What consequences will European laws on deforestation have on Brazilian soy exports to the EU?

ABIOVE represents exporters and traders, while APROSOJA represents landowners of large quantities of soybeans. Both associations express concerns about the industry's preparedness and the implications of the EUDR (European Union Deforestation Regulation).

The power of soy

Brazil is the world's largest soybean exporter. Its share in the global soybean trade is constantly increasing. Brazilian soybean exports reached a new record in 2023 with 3.744 million bushels. Secretariat of Foreign Trade (Secex).

Read moreDiscovery: this genetic disease affects thousands of people around the world

In 2023, almost 70 % of Brazilian soybean production (Secex 2024) was exported. After China, the EU represents about 30 % of Brazilian exports of soybeans and its derivatives. Exports amounted to 14% In 2022, the value will be $8.8 billion.

ABIOVE informed us that the soy sector in Brazil has been working for years to comply with environmental laws. Several initiatives are currently underway regarding the EUDR. “The main objective is to convince the European Commission and the national authorities of Brazil to accept the controls and systems already used by companies to verify legality and guarantee the absence of deforestation. This includes the official Brazilian monitoring systems that generate data that can be used by companies.” The organization stated.

According to the Brazilian trade group, Brazilian soy companies have strengthened their chain-of-custody controls and created EUDR-compliant export corridors, as the law requires the separation of soybean meal and oil to ensure zero deforestation when shipped to the EU.

We are working with others to define the relevant Brazilian legislation as well as proof of compliance formats.

ABIOVE also commented that, while EU regulations are noble and their intentions good, they have been drafted without understanding their full implications for supply chains. The EUDR does not take into account the specific realities of each country and production chain.

He says small producers and business owners may find it difficult to comply with EUDR requirements. This could be detrimental to them.

The United States had a very busy June. EU delaysThe White House has requested a delay in implementing the EUDR until “substantial issues” are resolved. It cited a lack of clarity from the EU regarding this request. ABIOVE said it understood that abandoning the legislation is not an alternative and that this decision is up to European lawmakers. However, it noted that there remains uncertainty about the inspection and monitoring procedures that regulatory agencies should use.

Azael Pinto-Neto, president of APROSOJA in the state of Sao Paulo, recognized the efforts made by traders to ensure the traceability necessary to comply with the EUDR.

Brazil’s deforestation law was also highlighted: “I would like to emphasize that Brazil’s environmental laws are among the strictest and most advanced in the world.” The fact that our products are sustainable should be enough to reassure European customers. “The European market must respect our laws, especially since they are more restrictive than their European counterparts.”

APROSOJA, on the other hand, has been a vocal critic of the EUDR. It calls it trade protectionism disguised as environmental protection. Brazil is a powerful agri-environmental force capable of supplying the European market. “We are tired of disguised protectionism, especially from a soybean market that has become increasingly irrelevant,” Pizzolato Neto told FeedNavigator.

Although EU importers can buy products from the EU, they cannot buy goods directly. pet food companiesConcerns have been raised about the a Soybean shortages are possibleThe APROSOJA representative stated that, for the formulations and citing the insecurity created by the EUDR and the lack of prices for soybeans from each year, any problems related to the sustainable supply of soybeans in the EU would be due to the inefficiency of the EU, and not to the non-compliance of Brazilian soybean producers.

He said that Brazilian rural producers would continue to preserve and produce despite the difficulties and would do so out of conviction and not convenience. Pizzolato neto commented that the question is whether Europeans will be willing to pay fair prices for Brazilian soybeans and compete with them.

We fully support the free market and freedom of enterprise. Each market has the right to select the product it wants to buy. It is not the same to impose restrictions on production chains that should be able to comply with local laws. We believe that the European market should be able to choose between a variety of specifications and qualities for soy, and pay according to these choices. Legal soy complies with local laws and is sustainable. Certified soy, on the other hand, can be adapted to meet specific needs, provided that buyers pay fair prices.

DeepL was used to translate Azael's Pizzolato-Neto comments from their original Portuguese.