· 8 min read
At the end of 2025, a sweeping new regulation from the European Union will officially come into force: the EU Deforestation Regulation (EUDR). It promises to reshape how agricultural commodities, including soy, cocoa, palm oil, and notably beef, are sourced globally. While its primary aim is to ensure that products sold in Europe are not linked to recent deforestation, its reach extends far beyond the EU’s borders.
For countries like Brazil, the world’s largest exporter of beef, the EUDR has sparked debate, and not without reason. Critics worry that it imposes yet another layer of compliance costs and complexity on producers already operating in a fragmented regulatory landscape. But there’s another side to the story, one often lost in the noise: the EUDR is also a powerful opportunity.
This article draws on insights from an ongoing study by researcher John James Loomis and colleagues, which examines how the EUDR interacts with Brazil’s beef sector governance and how, if approached strategically, it could help the country not only comply with international norms but also position itself as a global leader in sustainable livestock.
Brazil’s beef: A global giant with local complexities
Brazil’s beef sector is massive. In 2023, it exported over 2.3 million tonnes of beef valued at more than US$10 billion. While China is now its top buyer, the European Union remains a critical market, especially for high-value cuts.
Yet the industry’s scale has long been shadowed by environmental concerns. Cattle ranching is the leading driver of deforestation in the Amazon and Cerrado. Although Brazil has enacted ambitious laws and regulations, like the Forest Code, the Rural Environmental Registry (CAR), and programs like ABC+ for low-carbon agriculture, enforcement remains uneven, especially in frontier regions.
To respond to pressure from civil society and international buyers, meatpackers and state prosecutors have developed hybrid monitoring regimes like the Public Livestock Commitment (CPP) and the Terms of Adjustment of Conduct (TACs). These efforts are supported by civil society through protocols like Boi na Linha (Beef on Track), which use satellite monitoring and exclusion lists to trace direct suppliers.
Still, key gaps remain, most notably, indirect suppliers often fall outside traceability systems, opening space for "cattle laundering" from deforested or embargoed areas.
The EUDR: A new kind of regulatory compass
The EUDR sets a high bar: any company selling beef (and other listed commodities) into the EU market must prove their product is deforestation-free and legally produced, using geolocation data and due diligence statements to document compliance. That means full-chain traceability, not just from the last farm, but from the original property where the animal was born or raised.
For Brazil, this presents two major challenges:
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Technical and institutional capacity gaps — many CAR records remain unvalidated; systems like the GTA (Animal Transit Guide) and SISBOV (the EU's sanitary traceability system) aren’t fully integrated.
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Regulatory misalignment — Brazil’s laws allow legal deforestation under certain thresholds (e.g., 20% in the Cerrado, 80% in the Amazon biome), but the EUDR adopts a zero-deforestation cutoff after 2020.
At first glance, this might seem like a recipe for friction. But this is where we must change the frame.
From friction to force: Turning compliance into competitive advantage
If Brazil plays this right, the EUDR could be a springboard for a new era of green competitiveness.
Here’s how:
1. Showcasing sustainable livestock as a global benchmark
Despite its challenges, Brazil has one of the most advanced deforestation monitoring systems in the world. Tools like MapBiomas, Brazil’s National Institute for Space Research – INPE’s PRODES and DETER satellite systems, and platforms developed by meatpackers and civil society (like Visipec, Boi na Linha, and Transparent Livestock Platform) offer a strong starting point.
By integrating these tools, Brazil can demonstrate traceability excellence, not just for the EU, but for global markets increasingly demanding environmental transparency (since many believe China is not far behind in demanding such criteria).
Imagine a future where “beef from Brazil” signals not deforestation, but verified sustainability — traceable, legal, and inclusive. That’s the narrative Brazil can own.
2. Modernizing and harmonizing domestic systems
The EUDR can act as a lever for internal reforms long overdue. Brazil’s CAR registry, while expansive, suffers from low validation rates and overlapping claims. The GTA system, while mandatory, doesn’t integrate environmental filters. With targeted investment, both systems could be modernized and made interoperable, reducing bureaucracy while boosting environmental integrity.
Public-private coordination between agricultural ministries, environmental agencies, and meatpackers is essential here. But the EUDR provides both the urgency and external incentive to make it happen.
Moreover, Brazil is advancing toward a national individual cattle traceability system, set to be fully operational by 2032, with phased rollout beginning in 2025 — including a federal database launch, system integration across states by 2026, and mandatory animal identification during transit from 2027 to 2029. This system is designed primarily to enhance sanitary control, including disease monitoring and health certification. However, in the state of Pará, a more ambitious model is already in motion: the Pará Sustainable Cattle Program mandates individual traceability, with all transported cattle tagged by end of 2025 and the entire herd traceable by end of 2026. Importantly, this state-level program explicitly embeds environmental criteria, linking traceability to deforestation control, integrity in land use, and inclusion of smaller producers. Collectively, these developments signal a growing alignment between sanitary, environmental, and potentially social traceability functions, offering a foundation to integrate EUDR compliance with domestic reform and strengthening transparency across Brazil’s beef value chain.
3. Attracting green investment and opening new credit pathways
Compliance with the EUDR could open the door to preferential access to credit, especially as ESG investing, carbon markets, and blended finance vehicles grow. Brazil could expand its Low-Carbon Agriculture (ABC+) Program, incentivizing low-carbon livestock practices (like silvopastoral systems or rotational grazing) while rewarding producers who comply with deforestation-free protocols.
Imagine a green credit program tied to EUDR compliance — giving ranchers access to lower interest rates, technical support, and market premiums. That’s not a burden — that’s development through sustainability.
Risks and blind spots remain
None of this transformation will happen automatically. Without thoughtful design and inclusive implementation, the EUDR could generate a series of unintended consequences. One of the most pressing concerns is the exclusion of small producers who often lack access to the digital infrastructure, formal land titles, or financial resources required to meet complex traceability demands. These actors, essential to Brazil’s beef supply chain, risk being left out of regulated markets, not because of unwillingness, but due to systemic limitations.
Another risk lies in the reorientation of trade flows. If compliance becomes too burdensome or enforcement uneven, deforestation-linked beef could simply be redirected to less regulated markets, particularly in Asia or the Middle East, thereby undermining the EUDR’s global effectiveness. This dynamic could dilute the very impact the regulation seeks to achieve and reinforce the perception of unfair trade barriers.
Finally, the regulation could end up exacerbating power asymmetries within the value chain. Large, export-oriented companies with robust monitoring systems and well-staffed compliance departments will likely adapt with relative ease. Smaller slaughterhouses and producers, especially in remote regions of the Amazon and Cerrado, may not. In this sense, rather than leveling the playing field, the EUDR risks deepening structural inequalities if not coupled with support mechanisms and phased implementation pathways.
To avoid these outcomes, EU regulators must take seriously the political economy of compliance in the Global South. Enforcement must be fair, adaptive, and sensitive to local contexts. Likewise, Brazil has a responsibility to invest in its frontier regions, ensuring that sustainability transitions are inclusive, not extractive. Small and medium-scale ranchers, particularly those already operating within legal and sustainable frameworks, must be supported — not penalized — in the name of global environmental goals.
Brazil’s opportunity at COP30 and beyond
In 2025, Brazil will take center stage as it hosts COP30 in Belém, in the heart of the Amazon. This moment offers a unique platform for the country to demonstrate leadership not only in climate diplomacy but in practical, scalable models of sustainable food production. The EUDR and the broader push for deforestation-free supply chains give Brazil an opportunity to shift the narrative from environmental villain to pioneer of sustainable livestock systems.
Rather than resisting external regulation, Brazil could unveil a bold and coordinated vision a National Traceability and Compliance Strategy that meets international expectations while reflecting local realities. This strategy could prioritize full validation of CAR records, paired with technical assistance and credit access for smallholders. It would require integrating Brazil’s diverse data systems — CAR, GTA, SISBOV, and private sector tools — into a national interoperable platform that delivers real-time, verifiable traceability.
A phased, incentive-based model could reward progress along a traceability continuum, giving producers time and tools to adapt. Regional investment hubs in states like Pará and Mato Grosso could channel resources to help producers transition to low-carbon and deforestation-free ranching. A standardized national monitoring, reporting, and verification (MRV) framework could help producers access carbon finance and ecosystem service payments, further aligning sustainability goals with economic incentives.
This isn’t just about aligning domestic systems with the EUDR. It’s about shaping a new global narrative: one where Brazil is not a passive rule-taker but an active rule-shaper, offering lessons in inclusive, climate-smart agricultural governance. As the world gathers in Belém, Brazil has the chance to show what a truly sustainable cattle sector can look like one that protects forests, supports producers, and feeds the world without costing the Earth.
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