Socioeconomic consequences of soy production in Mato Grosso, Brazil

Abstract

Much international concern has been expressed regarding the vast deforestation of the Amazon rainforest over the years. Recently hundreds of square kilometres of rainforest have been sacrificed to give space for local farmers to produce soy beans for exports. This production has attracted several multinational soy processing giants in to the Amazon region and has transformed the jungle in to a giant soy producing machine with deserted field of soybeans as far as the eye can see. Awareness to the environmental consequences of this soy production has been thoroughly created world wide, however little attention has been devoted to the social and economical consequences such an extensive production has for the region. This research intends to do an impact assessment of the extensive soy production and the entrance of multinational companies in Mato Grosso, Brazil. Qualitative interviews and focus groups were conducted to collect data for this assessment, held with local farmers, representatives from organisations and departments within the agricultural sector, Non Governmental Organisations, people from the settlements and retail store owners during a fieldwork in Mato Grosso from September to December 2006. The conceptual framework for this thesis included the international dependence revolution and the neoclassical counterrevolution as well as the concept of sustainable development. Brazil has experienced economic development at the national level through the soy expansion; however this development has been at the cost of the people at the grass roots. With the market liberalisation a monopsony by multinational processing companies has been established in Mato Grosso, causing grave socioeconomic effects for the producers. Due to an increasingly dependent relationship between local farmers and the processing giants, and an additional price-crisis, the cultivators and their families are struggling to maintain a livelihood. Because of high dependency on the soy bean production in the region, the situation has lead to extended socioeconomic effects in the whole local community. Local people are being marginalized for the benefit of international capitalist groups and people are left indebted without a sustainable livelihood because of the soy production. It has caused stagnation in the entire local economy.