ABIOVE and the production chain promote good socio-environmental practices in Brazilian soybean production, reveals a TNC study

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1 ABIOVE and the production chain promote good socio-environmental practices in Brazilian soybean production, reveals a TNC study In a recent publication, TNC, one of the world s largest environmental conservation organizations, highlighted the good agricultural and socio-environmental practices promoted by ABIOVE and its members. São Paulo, May 2012 The non-governmental organization The Nature Conservancy (TNC one of the world s largest organizations active in biodiversity conservation, with a presence in over 30 countries, develops programs of good agricultural practices in the Brazilian soybean production chain. A recent TNC publication, called Good Agricultural Practices and Socio-Environmental Certification The Path of Sustainability, reported there are over a dozen strategic actions to improve sustainability currently in progress, demonstrating the proactive posture of the production chain and other agents. Among the publication s highlights are the programs in which ABIOVE, its member-companies and partner-entities take part. They are: the Soja Plus Program; Greener Soy (Soja Mais Verde); Good Agricultural Practices and Sustainability Programs implemented by Amaggi, Bunge, Cargill and ARES (Institute for Responsible Agriculture); the Soy Moratorium and CAR (Rural Environmental Registration). TNC failed to include in its study the sustainability program promoted by ADM in partnership with the NGO Aliança da Terra (Land Alliance), which provides practical and specific orientation on farms to hundreds of soybean farmers. TNC s publication came onto the market just a few weeks before RIO+20, an event that should be a global showcase of the actions undertaken by Brazil s responsible agribusiness. ABIOVE considers TNC s initiative of highlighting the Brazilian soybean industry s sustainability programs very positive. The weight of this accounting by the world s main conservationist NGO is undeniable and contributes to disseminating and reinforcing the credibility of the soybean production chain s sustainability programs in the public opinion. According to TNC, Brazil is showing very strong concern that the expansion of agricultural commodity markets, especially that of soybeans, happens in a responsible manner and in accordance with national laws. In the area of sustainability, these programs put Brazilian soybean production into a position of global leadership, as an environmental service provider.

2 Brazil in the global soybean market The world s largest soybean producers and exporters are the United States, Brazil and Argentina. Brazil, second-largest exporter, sells to China and the European Union, the biggest importers. Soybeans are Brazil s main agricultural crop, both in volume and income generation 75 million tons on 24 million hectares (92,664 sq.miles). The soybean complex is one of the country s main sources of foreign exchange, with 10% of total exports. Overall, 250,000 producers generate 1.5 million jobs. According to IBGE (Brazilian Geographic & Statistical Institute) and the Ministry of the Environment (MMA), Brazil has 851 million hectares (3.3 million sq.miles), of which 520 million hectares (2 million sq.miles) are covered with native vegetation. Of this area, 107 million hectares (413,129 sq.miles) are indigenous lands and 130 million hectares (501,932 sq.miles) are conservation units, such as national forests and state parks. At the present time, the area planted with all Brazilian agricultural crops corresponds to 65 million hectares (250,966 sq.miles), less than 10% of Brazil s territory. Practices and commitments The TNC publication highlights the sustainable agricultural practices that can be audited through certification programs and rural property management. Participating in these programs are producers, buyers, processors, exporters, civil society, governments and financial agents. Function of good agricultural practices programs These programs show rural producers how to manage their enterprises responsibly by offering a set of principles, standards and technical recommendations applied to the production, processing and transportation of soybeans. The expected results include environmental protection and an improved quality of life for the workers and their families.

3 Soja Plus Program Economic, Social & Environmental Management Program for Brazilian Soybeans The Soja Plus Program is a rural property management program on a national scale, designed to meet the market s demand for sustainable products. Participating rural producers have, as their objective, the continuous improvement in the quality of life of their workers, best production practices and social responsibility. The Soja Plus Program is organized by the following institutions: ABIOVE, APROSOJA (Mato Grosso State Soybean & Corn Producers Association), SENAR (National Service for Rural Learning), ANEC (National Grain Exporters Association) and ARES (Institute for Responsible Agriculture). The Soja Plus Program promotes and implements actions in partnership with rural producers, state and municipal governments, civil society, industry, commerce, and institutes of research, learning and extension. For more information in Portuguese, see The Program has five lines of action: quality of life at work, best production and service practices, financial and economic feasibility, product quality and social responsibility. Soja Plus Program results In 2011, 1,520 rural producers from the state of Mato Grosso took part in courses, training, field days and technical assistance on health and safety in the workplace. In 2012, field days for 3,100 rural producers have already been held. By the end of this year, technical assistance will be offered to all producers on the new Brazilian environmental legislation and the adequacy of rural constructions (sleeping quarters, refectories, mechanical shops and agrochemical deposits, among others). The Soja Plus Program started in Mato Grosso and is being expanded into the states of Bahia, Paraná and Minas Gerais. Greener Soy The Greener Soy Project is an initiative developed in the state of Mato Grosso by APROSOJA and TNC in partnership with municipal governments and other entities. Its objective is to ensure sustainable soy production with mapping and environmental regularization of rural properties. At the same time, it seeks to recover degraded areas and eliminate soy production in legally required areas of preservation (springs, tablelands, hills

4 with sloping areas, river banks, dunes, restingas-sandbars and mangroves). For more information in Portuguese, see Socioambiental Rural Properties Licensed and Being Licensed Explorable Area Legal Reserve Area Permanent Preservation Area AMAGGI Amaggi is a Brazilian group active in the production, processing and trading of agricultural products. Other activities of this Company include the production of fertilizers and energy. The Group endorses the Soja Plus Program, is a signatory of the Soy Moratorium and is a member of the RTRS (Round Table on Responsible Soy). Amaggi created a Guide of Sustainable Practices for their technical visits to orient producers in the development of sustainable production, covering themes such as socioenvironmental management, management of residues, conservation of native vegetation and recovery of degraded areas. Amaggi also invests in research and development activities, maintaining a good relationship with the scientific community. The Savannization Project, for example, studies the effects of slash-and-burn in transition areas from forest to cerrado. This Project is developed by NGOs, universities and research institutes in Brazil, United States and United Kingdom. The Group s strategic directives are: a ban on the use of degrading labor and child labor; a commitment of non-interference in indigenous areas and conservation units; and a commitment not to produce in areas embargoed by IBAMA (Brazilian Environmental & Renewable Natural Resources Institute) and in recently deforested areas of the Amazon Biome.

5 BUNGE Bunge has been in Brazil since It created and maintains a Sustainability Platform, which disseminates best agricultural practices and a culture of sustainability among its stakeholders, developing actions concentrated on four strategic pillars: agricultural sustainability, climate changes, healthy diets and reduction of residues. The Company supports the Soja Plus Program and takes part in the RTRS. It uses the GRI (Global Report Initiative) standard at the A+ applicability level. Bunge promotes awareness among rural producers, supplies training, and maximizes the development of natural resources. According to the 2011 Sustainability Report, about 35,000 producers have a relationship with the Company. For more information, see (www.bunge.com.br/downloads/sustentabilidade/cartilha_ra.pdf) The proposal to minimize the negative impact of rural activities and incentivate responsible production is structured in four stages: awareness, training, recognition and sanctions. For each stage, Bunge has a set of actions that it follows carefully with the objective of promoting sustainability in the field and, consequently, in the entire production chain. Environmental Responsibility in Agri cultural Production In 2010, Bunge s control system blocked hundreds of producers for having degrading working conditions and for converting the Amazon Forest into soybean fields after 2006 (Soy Moratorium start-up date), as well as almost 2,000 producers identified on the IBAMA list of embargoed areas. Bunge also fights strongly against child labor. The Company further ensures the adequate disposition of industrial waste from its products. In partnership with NGOs, it maintains several educational and awareness programs for the correct disposal of packaging and other residues. Just in the state of São Paulo, 930 collection posts for used oil were created. The Company also invests in the development of biodegradable packaging.

6 CARGILL Cargill has been in Brazil since 1965, starting in a rural region. Headquartered in São Paulo/SP, their Brazilian operations have industrial units, warehouses, offices and port terminals in nearly 120 towns, with approximately 6,000 employees. Cargill is a signatory of two important commitments: the National Pact for Eradication of Slave Labor and the Pact Against Sexual Exploitation of Children. In this respect, it has a partnership with the International Labor Organization (ILO), the Instituto Ethos and the Brazilian Federal Highway Police force. In 1973, the Company created the Cargill Brazil Foundation, which has over the last years distributed one million didactic books for government school students. It has also implemented hundreds of school vegetable gardens, with the objective of disseminating knowledge for a healthy, sustainable and accessible diet. The Foundation also promotes good practices in the field, reduction in food losses and labor qualifications. Cargill promotes the 3S Program Solutions for Sustainable Supplies (www.cargill.com.br/pt/responsabilida-corporativa), which provides solutions for the main aspects related to soybean production: deforestation, labor rights and greenhouse gas emissions. Starting in 2011, Cargill positioned itself as a soybean supplier under the criteria of the 3S Program, which also has a strong socio-environmental engagement with the local traditional communities. Cargill s supply chain is audited by independent international organizations, under the criteria established by the ISO standard or other standards accepted by the European Directive. The Company incentivates responsible soy production in Brazil. All its suppliers have CAR (Rural Environmental Registration), guaranteeing legal compliance of the farms. Growing Together

7 ADM ADM began operations in Brazil in 1997, after buying several crush mills and grain silos. Today it has over 4,000 employees in this country, where it processes and sells soybeans, cocoa and wheat, and produces fertilizers, animal nutrition ingredients, biofuels and chemical products. The Producing Right Program is ADM Brazil s most important initiative, focused on developing a sustainable soybean supply chain. Developed in partnership with the NGO Aliança da Terra (Land Alliance), the objective of this Program is to incentivate Brazilian soybean producers to adopt sustainable crop practices that lead to a reduction in the environmental impact of their activities and to ensure good working conditions for farm employees. How does it work? First of all, Aliança da Terra technicians visit the farm to map it, analyze its agricultural operations and identify positive points and the areas that need improving. All this information is used to produce a Socio-Environmental Diagnostic for the property, which is then delivered to the producer. Based on this Diagnostic, an Action Plan for improvements is prepared and technical orientation is provided on how to improve the negative aspects and to promote sustainable crop practices. A year later, Aliança da Terra returns to the farm to evaluate progress and compliance with the Plan. This Program is fully paid for by ADM on behalf of its suppliers. ARES ARES (Institute for Responsible Agriculture) is a not-for-profit entity that works for the sustainability of Brazilian agricultural and livestock activities and agribusiness. ARES has programs, projects and studies to improve the country s agricultural and livestock production efficiency. The Institute works with the following lines: programs for the environmental, social and economic management of rural properties; formulation of strategies for increasing competitivity; and the transfer to rural producers of new technologies with low environmental impact. ARES coordinates the From Field to Market Program in partnership with EMBRAPA (Brazilian Agricultural-Livestock Research Company), with a view to developing indicators of land use and loss, energy use, greenhouse gases balance and the efficient use of hydric resources. These indicators serve as the basis for data to feed the Sustainability Calculator, a powerful tool for good management of best agricultural practices on the farms. ARES also offers field days within the scope of the Soja Plus Program. For more information in Portuguese, see

8 Soy Moratorium The Soy Moratorium is a governance program of the production sector and civil society, with the objective of not trading soybeans produced in deforested areas of the Amazon Biome. The agreement was established in 2006 by ABIOVE and will continue through Participating in the Soy Moratorium are companies active in the soybean market who operate in the Amazon Biome, the Ministry of the Environment, the Bank of Brazil and civil society organizations (International Conservation, IPAM, Greenpeace, TNC and WWF- Brasil). For more information in Portuguese, see 1. Soybeans, rice or corn: planted area; 2. Deforestation: area with exploitation of native vegetation; 3. Forest: area with native vegetation in different succession stages; 4. Pasture: area with pastures for livestock activities; 5. Burning: area with recent occurrence of fire; 6. Reforestation: area planted with stands of eucalyptus or pine; 7. Natural Regeneration: area that lay fallow after deforestation or burning and is currently showing naturally developing native species. As part of making the Soy Moratorium operational, INPE (National Space Research Institute) identifies deforested areas through satellite images. Those polygons captured in these images that show signs of annual agricultural crops have flyovers scheduled in planes equipped with GPS, computers and photographic cameras. The purpose of the flyovers is to identify land use and occupation. Using satellite images to monitor deforested areas, with a view to identifying agricultural crops, makes it possible to evaluate practically all the area under the influence of soybean crops in the Amazon Biome. The Soy Moratorium s monitoring program, with the combined use of satellite images and panoramic aerial photographs, provides high reliability in the identification and mapping of soybean planting in deforested areas during this period. The panoramic photographs identify the total or partial occurrence of soybeans, as well as other uses, as defined in the blue box. The 2010/2011 soybean crop was the largest in Brazil s history, with a production of 75.3 million tons. This record was reached as a function of the increased production area and, mostly, of the gain in productivity. Despite the drought at the beginning of the planting season, the states of Mato Grosso and Rondônia also had record productivity in this last crop year. The state of Pará had an outstanding gain of 12% in productivity compared to the prior crop year (CONAB, 2011). The 2011 results, the fourth year of the monitoring program, showed that soybean planting occurred in just 0.39% of the total deforested area since the beginning of the Soy Moratorium. This represents only 0.05% of Brazil s total soybean acreage in the 2010/2011 crop year. In the 2010/2011 crop year, soybean acreage in deforested polygons within the period of the Soy Moratorium represented 0.6% of the total area planted with soybeans in the Amazon Biome. The state of Mato Grosso was responsible for 88% of soybeans in the Amazon Biome, and this crop in deforested areas during the period of the Soy Moratorium represented 0.49% of the total soybean acreage in the Amazon Biome.

9 In summary, the careful process for analyzing satellite images, followed by flyovers with photographic records and collection of documents from local registry offices, allows the industries and exporting companies that participate in the Soy Moratorium to comply with their commitment not to acquire soybeans from areas in the Amazon Biome deforested after European customers of Brazilian soybeans, such as Ahold, ASDA, Carrefour, Cooperative, Kraft, Marks & Spencer, McDonald s, Nutreco, Ritter-Sport, Sainsbury s, Waitrose and Wal-Mart, as well as civil society, recognized the Soy Moratorium and supported the positive evolution of the work developed. "We see the Soy Moratorium as a powerful and essential tool for complying with the goal of buying products from a sustainable source. We encourage other companies and other sectors to take part in similar efforts to guarantee preservation of the Amazon. We would especially like to thank the perfection of the mapping and monitoring system that now has the serious and competent participation of INPE (National Space Research Institute). "The Soy Moratorium and negotiations with the meat sector are programmes that could serve as models for other countries", Kumi Naidoo, Greenpeace Global Executive Director, quoted in Valor Econômico, 9 th March 2010.

10 Rural Environmental Register (CAR - Cadastro Ambiental Rural) CAR, instituted in 2009 through Decree No of the Ministry of the Environment, is an integral part of SINIMA (National System for Environmental Information). It is an important tool for environmental control, evaluation of policies, effective inspection operations and for monitoring rural properties. For more information in Portuguese, see CAR is an electronic, georeferenced identification system of rural properties with Areas of Permanent Preservation (APP), Legal Reserves and remaining native vegetation within their boundaries. CAR is already a reality in the states of Mato Grosso and Pará, where the mapping of rural properties is supported by satellite images for their georeferenced position. The results of this mapping support the survey of possible environmental liabilities and help producers, where necessary, in planning activities to recover these areas. Car has been set up as an obligatory requirement for rural producers to obtain environmental licenses and authorizations for any economic, agricultural, livestock or forest activity. It reflects a commitment by the producers regarding their environmental obligations in answer to the pressures of society and the consumer market for environmental protection of the rural production environment. The data generated by this Register will be used to prepare PRAD (Recovery Plans for Degraded Areas)." explains TNC. The objective of ABIOVE s incentive program for CAR in the Amazon Biome is to make the rural producers aware of the program and encourage the regularization of their rural properties, putting them into the Rural Property Environmental Licensing System (SLAPR). Proposed actions: production and distribution of technical material, such as handouts, posters and pamphlets, providing awareness and explanations to rural producers; organization of courses, training and field days to teach producers how to structure the CAR process (mapping, necessary documents and the costs involved); making available a list of companies specialized in geoprocessing and regularization of rural properties; researching financial incentives for producers that need to recover legal reserve areas and for payments of environmental services; annual publication of the advances obtained. All the actions mentioned show that it is possible to reconcile agricultural production with environmental conservation. Brazil, breadbasket of the world, is developing its main crop soybeans with socio-environmental responsibility.

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