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Food retailers urge grain traders to support Brazil's soy ban initiative

Food retailers in Europe have called on grain traders around the world to support Brazil's soy ban initiative. The pact is designed to protect Amazon rainforests from deforestation caused by soy, and farmers are trying to stop the program.

In a letter seen by food grocers such as Tesco, Sainsbury's and Aldi, they ask CEOs from ADM, Bunge and Cargill to publicly confirm their commitment to ban soybean purchases made by Amazonian farmers after the 2008 deadline.

The letter stated: "We write to you at an important moment for the future Amazon Soy Moratorium. An initiative that your companies have championed for nearly 20 years ...",, protecting the Amazon.

The letter warns that consumers and big companies will continue to pressure traders if they do not stop sourcing soy from deforested Amazonian land.

Brazil is the world's biggest soy exporter and producer. It sells most to China for feedstock.

The traders didn't immediately respond to our request for comment.

The moratorium is credited with reducing deforestation caused by soy in the Amazon. Farmers have been disgruntled for years. CADE was forced to investigate the issue after powerful lobbying by farmers in Congress.

The letter is signed by the National Pig Association of Britain and private food producers in the UK. It praises grain traders for their efforts to appeal CADE’s decision.

The letter stated that "even though a temporary order was issued regarding the immediate implementation (of the CADE) order, it is necessary to take action at this time in order to remove any uncertainty on the market in regards to the protection of this important ecosystem."

Signatories to the letter expect grain traders "to be ready to immediately deploy an interim measure on a company-by-company basis until a long-term solution has been secured" in order to protect Amazon. (Reporting and Editing by Franklin Paul, Aurora Ellis and Ana Mano)

(source: Reuters)