In accordance with newly implemented regulations, manufacturers of food products in the E.U. must discriminate against suppliers that indirectly contribute to deforestation.  Major producers including Nestle, Unilever and Danone have indicated that they will source soybeans from nations other than Brazil based on extensive deforestation of the Amazon rainforest.  Despite the fact that the E.U. Commission has proposed a 12-month delay in implementation, importers are already purchasing from alternative sources. Hopefully the U.S. may benefit notwithstanding the GMO status of all but a sliver of our domestic production. 

Aprosoja representing soybean producers in Brazil has condemned the Danome decision that apparently disregards the claimed natural regeneration of Rainforest.  The group is calling for a boycott of Danone products in Brazil.  Within that nation, Danone uses local soybeans, but the European component of the Company is abiding by the E.U. directive.  The Agriculture Ministry of Brazil has characterized the E.U. directive as “discriminatory, unreasonable and untimely”.

If the American Soybean Association is looking for an issue to differentiate U.S. soybeans from those produced in Brazil, deforestation would appear to be an important market attribute.