In the coming days, Brazil's Supreme Court will rule on the validity of the injunction currently precluding the enactment of Mato Grosso's law. In 2024, the state passed a law ending tax incentives for processing and trade companies that comply with the Soy Moratorium.
The Soy Moratorium was created in 2006 to ensure that soy grown, processed and exported was deforestation-free from July 2008 onward. The Soy Moratorium has been instrumental in preventing further deforestation in the Amazon. Through the implementation of an origin verification system, the Soy Moratorium has been helping prevent deforestation-related soy from entering the supply chain.
In December 2024, Governor Mauro Mendes said “our law prohibits the granting of tax incentives to companies that create requirements greater than those already in place in the Brazilian Forest Code. If there is any error in our law, we will correct it. However, at this first stage, we will appeal the decision to end these illegal restrictions imposed on agribusiness in Mato Grosso,” local news reported.
“We will not accept any company, whether national or multinational, making demands that are not in Brazilian law, which is very strict and must be complied with in all aspects. We cannot accept anything less or more than what is established in the Brazilian Forest Code, which is the most restrictive in the world,” said Mendes.
A letter against the law
A statement signed by BioMar, Cargill, Ewos, Mowi, Nutreco, Proterra Foundation and Skretting, expresses their concern that Mato Grosso law 12.709/2024 may pose a risk to the country’s reputation as a sustainable producer. “It is important that the food and feed industries worldwide work to defend the Amazon biome,” the statement says. "Currently, the Mato Grosso legislation poses an existential threat to the future of the sustainable supply of agricultural resources to the world."
“Brazil is the world's largest exporter of many popular agricultural products such as soy. The aquafeed industry plays an important role in promoting deforestation-free agrarian production practices in Brazil and has contributed greatly to the country's reputation as a supplier of sustainable feed,” the statement says.
The signatories of the letter pledge to continue to express their support and commitment to protecting the Amazon, especially its biodiversity.
