How Brazilian Soybean Supply Chains Can Achieve EUDR Compliance

A Strategic Guide to Sustainable Sourcing and Market Advantage

As executives in the food and agriculture industries, you understand the significance of compliance with the European Union Deforestation Regulation (EUDR) as it takes shape. While the regulation is not yet in place, preparing now can position your business to meet its requirements and thrive in the evolving marketplace. This article aims to address the key aspects of Brazilian soybean supply chains in the context of EUDR compliance Brazil, providing a roadmap for companies committed to sustainable sourcing from Brazil.

Current Landscape and Importance of EUDR Compliance

The EUDR aims to prevent the trading to European Union of commodities associated with deforestation and forest degradation, which impacts our sourcing integrity and market sustainability. Understanding and addressing the following key requirements is essential for Brazilian soybean supply chains and for companies seeking deforestation-free soy sourcing into Europe:

• Deforestation-Free Sourcing

• Traceability

• Due Diligence

• Geolocation Data

• Supply Chain Transparency

• Risk Assessment and Mitigation

• Independent Audits

• Documentation and Reporting

As we delve into this article, consider how your operations align with EUDR while assessing the current state of your value chain.

Recommended Steps for EUDR Compliance

To develop a comprehensive EUDR compliance strategy, companies should consider these key steps:

1. Understand the EUDR Requirements: Familiarize yourself with the specifics of the regulation, including the scope of products covered and the obligations for proving that products are not linked to deforestation or forest degradation. Remember that the social component is also important to address like: to prove no relation to slave-like labour and FIPC (free and prior consent) in case of potential impact on traditional and local communities.

2. Conduct a Supply Chain Assessment: Map out your entire soybean supply chain transparency in Brazil, identifying all sources and their traceability and geolocation data to assess deforestation risks.

3. Engage with Suppliers: Communicate with your suppliers across Brazilian agriculture to ensure awareness of EUDR compliance Brazil requirements. This is critical for EU food and ingredient companies that depend on reliable supply from Brazil. It is important to understand the impact of the EUDR requirements on the supply chain demands, considering that some suppliers may not be able to sell soybean to your company due to EUDR restrictions.

4. Develop a Reporting and Monitoring System: Set up a system for ongoing monitoring of compliance to facilitate regular reviews and address any issues quickly.

Ongoing Compliance and Improvement Practices

To continuously monitor and improve compliance efforts as regulations evolve, companies can implement the following best practices:

• Establish a traceability and geolocation system for soybean sustainability in Brazil, integrating compliance documents.

• Conduct Regular Training and Capacity Building

• Implement Real-Time Monitoring Tools

• Continuous engagement with Stakeholders

• Develop a Feedback Loop

• Track Regulatory Changes and Update Policies

• Establish Key Performance Indicators (KPIs)

Essential Documentation for Compliance

To demonstrate compliance with EUDR, companies should maintain a comprehensive set of documents, including:

• Environmental Rural Registry (CAR)

• Geolocation Data

• FPIC declarations (if applicable)

• Compliance with Labour Laws (mainly non slave-like work)

• Deforestation-free soy proof (supported by GIS analysis and integrated with due diligence soy sourcingdocumentation).

• Land Tenure Documentation

• Sustainability and Certification Certificates

• Due Diligence Reports

• Traceability Records

• Sustainability Practices Documentation

• Engagement and Communication Records

Resources for Support

For companies seeking guidance on achieving EUDR compliance, we and our network of EUDR and Soybean experts are more than happy to assist your company. In addition, consider the following associations and resources:

• Soybean Producers Association (Aprosoja)

• Sustainable Agriculture Network (SAN)

• World Wildlife Fund (WWF) Brazil

• International Finance Corporation (IFC)

• Sustainable Trade Initiative (IDH)

• Environmental Consultants

• Brazilian Institute of Environment and Renewable Natural Resources (IBAMA)

• Online Resources and Webinars

Engaging with these organizations and utilizing their resources can enhance your understanding and implementation of EUDR compliance in the context of Brazilian soy.

If you require further assistance to assess and to support your value chain strategic management against EUDR and other regulations, please feel free to contact us.

Together, we can create strategies that ensure sustainable sourcing Brazil, meet EUDR compliance Brazil, and transform reputation risk in sourcing into security of supply and market advantage.

Thank you for your commitment to sustainable sourcing practices.

Best regards,

Fabrício Peres, Strategic Advisor

Giovana Baggio, CEO Communita Advisors