World’s top food producers push back on deforestation rules

economictimes.indiatimes.com:

European Union rules that require proof that crops weren’t grown on deforested land, which producers say will add to the cost of making food. The latest example of the backlash comes from Brazil, the biggest global exporter of coffee and soybeans. Just this week, the nation’s agriculture minister, Carlos Fávaro, lashed out against the ban, casting doubt on whether it complies with the principles of the World Trade Organization. He added that Brazil is seeking to boost trade with others outside of the EU, including within the five-nation BRICS bloc that also includes Russia, India, China and South Africa. Brazil is already a steward of the environment, Fávaro said. “If Europe does not want to understand that, there are others that recognize what Brazil does,” he said. Complying with the new rules will involve implementing full traceability to complex production chains — a task that’s likely to be complicated and expensive. The requirement will apply to a wide range of products, from meat to palm oil, and that will add to agricultural costs at a time when food inflation is once again starting to pick up. Higher prices won’t just impact buyers in Europe. Since the market is so large, growers will likely need to adopt the new practices quite broadly. Consumers around the globe could end up footing the bill as producers pass on the new costs.

Even as producers are decrying the rules, companies and farmers around the world are already taking steps to adjust to them and make sure they have continued access to the important European markets. Major trading companies will need to adjust their procedures all around the globe, said Paulo Sousa, the head of operations in Brazil for Cargill Inc., one of the world’s