Water scarcity looms as hidden risk for Brazil's soy and beef traders

Oxford, United Kingdom (8 January 2026) – A new Trase study shows that soy and beef exporters in Brazil depend heavily on the country’s freshwater resources, creating vulnerabilities for traders, governments, and global markets. Yet companies are generally ignoring this in their current monitoring and reporting systems.

Using a new dataset, the study quantifies the freshwater volumes indirectly used by soy and beef traders across Brazil’s 12 river basins. Every year, Brazil’s cattle sector requires more freshwater than São Paulo, Rio de Janeiro, Bahia, Paraná and the Federal District combined. The five largest beef traders depended most on the Paraná (28%), Tocantins-Araguaia (26%) and Amazônica (23%) river basins.

Soy production relied overwhelmingly on rainfall, using up to 206 km³ per year, equivalent to seven times the capacity of the Itaipú Dam, the second biggest hydropower dam in the world. Irrigation, a less prevalent technology for soy crops in Brazil, contributed an additional 1.7 km³ annually.

Despite this scale of reliance, companies typically monitor only their direct operational water use, with very little visibility into water used in upstream production.

“The findings make clear that expanding transparency in supply chains is essential for understanding the full environmental footprint of global commodity trade. Incorporating water use into supply chain assessments is the next frontier for companies committed to sustainable sourcing,” said Michael Lathuillière, Senior Research Fellow at Trase and SEI.

The research is the first to analyse water use in commodity supply chains using Trase’s spatially explicit maps for both Brazilian soy and beef, filling a major knowledge gap. It aims both to increase visibility into traders’ indirect reliance on water and to inform concrete actions for sustainable water management across supply chains.

“It’s clear that for Brazilian beef and soy supply chains to be profitable in the future, water risks must be urgently addressed, ensuring human rights and environmental protections are accounted for throughout the supply chain. These findings underline the urgency of action on water risk across the agricultural commodities sector,” said Charles Wight, director of Research and Policy at Water Witness.

The research report launched today is accompanied by additional analysis published on the Trase website in partnership with Water Witness. Together, the two pieces examine water risks in supply chains and the implications for companies, policymakers and investors.

The analysis calls on traders to set Scope 3 targets for water that address use by suppliers, risk exposure and environmental impacts, just as many already do for deforestation and greenhouse gas emissions. It also suggests that rural credit and investment should reward practices that safeguard water resources and complement zero-deforestation requirements in finance.

For further information, contact:

Gisele Neuls, Trase Communications Lead at Global Canopy | g.souzaneuls@globalcanopy.org | +44(0)7925 128 159

About Trase

Trase is a data-driven transparency initiative led by Global Canopy and Stockholm Environment Institute (SEI). We map international trade in agricultural commodities and provide open-access data, insights, and tools that help companies, financial institutions, and governments strengthen accountability for their sustainability goals. www.trase.earth

About Water Witness

Water Witness leads action, research and advocacy for a fair water future, so that all people can access the water they need to thrive, and are protected against floods, droughts, pollution, ecosystem degradation and water conflict. www.waterwitness.org