Applying Capitalism to Protect Dwindling Brazilian Forestland

"Listen, the ranchers are just tired of being treated like villains," he said. "The international community is demanding of Brazil what has never been done before in the world. There's never been a frontier society that's protected the environment. And if the ranchers don't get on board, then there's no chance. The Amazon will be gone."

That's why Brazilian farmers are playing a central role in a group called the Round Table on Responsible Soy Association, which aims to unite the agriculture industry with environmentalists and food buyers to create international environmental standards for soy cultivation.

The group -- funded partly by the World Wildlife Fund and the governments of Switzerland and the Netherlands -- has been criticized by some for giving the soy industry too much voice.

"Some environmentalists have called for some of the participating NGOs to leave the group, but if that were to happen, we'd go back to a world of bitter debate between NGOs and big industry," said Christopher Wells, president of the group and a manager at Brazil's Banco Real. "That's where we were five years ago. I don't see any other way other than this."

Similarly, there is a burgeoning effort to encourage slaughterhouses in Mato Grosso to certify that the beef they buy is "environmentally friendly." Ranchers like the idea because of the possibility it could open up a new market for premium beef. But even the most energetic backers of such plans realize that consumers, not ranchers, are ultimately the keys to the success of such programs.

Much of the international demand driving the agricultural industry in the Amazon comes from Asia, particularly soy-hungry China. The fact that a product might not be labeled environmentally friendly will do little to stem that demand, suggested Miguel Lovera, chairman of the Global Forest Coalition, an international alliance of environmental and indigenous advocacy groups.

"You're just going to have all the good stuff going to Europe and the U.S., because they can pay for the premium product," he said. "But there's still a huge market for soy and other products, no matter what kind of label you put on them."