Long-term strategies of the beef industry: understanding the objectives and targets

21.12.2020

In addition to the commitments to eliminate socio-environmental irregularities in their supply chain, two of the leaders in the beef value chain in the Amazon, JBS and Marfrig, recently announced their long-term strategies to improve their socio-environmental performance.

Each, in its own terms, set targets to mitigate external factors, risks and generate positive environmental, economic and social impact. JBS, for example, released in September its Together for the Amazon program based primarily on developing the value chain; conserving and recuperating forests; supporting the community; and scientific and technological development. To achieve these objectives, it launched four initiatives that set targets: the JBS Green Platform (Plataforma Verde JBS), Monitoring System Sharing, Support and inclusion of suppliers and the JBS Fund for the Amazon.

Key points of the Together for the Amazon Plan

Green Platform: Cross-reference information from the company's suppliers with data from animal transit guides using blockchain technology. Set up in four stages, it plans to have all its suppliers on the platform by 2025 when this will be a prerequisite for selling cattle to the company.

Monitoring System Sharing: Share its supplier oversight technology with producers, other agricultural input suppliers and financial institutions who wish to adopt social and environmental criteria in their relationship with their value chains.

Support and inclusion of suppliers: Put in place engagement campaigns with cattle breeders and entities so that by the end of 2025 the suppliers of their direct suppliers are also included on the JBS Green Platform.
JBS Fund for the Amazon: Inject initially R$ 250 million to finance initiatives and projects aimed at the sustainable development and environmental conservation of the Amazon and to improve the quality of life of the communities that live there.

Marfrig, in turn, announced the Marfrig +Green Plan (Plano Marfrig Verde+), which intends to ensure that 100% of the company's production chain is sustainable and free from deforestation within the next ten years. The plan created in partnership with the Dutch public-private institution IDH - The Sustainable Trade Initiative - sets forth that over the next ten years Marfrig will be committed to investing R$ 500 million in sustainability actions.

Key points of the Marfrig+ Plan

Chain control and risk mitigation: Adapt all its systems for chain control and risk mitigation by 2022. The company plans to launch this year the Indirect Supplier Risk Mitigation Map, a tool that cross-checks native vegetation maps with livestock production maps.
Reintegration program: Between 2022 and 2025, it plans to head the reintegration program for producers who were blocked due to deforestation, enabling them to meet the company's criteria once again.
Technical assistance, intensification and restoration program: It also plans to promote improvements in pasture, genetics and animal nutrition in partnership with IDH. Furthermore, Marfrig and IDH, along with financial institutions, are establishing credit lines tailored to the needs of livestock farmers.
Traceability: Reach total traceability of Marfrig's supply chain in the Amazon by 2025 as part of the target to achieve zero deforestation by 2030.

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The document recognizes that progress has been made, but the implementation of monitoring, auditing and transparency in the beef chain needs to be increased.