INFOBRIEF 8 Mapping the deforestation risk of Brazilian beef exports New data on Trase maps Brazilian beef, offal, and live cattle exports for 2015-2017, showing the links to deforestation. This brief describes that trade, identifying the major markets served by Brazil’s US$6 billion beef export industry, and highlighting the link between these exports and 65,000-75,000 hectares of deforestation per year. These data are freely available on trase.earth Brazil is the world’s biggest exporter of beef products, Because of this clearance - plus the gases cattle emit exporting around 1.4 million tonnes per year to retailers when digesting grass - the cattle sector is responsible and manufacturers around the world. While this trade for around half of Brazil’s greenhouse gas emissions, worth almost US$ 6 billion is important for the Brazilian making it a significant contributor to the country’s economy, it has come at a price for the country’s forests, climate impact. The sector is also associated with cases of local and traditional peoples and biodiversity. land conflict, slave labour and displacement of traditional communities. In the Amazon and Cerrado regions - two of Brazil’s most important regions both for biodiversity and social diversities While these impacts have long been associated with cattle - two-thirds of deforestation is for cattle pasture. Overall, ranching, the complex nature of cattle supply chains has an estimated 260,000 – 580,000 hectares of forest are lost to made it difficult to directly link deforestation and other the expansion of cattle ranching each year. impacts to companies and consumer markets. Main importers of Brazilian beef and live cattle (2017) TRASE.EARTH INFO@TRASE.EARTH INFOBRIEF 08 SEPTEMBER 2019 1 INFOBRIEF 8 companies. The largest of these markets in 2017 were Hong Kong and mainland China, which together accounted for 38% of Brazilian beef exports by volume. The deforestation risk linked to exported beef varies depending on where in Brazil the cattle were raised. Trase data can be used to identify these impacts for buyers across different supply chains. For example, imports to Hong Kong (23% of Brazilian beef exports) were PHOTO: DANIEL BELTRA / GREENPEACE associated with a significantly higher deforestation risk per tonne than imports to mainland China (15%). This is New Trase data changes that, bringing unprecedented because significantly more of Hong Kong’s beef imports transparency to Brazil’s exports of beef, highlighting the come from the Amazon, while mainland China’s imports deforestation and other risks that buyers are exposed to. come more from further south in Brazil, from states such The new data maps the supply chains of Brazilian beef as São Paulo, Minas Gerais, and Mato Grosso do Sul. and live cattle exports from the municipalities where cattle are raised through to the importing countries – In 2017, exports to Hong Kong were linked to 27% and identifies 210,000 hectares of deforestation linked to of all export-associated deforestation risk (18,000 those exports between 2015-2017 . This is the loss of an area hectares), while exports to China were linked to 7% of larger than London in just three years. deforestation risk (4,700 hectares). Russia, although only the fourth biggest importer in 2017, had the third highest Importantly, these deforestation figures are broken deforestation risk, with 10,000 hectares. down, revealing the deforestation risk that each exporter, importer, and consumer country is exposed to – that is to say, the estimated area of deforestation (in hectares) which is associated with each buyer (see box Beef deforestation risk per municipality (2017) ‘How does Trase work?’). Using this data, international buyers of Brazilian beef can estimate their exposure to deforestation in their sourcing regions and identify priorities and options for action. Where possible, the new data include indirect suppliers – the farms where cattle were raised, rather than simply the last property they came from before being sent either to a slaughterhouse or for live export (the direct supplier). These indirect suppliers make up an important but previously invisible part of the supply chain and represent a major breakthrough in the work of Trase. EXPORT MARKETS AND DEFORESTATION RISK Trase maps exports of Brazilian beef products to 150 international markets, via thousands of importing TRASE.EARTH INFO@TRASE.EARTH INFOBRIEF 08 SEPTEMBER 2019 2 INFOBRIEF 8 New risks from the EU-Mercosur treaty? At the end of June 2019, the European Union (EU) signed a free-trade agreement with the Mercosur trading bloc: Brazil, Argentina, Uruguay and Paraguay. This included a commitment to increase beef imports from the region by more than one-third (an additional 99,000 tonnes/year). Brazil today supplies more than half of all Mercosur’s beef exports to the EU (around 100,000 tonnes), so the agreement is expected to boost Brazilian beef exports. Trase data can be used to scan the potential deforestation risks linked to this trade. The EU currently sources cattle from many regions in Brazil, with the greatest quantities coming from the Pampas in the far south, the southern Cerrado savannah and around the Amazon–Cerrado transition zone in the west. Between 2015 and 2017, EU beef imports were linked to 2,900-3,600 hectares of deforestation risk each year. As the Brazil-EU beef trade grows, Trase’s data, updated annually, offer a powerful way to monitor the sources of beef exports from Brazil to the EU, and any change in the deforestation risk that EU companies and consumers are exposed to. Deforestation risk: main importers of Brazilian beef and live cattle (2017) TRASE.EARTH INFO@TRASE.EARTH INFOBRIEF 08 SEPTEMBER 2019 3 INFOBRIEF 8 Top 5 beef and live cattle exporters in Brazil (2017) Deforestation risk of the top 5 beef exporters in Brazil (2017) By identifying the origins of exported beef and other an even larger, and above average share of the total cattle products, the Trase data also allows us to compare deforestation risk for beef product exports in 2017: 36% the deforestation linked to exports and to the domestic (24,000 ha). This is because JBS exports a large share of market. Overall, export markets purchase 19% of Brazil’s beef from the Amazon, operating slaughterhouses in the beef, shouldering 13-14% of deforestation risk. Amazon states of Mato Grosso, Rondônia, Pará, and Acre. The domestic market buys 81% of Brazil’s beef and is The second largest exporter, Minerva, in 2017 handled linked to 85-86% of cattle-related deforestation. This is 15.8% of exports and was associated with 15.5% of export- chiefly because a disproportionately large share of beef associated deforestation risk (10,200 ha). raised in the Amazon, where per-tonne deforestation risks are high, feeds into the domestic market. These Marfrig, the third largest exporter, saw its export share figures confirm that action is needed by multiple players increase from 12% to 15% between 2015-2017 and was – slaughterhouses, retailers, government, traders, and associated with 10-15% of deforestation risk over that consumer markets abroad – to tackle deforestation in the period. cattle sector. Around two-thirds of Brazilian beef exports are handled by these three companies – JBS, Minerva and Marfrig – EXPORTING COMPANIES AND THEIR DEFORESTATION COMMITMENTS all of which have signed the G4 agreement, a commitment to eliminate deforestation from their supply chains in the Amazon biome. Despite this, Trase’s data The Trase Brazilian beef data also maps the supply chains suggest these companies’ exports were linked to 140,000 and quantifies deforestation risk for the 200 companies ha of deforestation between 2015 and 2017. exporting beef and live cattle from Brazil. Although these companies have taken steps to monitor The world’s largest meat-packing company, the Brazilian their direct suppliers, and so in theory can avoid farms firm JBS, is the biggest exporter of Brazilian beef, with associated with deforestation, none so far monitors 29% of total export volumes in 2017. It accounted for its indirect suppliers, who make up the bulk of their TRASE.EARTH INFO@TRASE.EARTH INFOBRIEF 08 SEPTEMBER 2019 4 INFOBRIEF 6 supply chain. Trase reveals the previously unquantified risks associated with each company’s cattle exports by A POWERFUL NEW TOOL TO ADDRESS BEEF-RELATED DEFORESTATION accounting for their indirect suppliers where possible and by taking a landscape approach to measuring their The new Trase data represent a major advance in our deforestation risk (i.e. calculating deforestation risk at the understanding of trade in one of the world´s major municipal-level). deforestation-risk agricultural commodities. As the world’s appetite for beef grows, Trase can help Trase data also suggest that 45–54% of these companies’ to identify the key companies and countries that can deforestation risk comes from sourcing cattle outside of drive improvements in the sustainability of these global the Amazon, from the Cerrado where native vegetation supply chains. is also being converted to pasture. By only covering the Amazon, the G4 agreement does not go far enough For companies involved in the Brazilian beef trade, as to eliminate deforestation and shield downstream well as potential investors, Trase can be a powerful tool to companies from deforestation risk. identify hotspots of sustainability risk in company supply chains, and regions where they should focus engagement in pursuit of zero-deforestation targets. PHOTO: DANIEL BELTRA / GREENPEACE TRASE.EARTH INFO@TRASE.EARTH INFOBRIEF 06 APRIL 2019 5 INFOBRIEF 8 Governments can use this information to track the deforestation linked to the sourcing by their country. Some HOW DOES TRASE WORK? Like all Trase datasets, the Brazilian beef product governments, like the seven signatories of the Amsterdam analyses customs declarations alongside many other sources Declarations – Germany, Denmark, Norway, France, of complementary data. The exports mapped by Trase are Netherlands, the UK, and Italy – for instance, have made zero deforestation commitments and can use Trase data to look for improvements in their supply chains. based on customs declarations covering almost US$6 billion worth of annual exports of beef, offal, and live cattle. These data were linked back to specific slaughter facilities by triangulating the information in the customs data against data on companies’ assets, companies’ subsidiary Civil society organisations and journalists can use the data to promote more sustainable production, and to monitor relationships, and official lists of slaughterhouse export permissions. Once the slaughterhouse was identified, the progress on sustainability commitments of different municipalities where the cattle originated were mapped sectors, targeting the biggest culprits more effectively using one of two methods: For 50.4% of exports, records of and identifying progress. cattle movements between properties were used; these data include indirect suppliers – properties who don’t sell to the slaughterhouse directly (they may, for example, sell calves to another farm which raises them before slaughter). For a further 49.2% of exports from slaughterhouses where animal movement records were not available (mostly related to slaughter in the states of São Paulo, Goiás, and Rondônia), data on the origin of cattle slaughtered in each state’s export-approved slaughterhouses were used instead. These show the municipalities where the cattle originated but don’t capture indirect suppliers. The maps of the origin of each shipment were then linked to deforestation data to calculate their “deforestation risk”, the area of cattle-related deforestation (in hectares) associated with their production, based on the municipalities of origin and the proportion of production exported per municipality. Cattle-related deforestation was calculated for each municipality by intersecting annual high-resolution maps of pasture expansion and deforestation in the Amazon, Cerrado and Atlantic Forest biomes with statistics on cattle production per municipality. Deforestation was counted as cattle-related if pasture was detected on the deforested land within five years (excluding pasture that became soy cropland within that period). Trase data is open-access and freely available for download at www.trase.earth/data. The Trase Infobrief series illustrates some of the key insights around commodity trade and supply chain sustainability that are made possible by Trase. 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