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New CRR Report – Deforestation Risk in Colombia: Beef and Dairy Sectors May Expose Investors

During the last two years, Colombia, the world’s second most biodiverse country, has seen rapidly increasing deforestation. This report discusses the political changes that led to this surge in deforestation. It then focuses on the cattle supply chain, the most important sector exposing investors to deforestation risk in Colombia. In this report, CRR discusses the economic role of the cattle sector in Colombia and maps the key supply chain actors in the beef and dairy sectors. Some of these actors are listed companies that might expose investors to deforestation risk.

Key Findings:

  • Colombia’s recent surge in deforestation coincided with the peace deal between the government and the FARC rebels.
  • In April 2018, the Colombian Supreme Court of Justice ordered the protection of the Colombian Amazon from deforestation.
  • Key economic deforestation drivers in the Colombian Amazon include cattle ranching, land hoarding, coca cultivation and infrastructure.
  • Investor exposure to deforestation risk in Colombia is limited and mainly connected to the beef and dairy sectors.
  • The largest investor exposure to the beef sector is via listed companies Grupo Nutresa (CO) and Minerva (BR).
  • In the dairy sector, listed companies Grupo Nutresa and Parmalat (IT) have significant market shares.
  • Investors might also have exposure to the beef and dairy supply chains through listed food retailers Groupe Casino (FR) and Cencosud (CL).

Click here to read the full article or to download the PDF-version.

For more information, please contact Tim Steinweg.