BRASÍLIA: Brazil’s antitrust regulator will investigate 30 soybean traders and two industry associations, citing the possibility of a purchasing cartel in the grain-export market.

The probe is directed at companies that comprise the so-called Soybean Working Group, the agency, Cade, announced on its website yesterday.

The group includes units of Cargill Inc, Archer-Daniels-Midland Co and Bunge Global SA.

The investigation stems from a moratorium signed by the group that publicly commits them to avoiding soybeans from land deforested after 2008.

While the companies say the agreement seeks to protect the Amazon rainforest, Cade said it constitutes an “anti-competitive agreement between competitors that harms soybean exports”.

Brazil, due to host the annual UN climate summit in November, is the world’s largest soybean exporter.

The increase in its plantings over time has stemmed partly from deforested land in the Amazon, which has sparked concerns among some international buyers.

Potential fines for the associations targeted could reach up to R$2 billion (US$368 million), according to Cade’s announcement.

For the companies, it could be up to 20% of gross revenue from the last fiscal year.

The agency added the probe was initiated following a request made by lawmakers on the farming committee in Brazil’s lower house.

Spokesman for Cargill and ADM did not immediately reply to emails seeking comment, and Bunge directed comment to industry association Abiove, which was also listed in the probe.

Abiove said in a statement the moratorium is a pact that has been “recognised as a public environmental policy by the Federal Attorney General’s Office”.

It added it would “collaborate fully and transparently with the competent authorities”.