The Reason Aldi Is Threatening To Boycott Brazil

Aldi has taken a hardline stance to better the environment through their business practices. According to Supermarket News, the grocery giant pledged to lower greenhouse emissions, reduce plastic packaging, reduce food waste, and much more between now and 2030. These major ecological steps fall in line with the way the store presents itself on the world stage, and thanks to their efforts to better the planet, Aldi has now threatened to boycott Brazil.

According to CNN, 40 European grocery chains, including Aldi, have sent an open letter to the Brazilian government threatening to stop buying agricultural products from the country unless the local government shoots down a bill encouraging the deforestation of the rainforest. Aldi leads the charge against this regulation, followed by big name grocers like Tesco, Sainsbury, Lidl, and more. If the boycott goes through, the Brazilian economy needs to brace for the fallout. European grocers buy $30 billion in goods each year, including beef, soybeans, coffee, and more. With stakes this high, it only makes sense, as the bill in question has some very strong language.

The bill that encourages deforestation accelerates the waiting process landowners have to experience before receiving deeds to cut down and harvest agriculture on their property, while expanding the amount of land they can legally clear (via Al Jazeera). This proposed law would loosen the strict limits the government sets on clearing land by over 20%. Despite Brazillian President, Jair Bolsonaro, pledging to implement stricter environmental laws in an international April summit, the president has overseen record amounts of rainforest destruction during the past year.

With a coalition of European businesses poised to pull out of Brazil's economy, the world can only wait and see what happens next. The actions of the Brazillian government should determine what steps come next, and if the grocery chains pull support from the country, we might see a new set of products or business practices that reflect this massive economic shift. Keep your eyes peeled as this story develops and take heart knowing that Aldi continues to make good on their promise to better the environment.