Cesare Zanasi: Alma Mater Studiorum Università di Bologna

EU-Brazil Soy production and trade

Contribution to a Sustainable Development

1 Climate change and clean energy

2 Sustainable transport

3 Sustainable consumption and

production

4 Conservation and management of

natural resources

6 Public health5 Social inclusion, demography and

migration 7 Global poverty and Sustainable

Development challenges

SEVEN KEY CHALLENGES

2

EU Sustainable Development Strategy (EU SDS)

GLOBAL POVERTY AND SUSTAINABLE DEVELOPMENT CHALLENGES

Overall objective

To actively promote sustainable development worldwide

ensure that the European Union’s internal and external policies are consistent with

global sustainable development and its international commitments

HOW?

AN EXAMPLE

EU and Brazil Sustainable Agriculture Agreement

Rio+20

EU and Brazil sustainable agriculture agreement - Rio+20

- Share best practice and knowledge on sustainable agriculture

- Strengthen relations and information exchange to ensure that any issues that may arise are resolved effectively

- Encourage innovation, as well as increasing productivity

- Trade and technical working groups may be set up by the end of the year, or early in 2013

• Greenhouse gas emissions• Use of land and water resources• Pollution• Depletion of phosphorus• Impact of chemical products such as herbicides and

pesticides(EIPRO Report)

EU MAIN FOOD STAINABILITY STRATEGY ISSUES

EU FOOD SUSTAINABILITY FUTURE STRATEGY

1. Sustainable intensification of the elements of food production systems building on existing technologies and knowledge systems

2. Developing radically new farming systems : “Systems are needed that enhance sustainability while maintaining productivity in ways that protect the natural resource base and ecological provisioning of agricultural systems”

RECOMMENDATIONS TO THE COMPETITIVE POSITION OF THE EU FOOD INDUSTRY

ENSURE A HOLISTIC APPROACH FOR THE EUROPEAN AGRO-FOOD INDUSTRY

Source: High Level Group (HLG) on the Competitiveness of the Agro-Food Industry

8

RECOMMENDATION NO1

Sufficient supply of competitively priced raw-materials

Design environmental and sustainable industrial policy tominimize costs and maximize opportunities for the European agro-food industry

IN SHORTSUSTAINABILITY BUT LOW COST

RELEVANT STRATEGIES INFLUENCING FOOD COMPETITIVENESS

Facilitate access of SMEs to global markets / food chains

Ensure optimal functioning of the entire food chain by addressing the relationships among the food chain players

Promote clarity and coherence of information for consumers

10

IN SHORTINCREASE COLLABORATION AND TRANSPARENCY ALONGTHE FOOD CHAIN

RELEVANT STRATEGIES INFLUENCING FOOD COMPETITIVENESS

Better promote international trade standards

Enhance respect of intellectual property rights by third countries

Define position of the European agro-food industry in the global market and improve the support given to exporting companies

IN SHORTSUPPORT EU TRADE AND EXPORTS ALSO THROUGH INTERNATIONAL TRADE STANDARDS PROMOTION

11

RELEVANT STRATEGIES INFLUENCING FOOD COMPETITIVENESS

EU Food sustainability strategy consistency with food industry competitiveness

WHAT SHOULD THE EU DO ?

BALANCING LOWERING COSTS

EU AGRICULTURE TRADE BARRIERS & EXPORT SUPPORT

WITH

GLOBAL SUSTAINABILITY

SEEMS A DIFFICULT EXERCISE

EU International RoleIt is in the interest of the EU, to act in favor of a global equitable governance of resources and of food exchanges, preserving both global availability of food and local access to food

WHY?

because of its dependence on external mineral resources, its position as a major player in the global food markets (both as importer and exporter)

• identify coalitions for a better multilateral governance with all countries, and particularly with emerging countries

• better analyze the consequences of domestic European policies on food security and the environment in the rest of the world

HOW?

Source: SCAR EU (2010): Sustainable food consumption and production in a resource-constrained world, p.94.

SOY AND SUSTAINABILITY

KEY SOY SUSTAINABILITY CHALLENGES

FOR THE EU INDUSTRY

• GMO • DEFORESTATION

SOY AND SUSTAINABILITY

WIDESPREAD EU VISION ON SOY TRADE

BUT: SOY efficient source of proteins

SOY AND TRADE WITH EUPort of Rotterdam - the Netherlands

Key challenges

Demand for imported soy - EU

Dependency on soy import from third countries

The approximately 400,000 hectares of soya grown in EU only produce around 3% of EU needs

3%

46%51%

Share of Soy beans and Soy cake Supply to EU 2012/2013

EU internal supply

IMPORT from Brazil

Rest of the World

REST OF THE WORLD

EU

BRAZIL

THE EU COUNTRIES HAVE DIFFERENT PRIORITIES RELATED TO SOY IMPORT

Importance of soy to EU agriculture: soy meal for animal feeding

OIL SEEDS EU BALANCHE SHEET 2013/2014 .000 T OIL SEEDS MEALS EU BALANCHE SHEET 2013/2014 .000 T

EU INITIATIVES NO-GM

EU INITIATIVES NO-GM SOY

EU INITIATIVES NO-GM SOY

EU food Sustainability future strategy

Source: DG Agriculture and Rural Development.

The CAP post-2013: From challenges to reform objectives

EU food Sustainability future strategy

Source: DG Agriculture and Rural Development.

The new greening architecture of the CAP

LESS KNOWN FACTS IN EU: SOY MORATORIUM

Key challenges

Demand for imported soy - EU

Sustainability initiatives can be relevant to export soy to EU

EU- ORGANIC LOGO

SUSTAINABILITY STANDARDS AND INITIATIVES

SUSTAINABILITY AND THE FOOD INDUSTRY

The food industry big players are increasingly involved in

sustainability

Due to Civil Society (NGOs) and Investors (BANKS) pressure

The McDonald’s approach

McDonald’s® partnered with Greenpeace International, the Brazilian government and others in the industry

to establish a moratorium on the purchase of soy for feed from recently deforested regions of the Amazon.

LARGE PRIVATE COMPANIESSOURCING TARGETS

LARGE PRIVATE COMPANIESSOURCING TARGETS

CURRENTLY (2012) Sources 30% of its agricultural raw materials sustainably

AIM Reach : 100% sustainable sustainable soy bean by 2014

Reach100% of sustainable raw material by 2020

CONSEQUENCES

Increasing Sustainable

need forFood

RED Renewable Energy Directive (2009/28/EC)

Sustainability and EU energy supply

The only EU regulation specifically defining the“Sustainability criteria for biofuels and bioliquid” (Art.17) and their calculation (Annex V)

Sustainability criteria apply to biofuels/bioliquids produced in the EU and to imported biofuels/bioliquids

FOLLOWS the RED Directive

Sustainability and EU energy supply

Different voluntary schemes have been created allowing for export to the EU of certified soy for Biofuel use

Communication from the Commission on voluntary schemes and default values in the EU biofuels and bioliquids sustainability scheme (2010/C 160/01)

For the purpose of certification, the whole production chain from the farmer growing the feedstock up to the biofuel producer or trader is checked by independent auditors.

Potential for expansion of environmentally and

ethically oriented soy production and trade in EU

and Latin America

CONSEQUENCES

LACK OF SUSTAINABLE SOY SUPPLY

A limited supply of sustainable soy is recognized as one of the primary impediments to the expansion of these markets (……)

• comply with sustainability certifications rules is difficult• competiveness of GM soy • difficulty in segregating sustainable soy for export

This leads to • higher costs of production and distribution of sustainable

soy • less confidence on products origin and their compliance to

certification rules

Why?

The relatively low prices for sustainable soy in EU further constrain the trade of sustainable soy

POSSIBLE SOLUTIONS

• Specific and organic legislation on sustainable food production

• Public support to sustainable soy trade to increase the volumes traded and improve the supply chain efficiency (including logistics)

• Facilitate sustainability compliance implementation

• Improve dialogue between EU and Latin America

• Consumers’ awareness rising

How clear is the perception of sustainability problems in the EU and LA?

How the existing environmentally and ethically oriented food quality standards effectively increase sustainability?

How can the different EU and Latin American stakeholders reduce the technical barriers to trade for sustainable products?

BUT……

The different Latin American and EU environmental, economic and social contexts

The different dimensions of sustainability and their relevance for the two continents

The impact on sustainability of existing standards and initiatives related to production and trade between Latin America and EU

THROUGH

Enhancing our knowledge on

WHY EU AND LATIN AMERICA NEED TO WORK TOGETHER

“Building bridges, engaging partners and building stronger alliances at regional and international level”Council of the European Union: “Conclusions on Rio+20: Outcome and follow-up to the UNCSD 2012 Summit”

PROJECTCONTRIBUTION

Main Objectives

Sustainable development of Latin American

soya and beef supply chains

Enhance EU beef and soy related industries

competitiveness and sustainability

SALSA E-PLATFORM DEVELOPMENT FOR BRAZIL

Head quarters

Manager

QM Employee A

Regional office

Director

Production Unit

QM Employee B

QM Employee C

Creation of a structure of usersAssignment of functions

Perform operations

HOW CAN SALSA E-PLATFORM ASSIST?

1. Create users and companies

2. Create navigation menu for users and companies

3. Assign access to folder and assign permissions

4. Analyze CO2 emissions

5. Create private checklists

6. Assign checklist to sub-users

7. Perform audit

8. Record audit

9. Publish a confidential document

10.Assign “editors” rights to sub-users

11.Embed the appropriate video in the CMS

LIST OF FUNCTIONS

SALSA and Soja Plus

• Process and products innovations• Positive impact on soy farms performances• Enhancement of soy conformity to EU standards, regulations,

and industries’ needs• SUSTAINABLE TRADE WITH EU

BY IMPROVING THE EU-BRAZIL NETWORK ANDADAPTING THE SALSA APPROACH TO SOJA PLUS

INSTANCES WE CAN SUPPORT

THANKS!