UK and European Retailers Urge New Amazon Soy Safeguards Following Moratorium Abandonment

Retailers Respond to Amazon Soy Moratorium's End

Leading British and European retailers are intensifying calls for robust safeguards concerning soy sourced from the Amazon, following the recent abandonment of the Amazon Soy Moratorium (ASM). This development, driven by international traders and Brazilian lawmakers, has sparked significant concern among environmental groups and businesses committed to deforestation-free supply chains.

The Legacy of the Amazon Soy Moratorium

Established in 2006, the Amazon Soy Moratorium was a voluntary agreement that prohibited major soy traders from purchasing soy grown on land in the Amazon biome that had been cleared after July 2008. This landmark pact, which was renewed indefinitely in 2016, was widely recognized for its effectiveness in curbing soy-related deforestation in the Amazon. Reports indicate that the moratorium significantly reduced direct deforestation for soy, with one study finding that only about 1% of new soy expansion occurred at the expense of forests after its implementation, compared to nearly 30% prior to the agreement. During its operation, soy production in the Amazon increased by 400%, demonstrating that agricultural expansion could be compatible with forest protection.

Abandonment by Traders and Lawmakers

The moratorium's efficacy has been challenged in recent years, culminating in its abandonment. Brazil's antitrust regulator, CADE, decided to suspend the ASM from January 1, 2026, citing concerns that it constituted an illegal cartel and restricted economic activities. The Brazilian agribusiness lobby and some lawmakers have actively worked against the moratorium, with state legislators revoking tax incentives for companies adhering to the agreement. Major international soy traders, including Cargill, Bunge, Louis Dreyfuss, and the Chinese state-owned firm Cofco, who are members of the Brazilian soy producers' association Abiove, have withdrawn their participation.

Retailers Demand New Commitments

In response, prominent British and European retailers, including Tesco, Sainsbury's, Asda, Lidl, and Aldi, have issued open letters to these major soy traders. They are urging the traders to uphold their commitments to deforestation-free supply chains and to implement new arrangements to ensure that grain production is not linked to the destruction of the Amazon rainforest. The UK Soy Manifesto, supported by major UK retailers and food companies, has also called for the moratorium to be maintained and strengthened as a 'vital safeguard' for the Amazon. Retailers emphasize the need for a substitute for the moratorium to prevent supply chain uncertainty and a negative consumer reaction.

Environmental and Economic Implications

Conservation groups have warned that the loss of the moratorium could lead to a 'free-for-all' in land clearing within the Amazon biome, potentially opening up an area for deforestation equivalent to the size of Portugal. This rollback threatens to undermine nearly two decades of progress in sustainable soy production. Soy is a critical global commodity, with over 75% of its production used for animal feed, making it embedded in many food products consumed in the UK and Europe. The abandonment of the ASM also comes as the EU Deforestation Regulation (EUDR), aimed at preventing deforestation-linked products from entering the EU market, faces delays in its implementation. This situation highlights the urgent need for credible assurance frameworks to ensure deforestation-free supply chains.