An analysis of the drivers of change and responses in the Brazilian livestock chain related to the introduction of sustainability commitments
climate change, cattle ranching, economic sociolgy, Environment-Society-Governance movement (ESG) and deforestation
The extrapolation of planetary boundaries such as the loss of biodiversity, associated with climate emergency and the concern about how to feed (on a sustainable and healthy basis) an expected global population of 10 billion people in 2050, have put the cattle ranching chain in contestation due to the negative externalities it produces. This conjecture is reinforced by the fact that the capital market, in the midst of the Environment-Society-Governance (ESG) Movement and Stakeholder Capitalism, has put pressure on the actors in the chain to eliminate deforestation and promote a regenerative agrarian system with zero net carbon balances. The actors in the Brazilian cattle ranching chain are at the center of this contestation process, inserted in a kind of socio-environmental court.`
Brazil has the largest cattle herd in the world, with 187.5 million head of cattle. It is the largest beef exporter on the planet, responsible for 1/4 of total global beef exports. About 40% of the national herd of cattle is in the Amazon. Historically, the expansion of production in this region was based on the clearing of the forest with the entry of pastures. Estimates show that about 70% of the deforested land in the Amazon is destined for cattle
ranching.
The thesis will explore how recent movements captured by the capital market and regulatory frameworks by public authorities, especially in the United States, Europe, and even, until recently, China, in favor of ending deforestation in agricultural commodity chains affect the Brazilian beef cattle supply chain.
It is organized into three main section. The first makes a historical recovery of the introduction of sustainability commitments in the Brazilian beef cattle supply chain, reaching the present day. It should be noted that in the past the actors in this chain had already committed to eliminating illegal deforestation, without success. In this sense, there is a focus on questioning what is new and the chances of success in the revisited and recently announced commitments of large meatpackers and the retail sector to end deforestation in the chain between 2025-2030. The second section explores the social innovation ecosystem that has been undertaken in the fields of: traceability, low carbon agricultural practices, multistakeholder governance over the territory in favor of sustainable production. The third section explores the points of conflict and tension around the modernization in the sector, to end deforestation and greenhouse gas (GHG) emissions, which involves discussions about changes in food diets and social inclusion. The thesis aims to contribute with analytical reflections based on Ecological Economics and Sociology of Markets, believing that the Brazilian livestock chain has chances to improve the quality of the meat that is offered to the market, with better socioenvironmental attributes.