Ask me how

Ask me how

The question addressed in the Economist articles is, without a doubt, of great interest to companies and corporations that are somehow affected by the commodity supply chains from Brazil in general, and Mato Grosso in particular. The Economist and the research institutions that participated in this piece provide a great service by transparently demonstrating the exposure that these buyers have to illegal deforestation.

Even so, I would like to quickly make a few observations, from a privileged position, to expose the point of view of those who are "on this side" of the table:

1) In a world that will be impoverished by the pandemic of COVID 19, the priority of importing markets, especially emerging ones (where our share grows the most), is to guarantee food security in the most competitive way possible. It will not be a time when these importers will raise the bar in relation to socio-environmental criteria on their supply chains;

2) considering the above, in markets where there is little provision for awards, certifications or economic incentives, companies tend to look for easy, fast and inexpensive solutions to their problems. Some companies are betting on simply directing their origination outside the Amazon. Others bet on mechanisms such as a moratorium. Or boycotts. That means excluding any and all deforestation from their sourcing, a policy that is being passed on link by link in the supply chain. Mechanisms such as these are mutually exclusive, generate conflicts, and will not, by themselves, solve the issue of deforestation. In addition, a 2017 study by Instituto Escolhas demonstrates that the implementation of a zero deforestation policy would have a greater impact on the poorest population on the country's agricultural frontiers;

3) Most rural producers, and the image of the agricultural sector as a whole, is undermined by a minority responsible for illegal deforestation. And although the attention of researchers and the media is attracted by this issue, we must remember that in Brazil, a large part of forest assets, due to the Forest Code, are also in the hands, and being protected by producers. These assets generate a benefit for the whole society, but their entire cost falls solely on these producers. The adoption of exclusive and punitive market mechanisms, coupled with the lack of recognition for the environmental services provided and the lack of incentives is what fuels polarization, and pushes this layer of society in the arms of political extremes;

4) The immense complexity of Brazilian legislation and the enormous challenge faced by the public administration to advance in matters of deforestation control, illegal logging, illegal mining, environmental regularization, land tenure and territorial ordering, among others, are also neglected, especially outside Brazil. These issues generates insecurity to all rural entrepreneurs, and are a crucial part of the environmental damage evidenced in this type of analysis.

Mato Grosso today has the broadest initiative in the world in jurisdictional sustainability. It is the largest producer and exporter of agricultural commodities in the country and still has about 65% of its area conserved. There is a genuine political will to advance the fight against illegality and in the environmental regularization of the State's production, with investments, and results superior to those of other units of the federation.

PCI works on consensuses. Tackling illegality is one our targets, and one that demands public and private efforts to be achieved. We have relentlessly sought the support of companies and corporate groups in implementing the State Strategy. We do not intend to say how each company should exercise control over its own supply chain. But it is necessary to invert a narrative. Mato Grosso cannot be seen as a risk zone to be avoided. On the contrary, we want to pass on the message that there is governance in place, political will, partnerships and goals to reduce this risk together. And that is exactly why we want companies to engage in the necessary actions here and now, on the ground, to make this happen.

Ask me how.

CID SANCHES

Economist | Agribussiness specialist | Management | ESG | Food Systems | Consultant | Strategic planning | Regenerative Agriculture | SDG

4 年

PCI is a giant initiative. Great results will be coming soon. Congratulations to all companies that invested there.

Leila Harfuch

Managing Partner at Agroicone

4 年

Excelente comentario, Fernando! Concordo plenamente. Abra?o

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