The increase in deforestation in the Amazon rainforest and its links to agricultural supply chains has become a hot-button issue for investors worldwide. With firms now painstakingly judged on their ESG (Environmental, Social, Governance) credentials, there is significant pressure placed on companies in the food industry to ensure that their deforestation footprints are minimized. However, while much of the coercion has come from companies in Europe and the Americas, what of China, Brazil’s biggest trading partner?
China’s appetite for Brazilian products has increased significantly in 2020, as a result of the devalued Brazilian Real and trade war tensions with the U.S. While soybeans, oil, and iron ore continue to top Beijing’s Brazilian shopping list, trade of meat has seen the sharpest increase, totalling USD 1.84 billion in the first half of 2020 — more than double what was seen in the previous year.
Among the Chinese firms that has ramped up its purchases in Brazil...
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