Brazilian Ethanol and the Displacement of Cattle

Protected Areas and ownership titles
So what about government installed protected areas? Brazil does in fact have laws to prevent activities like this. “The problem, among other things, is the fact legislation from the 1980’s confirmed the right of some people to start agricultural activities in the Amazon region, simply because they had official documents to show that they owned the land. Now, the good news is that the Brazilian government, both state and federal, realized under intense international pressure that they couldn’t allow this to continue. So gradually, the legislation has been adjusted. First, it imposed that 20% of the land had to be reserved for natural resources, while 80% could be used for other purposes. This soon changed to 80% for natural resources, under heavy protest of the land owners, who saw their land value decline rapidly. This problem still exists today, as Brazil has no set-aside land subsidies like they have in the EU.”

A first step towards the solution: satellite monitoring
The problem of soybeans being produced in or near the Amazon Biome is however, close to being solved, says Mr. Zuurbier. Large commodity traders, such as Cargill and ADM, decided to impose a moratorium on soybean production on the Amazon region, meaning that they wouldn’t buy soybeans from producers in those areas. The initiative for this came from Brazil itself, specifically from the state of Mato Grosso. Although only 2% of the state’s land falls within the area, the measure came across strong opposition among farmers, since they are the ones loosing income. The question than is, is it enforceable, is it traceable? Considering the sheer size of the region and the homogeneity of the product, it has been difficult. But now, the government has introduced a satellite monitoring system in combination with certificates, to make it more transparent. Again, because of international pressure, it is in the interest of the largest traders and farmers to make this legislation work. Subsequently, the soybean farmers association AproSoja plays an important in this.”

The future of soybean production and cattle breeding
Thinking this through, one could think that preventing illegal deforestation and soybean production near the Amazon, could only result in less cattle and soy production as it has no other place to go considering the expansion of sugarcane for ethanol. “I understand that logic,” says Mr. Zuurbier, ”but it discards the alternatives.” “Currently, there is 90 million hectares of Cerrado, the savannah of Brazil, available for agriculture. This is slowly being utilized, taking into account strict environmental demands, zoning and waterways. You could utilize 10, 20 or 30 million hectares of this without significantly damaging the environment, at an reasonably sustainable basis.”