Danone Brasil commits to continued soy purchases domestically

Danone do Brasil issued a statement affirming it will continue purchasing Brazilian soybeans, aiming to reassure local producers following reports that the group had ceased sourcing soy from Brazil. The shift, reportedly due to the European Union’s new deforestation regulations requiring companies to verify the sustainable origin of their raw materials, has stirred concerns.

Danone’s headquarters in France did not respond to Valor’s request for comment. However, Danone’s CFO, Jurgen Esser, told Reuters that the company no longer sources soy from Brazil, now importing from Asia, without specifying when this shift occurred.

In Danone’s 2023 report, the company disclosed using 262,000 tonnes of soy-based feed for dairy cattle and 53,000 tonnes for soy milk and yogurt production, sourced from France, Canada, the U.S., and Italy.

Danone Brasil, however, confirmed that it sources soy in Brazil for animal feed. “Danone continues to purchase Brazilian soy per local and international regulations,” said Tiago Santos, CEO of Danone Brasil.

Before Danone’s clarification, Aprosoja Brasil, the Brazilian Soybean Producers Association, had criticized the decision as reflecting a “lack of understanding of Brazil’s production process” and called it a “punitive, discriminatory, and coercive” stance. “No company has the right to question without understanding,” said Aprosoja chairman Maurício Buffon.

The Ministry of Agriculture responded similarly, rejecting what it described as “untimely and unreasonable stances from European companies,” asserting that Brazil has some of the “strictest environmental regulations in the world,” supporting responsible and sustainable production. The Ministry also deemed the EU’s Deforestation Regulation (EUDR) as “arbitrary, unilateral, and punitive.”

Translation: Todd Harkin

Source: Valor Internacional

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