Tag Archives: cattle ranching Amazon

Amazon Deforestation: Putting a Number on Climate Damage

In April 2021, the Brazilian Federal Public Prosecutor’s Office filed a public civil action against a rural landowner, seeking the landowner’s accountability for alleged illegal deforestation connected to breeding cattle in the Amazon….Aside from demanding compensation for environmental damages, collective damages, as well as compensation due to the profits illegally obtained in the logging process, the prosecutor required that the defendant pay compensation for climate damages resulting from the deforestation, something until now unwitnessed in cases of this sort in Brazil. N

By employing a carbon calculator software developed by IPAM, the Amazonian Research Institute, the Prosecutor’s Office calculated how much carbon was expected to have been released into the atmosphere per hectare of deforestation in that particular area. With that information, knowing the extension of the deforestation and using the carbon pricing practiced by the Amazon Fund, the Prosecutor’s Office came to the conclusion that the defendant was liable for a BRL 44.7 million compensation for climate damages.

Excerpts from Climate litigation in Brazil: new strategy from prosecutors on climate litigation against private entities, Mayer/Brown, June 21, 2021

The Secrecy Around the Origin of Beef Steaks

Most cows in Brazil, the world’s largest beef exporter, are grass-fed. Ranchers in the precious biome use bulldozers, machetes, and fire to make room for pastureland—a practice that’s illegal but so widespread that it’s almost impossible for strapped regulatory teams to root out. The sheer size of the country’s beef industry—2.5 million ranchers, 2,500 slaughterhouses, and about 215 million heads of cattle spread across 3.3 million square miles (8.5 million square kilometers)—is one reason the big meatpackers say they’ve struggled to keep tabs on their suppliers. Another hurdle: Brazil’s government, which requires ranchers to file documents detailing the movements of their cattle, keeps that paperwork largely to itself.

JBS SA, the global beef industry leader, vowed in September 2020  to start monitoring its indirect suppliers—i.e., the farmers who raise the cattle to sell to the folks who sell it to JBS. That followed a similar announcement months earlier from rival Marfrig Global Foods SA. Brazil’s cattle ranches come in all shapes and sizes, from mom and pop farms that ship out calves as soon as they’re born to one-stop shops that breed, fatten, and finish cows all on their own. 

Cattle tagging (think of the microchip a veterinarian might slip under your dog’s skin) is already an established practice in large parts of the global food supply chain. For big farms it would be cheap to implement, costing about 0.5% of an animal’s revenue, according to a report from the Brazilian Coalition on Climate, Forests & Agriculture. Uruguay, a direct competitor to Brazil, was an early adopter in the Americas, making it possible to trace a single cow from birth to plate, says Erasmus zu Ermgassen, a sustainable livestock and supply chain researcher at the Catholic University of Louvain in Belgium.

Some cows spend their entire life on one ranch, but that’s pretty rare…Cattle move…as many as six times before they’re slaughtered. That constant shuffling makes it all too easy to hide a cow’s real origin, a practice known as “cattle laundering.”

Each time a cow is moved from one property to another, the state issues a guide to animal transport, or GTA, which identifies the shipping farm, the receiving farm, the number of cattle being moved, and the date of transfer. This process helps ensure the safety of the overall herd in the case of a disease outbreak, but deforestation fighters have also latched on to the documents as a potential key to traceability.

Currently the only people who regularly get to see the GTAs are the ranchers, the drivers moving the cattle, and food sanitation officials. The government says making them more widely available would violate ranchers’ privacy rights, even as the secrecy helps bad actors evade the law.

Excerpt Why it’s hard to stop Amazon deforestation, starting with beef industry, Bloomberg, Dec. 17, 2020

The $4 Trillion Blackmail: The Amazon is Ours not Brazil’s

More than two dozen financial institutions around the world are demanding the Brazilian government rein in surging deforestation, which they said has created “widespread uncertainty about the conditions for investing in or providing financial services to Brazil”. The call for action, delivered in a letter to the Brazilian government on June 23, 2020, comes as concerns grow that investors may begin to divest from Latin America’s largest economy if Jair Bolsonaro’s administration fails to curb environmental destruction. “As financial institutions, who have a fiduciary duty to act in the best long-term interests of our beneficiaries, we recognise the crucial role that tropical forests play in tackling climate change, protecting biodiversity and ensuring ecosystem services,” said the letter, signed by 29 financial institutions managing more than $3.7tn in total assets.

“Considering increasing deforestation rates in Brazil, we are concerned that companies exposed to potential deforestation in their Brazilian operations and supply chains will face increasing difficulty accessing international markets. Brazilian sovereign bonds are also likely to be deemed high risk if deforestation continues.” Deforestation in the Amazon rainforest has surged in Brazil since the election of Mr Bolsonaro, a rightwing former army captain, who supports opening the protected lands to commercial activity. In the first four months of 2020, an area twice the size of New York City was razed as illegal loggers and wildcat gold miners

Investors said they are particularly concerned about Brazil’s meatpacking industry, which risks being shut out of international markets over its alleged role in deforestation. Brazil’s JBS has been repeatedly accused by environmentalists of buying cows from deforested lands in the Amazon. In May 2020 more than 40 European companies, including Tesco and Marks and Spencer, warned they would boycott Brazilian products if the government did not act on deforestation. 

Excerpts from Investors warn Brazil to stop Amazon destruction, FT, June 23, 2020

Policing the Amazon Jungle

The small town of Apui sits at the new frontline of Brazil’s fight against advancing deforestation…  The home of 21,000 people in southern Amazonas state was long protected by its remote location from illegal loggers, ranchers and farmers who clear the forest.  Now those who would destroy the jungle are moving in from bordering states, following the Transamazon Highway, which is little more than a red-dirt track in this part of the rainforest.

First come the loggers, who illegally extract valued lumber sold in far-off cities. The cattle ranchers follow, burning the forest to clear land and plant green pasture that rapidly grows in the tropical heat and rain. After the pasture is worn out, soy farmers arrive, planting grain on immense tracts of land…

Roughly 7,989 square kilometres (3,085 square miles) of forest were destroyed in 2016, a 29 percent increase from the previous year and up from a low of 4,571 square kilometers in 2012, according to the PRODES satellite monitoring system.

Then there are the fires.  Apui ranked first in the country for forest fires in the first week of August 2017, according to the ministry.

At their best the environmental agents can slow but not stop the destruction. They raid illegal logging camps, levy large fines that are rarely collected and confiscate chainsaws to temporarily impede the cutting.  Costa acknowledges that the roughly 1,300 environmental field agents who police a jungle area the size of western Europe have a difficult task, at the very least.

Excerpt from Brazil’s agents of the Amazon fighting loggers, fires to stop deforestation, Reuters, Aug. 20, 2017