Impact of Supply Chains on Forest Resources | Deforestation & Commodities | GFW (2024)

FAQs

Impact of Supply Chains on Forest Resources | Deforestation & Commodities | GFW? ›

Complex Supply Chains Are Still a Major Barrier to Ending Deforestation. Almost 90% of the world's forest loss is driven by the expansion of agriculture, thanks to growing consumer demand for commodities like coffee, cocoa, beef, soy, palm oil and timber.

This indicator aims to monitor the role of specific commodities—namely, cattle, oil palm, soy, cocoa, rubber, coffee, and wood fiber—in deforestation.

Production of commodities including beef, soy, palm oil, pulp, paper, energy and minerals, is the leading cause of deforestation.

Surprisingly, all of this is true. Just four commodities—beef, soy, palm oil, and wood products—drive the majority of tropical deforestation.

Beef production is the number one driver of tropical deforestation. About 60% of the world's agricultural land is used for beef production, even though beef accounts for only 2% of calories consumed worldwide. The beef industry currently causes 25% of global land-use emissions.

The regulation affects seven specific commodities (cocoa, coffee, soy, palm oil, wood, rubber, and cattle) and their derivatives, as well as products made using these commodities (e.g. leather, cosmetics, chocolate etc.).

Beef production is the top driver of deforestation in the world's tropical forests.

Forests sustain life, and survival of all species is directly related to healthy forests. But, forests are threatened and climate change is exacerbating some of the effects. Most common threats to forests include: deforestation, forest degradation, and illegal activities in forestry.

Destroying forests alters weather patterns, destroys habitats, and negatively affects rural communities, leading to food insecurity and causing irreversible damage to entire ecosystems.

“Global commodity traders like Cargill, JBS and Mafrig are the key drivers of deforestation in the Amazon. Their products are then sold by retailers like Leclerc, Stop Shop, Walmart and Costco.

Why is Amazon being deforested? ›

Huge areas of rainforest are destroyed by clearing for farming, timber, roads, hydropower dams, mining, house-building or other development. The problem is it's often seen as more economically worthwhile to cut the forest down than to keep it standing.

The primary causes of forest degradation are logging activities, livestock grazing, and the construction of roads. Deforestation is a particular concern in tropical rain forests because these forests are home to much of the world's biodiversity.

1. Industrial Agriculture. Look no further than your dinner plate, because industrial agriculture accounts for around 85% of global deforestation. While this can mostly be attributed to meat production (particularly beef), large-scale soy and palm oil plantations follow closely behind as causes for deforestation.

For most of human history, deforestation in the Amazon was primarily the product of subsistence farmers who cut down trees to produce crops for their families and local consumption.

Expert-Verified Answer. The single leading cause of deforestation in the world today is clearing land for agriculture. As global food demand rises, vast areas of forests are cleared to create space for farming, especially for crops like soy, palm oil, and cattle ranching.

Rainforest Foundation US supports Indigenous peoples at the frontlines of forest protection to secure and assert their rights at local, national, and international levels and foster networks, alliances, and platforms that strengthen their voices.

A commodity, also called primary product or primary good, is a good sold for production or consumption just as it was found in nature. Commodities include crude oil, coal, copper or iron ore, rough diamonds, and agricultural products such as wheat, coffee beans or cotton; they are often traded on commodity exchanges.

Primary commodities are the output from the primary sector, whose activities supply unprocessed raw materials of agricultural (includes hunting, forestry, and fishing) and mineral origin, along with fuels, electricity and potable water, for use by other sectors of the economy.

Commodity and primary markets

Primary products are extracted directly from the earth, and include grains, fuels, textiles, gems and minerals. Most primary products are bought and sold in international commodity markets, such as the London Metal Exchange, and the Chicago Mercantile Exchange.

Cattle ranching — and the soy farming needed to feed the cattle — is the biggest cause of deforestation in virtually every Amazon country. Around 90% of soy is used to feed animals to produce meat and dairy products.