Danone affirms continued soy sourcing from Brazil

USA – Danone has clarified that it continues to source soy from Brazil, countering reports that suggested the French dairy company had ceased its procurement of the commodity due to shifting market dynamics and regulatory pressures. 

This clarification comes in response to statements made by Brazil’s government, which felt the need to defend its practices regarding soybean exports after reports emerged quoting Danone CFO Jurgen Esser. 

Esser had mentioned a shift in sourcing to Asia in light of the European Union’s proposed regulations aimed at combating deforestation, particularly concerning commodities like soy​

In a statement, Danone expressed regret over the misinformation circulating regarding its soy sourcing and emphasized that Brazilian soy remains a crucial part of its feed supply chain for dairy farmers in Brazil. 

The company confirmed it adheres to both local and international regulations in its sourcing practices​

Brazilian officials responded robustly, defending their environmental regulations and stating that the country maintains a rigorous legal framework aimed at preventing illegal deforestation​.

Danone’s statement also highlighted its ongoing collaboration with Brazilian suppliers to ensure that the majority of the soy it sources is from non-deforested areas. 

This commitment aligns with the company’s broader sustainability goals, which include encouraging dairy farmers to procure feed only from suppliers who comply with sustainable practices​

Brazil’s Ministry of Agriculture has insisted that the country implements stringent monitoring and inspection processes to combat illegal deforestation, maintaining that its agricultural practices are conducted responsibly and sustainably​

The Brazilian government criticized the EUDR’s proposed rules, labeling them as “arbitrary and punitive,” and called for fair treatment in international trade​.

Experts have pointed out that while Danone’s sourcing strategies may evolve, the company currently relies on various sources of soy, including significant quantities from regions outside of Brazil, such as Europe and Canada. 

This complexity raises questions about the impact of any changes in sourcing practices on Danone’s overall dairy supply chain​

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