Success! Private sector Soy Moratorium effective in reducing deforestation in the Amazon

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Today, fewer chicken nuggets can trace their roots to cleared Amazon rain forest.

In 2006, following a report from Greenpeace and under pressure from consumers, large companies like McDonald's and Wal-Mart decided to stop using soy grown on cleared forestland in the Brazilian Amazon. This put pressure on commodity traders, such as Cargill, who in turn agreed to no longer purchase soy from farmers who cleared rain forest to expand soy fields.

The private sector agreement, a type of supply chain governance, is called the Soy Moratorium and it was intended to address the deforestation caused by soy production in the Amazon.

Today, fewer chicken nuggets can trace their roots to cleared Amazon rain forest.

In 2006, following a report from Greenpeace and under pressure from consumers, large companies like McDonald's and Wal-Mart decided to stop using soy grown on cleared forestland in the Brazilian Amazon. This put pressure on commodity traders, such as Cargill, who in turn agreed to no longer purchase soy from farmers who cleared rain forest to expand soy fields.

The private sector agreement, a type of supply chain governance, is called the Soy Moratorium and it was intended to address the deforestation caused by soy production in the Amazon. In a new study to evaluate the agreement, published today (Jan. 22, 2015) in Science, the University of Wisconsin-Madison's Holly Gibbs and colleagues across the U.S. and Brazil show that the moratorium helped to drastically reduce the amount of deforestation linked to soy production in the region and was much better at curbing it than governmental policy alone.

 

Holly Gibbs

"What we found is that before the moratorium, 30 percent of soy expansion occurred through deforestation, and after the moratorium, almost none did; only about 1 percent of the new soy expansion came at the expense of forest," says Gibbs, a professor of environmental studies and geography in the UW-Madison Nelson Institute's Center for Sustainability and the Global Environment (SAGE).

Between 2001 and 2006, prior to the moratorium, soybean fields in the Brazilian Amazon expanded by 1 million hectares, or nearly 4,000 square miles, contributing to record deforestation rates. By 2014, after eight years of the moratorium, almost no additional forest was cleared to grow new soy, even though soy production area had expanded another 1.3 million hectares. Farmers were planting on already cleared land.

The findings are intended to help policy makers and industry leaders make informed decisions going forward.

Deforestation of Amazon rainforest image via Shutterstock.

Read more at University of Wisconsin.