16 December, 2024

Collective effort: driving systemic change in the soy sector 

RTRS 2024 International Conference  | Session 2

The session focused on sectoral initiatives for systemic change, going beyond a mere response to the EUDR. It showcased diverse perspectives—from European feed associations to Brazilian farmers, certification leaders, and global commodity players—all united by a common goal: to move beyond compliance and drive lasting change within the soy sector.

At the RTRS International Conference, “Toward a Regenerative Transition”, Session 2 focused on sectoral initiatives for systemic change, extending beyond just a response to the EUDR. It provided participants with insights into various collaborative efforts by stakeholders in the soy sector working to support the sustainable transition of soy production.

Moderated by sustainability specialist Petra Tanos, the session showcased diverse perspectives, from European feed associations and Brazilian farmers to certification leaders and global commodity players. Their shared goal was clear: to move beyond compliance and drive systemic change within the soy sector.

Reflecting on the discussion, Petra Tanos emphasized, “Conservation must make economic sense. In my years of working in the soy sector, this has been a fundamental takeaway: conservation for conservation’s sake doesn’t work unless there’s a solid business case behind it.” She also highlighted the importance of patience and trust in fostering collaboration, reminding attendees that “perfection should not become the enemy of progress.”

A call for collaboration

The panel began with an introduction by Lukas Vogt, Head of the Agricultural Desk at ACT Group, one of the conference’s sponsors. He described the RTRS conference as “a unique opportunity to connect with innovators and key stakeholders across the agricultural supply chain” and underscored the importance of collaboration, noting that “good practices ensure long-term success.” His words were optimistic and grounded in pragmatism.

Lukas also discussed the significance of driving sustainable initiatives in critical regions, showcasing ACT’s Impact Accelerator in Brazil as a prime example of effective collaboration with RTRS. The program not only supports farmers in the Amazon and Cerrado regions to achieve RTRS certification but also introduces innovative funding models for regenerative agriculture. 

During its first phase, the project transformed 55,000 hectares, preserved over 3.5 million tons of CO₂ equivalent in the vegetation of the properties, and certified 110,000 tons of RTRS soy. “These figures are more than just metrics,” Vogt remarked. “They represent a shared commitment to sustainable solutions that deliver real and lasting impact on the ground.”

The panel then shifted gears, diving into the nitty-gritty of how the soy sector is stepping up to the challenges of the EUDR.

“RTRS credits play a crucial role in energizing the ecosystem by providing financial support the farms need to implement sustainable practices, drive regenerative agriculture, and create a healthy environment for generations to come. Over the past 8 years, we have purchased over 10 million credits from producers. This helped produce approximately 1,26 million tons of soybeans annually with no deforestation and land conversion, while prioritizing responsible labor conditions and community relations across the farms,” stated Lukas.

 “When visiting the farms, the impact of the credits is obvious – we can see the changes across the production process first-hand, both in terms of environmental benefits and the quality of life for the people involved,” added.

 “Ultimately, many of these improvements would simply not be possible without the investments farms receive through the RTRS credits.” concluded.

The challenges of Brazilian soy producers

Representing Brazil’s Aprosoja Mato Grosso, an association of over 8,800 soy producers in the region, Luiz Pedro Poletti Bier brought firsthand insights into the realities of farming and compliance in a critical soy-producing region.

“I am a farmer myself,” Bier began. “My history is unusual. My father was a doctor, but I chose to become a farmer by choice. I grew up in the city, but I became connected to the land.”

Bier’s story is emblematic of the challenges facing Brazilian farmers today. Approximately half of Aprosoja MT’s members cultivate less than 100 hectares of land, making them smallholders navigating the complexities of sustainability amid rising operational costs. Bier highlighted Soja Legal, a program that uses data-driven mapping and surveys to help producers improve their environmental performance.

Yet, he acknowledged that economic incentives are critical to achieving meaningful change. “We are currently going through a period where costs are particularly high, and farmers are cutting spending in areas where they don’t see immediate benefits.” Bier explained. “Producers and sustainable practices need to be incentivised.”

Aprosoja MT’s solution is multifaceted, including the development of an online training centre to equip farmers with tools for better farm management, good practices, and legal compliance. Bier emphasised that collaboration across the supply chain is essential, but he warned that producers cannot bear the burden alone. “The burden is being placed on producers, and this will not achieve good results.”

Financing conservation in the supply chain

As the conversation turned to global supply chains, Wei Peng, Global Head of Sustainability for Grains & Oilseeds at Louis Dreyfus Company (LDC), provided insights into how financial mechanisms can support sustainability.

Roisín Mortimer, Global Sustainability and Stakeholder Engagement Manager at COFCO International, made emphasis on collaboration. “How do we make collaboration effective?” Mortimer asked. “One thing we want to talk about is financing conservation. What kind of products can we develop with the financial sector to incentivise sustainable practices?”

“Mortimer emphasized the importance of creating opportunities for meaningful discussions and scaling solutions that benefit all actors. ‘Producers are at the heart of the solution,’ she concluded. ‘Their voices must be heard, and space must be made for these critical conversations.'”

Mortimer stressed that RTRS plays a vital role in facilitating these conversations, bringing together diverse stakeholders from across the value chain. “RTRS is uniquely positioned to act as a bridge between producers, financial institutions, and buyers,” she said. “By fostering dialogue and setting a shared standard, RTRS helps ensure that producers are not only included in the conversation but are recognized as central to driving sustainable change.”

The role of certification 

Certification was a key theme, with Olyn San Miguel, Business Development Manager at GMP+ International, emphasizing its potential to drive sectoral change. “EUDR requires us as a sector to redefine our approach to sustainability,” San Miguel stated. “At GMP+, we aim to raise the standard across our industry by delivering sustainable feed worldwide.”

San Miguel highlighted the importance of partnerships in achieving meaningful progress, particularly through the Feed Responsibility Assurance (FRA) Module, developed in collaboration with initiatives such as RTRS. She pointed out how certification can promote sustainability and traceability. “Over more than 30 years, we have learned that transformation happens through three pillars: transparency, collaboration, and continuous improvement,” she noted.

She also acknowledged the longstanding partnership between GMP+ International and RTRS, which began in 2013 and was renewed in 2024. “RTRS has been an invaluable partner in our shared mission to promote responsible soy practices,” she said. “This collaboration has enabled us to align standards, improve traceability, and increase the availability of certified soy in global markets.”

The renewed agreement ensures equivalence between GMP+ certification and the RTRS Chain of Custody Standard (GMP+ MI5.1) simplifying the adoption of responsible soy practices for companies. “This integration offers the dual benefit of streamlining certification processes and providing access to RTRS-certified soy, reducing costs while demonstrating a commitment to sustainability,” San Miguel added.

BFA’s commitment to sustainable soy

Katrien D’hooghe, Managing Director of the Belgian Feed Association (BFA), shared her insights on advancing sustainability in the feed sector. Representing 96% of Belgium’s feed market, BFA has taken a leadership role by committing to a 100% deforestation-free soy standard, verified through independent audits.

“From the beginning, we decided to focus on soy and soy byproducts as a high-quality protein source but with concerns about possible deforestation,” D’hooghe explained. To support this commitment, BFA purchases over half a million credits annually on behalf of its members, with the goal of achieving full credit coverage by 2030.

D’hooghe also outlined BFA’s strategy to ensure compliance with upcoming regulations such as the EUDR, which may be delayed by a year. “The EUDR will serve as a legal baseline focused on deforestation, but it will not address all the sustainability aspects that responsible soy certificates cover,” she said. “For BFA members, purchasing sustainable soy credits will continue to be necessary to address a broader range of sustainability issues beyond deforestation.”

Moreover, BFA’s collective purchase of responsible soy certificates ensures that the entire Belgian market is covered with 100% deforestation-free soy, as demonstrated by a study from Dutch research group Profundo. This collective purchase participation is mandatory for all BFA members and is independently verified.

From the outset, BFA set the goal of covering the entire Belgian domestic market with sustainable soy credits. What makes this approach unique is that BFA, as an organization, purchases these credits on behalf of all its members, making it a collective purchase. This strategy fosters collaboration among members and eliminates competition, enabling them to scale up and make a real impact within the supply chain.

The system is independently controlled, and BFA is GMP+ certified, which helps demonstrate credibility and transparency to stakeholders. Since 2009, BFA has steadily increased its annual purchase of sustainable soy credits. Today, it buys more than half a million credits per year, exceeding the domestic consumption of animal products in Belgium.

“We have been working on this issue for quite some time and will continue to do so,” D’hooghe added. By 2030, BFA aims to cover 100% of the soy and soy by-products used in the Belgian feed sector with sustainable credits, in line with the FEFAC Soy Sourcing Guidelines.

However, like other panelists, D’hooghe acknowledged the challenges posed by costs. “Segregation costs a huge amount of money but makes very little difference on the ground,” she observed. “If Europe had opted for a 100% credit system, it could have had a much larger impact.”

Who pays for sustainability?

During the Q&A session, an audience member asked a critical question: “How do you convince buyers to come to the table?” D’hooghe responded, “Addressing this question requires collaboration across the supply chain, where costs should be shared by all stakeholders involved, ensuring that no single party bears the full financial burden.” 

The panelists left the audience with a sense of optimism and urgency. As Mortimer remarked, “We are at a critical juncture, but with collaboration and innovation, the soy sector can become a model for sustainable practices across commodities.” 

Reflecting on the discussion, Petra Tanos emphasized, “Conservation must make economic sense. In my years of working in the soy sector, this has been a fundamental takeaway: conservation for conservation’s sake doesn’t work unless there’s a solid business case behind it.” She also highlighted the importance of patience and trust in fostering collaboration, reminding attendees that “perfection should not become the enemy of progress.”

The RTRS Conference discussions highlighted that while compliance with the EUDR presents challenges, it also creates opportunities for transformative change. Through innovative financing, strong certification systems, and cross-sector collaboration, the soy sector is paving the way for a more sustainable future.

This website uses cookies to make your browsing experience more efficient and enjoyable.
Take a look at our Privacy and Cookies Policy to learn more. If you click on "agree" we assume you are happy to allow the use of these cookies.