Danone denies executive's claim about Brazilian soy

A Reuters news agency, citing Danone's CFO as a source, reported last week that the French company no longer buys Brazilian soybeans. This is in response to new environmental guidelines from the European Union (EU). However, the company's Brazilian subsidiary stated today that the information is incorrect and that purchases of soybeans from the country would continue in accordance with local and international standards.

Danone's stance came amid pressure from new EU rules that seek to restrict the entry of products linked to deforestation into its territories. An initial statement by a Danone executive that the company would suspend imports of Brazilian soybeans was met with negative repercussions, especially among Brazilian producers, who interpreted the decision as a boycott of domestic production.

Brazil's Ministry of Agriculture has responded to the situation. In a statement, the government emphasized that Brazil has some of the strictest environmental legislation in the world, as well as command and control systems to combat illegal deforestation. The ministry also highlighted the country's commitment to sustainability and the adoption of internationally recognized traceability practices, stating that Brazilian companies in the soybean sector follow rigorous due diligence processes to ensure environmental compliance.

The note also criticized the European Union's rules, classifying them as unilateral and arbitrary. According to the Ministry, such requirements disregard the particularities of the producing countries, imposing high costs and especially harming small producers who depend on the European market. In addition, it was reinforced that the Brazilian government has already proposed electronic tracking models to the European Union to comply with the new rules, demonstrating its commitment to transparency and sustainability.

The Brazilian agricultural sector also reacted to Danone’s move. Soybean producer associations argued that the country has made significant progress in reducing deforestation and adopting sustainable practices. According to producers, the company’s decision could have serious consequences for the local economy, compromising not only producers but also Brazil’s image as a food supplier. Some groups even suggested a boycott of Danone brands in retaliation.

In light of the repercussions, Danone issued a clarification, stating that the initial information about the suspension of purchases of Brazilian soybeans was incorrect. The company assured that it will continue to buy soybeans from Brazil, respecting local and international regulations. However, the statement did not clarify whether there were any changes to its purchasing policies or adjustments to comply with the European guidelines that will come into effect.