Soya firms to abandon Amazon protection agreement in Brazil

Some of the world’s largest soyabean traders are preparing to break their agreement to curb deforestation of the Amazon rainforest to preserve tax benefits in Brazil’s top farm state, two people with direct knowledge of the matter told Reuters.

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The firms exiting the so-called Amazon Soya Moratorium, which has saved millions of acres of tropical forest over nearly two decades, are looking to shield themselves from a new state law in Mato Grosso, the sources said on condition of anonymity.

Starting in January, the state will strip tax incentives from companies taking part in the conservation programme. Mato Grosso grew some 51 million metric tonnes of soybeans in 2025, more than Argentina.

A preliminary report from state auditors in April found that grains traders had benefited from tax incentives worth about 4.7 billion reais ($840 million) between 2019 and 2024.

ADM and Bunge were the top beneficiaries of tax incentives, receiving about 1.5 billion reais ($269 million) each, said Sergio Ricardo, head of the Mato Grosso state audit court.

US-based ADM, Bunge and Cargill, as well as China’s Cofco and Brazil's Amaggi, are signatories of the pact with facilities in Mato Grosso that have benefited from state tax incentives. It was not clear which of the firms would break immediately from the moratorium. Cargill referred questions to industry group Abiove, which did not respond to requests for comment. ADM, Bunge, Cofco, Amaggi and grain exporter group Anec did not respond to questions.