Deforestation-free supply chains: ADM’s traceable soybean pilot ships to Europe

18 Jan 2024 --- In a bid to combat deforestation ahead of new EU rules, ADM is expanding its traceable soybean pilot and regenerative agriculture initiatives. The commodities giant has just loaded and shipped its first vessels of verified, fully traceable soybeans from the US to Europe and intends to expand these capabilities to other key locations across North America in the 2024 growing season.

The EU’s incoming Deforestation Regulation (EUDR) requires companies to ensure products sold in the EU have not led to deforestation or forest degradation since 2021. This includes crucial crops and commodities like soybeans and palm oil, both of which have historical links with deforestation.

The EUDR was greenlighted in the EU last summer and is expected to be rolled out this year, but some details of the new rules still need to be clarified.

In any case, businesses are preparing for the EUDR, which changes the European trade landscape and businesses outside the EU wanting to trade in member states.

Companies that comply will be permitted to access EU markets, with consumers more confident the products they buy have been produced legally and without recent deforestation. But, companies that place non-compliant products on the EU market could face penalties.

US soybeans shipped to Europe
These new rules are why ADM wants to get ahead of the curve and prepare for the new rules while also boosting its regenerative and sustainability practices.

ADM tells Food Ingredients First how it’s collaborating across businesses and different regions to understand the requirements and compliance, as well as assessing the potential cost and impact on trade flows.

“We will continue to work with EU and US government stakeholders regarding compliance as details regarding implementation continue to be discussed,” Jon Turney, vice president, EMEA Crush, ADM says.

“Sustainability remains both a core of ADM’s purpose as a company and as a pillar of our strategic growth strategy. Ethical and responsible production is critical for curbing global warming, conserving native biodiversity, and upholding the rights of Indigenous communities and smallholders.”

ADM has already committed to achieving 100% deforestation-free supply chains by 2025 and has made significant progress toward that goal.

“While there are still unknown or undefined details regarding the implementation of the EU’s deforestation requirements, ADM has demonstrated numerous times in our history the ability to adapt to changing conditions and regulations; we remain confident in our ability to do so moving forward, and we intend to be able to supply our customers in Europe with products compliant with the regulations,” Turney continues.

Investments in climate-smart and regenerative agriculture
In the wake of the successful pilot, which delivered 2.4 million bushels (64,000 metric tons) of fully traceable soybeans to European customers, ADM intends to broaden the program to additional North American locations in 2024.

ADM traceable soybeans being loaded for shipment to Europe (Image credit: Business Wire).This gives interested farmers the chance to continue to participate in current and new global markets that generate greater value and preference for their crops.

“We’re in the process now of talking to farmers in several parts of our North American origination footprint about participation in this growing program and the importance of traceability to ensure that their products can continue to reach important European markets,” Matt Hopkins, vice president North America River and Export, ADM tells us.

Digital farm management
ADM’s traceable soybean program is part of its International Sustainability & Carbon Certification (ISCC) certified bean program, and utilizes technology such as FBN’s Gradable digital platform, as well as ADM’s origination and transportation capabilities to verify, trace and segregate participating beans from farms to their final destination.

Hopkins explains how ADM has been working with the FBN for some time to make their digital farm management platform available to the tens of thousands of farmer partners across North America.

“Gradable offers numerous tools to benefit farmers, including allowing them to preserve the identity of sustainably produced grain, from the field to end products.”

“When we talk about this technology, it’s critical to emphasize that we prioritize protecting personal information of all of our partners and stakeholders. We continue to advocate for the protection of personal information, including anonymization of datasets. At this time, we believe disclosure of geolocation coordinates is sufficient to comply with the EU’s deforestation requirements. No other personal information, such as land registry, titles and IDs, is required.”

ADM will continue to work with stakeholders, including farmers, government and industry, across its supply chains in the US and other key regions until the new regulations come into effect.

By Gaynor Selby

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