Brazilian soy exports have been identified as a significant driver of deforestation, according to recent data from Trase. Brazil, being the world’s largest producer and exporter of soy, saw a substantial increase in deforestation and land conversion associated with soy production between 2020 and 2022. Despite a rise in the total area of soy plantations during this period, soy production experienced a decline in 2022 due to environmental factors like droughts caused by La Niña.

The expansion of soy cultivation has been particularly pronounced in regions like the Cerrado and Pampas, where significant deforestation and conversion have occurred. The Cerrado, in particular, witnessed a substantial area of deforestation and conversion linked to soy plantations, surpassing the Amazon in this aspect. The Pampas also experienced notable rates of conversion of natural vegetation to soy fields.

The European Union’s deforestation regulation, which came into effect in 2023, poses challenges and opportunities for Brazilian soy producers. The regulation mandates due diligence on imports of certain commodities, including soy from Brazil, to prevent products originating from recently deforested lands. Trase data reveals that a few soy-producing municipalities in Brazil are responsible for the majority of deforestation and conversion linked to soy, emphasizing the concentrated nature of this issue in specific regions.

Furthermore, the carbon emissions resulting from soy-related deforestation and conversion in 2022 were substantial, contributing to a significant portion of the country’s overall land-use change emissions. Traders like Bunge, COFCO, and Cargill were identified as having the highest exposure to soy-related deforestation and conversion in their supply chains.

While companies with zero-deforestation commitments have made efforts to curb deforestation, these commitments have been more effective in the Amazon region compared to areas like the Cerrado and Pampas. The Amazon Soy Moratorium, a key voluntary commitment, has significantly influenced sustainable soy production in the region.

In conclusion, the surge in Brazilian soy exports has had a notable impact on deforestation rates, highlighting the urgent need for sustainable practices and regulatory measures to mitigate environmental harm. The data underscores the complex interplay between soy production, deforestation, and carbon emissions, emphasizing the importance of concerted efforts to promote responsible land use practices in the soy industry.