Round Table on ResponsibleSoy Association

www.responsiblesoy.org

Agenda

• Context Analysis

• What is RTRS?

• RTRS Standard – version 1.0

• Opportunities

Context Analyses

The customers – all shapes and sizes

What do farmers and customers have in common?

Standards are a common thread

Farmers need standards to be efficient on the farm

Seed

Fertilizer

Pesticides

Medicines

Genetics/semen

Feed

Fuel

Machinery/equipment/Technology

Standards are a common thread

Consumers need standards to satisfy their demands

Food and drink

Drugs/health

Houses/building

Cars/trains/planes/transport

Service functions

IT/technology/electronic consumer goods: TVs, phones, computers, fridges,etc...

Standards reflect government and civil society

concerns – they have practical and ethical roots

Food safety

Animal disease/traceability

Consumer protection/safety

Quality/branding

Employee safety/welfare

Animal welfare

Environmental pollution

Climate change

Large scale farm production and food processing needed new rules to

prevent animal disease and mass poisoning of the population.

Retail – where most standards show themselves

through the products on offer to customers

Examples of standards

Farmers/supply chain standards GLOBALGAP

Integrated farm assurance Livestock Crop Aquaculture Compound feed module

Retail standards British Retail Consortium

Global Standards initiative Food safety (since 2000) Packaging and packaging materials Storage and distribution

Where next?

Standards evolve as customers become

more sophisticated and societies develop

Climate change/biodiversity/carbon emissions

Ethics: Animal welfare/Fairtrade

Pollution/environmental conservation

Traceability

Consumer/employee protection

Food safety & animal disease

Evolution = Complexity Customers (including farmers)

have more complicated demands – they will need more complex standards to reflect these demands

We cannot turn the clock back – the modern world is more complex and the global climate and our environment is another aspect of increased complexity – another reason for more complex standards

But complex problems can be dealt with through management, skills and technology -and humour…

I must

have my low-fat,

FairTrade, welfare-

friendly, non-GM,

organic, hormone-

free, no-antibiotic,

no-MBM,

traditionally-

produced pork

chop …...and

now!

And Growing Sustainability Concerns

Sustainability Concerns

Destruction of biodiversity (tropical rainforest )

Social issues (land rights)

Unsustainable agricultural practices (soil erosion)

Growing global soybean production due to

growing Demand

USDA predicts 19% higher global soybean output thanks to record production in the world's big-three producing nations.

US output: 90.3m tonnes

Brazil output: 63.0m tonnes

Argentine output: 53.0m tonnes

Growing World Demand for Soy

0

10

20

30

40

China EU U.S.A. Brazil

1999 2002 2005 2008

x million tons

Source: USDA

Current forecast is that there will be 3 billion

more mouths to feed on the planet by 2050.

That’s 50% people more than in 2010.

Demand for soy will increase by more than this

as meat protein demand increases in line

with increased incomes.

Sustainability is our Responsibility

Sustainability is a precondition for feeding our future next generations

Sustainability is a market access requirement in mainstream markets

Global applicable standard for mainstream soy regardless of end-use (food, feed or biofuel) and regardless of production process ( Non GM, GM and organic)

A standard for small and large players in the soy value chain

Sustainability issues can only be addressed and delivered through a global multi-stakeholder consensus.

The Round Table on Responsible Soy (RTRS) is the platform for discussion and action that will deliver Responsible Soy

What is the RTRS?

About the RTRS

RTRS is the global platform composed of the main stakeholders in the soy value chain

With the common objective of promoting the responsible soy production through collaboration and dialogue in order to foster a economical, social and environmental sustainability.

Composed by different constituencies:

Producers, industry and civil society.

141 members from 20 countries around the world.

Members of the Executive Board

Producers Industry

Civil Society

Some international members

Some international members

RTRS Standard – version 1.0

Definition of and trade in responsible soy

RTRS Standard version 1.0 approved by members June 2010.

RTRS Chain of Custody mechanism for physical flow

1. Mass balance company level (% certified / % not certified)

2. Segregation (certified product is separated from not-certified product)

RTRS Certificate Trade Platform for non physical flow

RTRS Standard - Highlights

Obtained through consensus of main stakeholders of the global soy valuechain.

Developed according to the code of standards of ISEAL

Meets EU market requirements

Developed as a neutral and inclusive standard (Non GM, GM & Organic).

Of global application:

Different uses: human and animal feed, and biofuels.

Involves small and big scale actors in the soy value chain.

Implementation benefits

Certification process

Generate awareness in production process on ´sustainability´

Create or improve eficient working methodology with water use, chemicals, best practices avoid waste, avoid erorion (protect soils) and safe money

Improve internal monitor mechanism to manage operation

Take leadership - in culture change - on sustainability awareness -> educate company employees and clients

Sustainable management ensures sustainability among staff and commercial relationships, development/capacity building of staff, increases staff motivation,

RTRS – Implementation

Certification process

Producer sends an application form to a Certification Body (published onRTRS website)

Pre-assessment if required (not an obligation)

One month stakeholder consultation

Main compliance audit

Certification decision made by ´certifier´ -

Certificate of Compliance is issued

Opportunities

> 10% of our members are in the biofuels sector

Neste Oil (Finland)

ED&F MAN (UK)

Greenergy (UK)

BP (UK)

Shell (UK)

Biofuels Corporation Trading LTD (UK)

Biopetrol (Switzerland)

Louis Dreyfus Commodities (Switzerland)

Glencore (The Netherlands)

Patagonia Bioenergía (Argentina)

CARBIO (Argentina)

Grupo Lucci (Argentina)

TM Chemicals LP (USA)

Ag Environmental Products LLC (USA)

EOP Biodiesel AG (Germany)

Astra Oil Company LLC (Canada)

Cargill (Brazil)

Bunge (Brazil)

ADM (Brazil)

RTRS Strategy to comply with EU-RED

RTRS: Working group on Biodiesel composed by members

Industry

Shell, UK

Cargill, Belgium

CARBIO, Argentina

Producers

Grupo Lucci, Argentina

El Tejar, Argentina

Civil Society

Solidaridad, The Netherlands

Demand: The example of RSPO

Unilever buys sustainable palm oil certificates for European business

13 April-2010

Unilever has bought enough sustainable palm oil certificates to cover the requirements of its European, Australian and New Zealand businesses.

The purchase of the certificates is part of the GreenPalm scheme that attempts to reward the sustainable production of palm oil by giving sustainable producers the right to sell certificates to manufacturers for a premium price.

Cargill in deal to supply Unilever with segregated palm oil

30 July 2010

Cargill has announced a deal to supply Unilever’s European operations with 10,000 metric tones of fully segregated refined RSPO certified palm oil.

RTRS is the global platform for certified Responsible Soy for feed, food and biofuel

Comprehensive P&C which is the answer to sustainability issues in soy producer countries

Supported by a broad range of stakeholders – a mechanism for consensus and action exists

Globally accepted, and can be delivered globally

Why RTRS

Mainstream solution for market requirements

RTRS is an integral voluntary scheme technologically neutral Non GM, GM and organic must comply with the P&C

A growing global association with increasing benefits to members and to consumers and for the environment

Be part of international platform and pro-actively take responsibility for impacts of the value chain

Why RTRS

www.responsiblesoy.org

Thank you!