Novo Campo Program: Practicing Sustainable Cattle Ranching in the Amazon

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1 Novo Campo Program: Practicing Sustainable Cattle Ranching in the Amazon

2 ICV: WHO WE ARE Civil Society Organization, based in Cuiabá, Mato Grosso State, founded in 1991 Mission: Build shared solutions for land use sustainability Geographic scope of work: Mato Grosso State 3 offices: Cuiabá, Alta Floresta 38 staff

3 CONTEXT: WHY WE WORK WITH CATTLE RANCHING

4 km² DEFORESTATION NOT YET UNDER CONTROL Annual deforestation in forest areas in the Brazilian Amazon 30,000 25,000 Other States Mato Grosso 20,000 Critical period Amazon Deforestation Control Plan 15,000 Co-responsibility of value chain 10,000 5,000 Stagnation Source: Prodes/INPE

5 4 Facts about Deforestation in Mato Grosso Amazon ha Aug 2015 and Jul % are illegal 48% have CAR 50% properties > ha

6 CATTLE RANCHING: MAIN USE OF CLEARED LANDS Area per type of use of cleared lands in MT (M ha) 3,5 Soy: 26.5 Mt Corn: 18.1 Mt Cotton: 2.4 Mt 9,2 Total: 36.2 Mha Beef: 1.3 Mt Milk: 550 Ml 23,5 Cattle Ranching Annual Crops Perenial Crops, Reforestation, Regenration and Others North & Northwest regions of MT: cattle ranching >95% of cleared area (not including regeneration) Sources: IBGE, IMEA, INPE (2014/2015)

7 DEGRADATION OF NATURAL RESOURCES Soils Degradation Pastures Degradation Water Degradation Sudden death of Pastures

8 Sudden Death of pasture

9 LAND USE TRENDS IN MATO GROSSO Agricultural expansion projections by 2024/ Production (Mt) +46% Area (Mha) % Soya Beef Soya Beef* Productivity % Soya Beef Source: IMEA (Agro MT Outlook 2025)

10 PILOT: DEMONSTRATING THE FEASIBILITY OF SUSTAINABLE INTENSIFICATION

11 TECHNICAL REFERENCE FOR SUSTAINABLE INTENSIFICATION Sanitary control Reproduction management Animal identification Pre-slaughter management Facilities Farm management Supplemental feeding Human Resources management Environmental management Pastures Animal welfare

12 RESULTS OF THE PILOT Indicator Unit Baseline GAP ranch Slaughter age Months Male: 44 Female: 34 Male: 30 Female: 24 Stocking rate UA / ha Productivity Kg cw / ha / yr * Quality % qualification Typically 0 70%+ Profit R$ / ha GHG emissions tco2e / ha / yr tco2e/ Kg cw *Minimum productivity to pay investment and enable state level zero deforestation: 100 Kg cw/ha/yr Feasibility of sustainable intensification confirmed, with potential to also bear costs of environmental compliance

13 NOVO CAMPO PROGRAM : PRACTICING SUSTAINABLE CATTLE RANCHING IN THE AMAZON

14 Objectives Promote cattle ranching sustainable intensification Reduce deforestation pressure Meet demand of global companies for verified sustainable, zero deforestation beef Coordination Partners

15 NOVO CAMPO PROTOCOL Minimum criteria to participate Environmental registry (CAR) No deforestation post July 2008 No embargo by Ibama or Sema-MT Not included in slave labor list of MTE No overlap with protected or indigenous areas = Criteria of the TAC + zero deforestation (instead of zero illegal) + Sema embargo Participants commitments Adopt Good Agricultural Practices and GTPS guidelines Contract with credentialed cattle ranching management firm Apply zero deforestation criterion to the purchase of animals (indirect suppliers) Fulfill Forest Code compliance Conserve all forest remnants Monitoring Report Verification Commercialization

16 Program components Ranchers organization Commercial agreements Technical assistance Finacing mechanism Information manegment Jurisdictional approach

17

18

19 INITIAL RESULTS Innovative model of partnership and investment (Pecsa - Althelia - Producers): 11.5 m to implement 10,000 ha Commercial agreement with leading value chain players McDonald s and JBS Monitoring protocol and platform that guarantee sustainable, deforestation-free origin: Control of deforestation including indirect suppliers Environmental compliance plans Use of GIPS for practices assessment and continuous improvement GHG monitoring showing strong reductions in net emissions

20 Carbon results

21 NEXT STEPS Innovative Financing Model to accelerate dissemination: Private Technical Assistance Engagement with private funds Workforce training Consolidation of Novo Campo Platform: EcoTrack for the registry of transactions Monitoring of Environmental Compliance Plans GIPS GTPS Indicators Guidebook, including evidences of good practices Monitoring using of GHG Protocol

22 At the beginning all we need was sow pasture, now we understand that this is not enough. Francisco Beduschi

2016 Annual Report. Partnerships, technology and investments to transform cattle ranching in the Amazon. Our history

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