VZCZCXYZ0013
PP RUEHWEB

DE RUEHBR #1498 2181219
ZNR UUUUU ZZH
P 061219Z AUG 07
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC PRIORITY 9681
INFO RUEHAC/AMEMBASSY ASUNCION 6245
RUEHBU/AMEMBASSY BUENOS AIRES 4949
RUEHLP/AMEMBASSY LA PAZ AUG MONTEVIDEO 6991
RUEHBJ/AMEMBASSY BEIJING 0333
RUEHNE/AMEMBASSY NEW DEHLI 0312
RUEHBS/USEU BRUSSELS
RUEHRI/AMCONSUL RIO DE JANEIRO 4902
RUEHSO/AMCONSUL SAO PAULO 0556

UNCLAS BRASILIA 001498 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR OES/ETC 
STATE FOR WHA/EPSC L KUBISKE 
STATE PLEASE PASS TO EPA FOR CAM HILL-MACON AND SHOFFMAN 
STATE PLEASE PASS TO USGS FOR JEAN WEAVER AND JOHN GRAY 
STATE PLEASE PASS TO USDA 
 
E.O. 12958: N/A 
TAGS: SENV TBIO PGOV ECON XR BR
SUBJECT: THE SOYBEAN MORATORIUM, ONE YEAR LATER 
 
REF: 06 BRASILIA 2048 
 
¶1. (U) Summary: On July 24, 2007, NGOs involved in the pact for 
sustainable soy in the Amazon - the soy moratorium - such as 
Greenpeace and The Nature Conservancy, met in Sao Paulo with 
representatives of the soybean industry and large-scale European 
consumers to evaluate the results of the one year moratorium.  Among 
other outcomes, the group agreed that the pact has been successful 
in that it built partnerships between the environmental sector and 
business enterprises.  On the other hand, there has been a lack of 
tracking tools to guarantee that the harvested soy hasn't induced 
deforestation.  At this point, it is not clear whether the pact will 
be extended. End Summary. 
 
¶2. (U) Most of the large soybean crushing plants agree that mapping 
soybean production in the Amazon biome can be a tool to force 
soybean producers to obey the Brazilian Forest Code (NOTE: This code 
specifies that eighty percent of forested property in the Amazon 
must be set-aside as a legal reserve. In addition, riparian areas 
and other areas of ecological importance must be left intact as 
areas of permanent protection).  In other words, not only will 
soybean producers have to stop felling trees, but any farmer who 
doesn't have a legal reserve and intact riparian areas near rivers 
and springs will not be able to sell his/her harvest. 
¶3. (U) There are still some [in the soybean industry] who believe, 
though, that the mapping should only focus on newly deforested areas 
and that illegal logging should be the reason for banning a product 
from the market. 
¶4. (U) According to Brazil's Statistics and Geography Institute 
(IBGE), last year the amount of land used for soybean plantation 
increased 0.7% in the Amazon biome, reaching a total of 517,900 
hectares.  In the state of Rondonia alone, there was an increase of 
30% in soybean plantations, totaling 103,000 hectares.  The State of 
Mato Grosso, though, is a separate case.  Statistics show a 
reduction of 4.8% in the area of soybean plantations.  Brazilian NGO 
Imazon has pointed out that deforestation rates have reduced by 40% 
in the State. 
¶5. (U) During the one-year anniversary of the moratorium, European 
consumers signaled that they are willing to extend the pact, planned 
to last for two years, if suppliers are unable to legalize their 
activities.  There was also a "discreet" mention during discussion 
of the possibility of applying the responsible production of grains 
to other biomes in the country. 
¶6. A note from FAS/Brazil: The producer group APROSOJA from Mato 
Grosso, Brazil's largest state for soybean production, claims the 
moratorium was forced upon them without negotiation by organizations 
such as ABIOVE that represent multinationals (Cargill, Bunge, ADM, 
etc).  In their opinion, in order for these companies to save their 
image from being that of "destroyers of the Amazon" they are looking 
to pass the blame and responsibility on to the farmers. 
 
¶7. In addition, producers see the moratorium as an affront to 
Brazilian legislation.  Brazilian law allows 20% of farmers' land in 
the Amazon biome be planted, while the rest be left as forest 
reserve.  They challenge that the moratorium conflicts with this 
legislation.  In their opinion, the current legislation is more 
affective than the moratorium and easier to enforce. 
 
¶8. In fact, APROSOJA challenges that after one year, no report has 
been released informing how the moratorium has been enforced, if 
indeed Multinationals refused to buy soy produced soy in the Amazon 
Biome, and in what amount.  They call it a marketing technique to 
improve how consumers and European supermarkets and financers view 
the multinationals' Brazilian operations. 
 
¶9. APROSOJA has decided not to talk to the press on their views in 
the media in order to avoid conflicts and polarization with ABIOVE 
and ANEC, who form an important part of the supply chain. 
 
SOBEL