BRASILIA, Brazil (AP) — Slaughterhouses that agreed to a settlement with Brazilian prosecutors were far more likely to obey environmental laws banning the purchase of cattle from illegally deforested land, according to an audit published Wednesday, but gaps in oversight mean much of the Amazon’s beef supply chain remains linked to forest destruction.

Companies that hired independent auditors as part of the agreement with the Federal Prosecution Service acquired 4% of their cattle from areas with illegal clearing. In contrast, companies that did not hire auditors recorded a 52% non-compliance rate, 13 times higher.

“It sends a clear message to the market and consumers about which companies are truly investing in responsible and transparent production,” prosecutor Ricardo Negrini said in a statement.

Most cleared land in the Amazon is converted into pasture. Para, whose capital, Belem, will host this year’s U.N. climate talks, is home to 25 million head of cattle. It is also the Brazilian state with the largest amount of carbon emissions, as deforestation accounts for roughly half of the country’s total output.

The Amazon rainforest is an important regulator of climate, as trees absorb carbon dioxide, a greenhouse gas that heats the planet. Clearing forest for cattle creates a two-fold problem for emissions: trees are lost and cattle, particularly cows, also contribute to global warming because they release methane, another greenhouse gas.

Brazil consumes most of its beef production, but exports are growing. China is by far the largest buyer, followed by the U.S.

The audit was part of a settlement agreement reached in 2009. Formally known as Legal Beef Conduct Adjustment Agreement, it aims to stop companies from purchasing cattle raised in illegally deforested areas of the Amazon. It has technical support from civil organizations, such as Imaflora and the University of Wisconsin–Madison.

The agreement was first implemented in the state of Para and now includes five other Amazonian states. Audits of cattle purchases made in 2022 were done at 89 slaughterhouse units, including major companies such as JBS, Minerva and Marfrig.

These audits, however, only examine direct purchases, leaving out widespread cattle laundering in the Amazon. The most common way is transferring cows from an illegal area to a legal farm before selling to slaughterhouses, deliberately muddying traceability.

Negrini said the problem has worsened as cattle ranchers find ways around tighter monitoring of direct cattle purchases since the settlement.

Preliminary data in the report show that only 38% of slaughterhouses’ indirect suppliers were verifiably compliant. To reach this number, prosecutors examined transfer documents issued by state animal health agencies.

“Some slaughterhouses have as many as six indirect suppliers behind each direct one. It’s a significant part of the supply chain that still lacks proper monitoring,” said Camila Trigueiro, a researcher at the Belem-based nonprofit Imazon. “The Federal Prosecution Service must move urgently to address these producers.”

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