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Mato Grosso Soybean and Corn Farmers Association Seeks R$1 Billion in Compensation

Strategic Insights

— 2 min read

The Mato Grosso Soybean and Corn Farmers Association (Aprosoja-MT) has filed a class action lawsuit against 27 trading companies involved in the Amazon Soy Moratorium, requesting R$1 billion in collective moral damages. The association claims that the voluntary industry ban on purchasing oilseeds harvested from areas deforested after 2006 has hindered farmers from selling their crops, resulting in financial and moral losses. The complaint argues that the Moratorium has impacted soybean planting across 2.7 million hectares in 85 municipalities in Mato Grosso, with the requested compensation representing just 0.05% of the estimated R$1.8 trillion in combined revenue of Brazil's five largest trading companies in 2024.

Key Takeaways:

  • Aprosoja-MT is seeking R$1 billion in compensation for collective moral damages linked to the Amazon Soy Moratorium.
  • The association claims that the Moratorium has impacted soybean planting across 2.7 million hectares in 85 municipalities in Mato Grosso.
  • The requested compensation represents just 0.05% of the estimated R$1.8 trillion in combined revenue of Brazil's five largest trading companies in 2024.
  • The complaint argues that the Moratorium has hindered farmers from selling their crops, resulting in financial and moral losses.
  • Aprosoja-MT disputes the environmental legitimacy of the Moratorium, claiming it is a "smokescreen to hide serious anti-competitive acts in the relevant soybean market."
  • The association also claims that companies continue to buy other crops from deforested areas, while refusing to purchase soybeans from those regions.
  • The Federal Supreme Court (STF) is set to rule on a provisional remedy granted by Justice Flávio Dino under direct action for the declaration of unconstitutionality 7774.
  • The provision remedy allowed part of a Mato Grosso law, which prohibits tax benefits for companies participating in the Soy Moratorium, to take effect.

Statistics:

  • R$1 billion: the amount requested by Aprosoja-MT in compensation for collective moral damages.
  • 2.7 million hectares: the area of soybean planting impacted by the Amazon Soy Moratorium in 85 municipalities in Mato Grosso.
  • R$1.8 trillion: the estimated combined revenue of Brazil's five largest trading companies in 2024.
  • 0.05%: the percentage of the estimated R$1.8 trillion in combined revenue of Brazil's five largest trading companies that the requested compensation represents.
  • 27: the number of trading companies named in the class action lawsuit.

Sources:

  • "Aprosoja-MT demands R$1 billion from trading companies involved in the Amazon Soy Moratorium." (Translation: Todd Harkin)
  • Mato Grosso Court filing (no date)
  • National Association of Grain Exporters (ANEC) statement (no date)
  • Brazilian Association of Vegetable Oil Industries (Abiove) statement (no date)
  • Federal Supreme Court (STF) website (no date)

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