Soy traders snub supermarket warning over anti-deforestation pledge

Retail Soy Working Group says it will now ‘reflect on next steps’ following silence from suppliers.  

Major soy traders including Bunge, Cargill and the Louis Dreyfus Company have allegedly ignored a request from major supermarkets to re-affirm the Soy Moratorium. 

Asda, Tesco, Sainsbury’s and Lidl were among those to write to the CEOs of five major global agribusinesses last month, urging them to re-join the pledge to protect the Amazon rainforest.  

The letter followed a decision by trade body Abiove to withdraw from the agreement, which commits members to stop buying soybeans from deforested land in the Amazon. 

At the time, Abiove said the pledge had “fulfilled its historical role”.  

Estimates suggest the Soy Moratorium helped reduce deforestation by 69% in monitored municipalities between 2009 and 2022.  

However, the trade body’s exit came on the back of a decision by Brazil’s biggest soy region to punish signatories of the initiative – which it claims is extra-territorial – by withholding their tax benefits.    

In a letter coordinated by the Retail Soy Group (RSG), the supermarkets responded by Abiove’s key agribusiness members that they were “deeply disappointed to see that Abiove, and your company, has now voluntarily withdrawn from the Moratorium”.    

They gave the five companies until February 16th to confirm their intention to independently re-join the pledge, warning that contracts could be at stake if they did not. 

Despite the threat, RSG and several signatories including ALDI Nord and Coop Swiss, have told Real Economy Progress that they have received no response.  

RSG said they would now “reflect on next steps.” 

A spokesperson for ALDI Nord said the firm viewed the “expiry of the Brazilian Soy Moratorium” with “deep concern”, adding that deforestation-free supply chains were “non-negotiable” for the supermarket chain. 

“We expect suppliers to provide clear evidence of deforestation‑free supply chains. Should this not be guaranteed, we will assess alternative sourcing options,” she added. 

Coop Swiss told Real Economy Progress that it would also “discuss next steps from the letter with other RSG members”. 

It added that its “position remains unchanged” and said that it has “independently assured procurement controls” to ensure suppliers comply with its requirements.  

Bunge and the Louis Dreyfus Company have not responded to a request for comment. 

ADM, Cargill and COFCO directed Real Economy Progress to Abiove.  

Abiove has not responded to a request for comment.