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He doesn't see soybean demand as robust enough to burn through 487 million bushels in the near-term.
Soybean demand worldwide fuels tropical deforestation from agro-conversion.
Laurance said these increases are widely attributed to rising soybean and beef prices, with studies suggesting a strong link between Amazonian deforestation and soybean demand.
Before 2000, the import tariff for soybean was as high as 114 percent; importers required licences; and Chinese farmers met most of the nation's soybean demand.
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While satellite data and stronger law enforcement have led to a decline in deforestation in the Amazon rainforest, the Cerrado, a savannah that covers more than one-fifth of Brazil, has experienced ongoing deforestation due to the expansion of soy agriculture, led by demand for soybean to produce feed for factory-farmed animals.
"We see very strong global demand in soybean ingredients, and we're producing outstanding results in that business unit," Mr. Wells said during a conference call with investors and analysts.
A recovery is under way in Asia, and in Europe, demand for soybean meal is rising because of a ban on bone meal in animal feed amid the scare over mad cow disease.
Management is citing weak demand for soybean meal and oil, as well as unfavorable exchange rates.
Deforestation started in the 1970s as a result of technological changes and increasing rainfall; continued (with spatial and temporal fluctuations) during the 1980s and 1990s in association to the sustained global demand of soybean, and was accelerated (to ca. 100,000 ha year−1) between 2001 and 2007 following the global increase in commodity prices, and the national peso devaluation.
Soybeans rose to the highest price since 1973, when Russia began an import program that created a new source of demand for soybeans from the United States.
Both are considered critical to global efforts to fill the soaring demand for soybeans in China and India.
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