French dairy producer Danone has stopped buying Brazilian soy destined for the production of animal feed and the production of plant-based dairy alternatives. Brazilian soy farmers are furious over the decision.
Although all indications are that the implementation of the deforestation law will be postponed by a year, until the end of 2025, Danone has already stopped importing Brazilian soy. Instead, the French dairy company is now focusing on soy from Asian countries, the company’s chief financial officer recently told Reuters. Danone also buys soy from countries such as the US, Canada and Italy.
With this, the company is preparing for the European deforestation law that will probably come into effect at the end of 2025. This prohibits companies from purchasing raw materials from deforested agricultural areas. Brazil is particularly vulnerable in this respect, due to deforested parts of the Amazon. The fines are substantial and can amount to up to 20% of turnover.
Major importer
Danone is a major importer at the corporate level. In 2023, they purchased 262.000 tons of soy (or derivative producers thereof) for animal feed. In addition, 53.000 tons of soy were purchased for the production of dairy alternatives, for the Alpro brand among others. In the past, a substantial part of this (approximately 20%) came from Brazil.
Brazilian soy producers are furious with Danone's decision. Advocacy group Aprosoja Brazil calls it a lack of knowledge and also discriminatory. They call for a boycott of Danone from now on. In the meantime, Brazilian soy growers are desperately looking for sales, as the country heads for a record harvest. Production for the 2024/25 season is estimated at a record 161 million tons, which is an increase of 6% compared to last year.