Brazilian Soy Farmers Urge Boycott of Danone
Source: DairyNews.today
Brazilian soybean producers have called for a boycott of French dairy conglomerate Danone, citing dissatisfaction with the company's recent decision to halt soybean sourcing from Brazil. Danone’s Chief Financial Officer disclosed last week that the company is now sourcing soybeans from Asia, a move linked to forthcoming European Union deforestation regulations.
Aprosoja Brazil, a leading association representing the nation’s soybean farmers, denounced the move as a demonstration of "lack of knowledge" about Brazil's agricultural practices. The group argued that the decision represents "discrimination against the country." In a pointed statement, Aprosoja declared, "Brazilian producers, increasingly frustrated by being unfairly labeled as environmental threats, now have ample reasons to consider boycotting Danone and similar global brands in retaliation."
Danone has yet to respond publicly to the boycott call or the allegations.
Regulatory Pressures Intensify
The EU Deforestation Regulation, aimed at reducing deforestation by imposing strict sourcing requirements on commodities like soy, coffee, and cocoa, was initially set to take effect on December 30. However, the European Commission recently suggested a 12-month implementation delay, providing more time for companies to comply. Non-compliant firms could face penalties as high as 20% of annual turnover once the regulation is enforced.
Industry heavyweights such as Nestlé and Unilever have already made strides to align their sourcing policies with the new standards, underscoring the broad market implications of the EU's tightened environmental rules.
Environmental Impact and Policy Debate
Brazilian law mandates significant land preservation for farmers, ranging from 20% to 80% based on the region’s biome, as a means to curtail environmental degradation. Yet, while recent efforts under President Luiz Inácio Lula da Silva have sought to reduce Amazonian deforestation rates, soy production remains a substantial contributor to deforestation in the Cerrado savanna, Brazil’s second-largest biome.
Responding to these environmental pressures, Aprosoja highlighted Brazil's strides in "natural regeneration" alongside agricultural development. The association suggested that Brazil's government consider filing a complaint with the World Trade Organization (WTO) against the EU, exploring “compensation measures” for Brazilian farmers impacted by the regulation.
Danone has yet to respond publicly to the boycott call or the allegations.
Regulatory Pressures Intensify
The EU Deforestation Regulation, aimed at reducing deforestation by imposing strict sourcing requirements on commodities like soy, coffee, and cocoa, was initially set to take effect on December 30. However, the European Commission recently suggested a 12-month implementation delay, providing more time for companies to comply. Non-compliant firms could face penalties as high as 20% of annual turnover once the regulation is enforced.
Industry heavyweights such as Nestlé and Unilever have already made strides to align their sourcing policies with the new standards, underscoring the broad market implications of the EU's tightened environmental rules.
Environmental Impact and Policy Debate
Brazilian law mandates significant land preservation for farmers, ranging from 20% to 80% based on the region’s biome, as a means to curtail environmental degradation. Yet, while recent efforts under President Luiz Inácio Lula da Silva have sought to reduce Amazonian deforestation rates, soy production remains a substantial contributor to deforestation in the Cerrado savanna, Brazil’s second-largest biome.
Responding to these environmental pressures, Aprosoja highlighted Brazil's strides in "natural regeneration" alongside agricultural development. The association suggested that Brazil's government consider filing a complaint with the World Trade Organization (WTO) against the EU, exploring “compensation measures” for Brazilian farmers impacted by the regulation.
