Amazon soy moratorium collapses after two decades as major corporations exit historic conservation deal

A groundbreaking environmental agreement that helped protect the Amazon rainforest for nearly 20 years is unraveling as major agribusiness companies abandon their commitments to avoid deforestation-linked soybeans. The Amazon soy moratorium, established in 2006, prohibited participating companies from purchasing soybeans grown on lands deforested after July 2008—a voluntary deal that experts credit with significantly reducing forest clearing while allowing soy production to quadruple on previously cleared lands.

The agreement’s collapse began when Brazil’s Mato Grosso state—the country’s largest soy producer—eliminated tax benefits worth an estimated $840 million for participating companies on January 1. In response, the Brazilian Association of Vegetable Oil Industries (ABIOVE), representing multinational giants like Cargill, Bunge, and ADM, announced their withdrawal from the moratorium. Brazilian farmers and cattle ranchers have long opposed the deal, calling it a “purchasing cartel” that disadvantaged local producers in favor of international corporations.

Environmental experts warn the moratorium’s collapse could have devastating consequences for the Amazon’s ecosystem. Deforestation disrupts the region’s critical water cycle, reduces rainfall essential for agriculture, releases stored carbon dioxide, and threatens biodiversity. The development also puts Indigenous lands at greater risk as agricultural expansion seeks new territories. Glenn Hurowitz of environmental group Mighty Earth called the move “entirely self-defeating,” noting these companies’ commercial success has relied on the moratorium for two decades. The exit comes despite Brazil’s recent COP30 commitments to forest protection and individual corporate pledges for deforestation-free supply chains by 2030.