The Brazilian industry organization Abiove, which brings together giants such as Cargill, Bunge and Amaggi, announced on Monday that it is leaving the 2006 agreement not to buy soybeans from deforested areas in the Amazon.
The announcement comes after the Brazilian state of Mato Grosso removed the tax breaks used as an incentive to sign the agreement. This decision is currently under review by Brazil's Supreme Court.
The Soybean Accord is a voluntary agreement signed in 2006 by several major producers. Signatories to the agreement commit not to purchase soybeans from areas of the Amazon that have been deforested since 2008.
If the entire agreement were to collapse, researchers estimate that deforestation in the Amazon could increase by 30 percent in twenty years.
