What major agricultural product's moratorium in Brazil dealt a blow in February 2026 after major traders exited the pact?

The Amazon Soy Moratorium, a significant voluntary agreement established in 2006, aimed to curb deforestation in the Brazilian Amazon linked to the expansion of soy cultivation. Major grain traders, including global giants like Cargill, ADM, and Bunge, committed to not purchasing soy grown on lands deforested in the Amazon after a specific cut-off date, initially 2006 and later set to July 2008. This pact emerged amidst growing international concern over rainforest destruction and its environmental consequences, with organizations like Greenpeace playing a crucial role in highlighting the issue.

For nearly two decades, the moratorium was widely lauded as a highly effective tool in decoupling soy production from Amazon deforestation. Studies indicated a substantial reduction in deforestation rates in soy-producing municipalities after the agreement's implementation. For instance, between 2009 and 2022, monitored areas saw a 69% reduction in deforestation, while the planted soy area in the Amazon biome grew by 344%, demonstrating that agricultural growth could occur without further forest destruction.

However, in early 2026, this landmark agreement faced a significant setback when major soy traders, represented by the Brazilian Association of Vegetable Oil Industries (ABIOVE), announced their withdrawal from the pact. This decision was largely influenced by a new law in Brazil's top soy-producing state, Mato Grosso, which, as of January 1, 2026, began removing tax incentives for companies adhering to environmental criteria stricter than national law. Environmental organizations and government officials expressed deep concern that the collapse of the moratorium could lead to a substantial increase in Amazon deforestation, potentially by as much as 30% by 2045, thereby jeopardizing the rainforest's fragile ecosystem and Brazil's climate commitments.