JBS Identified as Most Exposed to Deforestation Risk in Brazil's Amazon
A recent report by Imazon, an environmental think tank, in partnership with O Mundo que Queremos Institute, has identified JBS SA, the world's largest meat supplier, as the company with the highest exposure to deforestation risk in Brazil's Amazon region. The study examined 132 meat processors, including JBS, Marfrig Global Foods SA, and Minerva SA, along with 69 food retailers, including major supermarket chains in the country.
According to the report, cattle producers potentially selling to JBS cover 9.7 million hectares of land exposed to deforestation risk, making it the highest among all companies surveyed. Rival company Minerva had over 3.2 million hectares. The deforestation risk includes both areas deforested between 2008 and 2021 and lands at risk of deforestation until 2025.
Land grabbers in the Amazon region use destructive methods such as bulldozers, machetes, and fire to clear land for various economic activities, including cattle ranching. The lack of a national traceability system for indirect cattle suppliers has made it challenging for meatpackers to monitor their indirect suppliers effectively.
The report emphasizes the systemic threat that deforestation poses to the Brazilian economy, as it affects rainfall patterns crucial for various sectors, including agribusiness, energy generation, and households. However, JBS, Minerva, and Marfrig are recognized as companies that provide information for public transparency on deforestation policies.
Efforts to combat deforestation and promote sustainable practices in the Amazon region remain crucial to protect the environment and ensure the long-term viability of Brazil's economy.
The Impact of Deforestation Risk on New Businesses in the Meat Industry
The recent identification of JBS SA as the company most exposed to deforestation risk in Brazil's Amazon region could have significant implications for new businesses in the meat industry. This revelation by Imazon and O Mundo que Queremos Institute underscores the critical need for sustainable practices in the sector. New businesses entering the market must be aware of the potential environmental risks associated with their operations, particularly in regions like the Amazon.
The report highlights the systemic threat that deforestation poses to the Brazilian economy, affecting crucial sectors like agribusiness, energy generation, and households. For new businesses, this could mean potential disruptions in supply chains, increased operational costs, and reputational damage. The lack of a national traceability system for indirect cattle suppliers further complicates matters, making it challenging for businesses to monitor their supply chains effectively.
However, the report also presents an opportunity for new businesses to differentiate themselves by adopting and promoting sustainable practices. By providing transparency on their deforestation policies, like JBS, Minerva, and Marfrig, new businesses can position themselves as responsible industry players. This could potentially attract environmentally conscious consumers and investors, boosting their market standing and profitability in the long run.
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