Boosting Value Creation for Brands and Retail through Responsible Soy Sourcing

Curbing deforestation and promoting regional development in Latin America, using “Area Mass Balance” Direct Trade.

WHAT 

Soy4brands is an innovative strategy to accelerate a broader uptake of responsible deforestation- and conversion-free Soy production in certain regions combined with a transformation from GM towards Non-GM Soy where appropriate.

WHY 

Many Brand owners and Retailers are targeting 2020 goals for responsible, deforestation- and conversion-free sourcing commitments. Soy is an important commodity with a very complex supply chain. Mapping studies have proven how difficult it is to source physical responsible soy at reasonable prices.

On world level, approximately 350 Mio Tonnes of soy are traded yearly. But only 3 Mio Tonnes are certified as “Responsible”, referring to the RTRS standard (hardly 1%). By focusing on an area approach, the critical level of responsible soy can be upgraded substantially (for some areas: 50% or even more).

Soy4brands aims in joined efforts by allocating contributions of Brand owners and Retailers directly to regions in order to transform certain regions to 100% responsible production in a short time frame. It means that the related physical flows from these regions will be responsible by fact, without needs for segregation.

Farmers are prepared to invest in responsible production and even in a switch to Non-GM production, if there is a clear roadmap and agreements for uptake. Soy4brands will build a new direct dialogue and relation between farmers and Brand Owners/Retailers with a long-term perspective.

Moreover, companies are looking for more visibility, transparency and story telling concerning the impact of their investments and the communication to civil society. Soy4brands aims to publicly monitor the regional transformation progress and as such motivate stakeholders to join the movement.

HOW 

By means of a generic “Area Mass Balance” contracting system for distinct categories (Responsible GM; Responsible Non-GM and other approaches towards Responsible Soy production) that connects producers directly to retailers/brand owners with “(Credit) term/trust contracts”.

By developing an intermediation service between the supply (farmers) and demand (Brands/Retail) in order to support the dialogue.

By publishing an on-line monitoring Dashboard to communicate the progress of commitments and uptake.

WHO

ACT Commodities (www.actcommodities.com), RTRS member since 2014, is the Industrial project host. ACT Commodities is helping businesses around the world by achieving their environmental and corporate sustainability goals. IDH (The sustainable Trade Initiative) is co-funding partner and involved in the impact measurement Dashboard. WWF acts as observing partner.

For further information, please contact:

Lieven Callewaert (former-EU Representative of RTRS, coordinator) Lieven.Callewaert@soy4brands.org (+ 32 475 46 45 45) 

Jorn Schouten (ACT Commodities) JSchouten@actcommodities.com (+31 20 219 92 26)

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