[Brazil] Battles: Armed clash

Supply-chain Risk Briefing

1) Summary On March 20, 2025, a gunfight occurred between two members of the drug organization CV (Comando Vermelho) and the police special unit GAECO in Cuiabá, Mato Grosso state, Brazil, resulting in the deaths of two organization members. This high-level armed conflict in Brazil's central-western agricultural heartland raises concerns about regional security instability.

2) Supply-chain impact

• Agricultural logistics risk - Mato Grosso state is Brazil's largest soybean and corn production region, with Cuiabá serving as a major agricultural collection and processing hub
• Land transport route risks - Cuiabá is a key point on the BR-163 highway (major soybean export route), and increased organized crime activity could potentially impact cargo transportation safety
• Port connectivity - As the starting point of inland logistics networks heading to northern Santos port and Miraitinga port, security deterioration could disrupt agricultural export schedules
• Local operating environment - Escalating armed conflicts between drug organizations and police could negatively impact local business operations and personnel safety

3) Watch points

• Follow-up retaliation activities - Monitor for CV organization retaliatory attacks or expansion of organized crime activities within the Mato Grosso region
• Enhanced transport security - Verify security authority reinforcement measures for the BR-163 highway and logistics facilities near Cuiabá, and the transportation industry's response status