· 8 min read
The Amazon is at a crossroads — and so is Brazil’s beef industry
Brazil is the world’s largest beef exporter, but its Amazon-based supply chains are under growing international scrutiny. As the EU and other markets adopt stricter rules to keep deforestation-linked products off shelves, actors across Brazil’s beef value chain—from ranchers to slaughterhouses—are asking the same question: how do we meet rising demands for sustainability while keeping business running?
A new research, published in The International Journal of Logistics Management and supported by the São Paulo Research Foundation (FAPESP), dives into this very issue. Focusing on the frontier region of Santarém, Pará, Brazil it examines the governance dynamics shaping the Amazon beef cattle global value chain (GVC). The findings are both concerning and hopeful: the right mix of public and private action can drive sustainability, but only if it addresses the real-world challenges facing ranchers, buyers, and regulators in the Amazon.
Here’s what it means for you.
Why this research matters
Brazil’s Amazon region has rapidly become a key center for beef production, with the state of Pará recently surpassing Goiás in herd size. But this growth has come with steep environmental costs. Roughly 70% of Amazon deforestation is linked to cattle ranching, much of it illegal. International buyers now demand proof that supply chains are deforestation-free—a trend that’s only going to grow.
A standardised, replicable methodology was developed to map and analyse beef value chains, focusing on how public policies and private governance interact to influence sustainable outcomes. Applied to Santarém’s emerging cattle sector, the approach involved interviews with ranchers, slaughterhouses, NGOs, and local authorities.
The findings revealed how governance gaps—and well-designed interventions—shape sustainability in one of Brazil’s most ecologically and economically significant sectors.
Four key insights for a more sustainable Amazon beef chain
1. Frontier supply chains face a governance vacuum
Santarém’s cattle industry is expanding rapidly, but much of this growth is unfolding in a vacuum of public governance. Public institutions in the region often lack the resources, infrastructure, and reach to effectively support ranchers or enforce sustainability standards. Many producers still do not hold land titles or remain unregistered in the Rural Environmental Registry (CAR), which restricts their access to rural credit lines and public programs designed to support sustainable agriculture. Transportation infrastructure is another major bottleneck—especially during the rainy season—forcing ranchers to rely on slow and expensive boat travel. Enforcement of environmental regulations is minimal, allowing illegal deforestation to continue unchecked. As a result, even ranchers who want to operate responsibly often lack the tools, technical assistance, and financial support needed to do so.
2. Private efforts are leading the way—but need backup
In response to this governance gap, private sector and civil society actors have stepped in to try to fill the void. Some slaughterhouses in Santarém have implemented traceability systems for their direct suppliers, ensuring greater oversight and accountability. NGOs such as those that ran the “Pecuária Sustentável” project helped ranchers improve pasture and herd management through targeted training and technical advice. Ranchers themselves have experimented with more productive grazing practices, including rotational grazing and the use of mineral supplements to reduce the need for new pastureland. However, these efforts remain scattered, underfunded, and insufficient to scale. Producers are often stuck in a catch-22: they are expected to adopt better practices, but without access to finance, land security, or stable prices, they cannot justify the upfront costs or long-term risks.
3. Indirect suppliers are the hidden risk in the chain
Perhaps the most urgent challenge lies in the role of indirect or “second-tier” suppliers—smaller ranchers who sell cattle to others before animals are sent to slaughter. These suppliers are far more likely to operate on recently deforested land, either due to poor management practices or a need for quick profits. Their cattle often pass through first-tier suppliers, entering zero-deforestation commitment (ZDC) supply chains undetected—a form of “laundering” that undermines sustainability efforts. Despite public pledges from major companies like JBS and Marfrig to improve indirect supplier monitoring, enforcement remains weak and inconsistent. Studies show that up to 98% of slaughterhouses are indirectly connected to these high-risk suppliers, meaning that even companies trying to comply with deforestation policies face real exposure, potentially threatening their access to international markets.
4. Collaboration is the only way forward
Solving these challenges will require more than individual initiatives: it demands collaboration across public, private, and civil society actors. Sustainable governance of Amazon beef chains needs coordinated investment in land titling, expanded CAR registration, and accessible rural credit to fund pasture rehabilitation and better management practices. It also requires the creation of traceability systems that are adapted to the realities of small and mid-size ranchers, along with support for producer associations or cooperatives that can improve collective bargaining power. The case of Santarém highlights that local solutions do exist and can gain traction when supported by external partners, but they must be linked to broader national strategies and reinforced by clear market signals. Without this, the sustainability transition in Amazon beef production risks stalling before it truly begins.
What can be done: Practical recommendations
We want this research to help drive change. Here’s what different actors can do:
For slaughterhouses
Slaughterhouse companies are uniquely positioned to drive change by enhancing traceability across their supply chains, particularly by including indirect suppliers. Investing in robust traceability systems that track animals from birth to slaughter can significantly reduce the risk of deforestation-linked cattle entering the value chain. This effort can be strengthened through partnerships with NGOs and technology providers who offer expertise in data collection, verification, and platform integration. Additionally, slaughterhouses can play a key role in supporting their suppliers with basic training programs in pasture management and herd health. Even small improvements in these areas can lead to substantial gains in productivity and environmental performance. By working closely with local associations, these companies can also identify high-performing producers and foster long-term relationships that improve quality, ensure supply stability, and support sustainability goals.
For ranchers
Ranchers have an essential role to play in improving sustainability on the ground, starting with formalising their operations through registration in the Rural Environmental Registry (CAR) and pursuing land titling where possible. These steps open up access to rural credit programs, technical assistance, and eligibility for sustainability initiatives. Beyond paperwork, ranchers can adopt simple yet effective practices to improve pasture productivity and reduce pressure to clear new land. This includes techniques like rotational grazing, which allows grass to recover and supports better herd nutrition, as well as using mineral supplements to maintain animal health during the dry season. While individual innovation is important, greater benefits can be achieved by organising collectively. Joining or forming local associations or cooperatives can enhance bargaining power, improve information-sharing, and unlock access to external support services.
For NGOs and technical advisors
NGOs and technical consultants working in the Amazon have already demonstrated the value of localised, hands-on support to improve rancher practices. Scaling successful initiatives will require deeper partnerships with municipal governments, producer groups, and private sector actors, ensuring projects have both reach and staying power. NGOs can also play a vital role in promoting financial inclusion by helping ranchers navigate credit systems and comply with environmental and legal requirements. Equally important is their capacity to advocate for better alignment of public policies across municipal, state, and federal levels. Many sustainability interventions fall short not because they are ineffective, but because they are fragmented. By building bridges across policy domains, NGOs can help create a more coherent and supportive environment for sustainable cattle production.
For industry associations
For industry associations, there is a strategic opportunity to lead on systems-level solutions. These associations can advocate for critical investments in infrastructure—such as roads, cold storage, and transport systems—that enable efficient, traceable, and competitive cattle production in the Amazon. They can also champion the development and adoption of sector-wide traceability standards that include indirect suppliers, closing the largest remaining loophole in zero-deforestation commitments. Beyond compliance, associations should work to develop incentives for producers who meet high sustainability standards. Supporting pricing mechanisms or certification programs that reward verified sustainable practices would not only strengthen market integrity but also send a powerful signal to producers that sustainability and profitability can go hand in hand.
A final word: Sustainability is a shared responsibility
Sustainability in the Amazon beef industry isn’t just a compliance issue—it’s a business imperative. International markets are changing. Consumers want transparency. Governments are tightening rules. The Santarém case offers a snapshot of what’s working—and what still needs work. Our standardised methodology for mapping GVCs can help others replicate this kind of analysis in their own regions, improving governance and sustainability from the ground up. If you’re a rancher, a buyer, a policymaker or NGO working in the beef space, now’s the time to coordinate strategies and move forward collectively. The window to shape a sustainable, competitive, and inclusive future for Amazon beef is still open—but climate change, shifting regulations, and ongoing deforestation are rapidly narrowing that space. What happens next depends on the choices made by those shaping the chain today. The time for coordinated, practical action is now—before external pressures make those decisions for us.
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