Slaughterhouses rebate banks after protocol for credit – 05/30/2023 – Market

In response to the protocol approved by banks with requirements for slaughterhouses to prove that they do not buy cattle from deforested areas, the association of meat exporters stated that it does not accept that “other sectors outsource their responsibilities”.

“We assume our responsibilities, but we do not accept that other sectors outsource their responsibilities to slaughterhouses”, said the Abiec (Brazilian Association of Meat Exporters) in a note.

The association also demanded that the demands laid down by the banks to the slaughterhouses be adopted “to all their account holders”.

“That is why it is important not only that banks require their customers to implement monitoring and traceability systems, but that the compliance and due diligence areas of financial institutions adopt the same criteria in relation to all their account holders, including rural landowners. already implemented by the beef processing industry, and not just for granting credit”, highlighted the association of the meat sector.

Abiec also said that it supports all initiatives that increase sustainability standards in all links of the Brazilian livestock chain.

According to the association, its members use advanced tools, such as satellite images and artificial intelligence, which make it possible to monitor tens of thousands of suppliers on a daily basis to ensure that they comply with the most advanced environmental policies, meeting the requirements of customers and consumers.

According to Abiec, there are already approximately 20,000 suppliers blocked for socio-environmental non-compliance. “The refrigerators cut commercial relations with these suppliers, but it is possible that they continue to have commercial relations with the financial sector.”

The association also said that it is willing to cooperate with Febraban for the continuous improvement of the sector and to offer its expertise in the development of additional criteria that regulate all the banks’ relationship with owners of illegally deforested lands, invaders of public lands and indigenous territories.

Banks will require slaughterhouses to prove that they are not buying cattle from deforested areas

Brazilian banks will start checking whether slaughterhouses have purchased cattle from deforested areas in the Legal Amazon and in the rest of Maranhão before approving credit requests.

The protocol was approved by the Self-Regulation Board of Febraban (Brazilian Federation of Banks), formed by representatives of eight banks —Itaú Unibanco, Banco do Brasil, Banco Votorantim, BMG, Bradesco, Caixa Econômica Federal, Daycoval and Santander.

According to the federation, 21 financial institutions adhered to the text (see the complete list at the end of the text).

In order to comply with the new rules, approved in March, the participating banks will have to request that slaughterhouses in the area in question implement a traceability and monitoring system. This will make it possible to verify that the establishment has not purchased cattle associated with illegal deforestation from direct and indirect suppliers.

The businesses involved will have until December 2025 to comply.

This program will include information on the animals’ properties, such as environmental embargoes, overlaps with protected areas, identification of deforestation polygons, authorizations to suppress vegetation and the CAR (Rural Environmental Registry).

The system will also include verification of the records of employers who have subjected workers to conditions analogous to slavery.

Financial institutions now need to define appropriate plans, incentives and applicable consequences for slaughterhouses.