• Announcement
15. December 2022

An article by Jasper Kremer

Recently, the WWF presented the study "Deforestation and Conversion-Free Supply Chains: Challenges and Possible Approaches Using the Example of Brazilian Soy," which was made possible by the GIZ Global Programme "Sustainability and Value Added in Agricultural Supply Chains." Using the soy supply chain as an example, the study identifies fields of action for deforestation-free supply chains and points out concrete approaches for companies, politics and civil society.

Almost half of the deforestation caused by agricultural products imported into the EU is due to soybean cultivation. Brazil particularly stands in the spotlight. According to the study, the area under soybean cultivation has increased tenfold in the Amazon region and doubled in the Cerrado savannah in the last 20 years. Both ecosystems are of enormous value, both for the preservation of biodiversity and in the fight against climate change. At the same time, global demand for soy, 70% of which is used as animal feed, has been rising steadily for years. A growing world population and rising income levels will continue to increase demand and thus pressure on South American ecosystems in the future.

The WWF Study on Deforestation-Free Soy Supply Chains
(WWF, 2022)
The so-called Soy Street in the Cerrado, Brazil (WWF, 2022)
Deforestation in Brazil (WWF, 2022)
Aerial view of the soy monoculture, Brazil (WWF, 2022)

The WWF study goes into detail about the complexity of the soy supply chains between Brazil and the EU. In addition, current developments and dynamics of deforestation in Brazil are addressed and the political framework conditions in the exporting and importing countries are highlighted. Specifically, six fields of action are identified in which the greatest challenges lie in order to realize deforestation- and conversion-free supply chains:

       1. legal frameworks in growing countries
       2. legal framework in importing countries
       3. economic incentives for farmers
       4. commitments and targets of actors along the supply chain
       5. transparency in the supply chain
       6. corporate strategies and measures (e.g. certifications and standards).

In cooperation with the WWF, the GIZ Global Programme "Sustainability and Value Added in Agricultural Supply Chains" advocates for a transparent and traceable soy supply chain. The Commodity Hub Brazil of the global project cooperates closely with the government of the state of Maranhão and the various actors in the soy supply chain, so that a model region for sustainable soy cultivation is created here. For this to happen, however, there must also be greater willingness on the demand side in Europe to purchase sustainably produced soy. Therefore, within the framework of the Forum on Sustainable Protein Feed (FONEI), among others, discussions are being held with companies in the German retail sector on the purchase of sustainable soy and the traceability of imports.

Together with RTRS (Round Table on Responsible Soy), the Commodity Hub Brazil organizes multistakeholder dialogues in the MATOPIBA region, which includes the states of Maranhão, Tocantins, Piauí and Bahia. This involves exchanges on activities and experiences in sustainable cultivation as well as in downstream value creation, with the common goal of promoting responsible business practices and greater sustainability in the soy sector. With the entry into force of the Supply Chain Act at the beginning of the new year and the upcoming EU regulation on deforestation-free supply chains, an exchange along the entire supply chains is of increasing importance and is actively promoted by the Global Programme and INA.