In order to combat illegal deforestation to graze beef cattle, financial institutions are now required to collaborate in a program to monitor the financing of beef companies. Specific attention will be paid to packers purchasing animals from the Amazon and Maramhao Regions to establish traceability. Banks that do not cooperate may receive sanctions from the Brazilian Federation of Banks (FEBRABAN).
Beef packers in Brazil subscribe to ABIEC, a trade group including Marfrig and JBS SA that support the initiative but require the cooperation of banks to ensure environmental compliance. ABIEC claims to have blocked the purchase of 20,000 cattle for noncompliance with environmental restrictions. The question arises as to the disposition of these animals and their carcasses. If exported, their destination and the packers and traders involved? If consumed by the domestic market which companies, politicians and officials benefitted?