Consumer link to rainforest destruction

By Fiona Harvey and Jenny Wiggins in London and Jonathan Wheatley in São Paulo
Published: May 31 2009 23:25

The destruction of the Amazon rainforest to make way for cattle ranches has been directly linked for the first time to patterns of consumption of beef and leather in the developed world, according to campaigners.
Cattle ranching is the single most important cause of the tearing down of rain­forest in Brazil. The lucrative business caters to the changing tastes of wealthier consumers in emerging economies such as China and India, as well as to long-established markets, including Europe and the US.
The industry generates more than $7bn (€4.9bn, £4.3bn) a year for Brazil in exports, a figure the government wants to double.
A report published on Monday by Greenpeace, the environmental group, establishes a link between the cattle ranches encroaching on the Amazon and products – mainly beef, leather and cosmetics – sold in supermarkets and by luxury brands.
Some companies named in the report as possible recipients of products from deforested lands have told the Financial Times they would review their sourcing policies as a result.
The concerns raised also reflect a growing desire among consumers for “traceability” of the products they buy, heightened by recent food scares.
Unilever said it would launch a “traceability audit” to ensure none of its products came from deforested areas, although it already had a code of conduct for suppliers,
Waitrose, a supermarket chain, said it would examine Greenpeace’s evidence and “conduct a thorough investigation” if necessary.
Tesco said its beef products came from areas 3,000km from the ­Amazon.
Kraft Foods said it only bought beef from Brazil for local meat products sold in Italy, and its global purchases accounted for less than 0.2 per cent of total beef production from Brazil.
Prada , the luxury goods group, denied taking leather from Brazil. It said: “Brazilian leather is of too low quality for us. Our experts could tell the difference.”
Greenpeace is asking companies with links to Brazil to put policies in place to ensure none of the products they sell could have come from deforested land.
Marks and Spencer , the retailer, said it had procedures to ensure its beef came only from specified farms, with animals tagged and carcases labelled at every stage.
Other supermarkets contacted by the FT said their suppliers had signed contracts guaranteeing that cattle did not come from the Amazon.
However, Greenpeace contends that many such contracts are mere “box-ticking exercises” and the retailers do not have adequate procedures to ensure the conditions are met.
Much of the export trade in cattle in Brazil is handled by a small number of companies. Three contacted by the FT did not respond to requests for comment. A fourth, Bertin, a beef and hide processor, said: “We are working towards more sustainable methods and this is the tendency for the entire industry.”
The International Finance Corporation, which has provided financing to Bertin, said: “There has been progress but some challenges remain.”
People familiar with the situation said serious problems persisted. One industry executive, who asked not to be identified, said: “The big problem is controlling the behaviour of the ranchers. A lot of producers don’t even have title over their land.”
John Carter, a Texas-born rancher in Mato Grosso state, south of the Amazon, said: “There’s just no doubt that beef production has migrated to the Amazon.”
Copyright The Financial Times Limited 2009