Brazil's Environmental Agency Imposes Fines on Meat Industry

BRASILIA (Reuters) – Brazil's environmental protection agency IBAMA has imposed 365 million reais ($64 million) in fines on cattle ranches and meat packers, including the world's largest JBS SA (OTC:JBSAY), for raising or buying cattle on illegally deforested land in the Amazon.

IBAMA identified 69 properties that sold 18,000 head of cattle raised on deforested land, along with 23 meat packing companies that purchased the cattle in the states of Para and Amazonas.

The enforcement operation aims to curb deforestation in the Amazon by monitoring the supply chain that produces or sells cattle from illegally cleared areas.

JBS denied purchasing cattle from the named properties, asserting, "None of the JBS purchases indicated by IBAMA were made from embargoed areas." The company highlighted that their geospatial monitoring system prevents them from acquiring animals from farms linked to illegal activities.

Extensive cattle ranching, along with actions like timber sales and soy cultivation, continues to drive deforestation in the Amazon rainforest.

Several meat packers committed to avoiding purchases from illegally cleared ranches in a 2013 agreement with prosecutors. JBS and over a dozen other major agriculture firms pledged to eliminate deforestation from their supply chains by 2025, including that caused by indirect suppliers.