Communities Win Against Cargill: A Lesson for Banks on FPIC Due Diligence

Communities in Pará, Brazil, have won a major victory against Cargill, one of the world’s largest soy companies. A federal court has cancelled government decisions that had taken part of the Santo Afonso community’s land to make way for a private port linked to Cargill. The decision protects the land used by 188 riverside families in Abaetetuba.

The communities challenged the plans with support from civil society and Brazil’s public legal institutions. The court found that the families had not been properly consulted before their land was handed over for the port. It also ordered the government to take steps to secure the community’s land rights. For the people of Santo Afonso, it is a clear win: their land, their homes and their future have prevailed over the interests of a powerful soy giant.

For the banks backing Cargill, it is a clear reminder of the importance of proper due diligence and checking that clients have obtained the free, prior and informed consent (FPIC) of communities before financing projects that affect their land.

Related article: Cargill: Violating Indigenous Peoples’ and traditional communities’ rights in Brazil