SUMMARY EXECUTIVE INTRODUCTION CONTEXT CHAIN SUPPLY ANALYSIS DATA INVESTIGATION FIELD

MARKETS CATTLE ACCOUNTABILITY RECOMMENDATIONS CONCLUSIONS & 1

ENVIRONMENTAL INVESTIGATION AGENCY EIA © Environmental Investigation Agency, Inc. 2021. www.eia-global.org E: [email protected] T: +1202483-6621 Washington DC20009USA PO Box 53343 EIA-US efficiency inthecoolingsector. greenhouse gases, exposingrelated illicittrade andimproving energy climate changeby campaigning to refrigerant eliminatepowerful whales, dolphinsandporpoises.Finally, wereduce theimpactof posed by plasticpollution,bycatch andcommercial exploitationof to safeguard globalmarine ecosystemsby addressing thethreats illegal logginganddeforestation for cashcrops like palmoil.We work crime, withafocusonelephantsandtigers,forest crimessuchas abuse.Our undercover investigations exposetransnational wildlife We investigate andcampaignagainstenvironmental crimeand All images©Environmental Investigation Agency,Inc. stated. unlessotherwise incorporated responses received priorto thetimeofpublication. and entitiesrelated and to thefindings andnamedinthe report, confidentiality ofsources. made attempts EIA-US to contacttheindividuals informants inorder to complywithstandard ethicalguidelinesinprotecting investigation Pseudonymswere are inpossessionofEIA-US. given to during theinvestigation.All documentsmentioned related to this internal investigative audioandvideo evidence reports,photos, collected NOTES: are noted,thesources EIA’s Unlessotherwise forthereport positions ofanydonors. are anddonotnecessarilyreflect thesoleresponsibility the ofEIA-US Initiative (NICFI)andthe Tilia Fund. The contentsofthispublication Good Energies Foundation, Norway’s InternationalClimateandForest The documenthasbeenproduced withfinancialassistancefrom the ACKNOWLEDGEMENT: SUMMARY EXECUTIVE 2.2. Commercialization ofCattle 3.3. CattlePopulation andMovements inLa 3.2. CattlePopulation andMovements 3.1. Deforestation inForest Areas Reserve and and deforestation Vaccinations, movements 3. Dataanalysis 2.3. Transformation ofBeef 2.1. Livestock Production Phases 2. Thelivestocksupplychain 1.3. Deforestation Dynamicsin 1.2. Socio-environmental Pressures on 1.1. ChiribiqueteandLaMacarena 1. Context INTRODUCTION EXECUTIVE SUMMARY Contents Table of the Northwestern ColombianAmazon...... the Northwestern Macarena NationalPark NationalPark. National Park...... ofChiribiquete andNortheast in theNorth National Parks. Influence...... Chiribiquete NationalPark anditsArea of National Parks. INTRODUCTION ...... CONTEXT ...... CHAIN SUPPLY

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ANALYSIS DATA

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6.4. ColsubsidioandCarnatural: 6.3. CasinoGroup anditsObligationsunderthe Recommendations. Conclusions RECOMMENDATIONS CONCLUSIONS & 6.2. GrupoÉxito inApparent Violationofits 6.1. InternationalNormsandColombianLaw The Role ofSupermarket Chains 6. Accountability 5.3.Hidden ImpactsofIndiscriminateBeef 5.2. FinalDestinationofCattleSold findings 5.1. EIA related to CattleMarket 1 A CriticalLinkintheSupplyChain 5. CattleMarkets 4.2.Other irregularities detectedinGrupoExito’s 4.1. Deforestation inNationalParks. linked tosupermarkets Deforestation inNationalParks 4. Fieldinvestigation MARKETS CATTLE in CattleMarket 1 Sourcing . Supply Chain Policy versus Reality French DutyofVigilanceLaw Environmental Commitments ACCOUNTABILITY ...... RECOMMENDATIONS CONCLUSIONS &

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ENVIRONMENTAL INVESTIGATION AGENCY EIA 4 – TAINTED BEEF investigation wasableto cover onlyafraction Amazon, oftheColombian the ofChiribiquete. While this Forest parts bordering Reserve the northern fold inLaMacarena NationalPark andmore thanthree-fold intheAmazon hectares offorest whilethecattleranching populationgrew more thanseven- 2020 the areas investigatedwhere - deforestation illegal is lost 21,596 - protected Forest 2016and thatbetween shows analysis EIA´s Reserves. national park-aswellareas in LaMacarena NationalPark andadjacent Park -aUNESCOWorld HeritageSiteandtheworld’s largest tropical forest ofChiribiqueteNational The investigation covered part areas inthenorthern laundering, andillegalforest clearingintheColombian Amazon. uncoveredEIA a system that ismarred cattle by corruption, extortion, forests. Through innovative data analysis and extensive field investigations, meat from suppliers thatsource cattle that has been illegally raised inprotected supermarket chains such as Grupo Exito and Colsubsidio are purchasing evidence documents EIA’s during found report This investigation that to financingofarmedconflictinColombia. consumers are fueling illegal deforestation innational parksand contributing unwitting sourcing, beef their and their on diligence companies due these of illicitdeforestation. Dueto thefailure ofsupermarkets to conductadequate in BogotaandothermajorColombiancitiesbringswithitaninvisiblestain EIA’s groundbreaking investigation reveals howbeefarrivingforconsumption summary Executive 5

ENVIRONMENTAL INVESTIGATION AGENCY EIA EXECUTIVE INTRODUCTION CONTEXT SUPPLY DATA FIELD CATTLE ACCOUNTABILITY CONCLUSIONS & – TAINTED BEEF 6 SUMMARY CHAIN ANALYSIS INVESTIGATION MARKETS RECOMMENDATIONS 7

MAIN FINDINGS

Government data shows that illegal cattle Bogota receives thousands of cattle for ranching in protected areas has increased slaughter originating from the Amazon Forest exponentially between 2016 and 2020. Reserve, where deforestation is illegal.

Cattle raised on illegally deforested land in While the government collects a wealth of protected areas, such as La Macarena National relevant data about cattle vaccinations and Park and the Amazon Forest Reserve are sold movements in protected areas, this in cattle markets that, according to official information is not accessible to the public, data, sent tens of thousands of head of cattle nor does it appear to be shared with other to Bogota slaughterhouses during the same relevant agencies, where it could help with period of time. oversight and enforcement.

Indirect suppliers of Grupo Éxito, Colsubsidio Grupo Exito, Colsubsidio and Carnatural are and Carnatural with farms in both purchasing directly from suppliers who source Chiribiquete and La Macarena National from ranchers selling cattle illegally raised in Parks are making annual payments per head Chiribiquete and La Macarena National Parks. of cattle to armed groups.

Casino Group’s apparent lack of due diligence concerning Grupo Éxito’s operations in Colombia is perpetuating the financing of armed conflict and fueling the destruction of some of the most valuable forests in the world.

results point to serious systemic problems, the scale of which is likely rancher noted: “These people take care of you.” In exchange for exponentially larger and, if not addressed, threatens the future of payments, ranchers explain, they are able to move around freely and Colombia’s unique forests and the communities that depend on them. are protected from cattle theft. Such payments are one of the important Recommendations sources of income for armed groups in the region and can add up to Through multiple trips and interviews, EIA investigators documented a hundreds of thousands of dollars per year in the area of investigation To the Colombian government: To Grupo Éxito, Colsubsidio, and Other complex web of actors that included ranchers, brokers, slaughterhouses, alone, per EIA’s analysis. Illegal armed groups also appear to control Design and implement a mandatory national transparent Supermarket Chains: cattle markets, armed groups, and supermarket chains in Colombia’s the extent of deforestation by issuing so-called “permits” to clear forests system to register and trace individual cattle throughout their Implement a due diligence plan with appropriate risk big cities, where the beef is sold to consumers. for pasture. Companies such as Grupo Exito have made “Zero life cycle, starting at birth. assessment and mitigation measures, to ensure no cattle Deforestation” commitments and claim they are conducting due Actively monitor the cattle sector and stop permits for cattle enters their supply chain that is sourced from deforestation Meat production involves various stages from the birth of the cow to diligence in their supply chains; yet, this investigation uncovered evidence ranching and movements in protected areas, unless it is for or subject to extortion from armed groups and other human backgrounding, finishing, slaughtering and meatpacking. During each stage, of Grupo Exito purchasing meat from suppliers who source from farms restoration or conservation purposes, as well as other land rights violations. Given the extremely high risk in the Colombian the animals can be moved around and sold multiple times, involving different located in protected areas where cattle ranching is illegal. One rancher Amazon cattle sector, such due diligence systems should actors throughout the supply chain. Despite the existence of cattle vaccination linked to Grupo Exito’s supply chain openly admitted to having deforested grabbing schemes. include: records and extensive transport databases that show cattle populations hundreds of hectares in 2019 inside Chiribiquete National Park and Establish effective cooperation and information sharing and movements, there is currently no system in Colombia that traces cattle was planning to clear-cut much more in the future. According to this between relevant agencies so that violations are reported and • Full traceability throughout cattle’s life cycle, starting at back to their place of birth. Also, as confirmed during multiple conversations rancher, the meat coming from his farm ends up at Carulla -Grupo acted upon. birth. with different stakeholders, it seems actors in the supply chain don’t even Exito’s premium supermarket. Support economic alternatives and create opportunities for • Effective monitoring of the full supply chain, including indirect attempt to know where the cattle were actually raised. EIA’s analysis of sustainable livelihoods that are controlled by and benefit local suppliers and their sources. official data shows how cattle coming from protected areas – where cattle Voluntary company commitments — in Colombia and other countries communities. • Zero tolerance for paying armed groups. ranching is illegal - are arriving at slaughterhouses in Bogota and other major — have proved to be insufficient to solve the problems of deforestation End militarized responses that hurt the local vulnerable population. • Zero tolerance for deforestation. cities. Everything is tolerated, as long as it is accompanied by some form and illegality in supply chains. As long as there is no legal obligation to of paperwork – paperwork that, investigators found, is often falsified to follow a product back to its origin – in the case of cattle, the place of obscure the true origin of the cattle. birth – actors along the supply chain will continue to avoid responsibility for due diligence, while armed groups and land speculators continue to To Casino Group: The situation is exacerbated by weak institutions, a largely absent profit from environmental crimes with impunity. In compliance with the French Duty of Vigilance Law, implement government in the region, and opposing factions of illegal armed groups an appropriate due diligence plan to ensure that operations who de facto rule in the forest. Ranchers interviewed confirmed that Consumers in Colombia should have the right to know if the meat they buy of Grupo Casino, its subsidiaries, suppliers, contractors and they make payments to armed groups at a rate of 10,000 Colombian is contributing to illegal deforestation and the financing of violent conflict sub-contractors are not causing environmental harm or human Pesos (COP) per cow per annum, in exchange for “protection.” As one in their country. rights violations in Colombia. ENVIRONMENTAL INVESTIGATION AGENCY EIA AGENCY INVESTIGATION ENVIRONMENTAL 8 – TAINTED BEEF Introduction 2 1 government sources and/or through theuseofsatellite-monitoring. official with data field its verified and investigation field a conducted toaccess requests information public to theICA. To EIA it, complement (2016-2019) and movements (2016-2020). This data wasobtained through by vaccinations investigation out cattle on carried databases was analyzing forest was illegallycleared inthearea of this of investigation. Part of fields) soccer (30,246 hectares 21,596 to equivalent area an 2020, AgricultureColombian andLivestockand (ICA). Between 2016 Institute governments andcattlemovement andvaccination datafrom the the region alongwithmatches between geographic datafrom regional area was selected because of the availability ofdeforestation data from Guaviare the total (2.6%of area This the reserve of department). that in hectares81,946 the in AmazonForest of Reserve the in Department La Macarenawithin NationalPark (5.7%ofthetotal area ofthepark)and recordsand cattle movementsanareain 35,429 hectaresthataccountsfor largest data-driven cities. EIA´s investigation involved analyzing vaccination supermarketschain ofbeef that arrives inColombia’s inBogota and certain Parks, ranchingNational cattle aproduction as supply the and model, of protected andLaMacarena theChiribiquete as such ecosystems, EIA’s field investigation focused on analyzing the links between deforestation hectaresmillion offorest, rural populations. resultsit also among displacement andincreasedcommunity in poverty and environmental and generating services greenhouse gas emissions, environmental challenges. Inaddition to itsrole indecimating ecosystems Deforestation hasbeen described asone ofColombia’s main socio- Belgium.

National Policy forDeforestation Control andSustainable Management ofForests (CONPES 4021).December21,2020.p.3.Available Ibid. here. ConsultedonMarch 19,2021. 1 Between 2000and 2019,Colombia lostnearly 2.8 2 anareasizein similar to of theentire country 9

ENVIRONMENTAL INVESTIGATION AGENCY EIA 10 – TAINTED BEEF 7 6 5 4 3 of scienceorconservation.” threatened universalspecies ofoutstanding value from theofview point biological diversity,of conservation in-situ for those containing including Environment: “contain the most important and significant natural habitats thepark’s expansion2018 areas, accordingwhich ofto theMinistry 2018. in cultural characteristics,UNESCO declared it a Mixed World Heritage Site national park. and 2018. NationalParkChiribiquete wascreated in1989andexpanded2013 naturally. biogeographical regions—Guyana, Amazon, Andes, and Orinoco—meet four of fauna and flora the where places few the of one is it and wealth, River basin. The area contains ecosystems withexceptional biological summits ofColombia’s eastern mountain range to the plains ofthe Amazon from ofecosystems, anumber thatconnects ecological corridor the ofalarge regional Amazonian and Andean of the regions. part is It Amazonfundamental tois theecological connectivity The Northeastern National Parks 1.1. ChiribiqueteandLa Macarena 1. Context Expansion ProposalExpansion Serraníafor Available27, p. Park.2018. National April Chiribiquete del Synthesis Document. here.on Consulted UNESCO World HeritageList. Available 28,2021. here. ConsultedonJanuary Colombia’s Serraníaworld’sthe is now deChiribiquete largest tropicalrainforest Worldpark. national Wildlife Fund.July 2,2018. 19, 2021. Environment of Development.Sustainable and Ministry 2018, 5. 10, p. July of 1256 Resolution March 19,2021. ProposalExpansion Serraníafor 9, p. 2018. Park.April National Chiribiquete Document. del Synthesis 6 A large part of this culturalthis of Alarge andnatural part located within wealthis 3

4 Itiscurrently considered the world’s largest tropical forest 5 Given and ecological,geomorphological, its biological, Available 29,2021. here. ConsultedonJanuary 7

Availablehere Marchon Consulted . Availablehere on Consulted . 11

ENVIRONMENTAL INVESTIGATION AGENCY EIA EXECUTIVE INTRODUCTION CONTEXT SUPPLY DATA FIELD CATTLE ACCOUNTABILITY CONCLUSIONS & – TAINTED BEEF 12 SUMMARY CHAIN ANALYSIS INVESTIGATION MARKETS RECOMMENDATIONS 13

BOX 1: IMPORTANCE OF CHIRIBIQUETE NATIONAL PARK AND ITS AREA OF INFLUENCE Indigenous communities, including groups living in voluntary isolation BOX 2. ILLEGAL ARMED GROUPS IN THE in inaccessible parts of the park, consider Chiribiquete to be an ancestral long house (or “maloca”) for jaguars. The species’ survival is thus as INVESTIGATION AREA. important for their cultural beliefs as it is for successful biodiversity Within the investigation area, two types of illegal armed groups have

Significance of the Expansion Area (2018) conservation. The park is also home to iconic fauna such as the puma, historically been operating. In the department of Guaviare and some parts The 2018 expansion of Chiribiquete National Park aimed at ensuring the The importance of conserving the 2018 Expansion Area is reinforced by the pink dolphin and the lowland tapir, which has a vulnerable status. 9 of Meta, the ideologically left-wing FARC has been the group controlling protection of different habitats that support a great number of plant and animal its function as a habitat for the maintenance and reproduction of at least the territory. In this report, sources refer to them as “guerilla,” “armed species. 708 species of plants in the area are representative, unique, or threatened 17 species of short-distance migratory fish, eight of which are distributed groups,” or “FARC dissident groups.” The other group controlling parts of The protected area of La Macarena National Park was also established in to some degree; 30 species of large and medium-sized mammals; 410 species throughout the Orinoco and Amazon river basins. the Meta department are the paramilitaries. These groups are ideologically 1989 and includes an area extraordinary for its isolated mountain range right wing and were initially called “self-defense” forces, which were of birds, 41 species of reptiles, 53 species of amphibians, 216 species of fish conditions, which support the presence of unique species and an important reportedly set up to fight FARC rebels and worked closely with the remnants and 293 species of diurnal butterflies. In total, 32 of these species are possibly Importance of Regional Ecosystem index for diversity in flora and fauna. Its ecosystems include rainforest, flooded of the Medellín and Cali Cartels.13 The fight between the FARC and illegal new to science and 57 have been recorded for the first time in Colombia, which Connectivity forests, scrubland, and herbaceous vegetation from the Amazonian savanna.10 right-wing paramilitary groups over coca fields and drug smuggling indicates the good state of conservation in the area’s ecosystems. Researchers The corridor that connects La Macarena and Chiribiquete National Parks corridors has been a key factor in the conflict’s extreme levels of violence, also recorded 51 plant species for the first time in Colombia. is comprised mainly of humid tropical forest ecosystems belonging to the forced displacement and land-grabbing.14 A paramilitary group operating Amazon-Orinoquia humid tropical biome. This region is strategic to in parts of Meta is theso called Autodefensas Gaitanistas de Colombia (AGC).15 Two of the species of flora registered in the 2018 Expansion Area are highly maintaining connectivity between the two parks and is of great importance 1.2. Socio-environmental threatened: both Cedrela odorata (Spanish cedar) and Pachira quinata for the provision of ecosystem services, especially those related to water Despite the signing of a peace agreement between FARC and the Colombian Pressures on Chiribiquete government in 2016, generalized violence by illegal armed and paramilitary (ceiba tolúa) are endangered (EN), mainly as a result of timber over-extraction. regulation, since it includes areas that supply three different watersheds National Park and its Area of groups remains a major issue today in Guaviare and Meta. Recent reports Cedrela odorata is one of the most sought-after species in the world and in the region (Apaporis, Vaupés, and Guayabero rivers). Furthermore, its claim that FARC dissident groups and underground support networks have 8 Influence has been included in CITES appendix II effective in August 2020. P. quinata high level of ecosystem integrity contributes to regional climate regulation. grown significantly since the signing of the peace agreement, from 2,300 has a high demand in the departments of Atlántico, Casanare, and 16 Chiribiquete National Park is located in a region of the country that has members in May 2019 to nearly 4,600 in May 2020. While 13,000 FARC Magdalena. members demobilized under the peace process, many, including several been heavily affected by the long-term armed conflict and where BOYACÁ FARC commanders involved in the peace agreement negotiations, have institutional capacity remains weak. It is common for illegal groups to returned to arms, citing the government’s lack of willingness to fully comply co-opt weakened territorial institutions, allowing for the proliferation of 17 st The Fauna and Flora of the Expansion Area with the terms of the agreement. FARC dissident groups, such as the 1 CASANARE illicit economic activities that feed into the direct causes of land-use and 7th Fronts, among others, have gained a strong presence in Meta and CUNDINAMARCA 11 Guaviare during this time.18 They have continued to finance themselves species change. of plants through drug trafficking, illegal mining, and extortion,19 gaining members that708 are representative of the area and 410 species of birds, through recruitment of local youth and adolescents. Evidence of youth 2 highly threatened plant species: 12 of which are threatened, The lack of functioning government institutions in the region has resulted Cedrela odorata (Spanish cedar) and including curassows, parrots, recruitment has been documented on multiple occasions, including the Pachira quinata (ceiba tolúa). and toucans. in a situation of generalized insecurity and violence. Following the 2016 finding that several minors were killed as the result of a bombing of a Peace Agreement between the State and the Revolutionary Armed Forces 20 species new to science and 57 Guaviare FARC dissident camp in March 2021. In 2019, a similar government species recorded for the first of Colombia guerilla group (FARC), there are still large areas under the bombing of a FARC camp in Caquetá where minors were killed resulted in TOLIMA time in Colombia. 32 VICHADA control of illegal armed groups that compete with, substitute, or the resignation of the Minister of Defense.21 30species of species of subordinate the State (see Box 2). This situation is intensifying the In the past year alone, in the area where EIA conducted its investigation, reptiles, mammals 41 conflicts surrounding land use and is leading to the illegal accumulation there have been dozens of attacks, kidnappings, murders, and armed large and medium-sized, including the 53 species of amphibians, META 22 critically endangered (CR) tapir, the 216 species of fish, 78 of untitled land, for illicit activities like cultivating coca or clearcutting.12 confrontations in Meta and Guaviare. While many of these events can endangered (EN) giant otter and armadillo, morphospecies of and the vulnerable (VU) giant anteater and 2 spiders, and 293 species be attributed to FARC dissidents, other violent groups operating in the vulnerable species of monkeys. of diurnal butterflies. 13141516171819202122232425 region, such as paramilitaries like the AGC, have also contributed to increases in violence.23,24 In many of these cases, the perpetrators are Map 1. Legal status of territory never identified and continue to threaten and harass the local civilian HUILA Another impact of the State’s scant presence in the region is the population with impunity. The lack of economic opportunities in the region, government’s seeming inability to implement its own use and conservation in addition to the absence of the state, allows armed groups to continue Chiribiquete NP (Est.GUAVIARE 1989) plans for the forests administered under the Second Law of 1959 and asserting control. Some government sources have mentioned that “Minors 1st Expansion of are joining voluntarily due to the lack of state presence in the field. The La Macarena the national parks regime. Weak institutions are unable to help resolve National Park Chiribiquete NP (2013) lack of social investment, healthcare, education, and work—these factors 2nd Expansion of land-use conflicts, promote a regulated forestry sector, and, more recently, Chiribiquete NP (2018) motivate some young people and adolescents to voluntarily join these to implement the Peace Agreement. armed groups.”25 Forest Reserve Area designated under Second GUAVIARE Law of 1959

9 IUCN recommends two vast indigenous peoples’ territories for World Heritage listing. May 14, 2018. Available here. Consulted on May 20, 2021. 10 La Macarena National Park Area description of the park. Available here. Consulted on April 2, 2021. 11 Expansion Proposal for Serranía del Chiribiquete National Park. Synthesis Document. April 2018. p. 16, Available here. Citing González, J., et al. 2018. Characterization of the Main Causes and Agents of Deforestation at the National Level, 2005- 2015. Institute of Hydrology, Meteorology and Environmental Studies(IDEAM). Ministry of Environment and Sustainable Development. ONU-REDD Colombia Program. Bogota. Print. Chiribiquete National Park VAUPÉS 12 Ibid. 13 Colombia Elites and Organized Crime: Introduction. The AUC and the Rise of the Periphery and Bureaucratic Elites. Insight Crime. August 9, 2016. Available here. Consulted on May 20, 2021. CAQUETÁ 14 The FARC and Colombia’s Illegal Drug Trade. Latin American Program of the Wilson Center. November 2014. p.2. Available here. Consulted on May 20, 2021 15 La localidad de San Martín en Meta bajo el terror impuesto por grupos paramilitares. Plaza Capital, February 19, 2021. Available here. Consulte don May 21, 2021. 16 Disidencias de las Farc duplican su número de hombres en solo 12 meses. El Tiempo. May 31, 2020. Available here. Consulted on April 26, 2021 17 Una facción de las FARC retoma la lucha armada: lo anunciaron “Iván Márquez”, “El Paisa” y “Jesús Santrich.” Infobae. August 29, 2019. Available here. Consulted on April 26, 2021. 18 1st Front Dissidence (Ex-FARC Mafia). InSight Crime. July 23, 2019. Available here. Consulted on April 26, 2021. 19 The Criminal Portfolio of the Ex-FARC Mafia. InSight Crime. November 11, 2019. Available here. Consulted on April 26, 2021. 20 Children Trapped by Colombia’s War, Five Years After Peace Deal. The New York Times. March 27, 2021. Available here. Consulted on April 26, 2021. 21 Renuncia ministro de Defensa Guillermo Botero. El Tiempo. November 6, 2019. Available here. Consulted on April 26, 2021. Source: Expansion Proposal for Serranía del Chiribiquete National Park. Synthesis Document. April 2018. pp. 31-33, Available here. Consulted on March 19, 2021. 22 ACLED Dashboard. The Armed Conflict Location & Event Data Project. Available here. Consulted on April 26, 2021. 23 Informe sobre presencia de grupos armados en Colombia: actualización 2018-2 y 2019. Indepaz. August 2020. Available here. Consulted on April 26, 2021. 8 Expansion Proposal for Serranía del Chiribiquete National Park. Synthesis Document. April 2018. pp. 29-30, Available here. Consulted on March 19, 2021. 24 Un firmante de paz entre las víctimas de la masacre en Guaviare. Fundación Paz & Reconciliación. December 11, 2020. Available here. Consulted on April 26, 2021. 25 Falta de oportunidades y presencia de Estado causa reclutamiento: personera de San José del Guaviare. Blu Radio. March 11, 2021. Available here. Consulted on April 26, 2021. EIA AGENCY INVESTIGATION ENVIRONMENTAL

AMAZONAS

PERÚ EXECUTIVE INTRODUCTION CONTEXT SUPPLY DATA FIELD CATTLE ACCOUNTABILITY CONCLUSIONS & – TAINTED BEEF 14 SUMMARY CHAIN ANALYSIS INVESTIGATION MARKETS RECOMMENDATIONS 15

that the total number of cattle increased by 690,000 in the 2016-2019 period in Chiribiquete’s most affected municipalities neighboring the park, which lost 290,000 hectares of forest during that same period.31

The other region investigated, particularly the municipality of La Macarena, was the second most deforested area in the country in 2018. This area’s deforestation and cattle trends illustrate a strong correlation between increases in deforestation and an increase in the number of cattle and cattle farms.32

31 Report on Deforestation, April 2019–March 2020, in the Amazon’s Northwestern Arch. FCDS. Available here. Consulted on March 18, 2021. 32 Between 2016 and 2017, the total number of cattle increased by 47%, the number of cattle farms by 45%, and net forest loss by 65%. Likewise, between 2017 and 2018, the total number of cattle increased by 43%, cattle farms by 40%, and deforestation by 20%. The department of Meta as a whole displays a similar correlation. The number of cattle increased by 4% between 2016 and 2017, while the number of cattle farms increased by 6% and deforestation by 28%. Between 2017 and 2018, the total number of cattle grew by 11%, the number of cattle farms by 15%, and deforestation by 18%. Source: Traceability as a Tool in the Fight Against Deforestation. FPES – NWF – UW. April 2020. Based on official information from the 2016–2018 National Livestock Census and IDEAM’s 2016–2018 Deforestation Report. p. 17. Available here. Consulted on March 18, 2021.

The expanded park area and its area of influence have been historically On one hand, the phenomenon of land accumulation and subsequent affected by deforestation.26 In 2018, the government considered that if deforestation can be seen as a result of a historical process of failed deforestation were not contained in this area, it would ultimately threaten land reforms; on the other, it currently stimulates an important part of key conservation areas. Per official documents, the expansion of the regional economy, despite its strong negative environmental impacts. Chiribiquete National Park was conceived as one of the strategies to halt Additionally, in the absence of policies to protect the rights of rural deforestation (logging, establishing pastures, and burning) in this region.27 populations, land-grabbing increases the concentration of land in the hands of large owners while leaving behind a large number of local disempowered campesinos, who see their resources diminishing and their rights violated. 1.3. Deforestation in the Northwestern Colombian 1.3.b Links Between Deforestation and Cattle Amazon Ranching in the Investigation Area 1.3.a Land-grabbing The initial investigation focused on two regions. In Chiribiquete National Land-grabbing is considered one of the main structural causes of deforestation Park the focus was in the north and northeast and the surrounding forest in the Northwestern Amazon, as it encourages new colonization processes reserve. In La Macarena National Park, the investigation analyzed a and land use change. In this region, land-grabbing is primarily facilitated by selection of rural districts within the park. extensive cattle ranching and the cultivation of coca crops.28 Land-grabbing involves the process of artificially increasing the price of In some areas of Chiribiquete National Park, the conversion of forest land (speculation) and a more recent phenomenon in which certain large into pastures for extensive cattle ranching is among the main causes of landowners purchase land, through different means, from multiple deforestation, according to the government’s Deforestation Early Warning smallholders (accumulation). The current process of land-grabbing and Bulletins30. Likewise, deforestation reports for the Amazon’s Northwestern accumulation in the northwestern Colombian Amazon has historical Arc conclude that there is a significant increase in the number of cattle roots and is able to happen largely as a result of the lack of presence by farms directly related to the appropriation of public land, expanding the the State. 29 agricultural frontier into the Amazon Forest Reserve. The report shows

26 Expansion Proposal for Serranía del Chiribiquete National Park. Synthesis Document. April 2018. p. 23, Available here. Consulted on March 19, 2021 27 Ibid. 28 ¿Cómo saber quién deforestó 2.000 hectáreas en Chiribiquete?. El Espectador. April 3, 2021. Available here. Consulted on April 28, 2021. 29 El invisible acaparamiento de tierras. Dejusticia. March 6, 2019. Available here. Consulted on April 30, 2021. 30 Deforestation Early Warning Bulletin No. 25. IDEAM. (October–December 2020), Obtained through a request for access to public information. Consulted on March 18, 2021. ENVIRONMENTAL INVESTIGATION AGENCY EIA AGENCY INVESTIGATION ENVIRONMENTAL 16 – TAINTED BEEF supply chain 2. livestock The 33 cycle farms. called partial full-cycle farm.Farmsof thesephasesaretwo one or out carry that only outall three phases,inwhichcaseitisreferred cancarry farm to asa The cattleproduction process hasthree phases. 2.1. LivestockProductionPhases suppliers, entersupplychains. to deforestation at some pointintheir lifecycle, especially through indirect linked cattle that risk the increase and difficult traceability make actors Different stagesofproduction,movementcontinuous of andamultitude production its in especially commercialization and dispersed, phases. The structure ofthelivestockand is complex chain inColombia supply March 18,2021. Traceability asa Tool Deforestation. Against Fight the UW. in NWF – – FPES Available 20-22. pp. 2020. April here. to slaughterhouses. This phasehasaduration of12months. old. Atmonths 36 it is takenuntil usually extends is age, it that old and months 24 is Begins whentheanimal phase: Finishing months. old. 24 months is phase hasadurationThis of approximately 17 around calf’s the seventh oflife—and month animal the when ends Backgrounding phase: Begins withweaning—which takes place total duration of18months. ofthe calf, and ends with weaning. the birth This phase has a phase:Beginswiththecow’sCow-calf pregnancy, followedby 33 In some cases, a single Insomecases,asingle Consulted on Consulted

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ENVIRONMENTAL INVESTIGATION AGENCY EIA EXECUTIVE INTRODUCTION CONTEXT SUPPLY DATA FIELD CATTLE ACCOUNTABILITY CONCLUSIONS & – TAINTED BEEF 18 SUMMARY CHAIN ANALYSIS INVESTIGATION MARKETS RECOMMENDATIONS 19

Brokers: have direct relationships with wholesalers and retailers, 2.3. Transformation of Beef restaurants, and butcheries, among other buyers, and provide the logistical support needed to supply the so-called canals,35 or carcasses, The role of slaughterhouses in the cattle supply chains is to slaughter to the final clients. 36 and butcher animals. These facilities can send the carcasses to other companies for further processing or receive technical specifications on Intermediation is barely regulated and creates both inefficiencies and special cuts and packaging. high levels of informality in the supply chain. These factors make traceability and monitoring more difficult, especially for suppliers that In general, slaughterhouses38 are not involved in the retail of beef; however, are not full-cycle producers.37 Though it may seem that cattle coming some slaughterhouses in Colombia buy live cattle and then sell the beef from full-cycle farms are more easily traced than those from partial-cycle and its byproducts to other buyers. Beef from municipal slaughterhouses farms, even full-cycle farms may purchase and sell livestock at different can only be distributed in its respective municipality, while department- phases in the production cycle. level plants can supply the entire country. All slaughterhouses, whether local or regional, must be approved by the National Institute for Drug and Food Surveillance (INVIMA).

35 A canal, or carcass, is an animal that has already been slaughtered. 36 Traceability as a Tool in the Fight Against Deforestation. FPES – NWF – UW. April 2020. p. 23. Available here. Consulted on March 18, 2021. 37 Ibid, 20. 38 Ibid, 25-26.

Figure 2. Representation of the Beef Supply Chain Supply Chain Source: University of Wisconsin

Cattle Production Commercialization Transformation Final Sale

Intermediaries: Local markets (collector/broker) Local processing plant and butchers Sites:

Cow-calf farm Cattle fair

Auction National processing Brokers, wholesale, plant and retail Backgrounding farm Farm of sale

Finishing farm

Company: Meatpacking Large retailers (purchase of fattened cattle) tfacilities and supermarkets

intermediaries have the financial means to negotiate with cattle ranchers 2.2. Commercialization of Cattle and make payments in advance. Intermediaries can be classified as either collectors or brokers. Cattle can be sold during any of the three phases in the production cycle, and it is common for cows to be moved from one farm to another after Collectors: gather lots or groups of live animals to sell them in places formal or informal sales at auctions or fairs.34 In many cases, like livestock fairs and cattle auctions. This common practice of intermediaries play an important role in the chain by connecting supply grouping animals into lots, rather than registering them individually, and demand at any given phase in the production cycle. These complicates the traceability of cattle.

34 Ibid, 23-24. ENVIRONMENTAL INVESTIGATION AGENCY EIA AGENCY INVESTIGATION ENVIRONMENTAL 20 – TAINTED BEEF and deforestation Vaccinations, movements 3. Dataanalysis 40 39 from theseprotected areas (hereafter referred to ascattle“movements”). number ofhead ofcattle, andICA’s records onthe numberofcattletransported when comparinginformationondeforestation intheregion, anincrease inthe The relationship betweendeforestation andcattleranching becomesevident Park intensifiedin2020,whennearly 5,000hectares offorest were lost. deforested Deforestation 2020. and 2016 between LaMacarena in National neighboring LaMacarena NationalPark, where over 17,000hectares were in anotherarea border lessthan10kmaway ofthepark,in from thenorthern forestof and2019 morein Forest2020. in 500 than alsoadvancing destructionis Area ofChiribiqueteNationalPark Northeastern Illegal deforestation isnotlimited to Forest and Reserves. The Northern (see Box 3). naturemodify the that forestof the reserve are prohibited these areas in by hectares) (5,294 2017 hectares). 2019(2,430 and changes Land-use 2020. The worst year was 2018when 5,590hectares were cleared, followed ParkNational ofChiribiquete Northeast and ForestThe Area Reserve surrounding North the and NationalParks 3.1. DeforestationinForestReserve Areas

runs alongtheextentof LlanosdelYari-Yaguara IIreserve untilnear thePalmar Alto rural district. bordersouthern the along extends TuniaYari-YaguaraRiverdel Llanos meets the it until Reserve. IIIndigenous borderwestern The southwardside extending eastern the with fromruralthe borderthe until Chuapal of El the district with intersects TuniaRiver. The a referencethe rural point, of SanJorge districts of San José delGuaviarein themunicipality andAngoleta are todirect the north, expansion areaof the2018 section thisarea National Park. of Chiribiquete is understoodAs report, In this to bethenorthernmost movement andvaccination datasets. 1959 areas, inadditionto thefactthatrural district names forthetwoseparate locations are indistinguishable inthecattle togetherthem analysis Our included La Cristalina. called rural as one given district arelocations both that Law of inside ofSecond the samename. under in theinvestigationThis means that area there are twoseparate ruralof Calamar in themunicipality districts La Primavera,Cristalina, Patio and Bonito) fromdata analysis include our in included separatetwo geographicfall that locations fromGovernments the Guaviareand Meta of movement cattle and vaccinationand fromdata ICA. Threeruralthe of (La districts Guaviare.José del San of municipality the in park of the These ruralwere districts geographic in matches based on selected data La Tigrera,Polaco), ruralthe with along Cubarro, PatioPuerto and Bonito, Aires, of Buenos district Puerto to located northeast the districts inthemunicipalityofCalamar(BrisasdeItilla,CañoCaribe,ElRebalse, Triunfo, LaCristalina,Esmeralda, LaPrimavera, ThisisAreastheofone itsconductedinvestigation. ismeantit toForwhichEIA in 11 ruralinclude purposesthe thisof report, 39 has lost nearly 17,000 hectares 17,000 nearly lost has offorest and 2016 between 40 lost more than 900 hectares lost more than900hectares 21

ENVIRONMENTAL INVESTIGATION AGENCY EIA EXECUTIVE INTRODUCTION CONTEXT SUPPLY DATA FIELD CATTLE ACCOUNTABILITY CONCLUSIONS & – TAINTED BEEF 22 SUMMARY CHAIN ANALYSIS INVESTIGATION MARKETS RECOMMENDATIONS 23

3.2. Cattle Population and that 90% of the cattle sent from this area directly to a processing plant Graph 1. Movements of Cattle in the Forest Reserve to the North Graph 2. Cattle Population in the Forest Reserve to the North and arrive in the city of Bogota. Between 2016 and 2020, this proportion was and Northeast of Chiribiquete National Park. Northeast of Chiribiquete National Park. Movements in the North and equivalent to 6,017 head of cattle, with the highest number of movements 11,197 50k 47,696 (2,360) in 2020. Only 6% of all movements from cattle farms straight to 11000 Northeast of Chiribiquete 42,506 slaughterhouses went directly to the department of Guaviare and 1% to 10000 National Park 40k 9000 the department of Meta. 36,020 8000 An analysis of ICA’s vaccination registry for the Forest Reserve to the 7000 30k North and Northeast of Chiribiquete National Park shows that the area’s The main destination of cattle movements to other farms in the 6000

cattle population increased by staggering 349% percent between 2016 department of Guaviare (for backgrounding) is the rural district or vereda 5000 4,552 4,476 20k and 2019. According to ICA’s registry, there were 10,386 head of cattle of Altamira in the Municipality of Calamar, where 2,515 head of cattle 4000 Cattle Population Cattle Population 3000 in 2016, 36,020 in 2017, 42,506 in 2018, and 47,696 in 2019. Likewise, arrived between 2016 and 2020. Altamira is located outside of the Forest 2,111 10k 10,386 ICA’s official records show a total of 23,853 movements between 2016 Reserve Area. It is worth noting that 62% of the cattle that leave this rural 2000 1,517 and 2020. The number of movements has also grown annually and district are bound for the city of Bogota (a total of 15,882 out of 25,377 1000 0 0k intensified in 2020 with a total of 11,197 movements.. head of cattle for the 2016–2020 period). Therefore, Bogota may be 2016 2017 2018 2019 2020 2016 2017 2018 2019 indirectly receiving a greater number than 6,000 heads of cattle that Source: EIA analysis based on ICA information Source: EIA analysis based on ICA information An analysis of the destinations of cattle movements from the Forest spent part of their lifetime inside the Forest Reserve Area surrounding Reserve to the North and Northeast of Chiribiquete National Park indicates the North and Northeast of Chiribiquete National Park. Map 3. Deforestation in Northern area of Chiribiquete and La Macarena National Parks

Map 2. Area of Investigation to the North of Chiribiquete National Park

La Macarena National Park Chiribiquete National Park

La Macarena National Park

Chiribiquete National Park La Macarena National Park Forest Reserve Area designated under Second Chiribiquete Law of 1959 National Park 2016 Deforestation 2017 Deforestation 2018 Deforestation 2019 Deforestation 2020 Deforestation

Graph 3. Movements from FR to Processing Plants Outside Graph 4. Destinations of movements from FR to Other Farms in of Guaviare. Guaviare and Meta, (2016-2020) Gráfica X. Movilizaciones a plantas de beneficio fuera del Guaviare.

2,412 GUAVIAREGUAVIARE META 2400 Calamar Villavicencio Guamal 2600 Depertment 2000 Type Destination Bogotá D.C 2200 Area of Investigation in State Second Law Rural Districts Meta Livestock 1600 Cundinamarca Area of Investigation in Rural 1800 concentration Districts Neighboring La Chocó Macarena National Park 1200 1,160 1400 La Macarena NP 987 814 832 1000

Chiribiquete NP Cattle Population 800 Chiribiquete Cattle Population North and Northeastern National Park 600 Area of Chiribiquete NP 400 Forest Reserve Area designated under Second 200 Law of 1959 0 0 Altamira El triunfo Brisas La cristalina La ceiba La primavera Puerto Barcelona Palermo Yarumal 2016 2017 2018 2019 2020 del itilla gaviotas Source: EIA analysis based on ICA information Source: EIA analysis based on ICA information

FR: Forest Reserve Area surrounding the North and Northeast of Chiribiquete National Park EIA AGENCY INVESTIGATION ENVIRONMENTAL 24 42 41 fromcattle ruralsix districts therelocationhead of 10,002 of ICA reported and 2020, between 2016 increasea 754% 2019, years.four just in Regarding cattlemovements grewthat cattlepopulation fromtoin 2016 individuals 1,846 in 15,774 borders ofLa Macarena National Park. ICA’s vaccination shows registry The percentincrease waseven greater overthe within the sameperiod National Park NationalPark Movements inLa Macarena 3.3. CattlePopulation and National Park to OtherFarms. Graph 6.CattleMovements from theInteriorofLaMacarena of LaMacarena NationalPark to CattleMarkets. (2016-2020) Graph 7. Graph 5.CattlePopulation inLaMacarena NationalPark. Gráfica X.Hato ganadero en6veredas delPNNLaMacarena. – TAINTED BEEF

Cattle Population Cattle Population Cattle Population Ministry ofEnvironment and SustainableDevelopment.Ministry Forest Establishedby Reserves Law2of1959. of LaMacarena National Park. geographicalICA datasetsand which for and park inside the both frominformation Governmentthe orderin match of Meta to an accurateconduct they analysis. Jointly representtotalof the 5.7% area analyzed only rural6 EIA Cafetales,Indio, (Caño districts La Esperanza,Ceiba Bajo, Caño NuevaJosé, and San Caño La Macarenawithin Colombia) Park, National these aresince areones that only the 12k 16k 3000 1000 1500 2000 2500 3000 1500 2000 2500 1000 0k 4k 8k 500 500 0 0 El castillo El Jardín Type Destination Maindestinationsofcattlemovements from theInterior 1,846 2016 Slaughterhouses Cattle Markets Farms 342 2016 Caño Indio La macarena San José 1,377 2017 Altamira 41 fromLa Macarenaof the interior National 11,920 2017 Yarumal Guamal META 3,271 2018 Puerto Puerto toledo Rico Hermosa española Source: EIA analysisbasedonICAinformation Source: EIA Source: EIA analysisbasedonICAinformation Source: EIA Source: EIA analysisbasedonICAinformation Source: EIA Vista La 13,926 2018 pascualera 1,587 Martín 2019 San La Islandia Puerto Lleras la nueva Cacayal Castilla 15,774 3,425 2020 2019 of cattlefrom LaMacarena. received 887 head ofcattle from El Jardín—one ofthe direct destinations Park, and records showthat, duringthissame period, Cattle Market 1 received 2,883headofcattlerelocated from withinLaMacarena National likely is number larger reason same the for ElJardín though, earlier: noted head 957 of cattledirectlyfrom La Macarena within NationalPark. This (see casestudyinsection4.5).Duringthisperiod,CattleMarket 1received (livestockauctions),fairsor and Cattle Market was1 the maindestination the investigation area inLaMacarena NationalPark to cattlemarkets thereBetween and 2020, 2016 wereregistered 1,251 movements from consuming cattlebackgrounded insideofLaMacarena National Park. percentage islow,increases it thebuyers riskthat Bogotain may be this Though destination. final their as Bogota in plants processing had of Meta.Inturn,14%thecattlethatleftElJardín, or957headofcattle, rural districtofElJardín, inthemunicipalityofElCastillodepartment the to Indio Caño of district rural the from relocated were Park) National head ofcattle (whichrepresent 28% ofthe total number that left La Macarena ParkNational were 2,883 region. the in 2020, farms and other 2016 Between movementscattle of destinations from La Macarena main of The interior the movements, ornearly9,000headofcattle. the sixrural districtsorveredas analyzed, accounted for87%ofall of one Indio, Caño 2020. and 2018 in peaked and 2017 in significantly Park toother destinations. movementscattle of The number increased BOX 3.THEAMAZON FOREST RESERVE Available here. ConsultedonMarch 19,2021 is illegalinZones AandB. changes that modifythenature oftheforest reserve. Cattle ranching other or changes land-use ban all they that is classifications these depending on their specific purpose. The common denominator among C, or B, A, Zones classifications: planning environmental distinct inside the reserves. ofEnvironment laterdevelopedThe Ministry three permit onlyland uses that are compatible withforest conservation and protect land,water, and wildlife. the ratification ofthe Second Law of1959 topromote the forest economy (See Map 1). Reserve These forest reserves were establishedthrough ofanarea knownastheAmazon ForestNational Parks part forms borderingthe territory of LaMacarena and Chiribiquete A portion 42 Since 1976, several 1976, Since regulations 43 SUMMARY EXECUTIVE 44 the country’s general objectives. conservation management ofrenewable natural resources andtheachievement of asserve a buffer and contribute to the protection, planning, and neighboringlandon thecarried Chiribiquete out Park National must prescription seizure or Likewise, itdeclared the park’s areatosubject as inalienableandnot culture, research, recovery, andcontrol insideofthenationalpark. recreation, education, other thanconservation, banned allactivities ofEnvironment10, 2018,the Ministry and Sustainable Development July of 1256 Resolution specifically, in Park National Chiribiquete to activities (including cattle ranching) inside the system’s areas. Related Law-Decreeof 30 prohibit1974 of numeral 2811 livestock Article of 3 13oftheSecondLaw1959and national parksince1959.Article ofcattleranchingAny form hasbeenexplicitlybannedinsideany PRODUCTION INNATIONAL PARKS BOX 4.PROHIBITIONOFLIVESTOCK

Resolution 1256 of July 10, 2018, Ministry ofEnvironment andSustainableDevelopment.Resolution 1256ofJuly10,2018,Ministry p.23. Decree 1076of2015,Environment andSustainableDevelopment Sector. 2.2.2.1.3.1.pp.135-136. Article INTRODUCTION 43 . The resolution activities that determined also CONTEXT CHAIN SUPPLY 44 ANALYSIS DATA INVESTIGATION FIELD

Available here. ConsultedonMarch 19,2021. Available here. ConsultedonMarch 19,2021. MARKETS CATTLE ACCOUNTABILITY RECOMMENDATIONS CONCLUSIONS & 25

ENVIRONMENTAL INVESTIGATION AGENCY EIA 26 – TAINTED BEEF SUMMARY EXECUTIVE owns a farm located—at least partially—inside LaMacarena Park. National partially—inside least located—at afarm owns Park,located withinChiribiqueteNational farm thatb) acompany and purchasesand Colsubsidio cattledirectly from: a) a who a runs supplier case,oneofthe traders bothGrupoÉxitothat supplies In thisparticular indirectrepresent suppliers one oftheweakest chain. the supply in links investigation foundconvincing evidence ofthe contrary andrevealed that stated explicitly to andconsumed inBogota. Though manysupermarket chainshave their backgrounding or finishing phases in protected areas are then taken The previous section shows how a significant number of cattle that spend supermarkets Deforestation linked to investigation 4. Field 45

April 14,2021. a cadenadesupermercadoAcusan francesa dedeforestarEl enColombia. MarchTiempo. 4, 2021. 45 thatthey donotbuycattlefrom deforested areas, this Available here.on Consulted 27

ENVIRONMENTAL INVESTIGATION AGENCY EIA EXECUTIVE INTRODUCTION CONTEXT SUPPLY DATA FIELD CATTLE ACCOUNTABILITY CONCLUSIONS & – TAINTED BEEF 28 SUMMARY CHAIN ANALYSIS INVESTIGATION MARKETS RECOMMENDATIONS 29

4.1. Deforestation in National to Colombian legislation, any activity other than conservation is illegal EIA: You work directly with them, or with suppliers? within the park’s borders.46 Nevertheless, Indirect Supplier 2 holds Parks How does it work? around 800 hectares of land inside the park, 400 of which were EIA: … how many hectares do you have, Mr. deforested and turned into pastures for cattle ranching in 2019, when Supplier A: Both ways. I have finishing operations and Indirect Supplier 2: … I have approximately 700, 800 4.1.a. Case No. 1: Indirect Supplier the area had already become a national park. Through September have been a cattle rancher all my life. I also have my hectares Linked to Deforestation in Chiribiquete 2020, Indirect Supplier 2 had, on average, 600 head of cattle in the suppliers, so in both chains I manage 2,000 head of cattle… National Park EIA: … they don’t bother you about the cadaster [lack of land […] I was raised among cattle ranchers, so I know people; backgrounding phase and openly expressed his wish to clear the rest registration]? Supplier A, who directly supplies Grupo Éxito and Colsubsidio, has a lifelong ranchers and friends… the person who was just here of the farm in the near future. Supplier A purchases on average 100- production capacity of around 2,000 head of cattle per month. He has with me is a rancher and a friend; they sell me their cattle. 300 head of cattle every 2 months from Indirect Supplier 1. These Indirect Supplier 2: … no, nothing self-owned farms as well as farms rented to raise cattle, and in addition animals are backgrounded by Indirect Supplier 2 inside Chiribiquete EIA: … have you already established pastures this year? […] first to his own production capacity, he also regularly purchases cattle from National Park, and EIA investigators were told that the beef is sold in you have to clear the forest and then create pastures, right? indirect suppliers based on the demand from his clients. Supplier A has Carulla Supermarket. worked for at least 10 years with his two main clients, the supermarket Indirect Supplier 2: … soon we start clearing, when the chains Grupo Éxito and Colsubsidio. of the Forest Reserve to the North and Northeast of Chiribiquete National summer arrives… Park. Cattle spends the first production phase on this farm before being EIA: … but this area was cleared recently, right? Supplier A has had a business relationship for more than 10 years with transferred to Indirect Supplier 2’s farm. EIA: … So, from here you also sell to supermarkets? Indirect Supplier 2: … yes, this was cleared recently… two Indirect Supplier 1, who in turn has a business partner, Indirect Supplier years ago… […] these pastures are even more recent… one 2, with whom he has worked for five years. As part of their agreement, Indirect Supplier 2 runs a farm inside Chiribiquete National Park’s Indirect Supplier 2: … of course! year… yes, from 2019… Indirect Supplier 2 backgrounds [fattens] all of Indirect Supplier 1’s cattle. Northern Area. This area has formally been part of Chiribiquete National EIA: … so who do you sell to? Indirect Supplier 1’s farm is located in the department of Guaviare, outside Park since 2018, following the park’s most recent expansion. According EIA: … so you have been in charge of clearing the forest? I Indirect Supplier 2: … we sell the cattle to Carulla… to the mean, with other people, but clearing the forest and Guadalupe [Slaughterhouse]… everything is sent there to establishing pastures… Guadalupe Deforested farm of Indirect Supplier 2, within Chiribiquete National Park Indirect Supplier 2: … yes, others can clear-cut, and then one EIA: … So, the one that goes to Carulla is sent to Guadalupe? creates the farm and the pastures

2018 2019 Indirect Supplier 2: … to Guadalupe, yes… EIA: so you cleared the 800 hectares [sic]?

Indirect Supplier 2: … yes, all of that has been cut down, and there is still more left to clear

EIA: … and how much more are you planning on expanding?

Governance in the Farm’s Surrounding Area and Indirect Supplier 2: … well, until it is all cleared… Control Exerted by Armed Groups EIA: … the 800 [hectares]? Indirect Supplier 2 implicitly recognizes that he knows his farm is located Indirect Supplier 2: … yes inside the national park, since he acknowledges that the Natural National Parks Authority is the governmental entity with jurisdiction over the area. EIA: … and if you need to expand more, would you be able to? He told investigators that the park’s authorities occasionally “bother him Indirect Supplier 2: … well, yes, because I can buy… I can so that he stops clearing the forest.” On the other hand, he also claimed continue to buy… that it is armed groups who in reality exert territorial control in the area. As an example, he mentioned that when landholders in the area want to expand a farm, these groups must first grant an authorization to do so.

Indirect Supplier 2 also stated that he must pay armed groups $10,000 Destination and Use of Timber Products from COP per head of cattle each year. He usually must travel to the place Chiribiquete and La Macarena National Parks where these groups are settled and make the payments directly, and he EIA investigators learned from indirect suppliers and well-informed explains that, in exchange, “these people take care of you (...) ” and that sources that valuable timber species are logged selectively before he can therefore “move freely anywhere and at any time (…), and “not clearing the forest entirely and sawn on site. (See photo on p. 31). At Satellite images courtesy of Planet Labs, Inc. have issues with anyone.” the farms, logs are cut into boards, referred to as “pieces,” that are 3-4 meters long in temporary sawmills set up for this purpose. Part of the According to Indirect Supplier 2, armed groups issue receipts with timber is used for maintenance on the farms, and the rest is their respective seal after receiving the payments in order for the commercialized in the black market. Transports usually do not exceed rancher to have a proof of payment and avoid being charged twice. 200 pieces per shipment, in order to make it easier to hide the timber and avoid checkpoints along the road. One of the collection centers for Indirect Supplier 2 was clear that he is not the only one who must timber from La Macarena National Park is Granada, Meta. In the presence make payments to armed groups. As he explained to investigators, of investigators, Indirect Supplier 1 spoke with Indirect Supplier 2 about all cattle ranchers in the area and, regardless of how large they are, a shipment of 1,200 pieces that left the farm’s surrounding area in must pay the corresponding fee: “if you have 100, you pay for 100… September 2020 to be commercialized in the region. Colombian law if you have 1,000, you pay for 1,000… if you have 5,000, well, you’ll requires timber to be authorized prior to harvesting and be documented have to pay more…” by a transport permit when mobilized to any destination; otherwise, it is considered illegal.

Analysis of forest change from the investigators’ field visit inside of the National Park. Image courtesy if Planet Labs, Inc. 46 Article 13 of the Second Law of 1959 and numeral 3 of Article 30 of Law-Decree 2811 of 1974 proscribe livestock activities in National Parks. ENVIRONMENTAL INVESTIGATION AGENCY EIA AGENCY INVESTIGATION ENVIRONMENTAL EXECUTIVE INTRODUCTION CONTEXT SUPPLY DATA FIELD CATTLE ACCOUNTABILITY CONCLUSIONS & – TAINTED BEEF 30 SUMMARY CHAIN ANALYSIS INVESTIGATION MARKETS RECOMMENDATIONS 31

Supply Chain Map

Monthly order from Grupo Exito Grupo Éxito assigns a to Supplier A number to each lot for internal control and its subsequent sale in the chain’s supermarkets. Supplier A

Supplier A complements Villavicencio, Meta order with cattle from Processing Plant A Indirect Supplier 1 1,000 per Villavicencio, Meta month approx. Slaughtering & Processing

To meet Grupo Éxito’s monthly quota, Supplier Supplier A receives A must purchase cattle cattle from his from indirect suppliers. indirect suppliers. Supplier A provides Grupo Éxito with the total number of cattle requested at the slaughterhouse Indirect Supplier 1

Guaviare Cattle stages Indirect Supplier 2 Context backgrounds his 100 to 300 per month Related cattle. (approx.) to Supplier A findings: Cow-calf phase Finishing phase Launders cattle by issuing transport Timber processing site on Indirect Supplier 2’s farm inside Chiribiquete National Park. permits as if the Backgrounding Location phase animals came from Backgrounding and supply of fattened cattle his farm. Sale per 4.1.b. Case No. 2: Indirect Supplier inside La groups if they appropriate larger areas of land, and cattle ranchers must month Sells cattle to Macarena National Park pay armed groups $10,000 COP per head of cattle each year. Supplier A. Indirect Supplier 2 During the investigation, EIA also identified Company A, which has had a Findings business relationship with Supplier A during the last four years for the In exchange for their payments, cattle ranchers receive protection from Inside the Northern Area of purchase and sale of cattle. According to workers from Company A, the cattle theft, among other benefits, which reportedly occurs in areas that Chiribiquete National Park Payments to Protected Area armed groups or National Park company’s most important farm has an extension of 2,000 hectares (1,800 are not controlled by armed groups. On the other hand, ranchers lamented of them are pastures) and part of it is located inside the limits of La Macarena thatpayments made to armed groups cannot be included in the business’s All of Indirect Supplier 1’s cattle. Deforestation Corruption National Park. The worker told EIA’s investigators that “the line that says ‘La bookkeeping, despite being a cost of production. Macarena Park begins here’ passes us [the farm] through the middle...around Related Cattle the farm, on the sides, the boundaries… that is virgin forest….” As a result of the location of the farm, cattle raised on this farm—and laundering findingst: eventually purchased by Supplier A—has an extremely high risk of being In this case, EIA confirmed that armed groups also control the area and raised on illegally deforested land and being linked to payments to armed that they sometimes limit land-grabbing to 80 hectares [other sources groups. claimed that the limit is 100 hectares]. People get in trouble with armed ENVIRONMENTAL INVESTIGATION AGENCY EIA AGENCY INVESTIGATION ENVIRONMENTAL EXECUTIVE INTRODUCTION CONTEXT SUPPLY DATA FIELD CATTLE ACCOUNTABILITY CONCLUSIONS & – TAINTED BEEF 32 SUMMARY CHAIN ANALYSIS INVESTIGATION MARKETS RECOMMENDATIONS 33

4.1.c. Supply chain links to Grupo Exito and Colsubsidio 4.2. Other irregularities When EIA contacted Processing Plant A, which transforms part of the detected in Grupo Exito’s beef sold by both Grupo Exito and Colsubsidio, employees confirmed Supply Chain that Supplier A works with both supermarket chains. Moreover, they confirmed that Supplier A sells about 1,000 head of cattle to Grupo Éxito In the Magdalena Medio region, in the department of Antioquia, EIA every month, and they were aware of Indirect Supplier 1. discovered another direct supplier of Grupo Éxito (hereafter Supplier B) that sells the supermarket chain an average of 80 carcasses, per month Through the verification of lot numbers of beef from Supplier A’s cattle, [slaughtered cattle ready for processing]. Supplier B purchases cattle investigators were able to confirm that steak from said cattle was indeed from indirect suppliers, among them Indirect Supplier 3, to meet Grupo sold at Exito in the city of Éxito’s demand. Villavicencio. A manager at the butcher department confirmed that 4.2.a Cattle Laundering it came from Exito’s processing plant How should cattle movements be registered? in the same city. Meat from a Cattle farms and properties that specialize in beef or double-purpose cattle another lot number was delivered (beef and milk) must be registered in ICA’s Sanitary Registry of Livestock to CARNATURAL, a company that Farms.47 To move cattle from one property to another, ranchers must also buys cattle from Supplier A and obtain a Sanitary Guide for Internal Movement (GSMI). This guide is obtained processes beef for Grupo Éxito, to mobilize cattle only among farms that are already registered by ICA. according to Supplier A. Supplier A The GSMI indicates a single origin and destination which is valid for a explained that the CARNATURAL single trajectory and vehicle. The guide indicates a specific date, and its brand is a strategic partner of Grupo validity is equivalent to the trajectory’s expected duration.48 Éxito and Colsubsidio stores in Villavicencio and Restrepo, respectively. Éxito that supplies certain cuts when needed. How does it sometimes work in practice? The practice evidenced above is not limited to the cattle that Supplier B Supplier B, and Indirect Supplier 3 about complicity with the Supply chain links could also be Supplier B explained that occasionally—when ranchers need cattle from sells to his clients. The investigation compiled evidence showing how police confirmed in the case of other farms, when an animal dies while being transported, or when “they Supplier B utilizes his farm and its ICA authorization to issue GSMIs for Colsubsidio, where investigators [indirect suppliers] have not brought the license” [GSMI]—he himself third parties in exchange for financial compensation. Indirect Supplier 3: To cut down a tree here you need were able to verify through issues a GSMI as if the cattle came from his own farm and then sends approval, and they may grant it to you or not… you have to manage the situation… corresponding lot numbers that the animals to his clients, including the large retailers and supermarket This practice of cattle laundering is further evidence of the existing risk of beef from Supplier A was sold at chains: “I issue their license here, so the cattle enter the slaughterhouse cattle from deforested areas entering the supply chain at any given stage Supplier B: What kills [holds back] snitches? Colsubsidio supermarket in from here, and that’s it…” in the livestock production cycle without being detected. EIA: Sure... Restrepo, Meta. Below is a transcript of a conversation that Supplier B had with EIA’s 4.2.b. Corruption Supplier B: The neighbor, who is a snitch, hears a chainsaw investigators about cattle laundering aimed at obscuring cattle’s real A conversation between EIA, Supplier B, and one of his suppliers (Indirect and calls the police right there. But if you’re in the police’s farm of origin: Supplier 3) revealed how influential actors may clear the forest without keychain [friend], you call and tell them, “listen, I’ll be cutting down some trees over there. If they call you, you already facing any consequences. know…”

EIA: And it’s okay... Communication between investigators and Supplier A, EIA: And they don’t notice anything at the Supplier B: Yes, you know how it goes… through which he shared the slaughterhouse? They just relax? EIA: For that you need economic muscle... meat lot numbers for Grupo Supplier B: Nothing. Everything adds up. What does Éxito and Colsubsidio. the slaughterhouse care? All that matters is that they Supplier B: [nods] receive the categories they have to slaughter, and that’s it…

EIA: So you have to change out the cattle, or only the licenses?

Supplier B: Only the license

EIA: Only the license… and as you say, the slaughterhouse doesn’t care where they come from or…

Supplier B: No, nothing, because the slaughterhouse is a business that provides services

Meat from Supplier A, bought at Exito supermarket in Villavicencio.

47 Traceability as a Tool in the Fight Against Deforestation. FPES – NWF – UW. April 2020. p. 35. Available here. Consulted on March 18, 2021. 48 Ibid, 36. ENVIRONMENTAL INVESTIGATION AGENCY EIA AGENCY INVESTIGATION ENVIRONMENTAL 34 – TAINTED BEEF 50 49 of deforestation andthe presence ofarmedgroups. 2016–2020, EIA’s investigators identified four cases involving a high risk groups.armed ICA’s Byanalyzing movement the dataon between ofcattle areas orofanimals whose supplychains are exposed to payments to cattle broughtespecially for cattle laundering, from deforestation-prone EIA’s investigation revealed how cattle markets can serve as hubs for These transactions are knownascattleauctions. and demand and managing the event’s operations and financial movements. exchangecalled acattlefair. is In some cases, when buyers and sellers trade directly, the place ofthe in any phase in the production cycle (cow-calf, backgrounding, or finishing). marketsCattle are the purchasefor spaces physical animals andsaleof 5.1. FindingsrelatedtoCattleMarket 1 Supply Chain A CriticalLinkinthe Markets 5.Cattle more organized, incharge andtheresupply of connecting isathird party Ibid. 25, 2021. Traceability as a ToolDeforestation.Against in theFight FPES –NWF – UW. 24. p. 2020. April 49 In other instances, sale processesinstances, other In are 50 Available here.Marchon Consulted

35

ENVIRONMENTAL INVESTIGATION AGENCY EIA EXECUTIVE INTRODUCTION CONTEXT SUPPLY DATA FIELD CATTLE ACCOUNTABILITY CONCLUSIONS & – TAINTED BEEF 36 SUMMARY CHAIN ANALYSIS INVESTIGATION MARKETS RECOMMENDATIONS 37

Operator of Cattle Market 1 About Armed Groups and 5.2. Final Destination of Cattle Paramilitaries Sold in Cattle Market 1 Operator: … for example, here [region where Cattle These case studies show that Cattle Market 1 trades cattle that is coming Market 1 is located] it’s the paracos… from illegally deforested lands –including national parks- and helping to support armed groups in the region through forced payments. EIA: … the paramilitaries

Operator: … for example, here [region where Cattle Market An analysis of ICA’s cattle movement data shows that the main destination 1 is located] it’s the paracos… of beef coming from cattle sold in Cattle Market 1 is the city of Bogota. EIA: … the paramilitaries Between 2016 and 2020, a total of 57,929 head of cattle arrived in Bogota from Cattle Market 1. The busiest year was 2018, during which 15,215 Operator: … from here [Cattle Market 1] to here [region cattle movements along this route were recorded. where another cattle market is located]… from there to there its guerillas Investigators were also told that major supermarkets and beef distribution EIA: … […]; and the problem is that over there [in Guaviare] chains receive cattle from Cattle Market 1. one doesn’t know who…

Operator: …no, in that sense we can also help you… here you need to mingle with the good and the bad…so you tell Operator of Cattle Market 1 on Cattle Purchases Made by me, “hey, buy in this place” and when I take you Large Retailers and Supermarkets somewhere it’s because I already know…and The main destination of the cattle that are sent for slaughter from this cattle market is the city of Bogota. Operator: … the good thing about Cattle Market 1 is EIA: … and it’s solved… that it has several commercialization channels. We have a commercialization channel called frigorífico • The first case involves a rural district located inside La Macarena Operator: … yes, it costs this much and it’s solved, or to [refrigerated meat products]; and what is frigorifico? Where National Park (hereafter, Rural District A), from which 601 head of solve it, it costs this much… Operator of Cattle Market 1 About Purchasing Farms in we sell, for example, to MINERVA and ATHENA FOODS; we cattle were taken to and sold in a specific cattle market in the EIA: … paramilitaries are well organized. It’s easier with Guaviare and Supplying them with Cattle sell to MAKRO and sometimes to ÉXITO … we also sell to department of Meta (hereafter Cattle Market 1). Since any activity them. Is it easy with guerillas as well? JUMBO; I mean, we also sell to the large supermarkets… other than conservation is banned inside La Macarena National Operator: … right now there are people in Guaviare who I can call, and they tell me, “they’re selling 2000, Operator: … they’re even more organized… [he laughs] but Park, the abovementioned head of cattle originated in a territory EIA: … So you sell to ÉXITO? You sell directly to them 3000 hectares without any problems for 5, 6, 7 million pesos.” in the Guaviare area, over there… and part of Puerto Rico, where cattle ranching is prohibited and is thus of illegal origin. They give you part of it with, what is it? With a title, and the Meta, over here… one can talk with them… or through third parties? other part without it… you can negotiate… • The second case involves a record showing at least 604 head of EIA: … right, one is not going to take anything from them Operator: … no, directly; we have sold directly to them, yes. anyway; on the contrary, it’s an offer. cattle that arrived around the same period to Cattle Market 1 from EIA: … and it doesn’t matter? So the cattle that come the Forest Reserve Area surrounding the North and Northeast of from there… Operator: … yes, right; wherever you arrive, deep inside the Chiribiquete National Park.51 As shown in Section 3.1, cattle ranching Operator: … it’s fattened cattle… you have your land, you main road, you’ll have to pay…start keeping that in mind. is also illegal in this area. come here and given that you [already] bought your farm, we EIA: … and, for example, what about La Macarena? What’s can sell you the cattle, and you can supply yourself here with up with that area? • The third case relates to the rural district closest to Indirect Supplier us, and we can talk about the terms of payment, so you buy it When contacted, Minerva provided information on the company’s activities 2’s 52 farm (hereafter Rural District B). 333 head of cattle arrived in here and send it over there… Operator: …over there it’s guerilla, guerilla … La Uribe, Vista related to sustainable cattle ranching in Latin America and stated they Hermosa, La Macarena, it’s all guerilla… Cattle Market 1 from Rural District B, which is located in the Forest EIA: … and you send it over… but if I want to have cattle in the would conduct an in-depth review of the issues raised by EIA. Reserve Area North and Northeast of Chiribiquete National Park. meantime…It doesn’t matter that the land is untitled? I mean… EIA: … and one can arrange things over there as well? Since it is the rural district closest to Indirect Supplier 2’s farm, for how can you help me legalize that cattle? How does it work? Operator: … yes, everything which ICA has registered cattle movements, it is highly likely that, Graph 8. Movements from Cattle Market 1 to Bogota. Operator: … the thing is… you don’t have to legalize the cattle… I in reality, these 333 head of cattle came from the interior of EIA: … no problem… will legalize it here when I send it… I will send it to you with their Destination Chiribiquete National Park. ICA. It is not a problem. The land itself is another matter. Operator: … everything, everywhere, can be arranged… Bogota 24k Cundinamarca Meta • The fourth case is related to 40,793 cattle movements that arrived EIA: … of course, but the cattle will be legalized 20k 15,215 to Cattle Market 1 that originated in rural districts where 2,488 Operator: … you can pack the land with cattle even if its 13,217

hectares (or 3,483 soccer fields) of deforestation occurred between untitled… 16k

2016 and 2020. 11,555

12k 9,830 9,595 Besides commercializing high-risk cattle, Cattle Market 1 provides the 8k possibility of “legalizing,” or laundering cattle, regardless of their initial In Cattle Market 1, people seem to understand the dynamics imposed Cattle Population 5,989 4,110 6,739 place of origin. During a conversation with EIA’s investigators , an by paramilitaries and armed groups and appear to be well connected. 4,845 4,246 4k operator of Cattle Market 1 made it clear there are no legal, or de facto, One person even offered assistance in dealing with and paying off different 2,894 2,211 2,854 2,180 2,300 barriers to supplying cattle from Cattle Market 1 to farms that do not groups when acquiring land in other areas to EIA investigators. Below is 0 2016 2017 2018 2019 2020 have land registration or title. a transcript of a conversation on the subject: Source: EIA analysis based on ICA information

51 See footnote 39 for more information. 52 See section 4.1.a for more information about Indirect Supplier 2. ENVIRONMENTAL INVESTIGATION AGENCY EIA AGENCY INVESTIGATION ENVIRONMENTAL 38 EIA analyzedEIA ICA’s database forthe 2016-2019annual vaccination cycles. To quantifyfundingsources derived inthecattlesupplychain, from extortion throughout thesupplychainoftheseillicitsubstances. and Box 7),causingwell-knownsocial,economic,andhealthimpacts drugs that are sold inEurope and the United States in Colombia. Reports show that these same groups produce and traffic organizationsarethat responsible violationsrights human major for protected by forestsarmed groups andextortion and paramilitary of destruction the supporting unwittingly are consumers final cattle, Colombia thatallowsconsumersorbuyers to knowthetrueoriginof thecountry. in cities major there Since traceability no is in system distributing theprocessed beefto inBogotaandother consumers payments to groups armed extortion and are and subsequently areColombia purchasing deforestation both with associated cattle investigationThis demonstrated large that supermarket in chains Indiscriminate BeefSourcing 5.3. HiddenImpactsof – TAINTED BEEF 53 Cundinamarca SJG: SanJosédelGuaviare mexicanoscontrolan lacompra yeltráfico carteles decocaínaenColombia: funcionario.Reuters.October22,2020. Cuatro with 2,487ha. Rural districts Vistahernosa, Meta ySJG deforested Mesetas y in Forest Reserve SJG yCalamar Rural districts Area Cattle Market 1 Bogota META Rural District B La Macarena PNN Movement oftheMeattoCities 53 (see Section 6.3.a V/vicencio Zona deReserva Rural District A Forestal, SJG of fundingforarmedgroups, after drugtrafficking andillegalmining. the thirdis largestextortion source alone. According toexperts, some US dollarsbetween2016-2019,justwithinthelimitedarea ofinvestigation million a half to close been have would groups armed finance to used total the and head ofcattle, ofmoney amount derived from extortion investigatorsas If, were told,ranchers may have COP per paid$10,000 head ofcattlein2016,47,9402017,56,4322018and63,4702019. increasing year-on-year since 2016. The data reflects the existence of 12,232 ofChiribiqueteNationalPark hasbeen andNortheast surrounding theNorth veredas thatwere the focusoftheinvestigation intheForest Area Reserve the totalthat analysis shows The ruralthe in cattle of number or districts of vaccination, whichoccursinthesecondsemesterofeachyear. analysis onlyconsidered thenumberofcattlevaccinated inthesecondcycle drive. Sincepayments to armedgroups are carriedoutonayearly basis,the This databaseshowstherecorded numberofcattleduringeachvaccination PNN LaMacarena Restrepo Company A Supplier A VILLAVICENCIO Available here. ConsultedonMay 20,2021. Chiribiquete Supplier 2 Supplier 1 El Retorno Indirect Indirect PNN Cucuta Supplier B MEDIO MAGDALENA Magdalena Supplier 3 Indirect B/manga Medio SUMMARY EXECUTIVE INTRODUCTION CONTEXT CHAIN SUPPLY ANALYSIS DATA INVESTIGATION FIELD

MARKETS CATTLE ACCOUNTABILITY RECOMMENDATIONS CONCLUSIONS & 39

ENVIRONMENTAL INVESTIGATION AGENCY EIA 40 – TAINTED BEEF 56 55 57 Guiding Principles on Business and Human Rights Nations United the ratified also has Colombia violations. rights human relations that could affect forests, since these may be contributing to are therefore commercial due diligenceconcerning out obligatedto carry 11,49,and 79 ofthe constitution in articles tothe rights life, health,andahealthyenvironment,which are recognized deforestation declared Colombia, In been has to like rights human violate Colombian Law 6.1. InternationalNormsand Chains The Role ofSupermarket 6. Accountability 54 known withcertainty. appropriatemeasures advance in toavoid mitigate damages arethat or to theprincipleofprevention, mustimplement authoritiesandprivate parties ontheresults.to report impacts oftheir activities and commercial relations onhuman rights, and means thatcompaniesshouldidentify, monitor and mitigatepotential through 22state that companies should proceed with due diligence. This certainty about the impacts of agivenabout theimpacts activity certainty irreversible damages to the environment, even in the absence of scientific environmental degradationcaused by activities thatmay result potential in that thestateandprivate actors must adoptmeasures to avoid legal bysystem Law 99 of1993. of precautionThe principle determines constitutionally recognized inColombiaandwere includedinthecountry’s precautionprinciples of The prevention and areandlegally also

2011. Framework. “Protect,Nations United the Remedy” and Implementing Respect Rights. Human Business and on Principles Guiding 8, 2021. Presidency 2020/2022. Rights Businesses Human Plan for and National Action Republic. ofthe rights from beinggravely affected by theeffects ofdeforestation onclimatechange. The Principle of Precaution inColombian Environmental Legislation. Lora Kesie Karem Ivette. Available here. Consulted onApril 8, 2021. of in favorruled ofJustice STC-4360In Sentence of25girls,boys,the Supremeof 2018, and adolescentsfrom Court different parts the Available here. ConsultedonApril8,2021. country who called on the Colombian 56

state to fulfill its commitment to 54 stop . Colombian supermarkets. Colombian 57 deforestation . Additionally,according 55 . UN Principles 17 Available here.April on Consulted in order to protect the plaintiffs’ 41

ENVIRONMENTAL INVESTIGATION AGENCY EIA EXECUTIVE INTRODUCTION CONTEXT SUPPLY DATA FIELD CATTLE ACCOUNTABILITY CONCLUSIONS & – TAINTED BEEF 42 SUMMARY CHAIN ANALYSIS INVESTIGATION MARKETS RECOMMENDATIONS 43

6.2. Grupo Éxito in Apparent Violation of its Environmental BOX 5. WHY ARE VOLUNTARY BOX 6. IMPORTANCE OF GRUPO EXITO 6.3. Casino Group and its Commitments COMMITMENTS PROVING Obligations under the French INSUFFICIENT? In Colombia, Grupo Éxito has 537 stores68, and its 28% share of the market makes it the country’s leading retail brand69. It is Duty of Vigilance Law Grupo Éxito is a founding partner of the 2020 Tropical Forest Alliance present in 23 departments and has nearly 40,000 employees THE CASE OF GRUPO ÉXITO in Colombia that leads processes for zero-deforestation agreements, a distributed among its subsidiary brands Éxito, Carulla, Super Inter, Grupo Éxito belongs to Casino Guichard-Perrachon, hereafter Casino member of the New York Declaration on Forests, which aimed to reduce Watering down commitments Surtimax, Surtimayorista, and Viva Shopping Malls. Additionally, Group. Casino Group is a French retailer with more than 12,000 stores deforestation by half by 2020 and entirely by 2030, and a member of In December 2020, Grupo Éxito’s Sustainable Cattle Ranching Éxito has its own brands like Pomona, Ekono, and Éxito. Its of different varieties — convenience stores, supermarkets, and 58 the meat sector’s zero-deforestation agreement in Colombia . In August Policy 63 claimed the company would “commercialize only tier multi-format branding strategy allows the group to reach different hypermarkets — mainly in France and South America. In the late 1990s, 2020, as part of its sustainable cattle ranching policy, the group declared one supplier’s beef that had compliance with zero socioeconomic segments of the Colombian population70 and to Casino Group accelerated its expansion in Latin America and took control 74 that it would supervise its suppliers using satellite imaging to evaluate deforestation and/or environmental restoration plans, that maintain its standing as the most reputable food retailer in the of Colombia’s Grupo Éxito in 1999 . It currently dominates the South 59 county71. For Grupo Éxito, the first semester of 2020 saw the net deforestation and that all its suppliers would be encouraged to guarantee zero deforestation and meat quality on their farms.” American market. Casino Group’s consolidated financial performance highest increase in sales in the past three years (12.8% increase 75 declare their commitment to the conservation of natural ecosystems 64 As of May 2021, Grupo Éxito has deleted the zero- results for 2020 show an upward trend, with revenues of 31.9 billion in food sales alone)72, concluding the 1Q20 period with a gross in their farms and properties. If suppliers were to refuse to collaborate deforestation commitment from its policy, which now euros and a growth rate of 9%. The majority of this growth is taking place profit of 672.13 billion Colombian pesos.73 with the implementation of Grupo Éxito’s sustainability program, they promotes vague minimum standards on ecosystem in Latin America, which represented 45.7% of the group’s sales in 2020. 60 would be excluded from the company’s supply chain. conservation and “activities aimed” at respecting the national 76 agricultural frontier.65 Market Segmentation According to the French Duty of Vigilance Law , Casino Group is obligated In 2015, Grupo Éxito financed the documentary Colombia, Wild Magic. to assess and mitigate the negative impacts that Grupo Éxito’s commercial Failing to monitor indirect suppliers The film shows a journey through 20 ecosystems in the country and Discount Medium Price Premium activities have on the environment and human rights. This includes Grupo Éxito made public that it has 39 beef providers and that Option $ & Quality $$ Products $$$ was shot in 85 different locations to show Colombia’s biodiversity. The impacts linked to its own activities, as well as those of the companies its farms have been evaluated for deforestation through documentary encourages viewers to discover the “paradises that still under its control and the suppliers and subcontractors with whom it has Global Forest Watch. It claims to be the first retailer to exist” in places like Chiribiquete National Park, where new rock paintings established commercial relations. The law requires the existence of a implement a conservation model with all of its beef providers were discovered during the film’s production. According to the British Due Diligence plan that contains reasonable oversight measures to to protect forest and prevent the expansion the agricultural Producer of Off the Fence, “It is also the first time in history that a Latin identify risks and prevent serious human rights violations and frontier.66 As this investigation has shown, indirect suppliers American brand, Éxito Group, finances a film about the country’s need environmental damages, among other negative impacts that directly or pose significant risk of exposure to deforestation. to support conservation and unification.”61 By the end of 2015, Colombia, indirectly result from the company’s operations77. Nevertheless, according Wild Magic, was already the most widely seen Colombian film in the Lack of transparency to consumers to an official response from Schapira Associes, the law firm representing country’s movie theaters62. It continues to be part of Grupo Éxito’s During the investigation, EIA tried multiple times to obtain Brands and Products Casino Group in duty of vigilance-related legal procedures, the Group did advertisement and brand image; still frames of the documentary decorate beef origin information from the butcher shops but in not one not include cattle ranching within the scope of its Due Diligence Plan for the supermarket’s reusable bags. case was that information provided. EIA also reviewed official Colombia.78 written responses by customer service representatives of Retail Own Shopping Market Brands Malls However, as this investigation Grupo Exito which explicitly state that the beef origin 6.3.a Casino Group’s alleged failure to carry 67 shows, there appears a significant information is confidential. Classifying origin information as out due diligence discrepancy between Grupo confidential seems to be a way to conceal the origin of the In addition to this investigation’s findings of illegal deforestation associated Exito’s public discourse and its beef. with Grupo Éxito’s procurement practices, EIA’s investigation revealed practice. By purchasing from Lack of an implementation plan and time frame that indirect suppliers in the group’s supply chain are exposed to extortion suppliers who source cattle from Grupo Éxito’s Sustainable Cattle Ranching Policy does not by armed groups and paramilitary organizations. According to sources inside a National Park, Grupo Exito state how objectives will be achieved and what concrete in the region of Chiribiquete National Park, in its surrounding Forest becomes complicit in the measures will be taken to keep supply chains free from Reserve Area, and La Macarena National Park, the armed groups destruction of the very forests its deforestation and human rights abuses. Nor does it contain a commonly known as dissidents of the FARC guerilla exert control over documentary inspires to timeframe for implementation of the policy. the entire region. According to the European Monitoring Center for Drugs conserve. and Drug Addiction, the FARC guerilla group played a key role in coca production until 2017. After the ratification of the Peace Agreement, When contacted by EIA, Grupo factions of FARC dissidents have taken control over certain coca-growing Exito responded by asking for regions and remain involved in cocaine trafficking.79 more information. ©Copyright: Exito - Magia Salvaje

68 2019 Management Report. Grupo Éxito. p. 2. Available here. Consulted on March 23, 2021. 69 2021 Corporate Presentation. Grupo Éxito. p. 2. Available here. Consulted on March 23, 2021. 70 “Almacenes Éxito S.A is a Colombian company with an omnichannel strategy in which the client stands at the center and decides what, how, when, and where to buy. This strategy is multi-brand, multi- format, multi-industry, and multi-business and is carried out by the Éxito, Carulla, Surtimax, and Superinter brands and the different businesses and industries that the company manages.” Grupo ÉXITO. (October 6, 2020). Guide for Suppliers, Almacenes ÉXITO S.A. p. 3. Available here. Consulted on March 23, 2021. 58 Declaration on Sustainable Cattle Ranching. Protection of Biodiversity. Associated Commitments. Grupo Éxito. Available here. Consulted on April 8, 2021. 71 2021 Corporate Presentation. Grupo Éxito. p. 2. Available here. Consulted on March 23, 2021. 59 Ibid, Declaration Point 2. 72 Corporate Report, First Semester of 2020. Grupo Éxito. p. 39. Available here. Consulted on March 23, 2021. 60 Ibid, Declaration Point 5. 73 Ibid, 47. 61 Colombia magia salvaje, la película que explora la biodiversidad del país. El País. September 9, 2015. Available here. Consulted on May 20, 2021. 74 EXITO, l’allié à succès de Casino en Amérique latine. Lsa-conso.fr. Available here. Consulted on March 23, 2021. 62 Las 10 películas colombianas con más espectadores en 2015. La República. January 21, 2016. Available here. Consulted on May 20, 2021. 75 2020 Financial Performance Results. Casino Group. pp. 4 and 20. Available here and here. Consulted on March 23, 2021. 63 Declaration on Sustainable Cattle Ranching. Protection of Biodiversity. Grupo Éxito. Available here. Consulted on April 8, 2021. 76 Text from the LOI n° 2017-399 du 27 mars 2017 relative au devoir de vigilance des sociétés mères et des entreprises donneuses d’ordre. Available here. Consulted on April 8, 2021. 64 Ibid, Declaration Point 1. 77 Text from the French Duty of Vigilance Law. Available here. Consulted on April 8, 2021. 65 Declaration on Sustainable Cattle Ranching. Protection of Biodiversity. Expected minimums. Grupo Éxito. Available here. Consulted April 8, 2021. 78 Response from the firm representing Casino Group regarding claims of non-compliance with its Due Diligence commitments under French Law. Page 5. December 17, 2020. Accessible here. Consulted 66 Grupo Exito presents is sustainable cattle ranching model. Accesible here. Consulted May 19, 2021. on May 10, 2021. 67 Grupo Éxito customer service response available here. 79 2019 EU Drug Markets Report. European Monitoring Center for Drugs and Drug Addiction. p. 131. Available here. Consulted on March 30, 2021. ENVIRONMENTAL INVESTIGATION AGENCY EIA AGENCY INVESTIGATION ENVIRONMENTAL EXECUTIVE INTRODUCTION CONTEXT SUPPLY DATA FIELD CATTLE ACCOUNTABILITY CONCLUSIONS & – TAINTED BEEF 44 SUMMARY CHAIN ANALYSIS INVESTIGATION MARKETS RECOMMENDATIONS 45

BOX 7. COCAINE TRAFFICKING FROM COLOMBIA TO EUROPE 6.4. Colsubsidio and the company needs to focus on its due diligence in supply chain monitoring Carnatural: Policy versus in order to fulfill its commitment to preserving the environment and According to UNODC, 70% of the world’s coca crops are located in Colombia.80 For numerous reasons, including market prices, Europe has become establishing effective mechanisms to evaluate its suppliers. the target market for several Colombian cocaine producers.81 While a kilogram of cocaine may sell for up to $28,000 USD in the United States, the Reality same amount is worth, on average, $40,000 USD in Europe. In select European markets, a kilogram of cocaine may be worth nearly $80,000 USD. 82 When contacted by EIA about its findings, Colsubsidio indicated it would As exposed by InSight Crime, European mafias have begun moving up the supply chain in Colombia and other Latin American countries to get closer 6.4.a Colsubsidio be willing to carry out an investigation into the noted supplier and, if to the source of production and obtain better cocaine prices.83 Among these mafias is a collection of criminal groups from the Balkans.84 The presence As described in section 4, another client of Supplier A is the supermarket necessary, dissasociate from them. of this particular mafia was felt in western Meta in April 2020 when, for reasons still unresolved, a Serbian national — who, according to reports, chain Colsubsidio, which purchases an average of 1,000 head of cattle belonged to the Balkan Cartel — was found dead alongside a well-known former paramilitary Jose Vicente Rivera Mendoza, alias Soldado, who was every month from Supplier A. Colsubsidio is a non-profit private corporation 6.4.b Carnatural feared in the region for his close ties to drug trafficking.85 The investigations carried out indicate that the Serb entered Colombia from Ecuador 86 to that belongs to the Colombian Family Subsidy System and the Social As mentioned in section 4.1.a, part of the beef that Supplier A sells to Grupo 87 negotiate a shipment of cocaine bound for Europe. This incident took place in the area where EIA’s investigation was carried out. Security and Protection System. Colsubsidio is financed through private Éxito is sold under the brand Carnatura. On its website, Carnatural—which An official analysis of confiscated cocaine samples carried out by the Drug Enforcement Administration of the United States (DEA), which had a 97% sector contributions, the sale of social services, and the establishment uses the tagline “Natural and Sustainable Beef”—describes itself as a private efficacy rate in identifying the geographical origin of coca leaves used to produce cocaine, determined that 98% of the cocaine confiscated in France of agreements and contracts with private and public national and organization dedicated to promoting, studying, and technically supporting the 88 came from Colombia, compared to 68% of the samples for the European Union as a whole . In this regard, Casino Group’s seeming lack of oversight international companies.89 The corporation has 90 food stores, including sustainable, environmentally friendly, and socially conscious production of may very well be enabling, albeit indirectly, cocaine trafficking from Colombia to France and the rest of Europe. 49 in Bogota, 28 in Cundinamarca, 6 in the coffee-growing region, 5 in beef.95 It also notes that one of its Boyaca, and 2 in Meta.90 policies is to produce and commercialize cattle from One of the pillars of Colsubsidio’s sustainability strategy is a stated properties located in the national commitment to nourishing, protecting, and preserving the environment.91 agricultural frontier, as defined by The supply chain section of Colsubsidio’s 2020 Sustainability Report, the Rural Agriculture and Livestock which is publicly available, mentions that all large contracts include Planning Department (UPRA). clauses concerning respect for human rights, prevention of asset Through this policy, Carnatural laundering, and other relevant matters.92 Likewise, it explains that to aims to “control deforestation and identify and mitigate environmental, social, and economic risks, promote environmentally Colsubsidio audits and reevaluates suppliers to assess key aspects like responsible cattle ranching.” 96 environmental management and sustainability.93 This same report mentions that in 2020, Colsubsidio established improvement plans for The findings of this investigation eight suppliers after detecting below-standard qualifications that, indicate that the commitments nonetheless, were not considered major violations.94 Carnatural touts appear quite inconsistent with what is As mentioned previously, deforestation in Colombia has been declared to actually happening in practice. be a phenomenon that violates human rights. The fact that EIA’s investigation has found that Colsubsidio Supermarkets has a direct supplier that purchases cattle from a farm located inside a national park and World Heritage site— Conversation between investigators and Supplier A, in which he where ranchers pay extortion fees to armed groups— demonstrates that confirms a link between Carnatural and Grupo Éxito.

Illicit Substances Laboratory in the area of investigation.

Likewise, paramilitary organizations allegedly still exert some form of These irregularities are especially relevant to the European Union, since territorial control over the western region of the department of Meta, payments made to armed groups and paramilitary organizations may where Cattle Market 1 (see Section 5.1), one of the suppliers to Grupo be linked to groups that form part of the supply chain of Colombian Éxito, is located. According to a source familiar with the matter, like other cocaine sold and consumed in Europe. Having robust mechanisms in armed groups, these paramilitary organizations require ranchers to make place to ensure Grupo Éxito and other companies are not sourcing cattle payments per head of cattle and remain involved in the cocaine trade. raised in protected areas or conflict-hit zones is paramount.

80 World Drug Report 2020. UNODC. p. 21. Available here. Consulted on March 30, 2021. 81 The cocaine pipeline to Europe. GI-TOC and InSight Crime, February 2021. p. 13. Available here. Consulted on March 30, 2021. 82 Heroin and cocaine prices in Europe and USA. UNODC. Available here. Consulted on March 30, 2021. 89 Who Are We? Sustainability Strategy. Colsubsidio Supermarkets. Available here. Consulted on April 9, 2021. 83 The cocaine pipeline to Europe. GI-TOC and InSight Crime, February 2021. p. 5. Available here. Consulted on March 30, 2021. 90 Who Are We? Colsubsidio Supermarkets. Available here. Consulted on April 9, 2021. 84 Ibid, 32.. 91 Who Are We? Sustainability Strategy. Available here. Consulted on April 9, 2021. 85 El paramilitar y el capo de los Balcanes. Semana. April 4, 2020. Available here. Consulted on March 30, 2021. 92 2020 Colsubsidio Management and Sustainability Report. Supply Chain. p. 49. Available here. Consulted on April 9, 2021. 86 Historia de un tiroteo en Guamal que dejó ver nexos de narcotráfico con los Balcanes. El Espectador. October 21, 2020. Available here. Consulted on March 30, 2021. 93 Ibid. 87 Serbio asesinado en Colombia era emisario del ‘cartel de los Balcanes.’ El Tiempo. May 4, 2020. Available here. Consulted on March 30, 2021. 94 Ibid. 88 2019 EU Drug Markets Report. European Monitoring Center for Drugs and Drug Addiction. pp. 134-135. Available here. Consulted on March 30, 2021. 95 Who We Are. Carnatural. Available here. Consulted on April 9, 2021.

96 Producción y comercialización de ganado Bovino y Cárnicos. Carnatural. Available here. Consulted on April 9, 2021. EIA AGENCY INVESTIGATION ENVIRONMENTAL 46 – TAINTED BEEF SUMMARY EXECUTIVE gathered through multiple sources. prevail sector. the in ableto was corroborate EIA Nevertheless, information that secrecy and confidentiality the to due barriers met but chains supply more informationfrom suppliersto understand the riskspresent intheir sector amatterofpublic interest. EIA’s investigators attemptedto obtain declaring the principle oftransparency and traceability inthe cattle ranching Structural reform with isneededto address manyoftheseissues,starting Amazon by uncontrolled land-grabbing andcattleranching. and represents iceberg ofthe thetip but ofthreats to posed theColombian to notethatwhatcouldbedocumented here isonlyasnapshot It isimportant rights violations. that iscontributing to the destruction ofprotected ecosystems and human adequate maydue diligence, consumers beef be consuming unwittingly Through thefailure ofsupermarkets andbeef distributorsto implement of land-grabbingby groups armed andthatcattleherds schemes. part form addition, there is alsoa high thatranchersrisk were to subject extortion in supermarkets comesfrom protected areas or World Heritage sites. In cattle ranching Amazon inthe Colombian posea high risk thatmeat sold in the cattle sector combined with increasing unchecked expansion of As this investigation shows, the current lack of transparency and traceability Conclusions recommendations Conclusions & 47

ENVIRONMENTAL INVESTIGATION AGENCY EIA 48 environmental and human rightsabuses and a culture ofimpunityin During its fieldwork, EIA frequently observedthe normalization of serious to develop tools thatare neededto solve someofthesector’s issues. illegal actors. Publictransparency andaccessto informationisessential relevantother agenciesthathave themandateto take measures against zones, thisinformationisnotpublic,nordoesitappearto beshared with conflict and areas protected in movements and vaccinations cattle about to obtainthisinformation.Whilethegovernment collectsawealthofdata of twoyears andultimatelegalactionagainstthegovernment were necessary on cattle movements and vaccination drives, multiple requests over a period ICA’sby possible made data was official investigation this of part Though – TAINTED BEEF necessarily represent an authorization. aspects. GSMIsare indicative butdonot regardless oftheirenvironmental verification issues, andtransportation ICA isonlyincharge ofsanitary and are unaware oftheirorigin. GSMI forthelastmovement ofcattle Processing plantsonlyrequest a hands. traceability, soeveryone washestheir Nobody isfullyresponsible for dynamics. land-grabbing/deforestation cattle orlinked to There isnotadefinitionofillegal to maintainthetraceability ofcattle. obligates actors inthesupplychain There isnolegalframework that Diffusion ofresponsibility Lack oflegalframework cattle innationalparks). cattle ranching inprotected areas (e.g.,movement of regional environmental authorities,andIDEAMabout Lack ofcoordination andcommunicationamongICA, Why isCattleTraceability NotGuaranteed? Problem’s multiplier eect change theirsuppliers’practices. They donotusetheirleverage to impacts. groups andislinked to environmental their supplychainfundsarmed Buyers chooseto ignore thefactthat Indirect suppliersare notmonitored. traceability. Sales atauctionsandfairshamper pervasive corruption. governance insomeregions, and systemic problems, thelackof they have notanalyzed risksor sector have notbeensignificant: The commitmentsoftheprivate Aspirational voluntary Mitigation system Commitments Lack ofarisk Causes Eects efforts may cometoo late. efforts The destruction isalready well under way; ifthey wait any longer to act, their in beefsupplychains,includingthosecateringto Colombia’s majorcities. implement measures that reduce the environmental and social riskspresent governmentThe andtheprivatesector take must responsibility and benefit localcommunities. implement sustainableproductivemodels thatare controlled by and towell as the absence ofeconomic alternatives and opportunities areas, investigators as presenceinstitutional a lackof found certain in questionable and illegal practices without facing consequences. Moreover, which influence and money allow influential actors to engage in civil society another to trace cattle,andthesetools are notopento different entitiesthatdonotcommunicate withone Existing tools belongto (SINIGAN, SAGARI, andSIGMA) not have acadaster. There are areas ofColombiathatdo land-grabbing inprotected areas, etc. permits,logging, of transport which everything ispossible:forgery There isaculture ofcorruptionin control functions inmanyregions. De facto orillegalpowersassume or thenationalcadaster. in areas thatare notregistered by ICA There isalackofcontrol oroversight have beenissued. Issuance ofpermitsthatshouldnot the trueoriginofcattle. Laundering iscommon,concealing for land-grabbing. Cattle ranching isusedasameans Lack ofgovernance Corruption and Impunity SUMMARY EXECUTIVE government: To theColombian

population thelocalvulnerable hurt End militarized responses that communities. controlled by andbenefitlocal sustainable livelihoods thatare for and create opportunities economicalternatives Support acted upon. and that violationsare reported between relevant agenciesso and informationsharing Establish effective cooperation grabbing schemes. purposes, aswellotherland for restoration orconservation in protected areas, unlessitis cattle ranching andmovements sector andstop permitsfor Actively monitor thecattle atbirth. life cycle, starting individual cattlethroughout their system to register andtrace mandatory nationaltransparent Design andimplementa INTRODUCTION CONTEXT CHAIN SUPPLY Recommendations ANALYSIS DATA Supermarket Chains: Colsubsidio, andOther To GrupoÉxito,

systems shouldinclude: sector, suchduediligence high riskintheColombiancattle violations. Given theextremely groups andotherhumanrights fromsubject to armed extortion sourced from deforestation or enters theirsupplychainthatis measures, to ensure nocattle assessment andmitigation with appropriate risk diligenceplan Implement adue • • • • deforestation. Zero tolerance for armed groups. Zero tolerance forpaying sources. indirect suppliersandtheir full supplychain,including Effective monitoring ofthe birth. cattle’s at life cycle, starting Full traceability throughout INVESTIGATION FIELD

MARKETS CATTLE ACCOUNTABILITY To CasinoGroup:

Colombia. human rightsviolationsin causing environmental harmor and sub-contractors are not their subsidiaries,contractors operations ofGrupoCasino, diligence planto ensure that implement anappropriate due Duty ofVigilanceLaw, In compliancewiththeFrench RECOMMENDATIONS CONCLUSIONS & RECOMMENDATIONS CONCLUSIONS & 49

ENVIRONMENTAL INVESTIGATION AGENCY EIA