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Brazilian Vegetable Oil Industries Association

March, 2015

SOYBEAN SUSTAINABILITY NEW WORKING AGENDA

Fábio Trigueirinho Secretary

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ABIOVE, the Brazilian Oilseed Processors Association, was founded on 1981 and has 12 members companies who are responsible for approximately 60 percent of Brazil's soybean processing volume. Brazil is responsible for some 25 percent of the world's soybean production, with the estimate of a production of 92 million tonnes in the 2014/15 crop. The soybean complex (beans, meal and oil) is one of the main items in the country's Trade Balance. In 2014 exports reached US$ 31,4 billion. Soybean production brings social development to rural areas.

ABOUT ABIOVE

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BRAZIL: FOOD PRODUCTION AND BIODIVERSITY

Improvement in Brazil’s Environmental Governance - transparency;

Challenge - to implement the New Forest Code;

Rural Environmental Registration (CAR) is the most advanced tool;

Soybeans are not an important driver of deforestation;

Transition to a new agenda - Processors support to CAR.

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To contribute so that soybean farmers are in conformity with Brazil’s new

Forest Code and, in this way, reconcile food production with environmental

conservation.

OUR MISSION

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LAND USE AND OCCUPATION IN BRAZIL

554 million hectares of native vegetation (65%)

61 million hectares of productive acreage (7%)

38 million hectares urban areas (5%)

198 million hectares of pastures (23%)

Brasil: 851 million hectares

Source: MMA/IBGE, 2014

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BRAZILILIAN BIOMES

Legal Reserve = 80% Legal Reserve = 20%

Legal Reserve = 20%

Legal Reserve = 20-35%

Legal Reserve = 20%

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AMAZON BIOME VEGETATION

- 408 million hectares (48% of Brazil) - preserved native vegetation - 81%

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CERRADO BIOME VEGETATION

- 183 million hectares (22% of Brazil) - preserved native vegetation: 48%

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• Deforestation and fires detection systems in real time

http://www.dpi.inpe.br/proarco/bdqueimadas

http://www.obt.inpe.br/deter/indexdeter.php

• List kept by IBAMA (Brazilian Environmental & Renewable Natural Resources Institute) of embargoed areas due to illegal deforestation

http://siscom.ibama.gov.br/geo_sicafi/

TOTAL TRANSPARENT COMMUNICATIONS IN BRAZIL

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ALERT INSPECTION

LEGAL DEFORESTATION

ILLEGAL DEFORESTATION

DEFORESTATION

FARM IS EMBARGOED

FINE R$500/kg

purchased

THE FARM AND THE RURAL PRODUCER ARE INCLUDED IN IBAMA’S LIST OF EMBARGOED

AREAS IN BRAZIL

PUBLIC GOVERNANCE LAW ENFORCEMENT

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IMPROVEMENT IN BRAZIL’S ENVIRONMENTAL GOVERNANCE

Governance Factors 2006 2014

Deforestation rate – Amazon Biome 14,286 km² 4,848 km²

Deforestation rate – Mato Grosso State 4,333 km² 1,048 km²

Environmental legislation Provisional Measure Lack of legal security

New Forest Code Federal Law No. 12651/2012

Compliance with legislation Low High

Penalties for illegal deforestation Warnings and fines with low collections Embargoes of farms and high fines

Monitoring of environmental crimes Start-up of satellite use Use of satellite images in real time with high definition

Field inspections IBAMA technicians Inspections integrated with Federal

Police, Federal Highway Police, SEMAs and National Security Force

Requirements for purchasing agricultural products No requirements IBAMA’s Embargoed Areas List

Fonte: http://www.obt.inpe.br/prodes/prodes_1988_2014.htm

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SHARP FALL IN DEFORESTATION

Deforestation rate in the Amazon Biome over the last ten years, in km2

Source: INPE, 2014

-

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

20.000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

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BUSINESS SECTOR

GOVERNMENT CIVIL SOCIETY

• ABIOVE • ANEC • ADM • ALGAR AGRO • AMAGGI • BUNGE • CARGILL • FIAGRIL • LOUIS DREYFUS • NOBLE • EUROPEAN CONSUMERS

• CONSERVATION INTERNATIONAL • GREENPEACE • IPAM • TNC • IMAFLORA • WWF BRASIL

• BANK OF BRAZIL • MINISTRY OF THE ENVIRONMENT • NATIONAL SPACE RESEARCH

INSTITUTE

SOY MORATORIUM - MEMBERS OF THE GTS

ABIOVE and ANEC made a commitment not to acquire soybeans from deforested areas of the Amazon Biome after July 2006.

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STATE 2006-2014 (ha)

MATO GROSSO 34,161

RONDÔNIA 1,246

PARÁ 11,620

TOTAL 47,028

SOY MORATORIUM

SOYBEANS ARE NOT AN IMPORTANT VECTOR OF DEFORESTATION

These 47,028 hectares in non-conformity with the Soy Moratorium correspond to 0.9% of the Amazon Biome deforestation 5,210,000 hectares

Source: AGROSATÉLITE / INPE, 2013

MONITORING DATA ACCUMULATED

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SOY MORATORIUM – NEW AGENDA

MONITORING BY SATELLITE EVEN MORE TRANSPARENCY

• Quantifies soybean planting in the Amazon Biome;

• Locates areas of expansion;

• Orients public policies;

• Orients programs that resolve local problems with emergency actions.

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SOY MORATORIUM - NEW AGENDA

DEFORESTATION POLYGONS AFTER JULY 2008

Area Total

(Hectares) Nº Polygons (Hectares)

0 a 50 99 2,411

50 a 100 34 2,531

> 100 73

22,281 (82%)

Total 206 27,223

• 47,028 hectares are in non-conformity in the last monitoring cycle (2013/2014)

• 27,223 hectares were deforestated after July 2008

• 22,281 hectares (73 polygons) are over 100 hectares – priority for inspection

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SOY MORATORIUM - NEW AGENDA

RURAL ENVIRONMENTAL REGISTRATION - CAR

• Identification of the land owner and the area of the rural property: allowing monitoring and control

• Survey of environmental assets and liabilities: environmental adequacy of rural properties regarding Legal Reserves and Areas of Permanent Preservation

• Definition of land use and occupation: reconciling environmental conservation with food production

• Brings legal security to the producer

• Mato Grosso: 87% and Pará: 77% of the area is done

• http://www.car.gov.br/

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HIGH CONSERVATION VALUE AREAS (HCVAs)

Environmental legislation guarantees that large areas of private land are preserved

Areas of Permanent Preservation (APP): along the margins of rivers and hilltops

Legal Reserve (RL): native vegetation must be preserved on 20% to 80% depending on the

biome

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To contribute so that soybean farmers are in conformity with Brazil’s new

Forest Code and, in this way, reconcile food production with environmental

conservation.

Good News:

Public Governance has improved significantly since 2006 - high

enforcement of the environmental law;

Soyabean is not a relevant vector of Amazon Biome deforestation -

transparency by sattelite monitoring;

Forest Code provides useful tools to protect HCVAs - CAR, Permanent

Preservation Areas and Legal Reserve

OUR MISSION

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MEMBERS