DEPARTMENT FOR SCIENCE, INNOVATION AND TECHNOLOGY

The Environmental Governance of Brazilian Soy Agribusiness During Global Power Transition

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Description

This project will investigate how shifts in economic power in global commodity chains from European to other markets translate into environmental policies and initiatives in Brazilian agriculture, focusing on soybean production and trade. Specifically, we will examine European trade and investment policies and contingent outcomes in Brazil. Over the past two decades, emerging powers have bypassed European demand for Brazilian agri-food exports and have established a strong presence in various segments of Brazilian agricultural production. This entails the Chinese acquisition of leading European agribusinesses, such as the Dutch-based Nidera (acquired by COFCO in 2016) and the Swiss-based Syngenta (acquired by ChemChina in 2017). These acquisitions have allowed these companies to gain market share and further compete with traditional European agribusinesses still on the market, like the commodity trader and processor Louis Dreyfus and the seeds and biotechnology producer Bayer. In the context of global economic restructuring, the EU and the UK have recently introduced 'due diligence' regulations targeting agri-food commodities entering their markets that will hold global food retailers and food production companies responsible for their supply chain's social and environmental impacts. Meanwhile, commodity traders from emerging powers have adopted comprehensive traceability commitments for agri-food imports. We aim to understand the motivations behind these environmental commitments and greening strategies and how each produces different outcomes in terms of environmental regulations and green innovation in Brazil. As the top producer and exporter of soybeans, Brazil faces significant environmental issues like deforestation and human rights violations linked to this supply chain. Regarding the contingent outcomes in Brazil, we will examine how various actors with divergent interests influence and adapt to new regulatory regimes in the Brazilian soybean industry. We will investigate the latest platforms and mechanisms affecting supply traceability and business practices, such as private multi-stakeholder agreements and the roles of NGOs and government institutions in Brazil. We will investigate how they shape policies and greener agri-business practices at local levels while incorporating environmental regulations from the two global blocs. The analysis will also consider the interests of Brazilian farmers and agribusiness associations - which often see sustainability standards and certifications as obstacles to accessing foreign markets due to the additional financial burdens they impose. We will explore their economic links and political preferences regarding sustainability initiatives and mechanisms developed by Europe. To investigate the interactions between multiple actors in Brazil and the shifting regulatory regimes from global powers, the project will bring together researchers who have dedicated themselves to the subject through empirical research. The project will catalyse collaboration between UK- and Brazilian-based academics to build capacity and create new knowledge through this and future research activities. We will also engage with civil society organisations involved in environmental advocacy in a workshop hosted by the Federal University of Rio Grande do Sul. As a result of this academic exchange, the project will coordinate a special issue in a social sciences journal and further engage with political and research communities by producing a policy report suitable for submission to parliamentary inquiries or expert working groups. The research team will also present project findings at the Development Studies Association (DSA) Annual Conference in London.

Objectives

ISPF aims to foster prosperity by solving shared global research and innovation challenges. This will be done through working closely with international partners to: support research excellence and build the knowledge and technology of tomorrow strengthen ties with international partners that share our values; enable researchers and innovators to cultivate connections, follow their curiosity and pioneer transformations internationally, for the good of the planet. Activities under ISPF ODA aim to deliver research and innovation partnerships with low- and middle-income countries.

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Location

The country, countries or regions that benefit from this Programme.

Brazil

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