SAO PAULO, Brazil (Reuters) – On Wednesday, Inter-American Development Bank and Brazilian meatpacker Marfrig Global Foods SA broke off negotiations over a loan of $200 million tied to environmental goals, according to the IDB.

Brazil’s number one beef exporter, Brazil, faces a difficult task in implementing the failed proposal. It must overcome the concerns of its suppliers that they are contributing to Amazon rainforest deforestation (NASDAQ:).

IDB stated that it did its due diligence on Marfrig’s Verde+ program last year. This is a plan to increase sustainability in Brazil’s beef supply chain.

IDB stated that Marfrig and lender reached an agreement as part of their internal review. They agreed to not allow the loan to proceed if the conditions aren’t ideal.

Marfrig had no immediate comment.

Brazil has one of the world’s biggest cattle herds, which has grown dramatically in the Amazon region in recent years as ranchers expand on illegally deforested land, enabled by weaker environmental enforcement https://www.reuters.com/article/us-brazil-environment-military-special-r-idUSKBN2BG1OK under President Jair Bolsonaro.

Marfrig, a meatpacker, has increased the scrutiny of its direct suppliers in order to ensure compliance with environmental laws. However it is harder to monitor the status of “indirect suppliers”, who provide cattle for those ranches.