Challenges to sustainable soy production
Q&A
Q&A
Soybeans are used for the production of soybean oil, soybean meal and lecithin.
We may find soybean oil as single ingredient or as part of an oil blend in bottled oils or in processed foods. Soy lecithin is used in small amounts as an ingredient in a variety of food products.
We use soybean meal as most important source of protein to feed farm animals for the production of milk, eggs, poultry, pork and beef meat.
Soybean meal is used in animal feed because of the highly valued nutritional profile. In terms of protein quality of vegetable origin, soybean products score high on all relevant parameters in animal nutrition, such as amino acid profile, digestibility, palatability, nutrient density and absence of anti-nutrients.
The European Union produces 2,7 million metric tons (MT) of soybeans and its production has about doubled over the last 5 years.
EU production is mainly located in northern Italy, France and Romania.
The EU consumes about 32 million MT of soybean meals a year. In practice, we import about 15 million MT of soybeans and 20 million MT of soybean meals, to meet demand for dairy cows and meat production (Protein Balance Sheet)
Europe has a 70% deficit in protein-rich (30%-50% protein content) animal feed. This deficit needs to be bridged through imports of high protein material, mostly in the form of soybean meal but also of soybeans that are then crushed in the EU.
There have been repeated attempts to increase the EU production of highprotein crops to reduce the deficit. The EU renewable energy policy leading to the co-production of rapeseed meals alongside the oil used by the biofuel industry has helped reducing this gap. New strategies aimed at increasing EU soy production can certainly enhance cultivation where agronomic conditions are favorable. However, it is inaccurate and misleading to imply that the European production of vegetable protein can replace imports of 35 million MT protein-rich feed material equivalent.
Out of the 15 million MT of imported soybeans, the largest volumes of beans are sourced from the US during autumn and winter and from Brazil during spring and summer. Smaller volumes are imported from Ukraine, Canada, Uruguay and Paraguay. The 20 million MT of soybean meals are imported mainly from Argentina and Brazil, with smaller volumes coming from India, USA and Paraguay.
Companies in our sectors are conscious of their responsibility for driving the soy supply chain towards more sustainability, with a particular focus on tackling deforestation. They are convinced that this can only be achieved in collaboration with stakeholders, farmers and other supply chain actors in producing countries. Companies in our sectors have hence engaged in different initiatives including: sustainability policies and no-deforestation commitments (Amazon Soy Moratorium), geospatial monitoring, due diligence, good agricultural practices, landscape approaches, certification systems, …,
Traders and crushers have committed to the Amazon Soy Moratorium (ASM), in 2006, with a view to producing deforestation-free soy in the Amazon Biome and to promote environmental sustainability in the -soy chain for both the domestic and the international markets. The Soy Moratorium reinforces Brazil’s environmental legislation to prioritize soy planting in areas deforested prior to the Moratorium, thereby eliminating new deforestation for soy in the Amazon Biome. The procedure for monitoring soy in deforested areas has gradually been perfected by using remote sensing satellite images to map soy in the Amazon Biome. The ASM ensures that no soy from cleared areas after the 2008 reference date is getting into the supply chain.
Regarding the Cerrado, six leading agribusinesses have joined forces under the Soft Commodities Forum (SCF) of the World Business Council for Sustainable Development (WBCSD) to advance collective action around common sustainability challenges towards a world with no soy-driven conversion of natural habitats. The SCF is working with its members to increase transparency across their supply chains, nurture effective collaboration and promote initiatives that balance environmental, social and economic interests and release every six months a progress report. Companies are also involved in joint stakeholder initiatives aimed at identifying structural solutions to stop deforestation in the Cerrado, including financial incentives to farmers for land preservation.
The production of soy is associated with potential deforestation risk, but the reality is much more complex and differentiated. Since the implementation of the Amazon Soy Moratorium and according to the latest monitoring report , about 88,000 hectares of soy were identified as being non-compliant with the Moratorium out of 5,97 million hectares that have been deforested. This non-compliant area corresponds to 1.8% of the total soy area for the 2018/19 crop year in the Amazon Biome and to 4.8% of the total deforestation. In other words, 95.2% of the deforestation during the Soy Moratorium was not associated with conversion of forest to soy.
The impact of soy on deforestation in the Cerrado is decreasing year-on-year. According to the latest figures released in June 2020 , soybean accounted for 10,6% of total deforestation in northern Matopiba states over the period 2014-2018 and only 4,5% in the consolidated southern part of the Cerrado. Soy expansion in deforested areas of the Cerrado has been continuously decreasing. Even in the Matopiba region, which represents the current frontier of agricultural expansion, has soy expansion via deforestation decreased from 2013/14 to 2018/19...
Soy has not been a major driver of deforestation in the Amazon Biome since the implementation of the Soy Moratorium by Brazil crushers and traders in 2006. It is no longer a major driver of deforestation in the Cerrado, but may continue influencing speculative decisions at the agricultural frontier of land conversion.
We consider that there should be an EU policy framework with a smart set of measures aimed at supporting producer countries and targeting the EU side of the supply chain in their efforts to stop deforestation . Different policies will need to drive the EU nodeforestation agenda, such as trade, development cooperation, sustainability objectives and definitions, responsible business conduct.
There is a need to tackle deforestation in partnership with producer countries as a means to support existing cooperation between private and public players. Engaging with farmers in countries of production is critically important when trying to influence agricultural practices.
Similarly, all downstream players in the soy supply chain need to understand that improving sustainability in soy production is a shared responsibility. The EU policy framework can include a mix of voluntary and mandatory measures which should contribute to raising awareness and increasing transparency on actions to enhance sustainability and to tackle deforestation within the value chains. It should set or support the necessary tools that can be used to accelerate supply chain transformation.