Brazil, known as the world’s largest soy producer and exporter, witnessed a surge in deforestation and land conversion linked to soy production, as per the latest data from Trase for the years 2021–2022. The country produced a substantial amount of soy in 2023, with a significant portion exported as raw soybeans, soybean cake, and soybean oil. Soy stood as Brazil’s second most exported product, contributing significantly to the nation’s total exports and revenue.

The escalating demand for soy-based animal feed from countries like China and the impact of global events like Russia’s conflict in Ukraine led to a rise in soy prices since 2019. Although prices stabilized in 2024, they remained high, potentially driving further deforestation and land conversion to accommodate expanding soy plantations.

Trase data revealed a concerning trend of increased deforestation and conversion associated with soy production, with a notable expansion in the total area of soy plantations. Despite the expansion, Brazil experienced a decline in soy production in 2022 due to adverse weather conditions, particularly droughts in the southern region caused by La Niña.

The expansion of soy plantations, especially in regions like the Cerrado and Pampas, resulted in significant deforestation and land conversion. The data highlighted the substantial impact on these biomes compared to the Amazon. Notably, the deforestation in the Atlantic Rainforest raised alarms as it has been illegal to clear native forests in this region since 2006.

The implementation of the EU deforestation regulation in 2023 posed challenges and opportunities for Brazilian soy producers. The regulation mandated due diligence on imports of agricultural commodities, including soy, to prevent products sourced from recently deforested or converted lands. Trase data pinpointed specific municipalities in Brazil responsible for a significant portion of deforestation linked to soy, emphasizing the importance of targeted enforcement strategies.

Furthermore, the analysis revealed the exposure of major markets like China, the EU, and Brazil’s domestic market to deforestation from soy imports. Traders like Bunge, COFCO, and Cargill were identified as having high exposure to soy deforestation and conversion in their supply chains.

Despite efforts by some companies to adopt zero-deforestation commitments, the effectiveness of these commitments outside the Amazon region fell short, with high rates of deforestation persisting in biomes like the Cerrado and Pampas. The carbon emissions resulting from soy-related deforestation in 2022 underscored the environmental impact of soy production in Brazil.

In conclusion, the data from Trase shed light on the intricate relationship between Brazilian soy exports, deforestation, and environmental sustainability. The findings underscore the urgent need for sustainable practices and targeted interventions to mitigate the adverse effects of soy production on Brazil’s ecosystems and global carbon emissions.