Sustainability is our Responsibility Round Table on Responsible Soy Association

1. Sustainability is our ResponsibilityRound Tableon ResponsibleSoy Association 3rd Conference on Sustainable Agriculture – The Art of Farming Brussels, 12 May 2010 Jeroen Douglas – President

2. Context

3. The magic of soy

4. The magic crop Meal (78%) • protein for compound feed Oil (21%) • Pharmacy & health: drugs/medicines for heart disease, cancer treatment • Beauty & care: shampoo, make-ups • Glycerine: candles, soaps • Drinks: diet drinks, fruit & soy drinks, soy milk drinks • Sauces: Chinese, Japanese kitchen • Meat replacer: tofu, stinky tofu • Salads: soy carrots • Cooking & baking: oil, margarine and fats ingredients • Esterization: bio diesel

5. Growing world demand for soy Demand for soy will increase considerably. More people on the planet. More animal protein intake per capita. Source: USDA

6. Brings prosperity

7. Social and economic impact IN ARGENTINA, BRAZIL, PARAGUAY, BOLIVIA • 5 million structural jobs • over 70 billion US$ annual turnover • 7 billion US$ government retentions (Argentina only) IN CHINA AND INDIA • 10 million smallholder farmers cultivate soy IN THE U.S. • 40 billion US$ annual turnover, 60,000 producers

8. And sustainability concerns Destruction of biodiversity (tropical rainforest ) Unsustainable agricultural practices (soil erosion) Social issues (land rights)

9. And responses from civil society

10. The Challenge of Expansion

11. Twenty years of expansion 1990 2010 2050* • USA 11 27 25 • Brazil 6 23 40 • Argentina 4 19 30 • China 10 11 10 • India 2 6 10 • Paraguay 1 3 8 • Bolivia - 2 8 • Uruguay - 1 7 • Rest 10 13 32 (millions of hectares) 44 105 170 (50 x Belgium) Main drivers for growth: a. China and India; b. prohibition of animal meal * Outlook studies from FAO and others

13. Brazil: cattle 210,000,000 heads

16. Cultivo de Soja Argentina Campaña 1996/1997 Campaña 2006/2007

24. challenges to the RTRS: • HCVA mapping • Payment for Environmental Services/ REDD+ Is the world willing to pay for high value and high carbon eco systems?

25. RTRS History & Structure

26. About the RTRS • Composed by different stakeholders of the soy value chain. • 130 members from 21 countries around the world. • Members include farmers/producers, crushers, processors, feed and food companies, fuel suppliers, supermarkets/retailers, civil society • With the objective of achieving social, environmental and economic sustainability in the soy sector. • A global standard with criteria that address economic, environmental, and social issues. • Developed according to ISEAL standards. • Meets European market requirements. • Neutral and inclusive standard. • Global application.

27. Some international members

28. The standard

29. Definition of responsible soy • Principles and Criteria developed by RTRS and approved on May 2009. • Legal compliance & good business practice • Responsible labor conditions • Responsible community relations • Environmental responsibility • Good agriculture practices • Code of Conduct

30. Certification model for the RTRS Standard • Aligned with EU RED requirements. • Accreditation based on ISO 17065 (sets requirements for bodies providing certification of product – including services and processes). • Auditors working on behalf of the certification body will follow ISO 19011 (guidelines for quality and environmental management systems auditing). • Producers will only have to pay certification costs to the certification body.

31. We are working on Volume after field tests: 650.000tons • Field Tests & National Interpretations. Issue: will the uptake be mainstream? • Development of support material for producers • Implementation guides for producers. “On site” auditing. • Certification system. Issue: will the certification costs be in balance with potential market benefits? • Financing programs for small scale producers. Issue: will the RTRS be sufficiently inclusive, yet at the same time be mainstream? • Development of a traceability system. Issue: will the system be a sufficient guarantee for market transformation? • HCVA mapping and REDD+ financing. Issue: will the RTRS contribute to a controlled and sustainable expansion? Will the RTRS be able to be a platform for REDD+financing? • Development of GHG calculator as part of EU RED. Issue: will it be possible to bundle RTRS carbon credits as a new income stream? How should RTRS deal with ILUC?

32. Roadmap 2006/2007 2008/2009 May 2009 Phase 1: Starting-up Phase 2: Development P&C field test version approved Code of Conduct approved 5 DG meetings to develop the P&C RTRS Registered in Switzerland Secretariat established in Argentina 3 General Assembly 4 International conferences 2009/2010 June 2010 Phase 3: Implementation Phase 4: Certification Pre accreditation of certification bodies ISO 17065 P&C version 2.0 Certification, accreditation and CoC systems in place Golive! Responsible Soy General Assembly 2010 Field tests and National interpretations in four countries CoC RED compliance Benchmarking

33. Upcoming events 2010 • (Annual) Round Table Conference #5 – Sao Paulo, Brazil – 9 & 10 June • Annual General Assembly – Sao Paulo, Brazil – 10 June • June onwards: first certification of RTRS soy

34. Thank you!