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A legal battle that could shake the foundations of Brazilian agribusiness: a USP professor files a surprising lawsuit that threatens to paralyze the operations of large companies such as Raízen, BP Bunge Bioenergia, BrasilAgro, among others.
But the impact of this measure could be even more profound than imagined, potentially putting at risk more than 100 jobs across the country. What is at stake here is much more than legal issues – it is the future of a significant part of the national economy.
According to newspaper Folha de S. Paulo, Rodrigo Monteferrante Ricupero, professor at the Department of History at USP, started a series of popular actions against these giants in the sugar-energy and agro-industrial sector, alleging that the companies in question did not follow the necessary regulations for the acquisition and use of rural land by companies with foreign participation.
According to Ricupero, these operations should have been submitted for analysis by the National Institute of Colonization and Agrarian Reform (Incra) or the National Congress, as required by law. He requests, among other things, the suspension of deals already signed.
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The economic and social impact
These companies represent a colossal workforce in Brazil. THE Raízen, for example, is responsible for more than 40 thousand jobs. A BP Bunge Bioenergy, which was born from the merger between BP and Bunge, employs around 13 thousand people directly and indirectly.
A bracelet, a giant in cellulose production, maintains 25 thousand workers, with 11 thousand in direct jobs. SLC Agrícola and BrasilAgro together they also employ more than 30 thousand employees. Stopping these operations could trigger a domino effect devastating, impacting thousands of families and communities across the country.
The lawsuits in detail
To date, four of Ricupero's actions are in the Federal Court of São Paulo, with the main targets being BP Bunge Bioenergia, Bracell, BrasilAgro and Raízen. A fifth lawsuit was filed in Rio Grande do Sul, targeting SLC Agrícola. In one of the actions, federal judge Paulo Cezar Neves Junior has already ordered Incra and the Union to respond within 15 days.
If the USP Professor's request is accepted, he could practically paralyze the operations of these companies, suspending the activities of foreign administrators and the distribution of dividends to shareholders outside the country.
USP professor and his argument for national sovereignty
According to Noirma Murad, lawyer representing Ricupero, The case is a matter of national sovereignty. “Nobody is against foreigners, but the law needs to be followed,” she said in an interview.
The USP Professor's concern is rooted in the need to protect control of Brazilian lands, an issue that has been intensely debated since the change in legal understanding in 2010, which limited the purchase and leasing of land by foreign companies.
Ricupero is no stranger to the courts. According to records, he is involved in more than 750 processes, many of them involving city halls and prominent politicians such as Fernando Henrique Cardoso and Aloizio Mercadante.
Its recent popular actions reflect growing pressure on strict enforcement of the law regulating the ownership and use of rural land in Brazil, especially in a scenario where foreign influence continues to grow.
The future of agricultural giants’ operations
Raízen, BP Bunge Bioenergia, Bracell, BrasilAgro and SLC Agrícola are not just pillars of the agricultural and sugar-energy sector, but also economic engines that support tens of thousands of jobs and contribute significantly to the country's economy.
The interruption of its activities due to the legal dispute suggested by the USP Professor could have alarming consequences. So far, companies have remained silent or declared that they operate within the law, awaiting legal developments to determine their next steps.
Strange report. Why was it necessary to go to court to have the problem recognized? Jobs are not under threat. What is under threat is national sovereignty. In no other serious country in the world do foreign companies control agricultural production so strongly.
Our agriculture is incompetent in terms of maintaining financial control of the business,
Our farmers gave up their land for high prices, but there is a social obligation to own land. We must be attentive to the needs of the country and its citizens. Foreign companies only aim to exploit resources and must respect national sovereignty. Economic power alone cannot stop agricultural capacity. Monoculture does not satisfy the hunger of Brazilians. This is the major problem that Brazil needs to solve. Our citizens need to produce food, generate jobs and technologies that guarantee the livelihood of all Brazilians and not just some, making some millionaires and others condemned to poverty. 108 thousand jobs do not justify the hunger of millions.