The Leadership of Brazilian Farmers in the Face of EUDR Requirements
The European Union Deforestation Regulation (EUDR) emerges as a regulatory milestone that imposes a set of rigorous criteria for the import of agricultural products, notably soy. This legislation represents, simultaneously, a considerable challenge and a window of strategic opportunity for Brazilian soy producers. In essence, the EUDR requires that agricultural commodities, such as soy, meet strict traceability and sustainability criteria for facilitated access to the European market.
At the heart of soy production lies the figure of the Brazilian farmer, a fundamental actor in global food supply. The 2022/2023 harvest witnessed a production exceeding 140 million tons, according to CONAB data, elevating Brazil to the position of the world's leading soy exporter. This success story was built amidst adversities such as low fertility soils, unfavorable climate variations, and increasing pressures for sustainable practices.
Soy occupies a prominent place in the national economy, accounting for approximately 25% of total Brazilian exports in 2022, with a robust revenue of around US$50 billion, according to the Ministry of Agriculture, Livestock and Supply (MAPA). In addition to boosting the trade balance, soy drives agribusiness, a sector that represents about 26% of the country's GDP. Soy cultivation predominates in the Midwest region, notably in Mato Grosso, which contributed 29% of national production in 2022. The resources generated by soy enable crucial investments in infrastructure, health, and education in rural municipalities, strengthening the social fabric of these communities.
Brazil stands out in the environmental arena with the Forest Code, legislation that requires farmers to conserve up to 80% of their properties in preservation areas, varying according to the biome. The 2012 Forest Code establishes guidelines for environmental protection and the sustainable use of forests, requiring the maintenance of a Legal Reserve on rural properties, with percentages ranging from 20% to 80%. Although it is one of the most rigorous environmental laws globally, its effectiveness is hampered by enforcement challenges, with adequate monitoring in only 3% of rural properties.
The traceability demanded by the EUDR constitutes a complex challenge, requiring an efficient system that guarantees the verification of the origin of soy throughout the production chain. This complexity is amplified by the diversity of small and medium-sized producers and the lack of appropriate infrastructure. Data from Embrapa indicate that approximately 70% of soy production in Brazil comes from farmers with less than 200 hectares, which makes it difficult to implement uniform tracking systems. Technologies such as blockchain are emerging as promising tools to improve traceability, although McKinsey Consulting points out that less than 30% of Brazilian food industries have digital systems that ensure effective traceability.
The Brazilian farmer personifies the figure of a leader in building a sustainable future. By overcoming the obstacles imposed by the EUDR, Brazil faces the opportunity to reshape its position in the global market, integrating agricultural production, environmental preservation, and social development. The horizon for Brazilian soy is promising, and its trajectory is a testament to resilience, innovation, and commitment. Brazil's driving force lies in its farmers, who daily face challenges with courage and vision, nourishing the world responsibly. The EUDR represents another chapter in this saga of leadership and overcoming.
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