Brazil Probe Ties JBS, Cargill to Vendors Linked to Slave Labor
(Bloomberg) — JBS NV and Cargill Agrícola SA are defendants in a public civil lawsuit filed by Brazilian prosecutors after authorities found the companies systematically procured supplies from vendors linked to slavery-like working conditions.
The case is part of “Reação em Cadeia,” or Chain Reaction, an operation by the Labor Prosecutor’s Office that uncovered traces of modern slavery in Brazil’s supply chains. The investigation, which covers the period from 2024 to 2026, targets more than 30 Brazilian companies and public institutions.
Companies have been officially notified to make disclosures regarding transactions made with suppliers determined to use slave-like labor. Prosecutors said the financial volume traced in business operations between top companies and suppliers on the Labor Ministry’s so-called dirty list exceeded 48 billion reais ($9.6 billion).
“The Office of the Chief Prosecutor of Labor has strong evidence that these companies systematically receive supplies from vendors who subject workers to conditions similar to slavery,” national coordinator Luciano Aragão told reporters in Brazil on Wednesday.
Prosecutors did not detail evidence regarding working conditions. A recent civil investigation by prosecutors in the state of Pará found that JBS focused on the purchase of cattle from farms on the ministry’s “dirty list.”
Other companies are also being reviewed and may be found compliant or required to sign a code of conduct agreement, Aragão said.
JBS and Cargill refused to sign a conduct regulation agreement that would have required stronger oversight of their supply chains, officials said. The companies did not immediately respond to a request for comment.
Nine more companies, including Gol Combustíveis SA, agreed to the terms and committed to stricter compliance measures.
The operation underscores increasing scrutiny of corporate supply chains in Brazil, particularly in agriculture and fuel distribution, as authorities step up efforts to combat forced labor practices. Since 2013, Brazil’s agricultural sector has purchased nearly 3.2 billion reais from suppliers identified as using slavery-like labor, according to prosecutors.
“During this first phase, labor prosecutors across the country prepared more than 30 technical monitoring reports mapping the flow of goods and services in key sectors of the economy,” the ministry said in a statement. “Combining these national data reveals a challenging scenario: Large companies and economic groups with revenues often in the billions of dollars appear to be the direct or indirect beneficiaries of the reduction in the workforce.”
Penalties imposed on companies that fail to comply with due diligence requirements include financial compensation for moral and collective damages, as well as fines for failing to ensure proper monitoring of their supply chains.
–With help from Dayanne Sousa.
More stories like this available Bloomberg.com
