Case Study
Brazil
Associated commodity
Associated crime
Associated crime
Source
Grain laundering' used to conceal illegal production and the land grabbing of Indigenous territories in the Mato Grosso region of Brazil

A 2023 investigation uncovered that seven agribusiness giants, including Bunge, Cargill and COFCO, bought grains, notably soybeans, from Brazilian farmers fined for illegal cultivation on Indigenous lands in Mato Grosso. However, the grain sales invoices failed to identify the farms as being inside the Indigenous lands, falsely stating other lands of origin to allow the business to take place. In addition, the investigation found that five identified producers fined by IBAMA in 2018 for cultivating crops within Indigenous lands continued to make sales to large international grain traders during the periods of interdiction from 2018 to 2019. A practice of 'grain laundering' was used to facilitate this illegal trade. This practice involves mixing illegally produced grains from conservation units, seized lands, or interdicted areas with legally planted and harvested soybean and corn, thereby concealing the irregular origin of a portion of the crop. The close proximity of these farms, listed on invoices as the origin of the produce, to Indigenous lands facilitated this 'grain laundering'. Grain laundering was openly acknowledged by farmers in the Paresi Indigenous region in March 2019.

Keywords
Illegal Cultivation, Indigenous Lands, Soybeans, Agribusiness Giants, Grain Laundering, Brazil, Mato Grosso