November 7, 2024 | 15:00 GMT +7

  • Click to copy
Thursday- 14:20, 31/10/2024

Brazil farmers, government slam Danone for cutting out Brazilian soy

(VAN) Brazil's agriculture ministry in a separate statement listed the country's environmental efforts and called the EU legislation 'arbitrary, unilateral and punitive', while also criticizing companies.
Record harvest in soy cultivation in the state of Rio Grande do Sul.

Record harvest in soy cultivation in the state of Rio Grande do Sul.

Brazilian soybean producers on Tuesday said there is good reason for products of Danone to be boycotted after the French dairy giant said it would stop sourcing soy from Brazil, while the Brazilian government criticized "unreasonable" moves by European companies.

Danone's finance chief told Reuters last week that the company was instead buying soybeans from countries in Asia, ahead of a European Union rule requiring companies to prove they are not sourcing from deforested land.

Aprosoja Brasil, a group representing farmers in the world's largest soybean producer and exporter, said in a statement that Danone's move showed "lack of knowledge" of Brazil's production process and was "discrimination against the country."

"There is no doubt that Brazilian producers, tired of being unfairly singled out as villains, will start to have more than enough reasons to put Danone and other global brands on the list of companies to be boycotted in Brazil," the group said.

Brazil's agriculture ministry in a separate statement listed the country's environmental efforts and called the EU legislation "arbitrary, unilateral and punitive," while also criticizing companies.

"Brazil is ready to cooperate, but demands to be treated with the fairness and balance that guide international trade," the statement said. "Untimely and unreasonable stances as announced by European companies with a strong presence in the Brazilian market must be rejected."

Danone's Brazilian unit said in a statement that it continues to buy Brazilian soybeans that meet local and international regulations. The firm's headquarters did not immediately return a request for comment.

The EU Deforestation Regulation, covering imports of commodities like cocoa, coffee and soy, is scheduled to come into effect on Dec. 30, though the EU Commission this month proposed a 12-month delay.

Companies such as Nestle and Unilever have been gearing up to meet the new regulation before they face potential fines of up to 20% of turnover.

Brazilian law states that farmers must preserve between 20% and 80% of legal reserves, depending on the biome where they are planting. But rainforest destruction rates in the country remain high despite a drop under President Luiz Inacio Lula da Silva.

While major traders have vowed to stop sourcing soybeans from newly cleared land in the Amazon rainforest, soy farming continues to be a major driver of deforestation in the nearby Cerrado savanna.

Aprosoja said that "although there is deforestation, there is also a lot of natural regeneration."

The group suggested that Brazil's government could file complaints before the World Trade Organization and look for "compensation measures" from the EU as Brazilian farmers are now facing losses due to the European legislation.

H.D

(Reuters)

The contradictory picture in cassava exports

The contradictory picture in cassava exports

(VAN) The demand for cassava chips has dropped sharply this year, while the demand for cassava starch remains generally strong. This contrast is clearly reflected in the export of cassava and cassava products.

Grain and livestock markets react to election results

Grain and livestock markets react to election results

(VAN) Kevin Duling with KD Investors says grains started off lower with soybeans seeing double digit gains on the possibility of increased tariffs and a trade war with China, then bounced off the lows.

Entry into the 2,500 billion USD Halal food market: Oppportunties and challenges for ‘made-in-Thanh Hoa’ products

Entry into the 2,500 billion USD Halal food market: Oppportunties and challenges for ‘made-in-Thanh Hoa’ products

(VAN) Halal market brings numerous opportunities for enterprises and products from Vietnam thus it poses considerable challenges.

Granting forest production unit code for export

Granting forest production unit code for export

(VAN) The Vietnam Administration of Forestry (MARD) recently organized a conference for issuing and managing forest production unit code in Yen Bai province.

Despite exporting to more than 100 countries, what should Vietnam's tea industry still pay attention to?

Despite exporting to more than 100 countries, what should Vietnam's tea industry still pay attention to?

(VAN) Overall, markets are increasingly demanding higher standards for food safety, particularly in traceability, according to the Department of Quality, Processing and Market Development.

Why fertilizer producer Mosaic's stock jumped 5%

Why fertilizer producer Mosaic's stock jumped 5%

(VAN) Shares of fertilizer giant Mosaic jumped over 5% Monday, posting the top daily performance in the S&P 500.

Ghana cocoa farmers hoard beans in anticipation of price hike

Ghana cocoa farmers hoard beans in anticipation of price hike

(VAN) Cocoa farmers in the world's No.2 producer are hoarding beans in anticipation of higher prices, industry sources told, potentially squeezing supplies to a global cocoa market looking to recover from last season's disastrous harvests.

Read more