World Bank Cancels $20M Factory Farm Loan After Opposition

In a monumental win, the International Finance Corporation (IFC), the World Bank’s private sector arm, has walked away from its proposed $20 million loan to Grupo Agronorte in Brazil. This is what we can accomplish when communities stand up and demand to be heard. 

The $20 million loan was intended to finance an animal feed factory, built by the Brazilian animal feed company Grupo Agronorte. For over a decade, Grupo Agronorte’s founder and majority shareholder, Gilmar Gonçalves Carvalho, has faced allegations of deforestation and land conflicts near Apinajé territory. A previous lawsuit against the company alleged it illegally cleared 2,000 hectares of forest in 2013, contributing to biodiversity loss, polluting water springs, and compromising traditional medicines in Apinajé territory. 

A victory for the Apinajé and the power of collective action 

Earlier this year, Indigenous leaders gathered in the Brazilian Amazon and publicly called on the IFC to reject this loan. Apinajé communities, their chiefs, and leaders led a campaign, supported by the Stop Financing Factory Farming (S3F) coalition, which mobilized 109 organizations, collectives, social movements, researchers, and activists to urge the IFC to listen. Together, the group warned the IFC that the investment could cause further deforestation, environmental destruction, and human rights violations.  

Animal agriculture accounts for around 19% of global greenhouse gas emissions, and according to the S3F, the IFC invested around $2 billion between 2020–2025 for industrial meat, dairy, and feed corporations. These projects fuel environmental destruction and further reinforce industrial animal agriculture.  

One project stopped. A movement growing stronger. 

The IFC’s decision to cancel this loan is an important victory for the Apinajé communities defending their territories, water, and ways of life. Thanks to the courageous leadership of Apinajé communities and the S3F coalition, the IFC could not treat this proposed investment as a local matter alone. It also sets an important precedent in the fight against factory farming and holding banks accountable for the harmful impacts of their investments.  

But the fight is not over. Other banks may consider financing the project, and the Apinajé continue to face threats to their safety, territories, and ways of life. And now, another proposed IFC investment needs scrutiny: $100 million for Agrícola Alvorada, a Brazilian company involved in industrial soy and corn production for animal feed and biofuels. This project also puts Indigenous Peoples, their way of life, and territory at risk. The IFC must stop supporting industrial animal agriculture across its entire portfolio—not just one project at a time.  

Building on this victory 

Until we stop the flow of money from large banks into factory farming and into corporations fueling environmental destruction, we cannot solve the climate crisis, uphold human rights, or achieve food security. We need investments that support communities, protect vulnerable habitats and wildlife, and bring us towards more sustainable food systems.  

Friends of the Earth is proud to stand with the Apinajé and communities around the globe who are fighting for a more just and healthy planet.