Read the report:Bunge, Cofco, ADM and CHS traded soybeans with farmer cited for deforestation in Brazil
Luciano Márcio Curioni
There was no illegal deforestation and all interventions in the area occurred with prior authorization from the State Environment Secretariat, which attests to the regularity of the property. Due to an error in the interpretation of remote sensing data, the IBAMA inspection incorrectly classified the conversion of existing pasture into a crop as unauthorized removal of native vegetation.
The administrative defense, which was promptly presented before the environmental agency, remains pending merit review by the relevant authority, and there is no conclusive ruling from the judicial authority to date. The administrative restriction was temporarily lifted by a current court decision. Furthermore, the administrative measure has never affected the entire rural property, but has only affected a specific portion of the property.
The ongoing legal action is limited to the control of legality of the administrative act, based on the non-observance of due process and the right to a fair trial due to the lack of prior opportunity to challenge, without the disputed issue involving the controversy over the removal of vegetation.
Luciano holds other rural properties in the state of Piauí, all maintained in strict socio-environmental compliance and regular agricultural exploitation. Regarding the demand mentioned by the company Nobral Empreendimentos e Participações, the producer states that he has no knowledge of its terms, never having been cited or notified of any judicial decision regarding the aforementioned process, therefore, it is inappropriate to comment on allegations of which he has no formal knowledge.
Finally, due to the obligation of confidentiality and respect for business partners, we do not issue public comments regarding commercial contracts, financial instruments, securitization operations or private business relationships maintained with third parties.
Bunge
Bunge maintains its commitment to promote responsible and deforestation-free supply chains, supported by continuous monitoring processes of its suppliers, traceability and socio-environmental risk management applied to its operations, based on legal criteria and its corporate policies.
Regarding the farm mentioned, during the brief period of approximately 2.5 months that the area was embargoed, the producer was blocked from the Bunge systems.
The vegetation suppression activity that resulted in the embargo was identified through our monitoring process. As a result, the producer was classified as Red Flag and subsequently provided the necessary documentation that authorized the vegetation suppression activities. After verifying this documentation and removing the embargo, the client was approved to resume business with Bunge.
The company does not comment on the merits of ongoing legal proceedings involving third parties. Regarding allegations related to land disputes, Bunge analyzes information available from public sources and assesses the associated risks in accordance with its internal compliance and due diligence processes.
In its assessments, in addition to its monitoring and traceability process, the company considers the decisions of the competent authorities and consults public lists of embargos, systematically blocking areas and producers whenever non-compliance with its policies is identified.
We are aware of the requirements related to the EUDR (with an expected entry into force on December 30, 2026) and, through our monitoring and traceability systems, we assess the risks of deforestation in our supply chain, supporting our due diligence and risk assessment processes. A central component of our EUDR compliance efforts is to ensure that no soy harvested from deforested areas after 2020 enters the Bunge supply chain for the European Union.
Bunge utilizes monitoring, traceability, and risk assessment systems to support its due diligence and regulatory compliance processes. In the context of the EUDR, these controls are used to verify the eligibility of volumes destined for the European Union supply chain.
As previously mentioned, a central component of our EUDR compliance efforts is to ensure that no soy harvested from deforested areas after 2020 enters the Bunge supply chain destined for the European Union. We do not publicly comment on the commercial destination or eligibility of specific loads associated with individual suppliers.
Cofco
COFCO International states that, during the embargo period, it did not conduct commercial activities with the aforementioned producer. COFCO International reiterates that it conducts continuous socio-environmental monitoring of its supplier base, as well as strictly complies with legal requirements with verification from competent regulatory bodies, such as Ibama.
The company reaffirms that it maintains rigorous sustainability commitments and policies, acting through numerous initiatives to strengthen an increasingly responsible supply chain.
ADM of Brazil
The ADM maintains robust socio-environmental verification processes in its supply chain and continuously monitors its suppliers and sourcing areas, with a specialized technical team and the support of an external and independent company, through georeferencing tools and satellite imagery.
In the case mentioned, ADM became aware of the existence of an environmental embargo related to the cited property and maintained the corresponding purchase restriction for this, without acquiring any product linked to the then-embargoed area.
Nevertheless, in relation to other sourcing areas linked to the company's purchasing operations, no active environmental embargoes were identified at the time, or other non-conformities that prevented the acquisition of products.
The company reiterates that it does not acquire products from areas with active environmental embargoes and maintains monitoring and verification procedures that include, among other criteria, lists of environmental embargoes, information from the Cadastro Ambiental Rural (CAR), protected areas and indigenous and quilombola territories, as well as the List of Employers who have subjected workers to conditions analogous to slavery.
CHS
CHS conducts its origination activities in accordance with its internal policies, applicable laws, and relevant socio-environmental, traceability, and origin control requirements. We do not acquire agricultural products from areas subject to active environmental embargo or other socio-environmental restrictions that prevent acquisition.
CHS has documentary and georeferenced traceability for all properties associated with products directly originated by the company in Brazil. CHS does not have records indicating the purchase, for the 2025/26 harvest, of grains from Fazenda Três Santos, located in Uruçuí, in the state of Piauí.
We cannot comment on specific commercial relationships, transactions, volumes, prices, contractual terms, or the existence (or non-existence) of negotiations with specific properties or suppliers, except for what is necessary to describe our applicable control policies and procedures.
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