co and Louis Dreyfus, and the Grain Exporters Association (Anec) to extend the expiring, one-year ban that began in July 2006.

The local soy sector is reviving from its worst crisis in decades, helped by rising prices. The rise in the real against the dollar and production costs like fuel and fertilizers pushed many producers to the brink of insolvency from 2004 to 2006.

Behind the United States, Brazil is the world’s second largest soy producer. Abiove and Anec control about 94 percent of Brazil’s soy trade.

"The decision today is very important as it shows a leading sector in Brazilian agribusiness can guarantee food production without the need to cut down one more hectare of Amazon," said Paulo Adario, Greenpeace Amazon campaign director.

After three years of decline, deforestation of the Amazon is on course to rise, with figures for April released earlier this month showing a startling 434 square miles of trees lost in the month.

Last month, Minc replaced Amazon defender Marina Silva as environment minister. Many environmentalists were concerned that the government is siding with farming and industrial interests that want to develop the forest.

But the government unveiled initiatives in past weeks including the creation of three protected reserves and an operation to impound cattle grazing on illegally cleared pastures.

A one-year extension may not be long enough to build the tools necessary to ensure that soy production does not result in further deforestation, according to Greenpeace.