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With huge and growing global demand for beef, leather, and dairy, achieving deforestation- and conversion-free (DCF) supply chains in agricultural commodities will not be possible without credible commitments from the cattle industry.
Why DCF matters in the sector
Beef production is responsible for more forest conversion than soy, palm oil, and wood combined, with cattle ranching associated with 41% of tropical deforestation. Additionally, 77% of soy crops – another key deforestation-linked commodity – are grown as livestock feed for meat and dairy production.
The majority of beef production occurs in Brazil, but extensive cattle ranching is the leading cause of deforestation in practically every Amazon country. This land-use change from forests to monoculture pastures has a severely detrimental effect on these richly biodiverse countries, threatening thousands of species. Climate impacts are also significant, with deforestation for cattle ranching releasing carbon at a rate equivalent to 3.4% of total global emissions.
Sector coverage
DCF commitments are highly piecemeal. Some major brands have made notable commitments, such as McDonalds’ promise to eliminate deforestation from its supply chain by 2030. In the leather sector, the Deforestation-Free Call to Action for Leather, co-led by the Leather Working Group, Textile Exchange, and WWF, asks brands and retailers to commit to sourcing DCF-only leather by 2030 at the latest.
However, in 2025 it was found that only 22% of 175 companies with the greatest influence on Brazilian cattle supply chains, including traders, processors, producers, and retailers, had published deforestation commitments for beef and/or leather. Even where commitments are made, their credibility has been challenged. For instance, the leading meat processor and producer JBS had vowed to stop buying cattle raised on illegally deforested land in the Amazon by the end of 2025, a claim that ranchers called impossible to fulfil.
Cattle supply chains
Efforts to establish deforestation- and conversion-free (DCF) supply chains in agricultural commodities have progressed unevenly, with varying levels of scope, transparency, and implementation across sectors. In the cattle industry, several structural characteristics continue to shape both the ambition and the effectiveness of DCF commitments.
Scope
Many commitments in the cattle sector have historically focused on deforestation within specific geographies, most notably the Amazon. While this has driven important progress, it has also contributed to the displacement of agricultural expansion into other vulnerable ecosystems, such as grasslands and savannas, where conversion rates are four times the rate of forests. Expanding the scope of commitments to cover all ecosystems is therefore critical to ensuring meaningful impact.
Traceability complexity
Cattle supply chains are inherently complex, with animals typically moving through multiple stages of production across different locations. This multi-step lifecycle makes it significantly more challenging to establish full traceability, particularly beyond direct suppliers. As a result, gaining visibility into upstream risks, where deforestation and conversion often occur, remains a key barrier.
Public reporting
Across agricultural commodities, public DCF commitments and reporting practices have become more widespread, with growing alignment around common definitions and frameworks such as those developed by the Accountability Framework initiative (Afi), In the cattle sector, however, disclosure remains more limited.
As of 2025, less than a quarter of the biggest 175 companies having published any DCF commitments. Where commitments do exist, they often vary in scope and reporting approaches, making it difficult to assess progress and compare performance across companies.
Implementation hurdles
1. Traceability challenges
Cattle supply chains are extremely fragmented, as animals pass through breeding, rearing, and fattening phases on different ranches and facilities throughout their lives. This creates a black hole where slaughterhouses and other downstream actors have no visibility upstream into the farms where deforestation risk often originates. As a result, just 5% and 13% of the biggest cattle companies had disclosed any volumes as DCF for leather and beef as of 2025.
2. Supply chain complexity
Complex cattle supply chains have enabled the issue of cattle laundering: the practice where cattle raised on farms that undertake deforestation are first transferred to legal farms in order to obscure their origin. This sleight of hand has allowed them to enter the supply chains of the biggest beef companies like JBS and Frigol.
The potential impact of the EU-Mercosur trade deal
The controversial EU-Mercosur free-trade deal – signed in January 2026 but not yet ratified – has come under intense scrutiny for its potential to accelerate deforestation. An increase in trade of beef products from this region – some of the most at-risk of deforestation – risks sidelining environmental considerations in favour of high-intensity imports, as the EUDR has limited coverage of non-forest ecosystems like the Cerrado. Estimates suggest the deal could drive an initial 700,000 hectares of deforestation. For companies, robust traceability and deforestation risk screening will be pivotal to maintain market access and reputational trust.
Looking ahead: practical steps to take
Set clear policies with cut-off dates
Companies must align DCF commitments with the Accountability Framework initiative. This involves using definitions that cover all ecosystems, not just forests, and that apply to all cattle products. Policies must specify a cut-off date, typically 2020 for AFi-aligned commitments, after which any deforestation or conversion on a supplier's land will render that supply chain non-compliant.
Invest in traceability systems
Electronic ear tagging of each individual animal provides a transparent picture of its associated farms and any links to deforestation, making DCF commitments watertight. The Pará Sustainable Cattle Program will make this a requirement for every cow in the Brazilian state by 2030.
Beyond physical tracking systems, companies can strengthen their DCF strategies through robust geospatial verification and risk-assessment tools. Platforms such as Meridia’s Verify help companies identify deforestation and ecosystem conversion risks across their supply chains by combining satellite imagery, trusted datasets, and advanced geospatial analysis.
Deepen supplier engagement
To solve cattle laundering and combat supply chain opacity, companies must actively bring suppliers into the process. They must work with direct suppliers to map upstream networks, providing incentives and technical assistance for ranchers to comply with data requests.
How Meridia supports credible DCF commitments
As pressure grows for the cattle sector to address its deforestation footprint, voluntary DCF commitments are becoming a key signal of leadership. However, commitments alone are not enough, companies must also demonstrate that they can monitor, verify, and report on progress across complex supply chains.
Meridia helps companies turn DCF commitments into credible, verifiable action. Through Verify, supplier and farm data are cross-checked against satellite imagery, official land registries, and deforestation datasets to identify risks across sourcing regions. This gives companies a clear view of where deforestation, legality, or traceability gaps may exist — and the tools to address them through structured supplier engagement and verification processes.
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