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deforestation-free or conversion-free soy? Which definition is used for deforestation free or conversion free? And which cut- off date will be used? The requirements for the so-called chain of custody (see box) are also a question mark “. The cut- off date is the moment after which no deforestation or con- version of a specific area has taken place. In the FEFAC guide- lines, the cut-off date for the conversion-free soy criterion is set at 2020. Van den Brink: “Some parties will say: that’s not good enough for us, while it may be very ambitious for oth- ers. In principle, a cut-off date of 2020 means that after this date no new areas will be deforested, whether illegal or legal.”
“The market impact at an in- ternational level is still modest. China is and will remain by far the largest importer of soy worldwide.”
the field of deforestation. This is not only about soy, but about so-called forest-threatening raw materials. A bill is ex- pected to follow in the second quarter of this year. In the run- up to the new law, the European Parliament (EP) called on the relevant committee last year to do more in the field of de- forestation. The Parliament cited a 2013 study showing that the EU imported and consumed 7 to 10% of all products re- lated to deforestation worldwide. The EP is not convinced about how some aspects of soy programmes will work, such as making a route to “conversion-free soy” the default option. If it is up to the Parliament, due diligence will become man- datory for companies in the soy chain. This means that all companies must conduct a risk assessment of their products and/or raw materials to identify, prevent, mitigate and ac- count for the issue of deforestation throughout the supply chain. Companies that do not do this and put products on the European market derived from raw materials that endanger forests and ecosystems should be punished, the EP said.
Conversion-free soy According to Anton van den Brink, it is still unclear exactly what the committee will come up with. “The European Parlia- ment is aiming high, but it remains to be seen what will be in the final law. Are obligations included regarding the use of
What is chain of custody?
The term the committee used for the way soy is delivered throughout the supply chain. There are four chain of custody models that differ in the extent to which the soy that is purchased is linked to the physical soy. The four models are: • Book and claim (credits): a number of certifi- cates are purchased that correspond to the
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amount of soy. The physical flow of soy is sep- arated from the trade in certificates. The amount of soy purchased is “covered” with sustainability certificates. • Mass balance: the certified soy is purchased from a party that meets the certification con- ditions. The soy is administratively monitored in the chain, but it may be the case that the
▶ ALL ABOUT FEED | Volume 29, No. 2, 2021
soy is mixed, for example at a collection location, with non-certified soy. • Area mass balance: the sustainable soy comes from certified sources in a specific area. It may be the case that the soy is mixed with non-certified soy from the same region. • Segregation: the sustainable soy is physically separated throughout the supply chain.
Transparency FEFAC’s mandate is to provide transparency. “On that basis, market parties can make their own choices. We don’t impose anything on our members. We leave room for pioneers, but non-pioneers must also be given scope to take steps. But we do hope that, partly thanks to the SSG, we can initiate a trend towards a mainstream market for responsible soy, “says Van den Brink. Henk Flipsen thinks it’s a good signal from Europe and the Eu- ropean animal feed sector, but he is also realistic. “The signal is good, but the market impact on an international level is still modest. China is and will remain by far the largest importer of soy worldwide, Europe is only responsible for a small pro- portion, about 10% of world production. But in the interna- tional context, we must be satisfied with small steps. In this respect we can set an example for the rest of the world. “ What the legal requirements for responsible soy sourcing will look like remains to be seen − until later this year. Van den Brink does hope that the legislation will not mean that risks will be avoided by European market parties. “If the legislation ensures that they only want soy from areas where the risks are low, such as the United States, you cannot contribute to improvement in areas with more risk. Then the risk areas will remain “left” for large importers such as China, and nothing will really improve. It would be best if the soy sourcing guide- lines and the programmes that comply with them also com- ply with the legislation so that this becomes the market standard in Europe.”
PHOTO: TWAN WIERMANS
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