Ecological Moratorium on Soy Purchases in Brazil Threatened by Antitrust Investigation
A large group of raw material companies in Brazil, which jointly implemented a moratorium on the purchase of soy from areas that were deforested after 2006, is now under an antitrust investigation. The Administrative Council for Economic Defense (CADE) has initiated a review regarding possible violations of antitrust laws by these companies. In recent years, CADE has conducted similar investigations into companies such as Apple, as well as manufacturers of prosthetics, cement, and electric meters.
This is reported by AgroReview
The Future of the Environmental Agreement in Question
The voluntary moratorium, in effect since 2008, prohibits the purchase of soy grown on plots where deforestation occurred after 2006. Environmentalists note that this initiative has successfully reduced the share of new soy plantations on deforested lands from 30% to 4% as of July 2025. During this time, Brazil has managed to triple its soy production. The environmental community describes the agreement as “the most successful policy in the world for combating deforestation.”
“Currently, the future of the moratorium is at risk. The CADE investigation was initiated following a complaint from the Agriculture Committee of the lower house of Brazil’s parliament, the majority of whose members have close ties to the agribusiness lobby. If the court sides with the antitrust authority, companies will no longer be able to coordinate efforts to prevent deforestation at a landscape level, and each firm will act only within its own supply chain, leading to duplicated efforts and reduced coverage of areas.”
The tax policy has also been negatively affected: a new law in the state of Mato Grosso removes tax benefits for companies participating in voluntary environmental agreements. This has already led to the exit of key players from the moratorium. Environmentalists warn that the use of antitrust laws in this situation could undermine nearly 20 years of success in preserving Brazilian forests.
Discussions Surrounding the Moratorium and Market Participants’ Positions
A powerful opponent of the environmental agreement is the Brazilian Soy Producers Association (Aprosoja Brasil). Its representatives consider the moratorium a temporary measure that was only meant to be in place until a special law against deforestation was passed. They emphasize that after the adoption of the Forest Code in 2012, which requires farmers to keep 80% of their land in its natural state, the moratorium has lost its relevance.
Moreover, in 2024, the legislation in Mato Grosso abolished tax benefits for participants in voluntary agreements, which, according to Aprosoja, limited soy purchases on 4,000 farms. From 2019 to 2024, companies received about 4.7 billion reais (approximately 890 million dollars) in tax benefits. In December 2025, the organization ABIOVE, which brings together leading players in the soy market, announced its exit from the moratorium, stating that it would henceforth adhere to high social and environmental standards individually.
The combination of the antitrust investigation and the abolition of tax benefits could trigger a “domino effect” for other environmental initiatives. In particular, the Soft Commodities Forum (SCF), coordinated by the World Business Council for Sustainable Development and tracking soy purchases without deforestation in the Cerrado region, may also be at risk. Although CADE has not yet initiated an investigation against the SCF, such a possibility cannot be ruled out.