4th road show brazilian soy sustainability - fediol brazilian soy sustainability road show... ·...
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4th Road ShowBrazilian Soy Sustainability
Fábio Trigueirinho
Secretary ABIOVE
Brazilian Vegetable Oil Industries Association
ABIOVE, the Brazilian Vegetable Oil Industries Association, has 13 members companies who are responsible for approximately 60 percent of Brazil's soybean processing and exporting volume.
Brazil is responsible for some 32 percent of the world's soybean production, with 113,8 million tonnes in the 2017 crop.
The soybean complex is one of the main items in the country's Trade Balance. In 2016 exports reached US$ 26 billion.
Soybean production brings social development to rural areas.
Europe is a major buyer of Brazilian soy protein (+13 million ton in 2016).
ABOUT ABIOVE
5.3%
6.8%
9.4%
11.4%
13.9%
14.6%
15.6%
17.0%
25.1%
66.3%
INDIA
ARGENTINA
CANADA
RUSSIA
UNITED STATES
AUSTRALIA
EAST ASIA & PACIFIC
CHINA
EUROPEAN UNION
BRAZIL
GLOBAL PRESERVATION
Source: THE WORLD BANK - TERRESTRIAL PROTECTED AREAS - 2014
Brazil is a step ahead in environmental sustainability !
AMAZON BIOME VEGETATION
- 420 million hectares (49% of Brazil)
- preserved native vegetation - 82%
CERRADO BIOME VEGETATION
- 204 million hectares (24% of Brazil)
- preserved native vegetation: 50%
Densely Wooded
CerradoDirty Cerrado
(Shrubby)
Rocky CerradoVereda Cerrado
(Open Areas)
Riparian
Forests
Typical Cerrado
ALERT INSPECTION
LEGAL
DEFORESTATION
ILLEGAL
DEFORESTATION
DEFORESTATION
FARM IS
EMBARGOED
FINE
R$500/kg
purchased
THE FARM AND THE RURAL
PRODUCER ARE INCLUDED IN
IBAMA’S LIST OF EMBARGOED
AREAS IN BRAZIL
PUBLIC GOVERNANCE
LAW ENFORCEMENT
IMPROVEMENT IN BRAZIL’S ENVIRONMENTAL GOVERNANCE
Governance Factors 2006 2017
Deforestation rate – Amazon Biome 14,286 km² 6.624 km²
Environmental legislationProvisional Measure
Lack of legal security
Forest Code
Federal Law No. 12651/2012
Compliance with legislation Low High (CAR Registration)
Penalties for illegal deforestationWarnings and fines with
low collectionsEmbargoes of farms and high fines
Monitoring of environmental crimes Start-up of satellite useUse of satellite images in real time with
high definition
Field inspections IBAMA techniciansInspections integrated with Federal
Police, and Environment State bodies
Requirements for purchasing agricultural
productsNo requirements IBAMA’s Embargoed Areas List
Source: http://www.obt.inpe.br/prodes/prodes_1988_2014.htm
CERRADO SHARP FALL IN CONVERSION
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2001-2002 2003-2004 2005-2006 2007-2008 2009-2010 2014-2015
Conversion of Native Vegetation to other uses
1) SOY MORATORIUM
Signed: July 24, 2006
Commitment: Signatories will not trade
soybeans produced in areas of the
Amazon Biome deforested after July
2008.
Soybeans are responsible for 1,0% of
Amazone Biome deforestation.
Monitoring 98% of the soybeans grown in the Amazon Biome since 2006
STATE2016
(ha)
MATO GROSSO 28,280
RONDÔNIA 1,358
PARÁ 7,479
RORAIMA AND AMAPÁ 38
TOTAL 37,155
SOY MORATORIUM – MONITORING
In the 2016 crop soybeans have been identified on 37,155 hectares of deforestation
since 2008.
These 37,155 hectares in non-conformity with the Soy Moratorium correspond to
1 % of the bioma deforestation.
Source: INPE, 2014
MORATORIUM - PUBLIC RECOGNITION
“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
“The soy industry is setting the example for respecting the forest and the consumers”.
Paulo Adário, Greenpeace Diretor
“We have delivered extraordinary results”. Frederico Machado, WWF Brasil - GTS member
The European Soy Customer Group - AHOLD, ASDA, Carrefour, Co-operative, Kraft, Marks &
Spencer, McDonald’s, Nutreco, Ritter-Sport, Sainsbury’s, Waitrose and Wal-Mart - “applauds
another year of positive progress by the Soy Task Force”.
• Monitoring soybean in the Amazon Biome - transparency
• Contribution to sensibilize farmers to sustainability issues and Government toimprove environmental governance.
SOY MORATORIUM - 10 YEAR RESULTS
2) SOJA PLUS PROGRAM
EnvironmentalLabour
Legal Compliance
Legal certainties and
market guarantees
for the rural
producer!
Brazilian legislation is the most demanding
Complying with it is as hard as a certification
SUSTAINABILITY PROGRAMS - ABIOVE
Soja Plus: MT, MS, MG e BA: 7.15 million ton.
State FarmsSoy area
(thousand ha)
Soy production
(thousand ton)
MT 875 1,700 5,100
MS 410 340 1,020
BA 180 515 1,545
MG 63 80 240
Brazil 1,122 2,635 7,905
CERRADO BIOME - GENERAL
CHARACTERISTICS
FOREST
FORMATIONS
SAVANNAH
FORMATIONS
PASTORAL
FORMATIONS
Riparian
ForestsGallery
Forests
Dry Forests Dense
Forests
Dense
Cerrado
Typical
Cerrado
Sparse
Cerrado
Cerrado
Park
Palm
Grove
Vereda
Cerrado
Rocky
Field
Scrub-
land
Meadow
FOREST
FORMATIONS
SAVANNAH
FORMATIONS
PASTORAL
FORMATIONS
PHYTOPHYSIOGNOMIES OF THE CERRADO BIOME
Rocky
Cerrado
3) CERRADO BIOME ROAD MAP
• Challenge: To reconcile food production with protection of biodiversity
• Cerrado policy assumptions:
- Universal application to the soy market (all players)
- Participation and consent by rural producers
- Simple system, workable and not burdensome
- Inclusion of other production chains
- Economic incentives for conservation of the forests
- Preservation of high-value areas (river basin headwaters, landscapes)
1. Mapping of soy acreage.
2. Development of studies on the Cerrado’s socio-economic characteristics.
3. Supporting rural producer registration with SICAR (National System for Rural
Environmental Registration).
4. Use of CAR (Rural Environmental Registration) as a purchase criterion.
5. Supporting the states in their analysis and validation of CAR
CERRADO TASK FORCE – PRIORITY DISCUSSIONS
6. Supporting rural producers regarding regulations, implementation and
monitoring of PRA (Environmental Regularization Program)
7. Supporting the Biome’s Ecologic-Economic Zoning
8. Development of a Go/No-Go Zone tool
9. Supporting compensation and economic incentives for producers who cease to
deforest, producing only in areas already cleared.
10. Articulation with other production sectors: input industries, financial sector,
meat chain, charcoal plants, state governments, social movements, associations
and employer associations
CERRADO TASK FORCE – PRIORITY DISCUSSIONS
Minimum value for the Cerrado Biome
R$ 200.00
Source: http://biofilica.com.br/boletins/2017_08/boletim_2017_08.html
AMAZON CERRADOATLANTIC
FORESTCAATINGA
Sale (R$/ha)
from 550 to 2,000
Sale (R$/ha)
from 1,550 to 15,000
Sale (R$/ha)
from 2,800 to 10,000
Sale (R$/ha)
from 400 to 1,800
Lease (R$/ha/yr)
from 130 to 210
Lease (R$/ha/yr)
from 200 to 300
Lease (R$/ha/yr)
from 150 to 280
Lease (R$/ha/yr)
from 200 to 428
CERRADO - COMPENSATION OF LEGAL RESERVES
Source: Agroanalysis, October 2017
(agribusiness magazine published by Fundação Getúlio Vargas)
Items Unit 2016/17 2017/18***
Operational cost* R$/ha 2,972.85 2,662.21
Average yield* Bags/ha 55.39 54.12
Sales Price** R$ 59.52 57.13
Revenues R$ 3,296.81 3,091.76
Profits R$/ha 323.96 429.55
*IMEA (Institute of Agricultural & Livestock Economy in Mato Grosso State)
**Scot Consultoria
*** Estimate
Average profit
for soy
R$ 323.96
Soy Production (Rondonópolis/Mato Grosso State)
CERRADO BIOME - ECONOMIC RETURNS FOR SOY
• Land inventories in the Cerrado Biome with high suitability
for soy expansion comprise 15.5 million hectares (59,846
square miles) of native vegetation. Producers could waive
their rights to convert this area to agriculture through
payment for environmental services
Source: http://biomas.agrosatelite.com.br/img/Analise_geoespacial_da_dinamica_das_culturas_anuais_no_bioma_Cerrado_2000a2014.pdf
Cerrado Fund (15.5 million hectares)
Compensation of Areas
(R$ 200.00)
Soy Production
(R$ 323.96)
R$3.1 billion R$5.02 billion
€886 million €1.43 billion
CERRADO FUND - PAYMENTS TO PRODUCERS FOR
ENVIRONMENTAL SERVICES
• The economic complementarity of Brazil and Europe should be
taken advantage of, to their mutual benefit.
• Conformity with the Brazil Forest Code means reconcile food
production with environmental conservation.
• Soja Plus Program is an important vehicle to support the full
implementation of the Forest Code and labor rules.
• We invite European Consumers to come to Brazil, as well as
sponsor Soja Plus Program (Shared reponsibilities)
CONCLUSIONS: