satellite observation of deforestation in the Mato Grosso state of Brazil. The transformation from forest to farm is evident by the paler square shaped areas under development. Deforestation in Brazil has been linked with an extractive
economic growth model that relies on factor accumulation (labor, capital, land) rather than
total factor productivity, where Brazil's frontier expansion in the "arc of deforestation" is a manifestation of land accumulation. Under this model, with a strong focus on commodities exports, deforestation is an economic choice, often linked to cattle ranching, mining, soybean production or logging, and influenced by factors raising the external competitiveness of Amazonian farmers, ranging from infrastructure development (especially roads) to a depreciating real exchange rate.
Land grabbing in the Amazon is associated with the rational expectation that this growth model will continue to raise rural land prices, creating incentives to grab public lands.
Cattle ranching and infrastructure Livestock and agriculture have never been very strong in the Amazon: the area has a bad soil and climate for planting, and cattle, although they reach the margins of the forest, are actually spread throughout the country, being the areas that have less cattle throughout Brazil, coastal regions and the Amazon. States like
Goiás,
Mato Grosso do Sul and
Minas Gerais have a lot of cattle. The annual rate of deforestation in the Amazon region continued to increase from 1990 to 2003 because of factors at local, national, and international levels. The Brazilian government initially attributed 38% of all
forest loss between 1966 and 1975 to large-scale
cattle ranching. According to the
Center for International Forestry Research (CIFOR), "between 1990 and 2001 the percentage of Europe's processed meat imports that came from Brazil rose from 40 to 74 percent" and by 2003 "for the first time ever, the growth in Brazilian cattle production, 80 percent of which was in the Amazon[,] was largely export driven." Forest removal to make way for
cattle ranching was the leading cause of deforestation in the Brazilian Amazon from the mid-1960s on. In addition to Vargas's earlier goal of commercial development, the devaluation of the
Brazilian real against the
dollar had the result of doubling the price of
beef in reals; this gave ranchers a widespread incentive to increase the size of their cattle ranches and areas under pasture for mass beef production, resulting in large areas of forest removal. Removal of
forest cover for cattle farming in Brazil was also seen by developers as an economic investment during periods of
high inflation, when appreciation of cattle prices provided a way to outpace the interest earned on money left in the bank. Brazilian beef was more competitive on the world market at a time when extensive improvements in the road network in the Amazonas (such as the introduction of the
Trans-Amazonian Highway in the early 1970s) gave potential developers access to vast areas of previously inaccessible forest. This coincided with lower transportation costs due to cheaper fuels such as
ethanol, which lowered the costs of shipping the beef and further incentivized the development of remote forested areas. Cattle ranching is not an environmentally friendly investment because cattle emit large amounts of
methane. These emissions play a major role in climate change because methane's ability to trap heat is 20 times greater than that of
carbon dioxide in a time horizon of 100 years and exponentially higher in shorter time horizons. One cow can emit up to 130 gallons of methane a day, just by belching. (Xingu River) in the state of
Mato Grosso The Brazilian government granted land to approximately 150,000 families in the Amazon between 1995 and 1998. Poor farmers were also encouraged by the government through programmes such as the
National Institute for Colonization and Agrarian Reform in Brazil (INCRA) to farm unclaimed forest land and after a five-year period were given a title and the right to sell the land. The productivity of the soil following forest removal for farming lasts only a year or two before the fields become infertile and farmers must clear new areas of forest to maintain their income. In 1995, nearly half (48%) of the deforestation in Brazil was attributed to poorer farmers clearing lots under in size.
Mining Mining has also increased deforestation in the Brazilian Amazon, particularly since the 1980s, with miners often clearing forest to open the mines or to provide building material, collecting wood for fuel and subsistence agriculture. In February 2017, the Brazilian government provided a reservation with a surface of for deforestation, to attract foreign mining investors. In September 2017, the government withdrew this permission.
Soybean production , Brazil
Brazil is currently the second-largest global producer of
soybeans after the United States, mostly for
livestock feed. As stated in the
Constitution of Brazil, clearing land for crops or fields is considered an "effective use" of land and is the first step toward land ownership. therefore, the needs of soy farmers have been used to validate many of the controversial transportation projects being developed in the Amazon.
Cargill, a multinational company which controls the majority of the soya bean trade in Brazil, has been criticized, along with fast food chains like McDonald's, by
Greenpeace for accelerating the deforestation of the Amazon. Cargill is the main supplier of soya beans to large fast food companies such as McDonald's which use the soy products to feed their cattle and chickens. As fast-food chains expand, the chains must increase the quantity of their livestock in order to produce more products. In order to meet the resulting demand for soya, Cargill has expanded its soy production by clear-cutting parts of the Amazon. A report by Greenpeace mentions that European supermarket giant
Tesco told Greenpeace that 99% of its soya footprint is made up of animal feed. This is responsible for more than 500,000 tonnes of soya imports into the UK each year, making up more than a sixth of the total. The same report by Greenpeace also mentions that animal feed for meat production is Europe's largest contribution to
deforestation, with soya imports representing 47% of
Europe's deforestation footprint, compared to 14% for pasture expansion for livestock and 10% for palm oil. Greenpeace called for "a new EU law to protect forests by keeping any product that comes from forest destruction off the European market." In 2020, the Amsterdam Declarations Partnership (which includes Germany, France, Denmark, Italy, Norway, the UK and the Netherlands) sent an open letter to vice president Hamilton Mourão, stating that Brazil's backwards moves in environmental protection were threatening Europe's desire to source its food sustainably. The first two highways, the
Rodovia Belém-Brasília (1958) and the
Cuiabá-
Porto Velho (1968), were the only federal highways in the
Legal Amazon to be paved and passable year-round before the late 1990s. These two highways are said to be "at the heart of the 'arc of deforestation'" that is the epicenter of deforestation in the Brazilian Amazon. The
Belém-Brasília Highway attracted nearly two million settlers in its first twenty years. The success of the Belém-Brasília highway in opening up the forest was re-enacted as paved roads continued to be developed, unleashing the irrepressible spread of settlement. The completion of the roads were followed by a wave of resettlement and the settlers had a significant effect on the forest. This new driver of forest loss suggests that the rise and fall of prices for other crops, beef and timber may also have a significant impact on future land use in the region, according to the study.
Logging The export of tree trunks native to the Amazon (selling fresh wood, that is, without any type of processing), is an illegal activity in Brazil. However, it is common to see, in Europe, the sale of furniture produced with illegal Brazilian woods, such as
jacaranda and
mahogany. Timber arrives illegally in Europe and the countries of the continent do not take action to block these imports. Logging in Brazil's Amazon is economically motivated. The economic opportunity for developing regions is driven by timber export and demand for charcoal. Charcoal-producing ovens use large amounts of timber. In one month, the Brazilian government destroyed 800 illegal ovens in
Tailândia. These 800 ovens were estimated to consume about 23,000 trees per month. Logging for timber export is selective, since only a few species, such as mahogany, have commercial value and are harvested. Selective logging still does a lot of damage to the forest. For every tree harvested, 5-10 other trees are logged, to transport the logs through the forest. Also, a falling tree takes down a lot of other small trees. A logged forest contains significantly fewer species than areas where selective logging has not taken place. A forest disturbed by selective logging is also significantly more vulnerable to fire. Logging in the Amazon, in theory, is controlled and only strictly licensed individuals are allowed to harvest the trees in selected areas. In practice,
illegal logging is widespread in Brazil. Up to 60 to 80 percent of all logging in Brazil is estimated to be illegal, with 70% of the timber cut wasted in the mills. Most illegal logging companies are international companies that don't replant the trees and the practice is extensive. Expensive wood such as mahogany is illegally exported to profit these companies. Fewer trees mean that less
photosynthesis will occur and therefore
oxygen levels drop. Carbon dioxide emissions increase, as this gas is released from a tree when it's cut down and burned or left to rot. A tree can absorb as much as 48 pounds of
carbon per year so illegal logging has a major impact on
climate change. To combat this destruction, the Brazilian government has stopped issuing new permits for logging. Unauthorized harvesting has continued nonetheless. Efforts to prevent cutting down forests include payments to landowners. Instead of banning logging altogether, the government hopes payments of comparable sums will dissuade owners from further deforestation.
Weak non-commodities sectors Brazil's legacy of
import substitution industrialization is reflected in an imbalance where export-oriented commodities sectors are much stronger than more domestically oriented and protected manufacturing and services: between 1996 and 2022 labor productivity in agriculture grew by 5.8% in agriculture and 2.9% in mining, while it fell by 0.8% in manufacturing, with mixed experience in services. Yet on the agricultural frontier in the Amazon the
Jevons paradox implies that agricultural productivity growth accelerates deforestation. Stronger productivity gains in manufacturing and services, the more urban sectors which are critical for an urbanized population like Brazil's, would take pressure off the agricultural frontier in the Amazon.
Climate change Climate change played a significant role in the wildfires in the
Pantanal. ==Effects==