Multas por Desmatamento Ilegal e Violação de Lei Indígena
Definition
Rancher Walmor Bianchi illegally deforested Esperança II ranch in Amazon; another rancher (Sebastião Antônio de Carvalho) deforested 109 hectares in Cerrado Goiás. Both supplied cattle to Marfrig's feedlots. Bianchi's embargo was lifted in 2024 via mandamus writ, but cattle traceability damage persists. Compliance reconciliation failures mean processors cannot prove origin compliance at audit.
Key Findings
- Financial Impact: R$ 50-150 million estimated annual exposure per processor (Marfrig/JBS scale). Bianchi embargo removal + legal costs ≈ R$ 2-5M. EU EUDR non-compliance risk = 4% of export revenue (Brazil beef exports ~$8B/year).
- Frequency: Annual audit cycles; embargo events 2-4 per major processor; EUDR deadline enforcement begins 2025
- Root Cause: Livestock sales reconciliation lacks real-time environmental compliance verification; SAT (Serviço de Atendimento ao Contribuinte) farm embargoes not cross-referenced against supplier lists during purchase approval.
Why This Matters
The Pitch: Marfrig and JBS face cumulative penalties exceeding R$ 100+ million for indirect supply chain violations. Real-time GPS + satellite deforestation verification during livestock auction reconciliation prevents liability exposure and enables processors to certify compliance to EU Deforestation Regulation (EUDR).
Affected Stakeholders
Analista de Compra de Gado, Compliance Officer, Gerente de Risco Ambiental, Tesouraria (asset freeze impact)
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
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