Facts

The soybean is a species of legume that has its origin in East Asia but is now mainly produced in the United States and South America. It is an annual plant. Normally the soy crop is harvested one time a year. The soybean contains a high level of protein (40%) and consists of oil/fats (20%). The soy crop grows at best in warm (moist) temperatures between 20 °C to 30 °C and can grow on all kinds of soils. Soy production has increased in the past decade as a result of the global demand for soy for food and fodder. A life without this bean is nowadays unthinkable; already 60% of all supermarket products contain soy.

Did you know...

  • Soy is used as feed for chickens, cows, pigs and other animals;
  • Soy is also used in non-edible products; the candles on your table are possibly made of soy oil;
  • The soy plant also has a rather rare and remarkable property: it can extract nitrogen from the air and transport it to the ground, in other words, it has the capacity (to some extent) to fertilize itself.

Chain
The primary mode of production for export is large scale monoculture plantation system. Average size of soy plantations is 1000 hectare, but larger plantations with 20,000 hectares or even more exist. Whenthe soy is harvested it is collected in big collective silos. Different soy varieties, coming from different farmers are mixed. Therefore soy is a so called bulk product, the identity of the soy variety and farmer is already lost in the beginning of the chain. After harvesting the soybeans, the beans need to be crushed. After crushing, 79% of the bean will exist of meal and 18% of raw soy oil. After China, the Netherlands is the largest soy importer in the world. There are two factories in the Netherlands that process soy beans into oil and soy bean meal for fodder. An amount of approximately 4000 to 6500 tonnes of soy is processed daily in these facilities. The oil is used in human food and non-food industry while the soy meal is used for animal feed. Soy meal is mainly destined for pig and chicken feed. The animal feed contributes to the production of meat, eggs and milk.

Problems & Successes
There have been reports of forced labour in soy producing areas, especially in Brazil. In the soy sector, forced labour is mainly found in the establishment of soy plantations which requires hard physical labour for tasks such as the removal of roots from the ground. Poor labour conditions are also common in the cultivation of soy. Long working hours, underpayment, application of large amounts of pesticides without proper protection and worker's accommodation without sanitary facilities and running water is the norm in many cases. The primary mode of soy production for export is large scale monoculture plantation system. With the rise in global demand for soy, new land is needed to establish soy plantations. Deforestation is known to be a significant by-product of the rampant soy expansion. In Brazil, numerous “land wars” take place in the shifting margins of the Amazon forest. Conflicts arise because producers buy land from local governments while there are indigenous people and smallholders are living on these lands. Migrating farmers move to cities and mostly establish themselves in peripheral urban areas. Others buy cheap land in distant regions or occupy public land in forested areas initializing small scale deforestation to re-establish cultivation for sustenance. In many cases, continuous growth of soybeans in monoculture for several consecutive years leads to a reduction in the organic substances in the soil. Such practice causes soil quality deterioration and erosion. In Argentina, massive soil nutrient depletion has occurred due to intensive soybean cultivation practices. It has been estimated that continuous soybean production has resulted in the loss of one million metric tonnes of nitrogen and 227,000 metric tonnes of phosphorous from soils throughout the country. The cost of replenishing the nutrient loss with fertilizers in this country is estimated to be U.S. $910 million.

Priority Issues
Each sector has been designated priority issues with the description of where it occurs in the production chain. The priority issues are the most pressing problems in each sector according to Fairfood International, extracted from the wider scope of our sustainability agenda.
In the soy sector, Fairfood International has identified the following priority issues:

Priority issues

Production stage

1. Violation of Land Rights

Production

2. Degradation of Natural Ecosystems

Production

3. Unsustainable Use of Cultivated Land

Production

4. Forced Labour

Production

5. Unhealthy and unsafe working conditions

Production

6. Unfair Import Tariffs and Quotas

Outside the chain

  

Brand Owners are required to cover a minimum number of  five out of six of the priority issues.

 

Successes

 

Fairfood has lobbied meat, diary, egg and poultry brand owners to switch to more responsible soy for their animal feed. So far, three main players on the Dutch egg market have made this switch:

Kwetters, Guliker & Roodbol and Natuurfarm De Boed. At least 90% of the soy needed by all three companies to produce their eggs is now sustainable Basel soy (see description below). Campina, the largest dairy brand in the Netherlands, has been sourcing increasing amounts of sustainable soy too. It is the first European dairy company to make such a commitment. Campina recently started participating in soy family farming projects for sustainable soy from South America. The companies CONO (producing Beemster cheese) and Ben & Jerry’s are also involved in sustainable soy family farming projects in India.

 

Certification labels

 

ProTerra (Basel soy) – The ProTerra Standard forms a set of criteria for sustainable soy. The certification standard is developed by the Brazilian organisation Cert-ID and meets the so-called “Basel criteria”; these criteria concern the environment as well as labour conditions. ProTerra labelled soy does not involve more forest clearing and the community and/or its labour force are not being exploited. Certified producers shall provide evidence that all of their land use is legal. Companies such as Campina, De Hoeve, Kwetters, Gulliker & Roodbol, Natuurfarm de Boed and Alpro Soja buy Basel soy for their animal feed.

 

EcoSocial – EcoSocial is a Brazilian certification label that is available for organic soy producers only. Soy farmers that produce for this label not only use environmentally sustainable methods, but also offer sound wages to their workers and good health and safety conditions at work. The label guarantees a reliable relationship between buyer and seller, clear agreements and open price negotiations. The aim of EcoSocial is to leave room for the local context and practises of the producers. In Europe, all the organic products of Alpro Soja have the EcoSocial label.

 

Fairtrade – the Fairtrade (FLO) label indicates that small farmers have long term agreements on the supply of soy and the producers receive a guaranteed minimum price that covers both social costs and the costs of protecting the environment. Priority issues in the soy sector such as forced labour and unhealthy and unsafe working conditions are addressed by fair trade certification. Since 2008 FLO has approved a standard for soybean and pulses, including specific trade standards. This ensures greater transparency in the system and guarantees sustained trading relationships.

 

Rainforest Alliance - Another certification label applicable to soy is Rainforest Alliance, which aims to maintain biodiversity in the production areas while at the same time striving for sustainable living conditions for farmers, plantation workers and the local population. New, additional criteria for soy, palm oil, sugarcane, peanuts and sunflower farms were developed in 2008 in response to the increased demand for biofuels. The criteria can be applied to farms cultivating biofuel crops but also to soy, sugarcane, and palm oil for food production.

 

Organic – Organic farming standards are based on protecting the environment, nature and landscape and the welfare of animals. Animals are kept under the most natural circumstances, also regarding their feeding. Organically certified soy guarantees that the whole production chain is free from genetically modified organisms. Only a small part of the ecological soy is used for the animal feed industry to produce meat, eggs and diary. The reason for this is that prices for ecological soy are higher, so alternative local animal feed is often used. Ecological soy is used mostly for the production of soymilk and meat replacements.

 

Multi-stakeholder initiatives

 

Sustainable family soy farming project in Parana (Brazil) 
In this multi-stakeholder project which started in 2009, several NGOs, producer groups and other organisations are working together on a certification standard. The standard, which consists of environmental and social criteria, is initially developed for farmers of the cooperation COOPAFI in Paraná in the South of Brazil. The Dutch organization of quality butchers ‘Keurslagers’ support farmers of COOPAFI in meeting these requirements for an amount of soy that corresponds to the amount used in producing the pork they sell under the Milieukeur (environmental label) seal. Due to this system in which the whole chain is involved, small producers receive a premium and are supported to improve sustainability of soy production. 

 

RTRS - The Round Table of Responsible Soy (RTRS) was initiated in 2004 to address the social and environmental impacts of soy production. This RTRS was established for the mainstream production and sourcing of soy, including genetically modified soy. The first achievement of the RTRS was the adoption of principles and criteria in May 2009. Although the verification system is not yet in place, the principles and criteria are currently being tested.  The benefits of the initiative are still unclear, therefore there is no RTRS certified soy currently available on the market.

 

SOYPSI  - The Soy Producer Support Initiative (SOYPSI) is a 4-year support program which started in 2009. It was initiated by Solidaridad, WWF and the RTRS and targets 25,000 small farmers in Argentina, Bolivia, Brazil, Paraguay and India. The overall goal is to support these small-scale farmers and farm workers in the soy sector and prepare them for certification. Most SOYPSI projects are also RTRS field trials and so they must comply with RTRS criteria, but they may also include additional criteria such as non-GM, organic or are exclusively derived from family farms. These additional qualities serve to provide added value to family farms that cannot compete in scale or volume with large, mechanized farms.

 

Agreement against slavery

 

In Brazil, an agreement against slavery was signed in 2005. This agreement was developed by the sustainability institute Ethos, research organisation Reporter Brazil and the International Labour Organisation (ILO). It was signed by many soy companies in South America, thereby obliging them to buy resources/products that do not involve slavery. Despite its good intentions to prevent forced labour and other exploitation, there are still cases of traders that buy their soy from companies which are on the black list, i.e. not ‘slavery free’. In spite of this, the agreement on anti-slavery is one step in the right direction.

 

Amazone Moratorium

 

The Amazone Moratorium is an initiative developed to counter the clearing of rainforest for soy production in the Amazon region. In July 2006, member companies of ABIOVE (Brazilian Vegetable Oils Industry Association) and ANEC (Brazilian Grain Exporters Association) undertook the commitment not to trade soy that originated in areas of the Amazon Biome in Brazil that were deforested after this date. This commitment was renewed in 2008. The Moratorium came into existence because Greenpeace established an alliance with food producers and supermarket chains. Together they demanded responsible soy from the large soy companies like Cargill, Bunge, ADM and Amaggi.

These data are derived from the ‘Fairfood sector report Soy 2008’ and the ‘Fairfood soy solution overview report 2009’

Priority issues

  1. Violation of Land Rights
  2. Degradation of Natural Ecosystems
  3. Unsustainable Use of Cultivated Land
  4. Forced Labour
  5. Unhealthy and unsafe working conditions
  6. Unfair Import Tariffs and Quotas

Most important export countries

  1. Brazil
  2. Argentina
  3. United States of America
  4. Netherlands
  5. India

Most important production countries

  1. United States of America
  2. Brazil
  3. Argentina
  4. China
  5. India
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