The Matopiba – a region comprising the Brazilian north and north-eastern states of Maranhão, Piauí, Tocantins and Bahia – has emerged as a key destination for foreign agricultural investment, particularly in soybean production. While these investments have spurred economic growth and infrastructure development, they have also intensified land conflicts, environmental degradation and social inequalities. This situation presents a critical challenge for the G20, which seeks to promote sustainable development and equitable globalisation. The case of Matopiba highlights the urgent need for governance frameworks that balance economic interests with environmental and social protection.

China’s role as the primary buyer of Matopiba’s soybeans – accounting for over 60% of Brazilian exports – has helped to accelerate agricultural expansion. However, the ABCD companies (Archer Daniels Midland, Bunge, Cargill and Louis Dreyfus) that dominate the global grain trade have shaped the region’s agribusiness model for decades. They control storage, processing and export infrastructure while promoting large-scale monoculture farming dependent on heavy pesticide use and deforestation. Their influence extends beyond economics; they help set the rules of the game, often at the expense of small farmers and traditional communities.

Large-scale agribusiness expansion in the region has the overall support of Brazilian authorities. The Matopiba Agricultural Development Plan, launched in 2015, explicitly encouraged foreign investment and large-scale farming, while public banks such as the Brazilian Development Bank financed infrastructure projects that benefit agribusiness corporations. Tax incentives and weak enforcement of environmental regulations have further tilted the scales in favour of export-driven expansion, leaving local communities vulnerable to land grabs and ecological harm.

Local communities report alarming rates of deforestation, water contamination from pesticide use and the displacement of traditional populations such as quilombolas (Afro-Brazilian communities) and small farmers. Land speculation, fuelled by weak governance, has exacerbated inequalities, with large agribusinesses often circumventing land rights protections. One community leader described the devastating impact of infrastructure projects and land grabs, noting, ‘The companies operate with huge capital and political influence. Local farmers may have [rights to] the land, but from a legal standpoint, their claims are weak. The agribusiness sector, backed by government incentives, takes advantage of this situation to acquire vast areas through irregular means’ (personal interview, 25 March 2025).

Breaking this destructive cycle requires recognising that all these actors share responsibility – and must be part of the solution. The ABCD companies, with their technical expertise and market power, could lead a transition to sustainable practices if properly incentivised. For instance, China, increasingly conscious of its international reputation, could impose stricter environmental standards on its overseas investments. Most crucially, Brazil must stop subsidising destructive agribusiness and start enforcing its own laws, while developing alternative economic models that benefit local communities.

The situation in Matopiba reflects the broader challenges facing the G20, including sustainable development, food security and equitable globalisation. The G20 has a vital role to play in creating the framework for this transition. By developing binding standards for foreign land acquisition, incorporating environmental and social protections into trade agreements and supporting economic diversification in regions like Matopiba, the world’s major economies can help reshape a system that currently prioritises extraction over sustainability.

To address these issues, policymakers must hold all actors accountable and reorient agricultural investment toward inclusive and environmentally sound practices. Key recommendations include:

• Corporate accountability: The ABCD traders and Chinese investors must adopt and enforce stricter environmental and social standards, ensuring respect for land rights and sustainable sourcing.
• Policy reform: Brazil should phase out subsidies for destructive agribusiness models and redirect support toward agroecology and smallholder farming. Strengthening land tenure security for traditional communities is critical.
• Global governance: The G20 can promote binding guidelines for foreign land acquisitions and integrate sustainability clauses into trade agreements. Initiatives such as the Roundtable on Responsible Soy should be scaled up with government backing.

The crisis in Matopiba underscores the need to move beyond blaming single actors and instead address the systemic drivers of unsustainable agriculture. By demanding accountability from corporations, reforming policies and leveraging global cooperation, the G20 can help build a food system that works for people and the planet. The choice is clear: continue with business as usual, or chart a new course where economic growth aligns with social justice and ecological resilience.

*For further insights, explore China’s Global Investment Tracker and Brazil’s Comex Stat trade data.