Brazilian environmental agency IBAMA has levied fines totaling 365 million reais (approximately $64 million) on several ranches and meat processing companies for their involvement in the beef trade from areas in the Amazon region where deforestation is illegal. Among the penalized entities is JBS SA (JBSAY, Financial), the world's largest meat processor, accused of raising or purchasing cattle in these prohibited zones.
Investigations by IBAMA revealed that about 18,000 cattle were raised and sold from 69 sites on deforested lands in Pará and Amazonas. Additionally, 23 meat processing companies were identified as buyers of these cattle. This action is part of broader efforts to combat deforestation by targeting supply chains that produce or sell cattle from illegally cleared territories in the Amazon.
JBS SA, however, disputes the allegations, asserting that all its purchases are sourced outside the zones listed by the agency as embargoed. The company highlighted its use of a geospatial monitoring system designed to ensure it does not buy cattle from farms implicated in illegal deforestation or encroachment on indigenous lands and reserves.
Cattle ranching remains a significant driver of deforestation in the Amazon, alongside timber sales and land clearing for soybean cultivation. In 2013, JBS and other meat processors reached an agreement with prosecutors to avoid purchasing cattle from illegally cleared or blacklisted ranches due to environmental violations.
Furthermore, JBS and other leading agricultural companies have pledged to eradicate deforestation from their supply chains by 2025. Part of this commitment involves addressing issues with indirect suppliers, who sell to intermediaries that then supply the meat processors, contributing to deforestation.
