Update: JBS Statement to the NGO Global Witness

In regard to the report published by Global Witness, JBS wishes to clarify that after a detailed review of each of the 327 cases raised by the NGO, the company has concluded that the analysis methodology employed by Global Witness is seriously flawed. As can be observed in the following breakdown, in all cases cited JBS has abided strictly by what had been agreed with the Federal Prosecution Office (MPF) in the Cattle Supplier Monitoring Protocol (hyperlink in Portuguese). This arrangement, of which JBS is one of the joint developers (hyperlink in Portuguese), has formalized for the most part the practices that the industry had been put in place in previous years with the consent of the MPF.

Thus, the review that JBS undertook identified that:

• In 40% of the cases raised by the NGO, at the time JBS purchased the cattle the environmental regularization processes had been established and agreed with the Department of the Environment e Sustainability of Pará (SEMAS-PA), a fact that Global Witness itself has acknowledged. It is important to point out that the Cattle Supplier Monitoring Protocol stipulates that properties in the process of environmental regularization are clear to trade animals. (See item 3 of page 14 - hyperlink in Portuguese). Hence, the purchases by JBS from these properties were strictly according to what is enshrined in the protocol.
• 22% of the cases were incorrectly analyzed by Global Witness in regard to the overlapping of deforestation polygons of the PRODES system. Managed by the Institute for Space Research (INPE), the PRODES system has been using satellites to monitor deforestation in the Legal Amazon regions since 1988. According to the INPE, 'the minimum area mapped by the PRODES is 6.25 hectares' (hyperlink in Portuguese). That is why the MPF protocol considers properties that have overlap greater than 6.25 hectares for deforestation analysis to be unfit for commercialization. Global Witness has mistakenly considered areas of overlap lower than the established. By cross-checking the deforestation polygons of the PRODES with map of the properties, JBS verifies whether or not the farms contain areas of deforestation and, therefore, whether or not they are approved to commercialize cattle. To understand why this minimum limit is 6.25 hectares, see Technical Note 1 available in the Cattle Supplier Monitoring Protocol for the Amazon (See page 30 - hyperlink in Portuguese).

• 27% of the cases are properties which at the time JBS purchased cattle were compliant in regard to the commitments assumed. However, in these cases Global Witness based its analyses on maps with different dates from those of our purchases. As a result, the outcome of the verification cannot reflect the environmental situation of the property on the day the cattle were purchased. JBS, in compliance with the MPF protocol, undertakes a verification at the time of purchase.
• In 6% of the cases, JBS did not conclude the purchases analyzed by Global Witness, whose investigation was based on Livestock Transportation Bordereaux (GTAs) issued. When a producer is going to transport cattle to JBS or another company in the industry, they have to issue a GTA. However, for any number of reasons the buyer or the seller can subsequently cancel the purchase. In this case, the producer should also cancel the GTA, but quite often they don't. JBS, like the other companies in the industry, does not have the power to cancel GTAs - only the producer can do so. Nevertheless, Global Witness based its analyses solely on the GTAs issued.
• The remaining 5% of the cases refer to situations in which Global Witness took into account different analysis methodologies and criteria from those provided for in the Supplier Monitoring Protocol of the MPF. In some of these cases, for example, the NGO based itself on deforestation mapped by the 2008 PRODES. However, under the MPF protocol, deforestation shown on the 2009 PRODES must be taken into account (See infographic on page 10 - hyperlink in Portuguese).

Conclusion

It is clear, therefore, that JBS has submitted a detailed technical analysis and justifications for 100% of the cases presented by Global Witness, and that all purchases mentioned were considered compliant with the Supplier Monitoring Protocol of the MPF.

To check out what the Protocol says, go to: Boi na Linha (hyperlink in Portuguese).

And on this site - Transparência - Boi na Linha (hyperlink in Portuguese) - one can see that JBS is the only company in the industry that has already signed socioenvironmental commitments in every state including Amazonas, Acre, Mato Grosso, Pará and Rondônia. Moreover, JBS has also vouched for compliance with the commitments entered into following the independent audits that verified the regularity status of cattle purchases from properties located in the Amazon. This is due to the company's commitment to being an agent contributing to the sustainable development of the Amazon, and Brazil as a whole.