U.S. Soy: Sustainability & Trade Brent Babb, U.S. Soybean Export Council
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1 U.S. Soy: Sustainability & Trade Brent Babb, U.S. Soybean Export Council Regional Director, Europe and Middle East/North Africa U.S. Soybean Export Council Funded by the soybean farmers checkoff and U.S. Department of Agriculture Foreign Agriculture Service (USDA-FAS) Operating in 70 countries with approximately 125 staff and contractors Non-profit trade association with 100 member companies Founded in 2005 building on 50 years on U.S. soy farmer international Investments thru American Soybean Association(ASA) 1
2 U.S. Soybean farming Grow soy on 34 million hectares of land U.S. Soy exports valued at over $25 billion 55-60% of U.S. Soy is exported annually as beans, meal or oil 90% is GM/biotech seed SOURCE: U.S. Census of Agriculture, USDA Global Demand Growth for Corn, Cotton, Soybeans, Rice and Wheat 2000/ /16 and USDA Forecast for 2016/17 Soybeans Demand Up 214%, Corn Up By 114%, Wheat Up Only by 33% 250% 200% Percentage Change 150% 100% 50% 0% -50% Corn Cotton Soybeans Rice Wheat Since Brazil +185% Argentina +100% USA +55% 2
3 U.S. Cropland Decreased While Forest Land Increased NON-TROPICAL SOY PRODCUTION USA Forest 1910 = 305 million hectares 2012 = 310 million hectares SOURCE: National Resource Inventory, USDA Farm, Watershed & National Levels Focus 3
4 U.S. Soybean Sustainability Assurance Protocol (SSAP) Based on U.S. national system of conservation laws Participation determined annually 95%+ Quantifiable metric based results Third party audit ~ 20,000 annually Certification available Aggregate/mass balance approach The four pillars of the SSAP Biodiversit y and high carbon stock Productio n practices Health & welfare Continuous improveme nt 4
5 U.S. Soybean Sustainability Assurance Protocol (SSAP) NEVEDI first to endorse in 2015 Positive benchmark against the FEFAC Soy Sourcing Guidelines Meets Consumer Goods Forum soy verification guidelines SSAP provided to the industry without cost Aquaculture program in China targeted to Carrefour customers U.S. soy approved by Global Aquaculture Alliance BAP Approved for use by Unilever in mayonnaise Continuous Improvement 5
6 Conservation examples 10 million hectares (1.3% of area in lower 48 states) in Conservation Reserve Program - out of production Cover crops Take land out of No-till with waterways production for federal payment USA farmland area 2.5 times larger than Netherlands in conservation program The Shrinking Footprint Of U.S. Soy Production For the past 35 years, U.S. farmers have increased crop yields while decreasing negative environmental impacts Source: Field to Market Data Provided by USDA and Field to Market 6
7 U.S. soybean farmer sustainability goals by 2025 Key Performance Indicators Unit of Measure Total Potential Reduction Land Use Planted acres per 10% bushel Soil Erosion Tons per bushel 25% Energy Use BTUs per year 10% GHG Emissions Pounds CO2e per year 10% Over 9 million tons of SSAP certified U.S. soy exported to buyers around the world this year 7
8 Certified-sustainable U.S. Soy gaining momentum Over 14 Million tons certified in 3 years Over 50 U.S. soy exporters requesting SSAP Certificates 2,000+ certified shipments since Sept 2016 Includes soybeans, meal, oil, hulls, isolates MT YTD 2017 SSAP CERTIFICATES Americas ; unknown; Europe; MENA; SSAP Certificates issued Sept 1 May 5th (9MMT total) China largest country SSAP user North Asia Europe used 1.9 MMT of SSAP certificates SEA; North Asia; Europe imports of US soy 4 MMT total 3.79MMT soybeans 0.21 MMT soymeal 8
9 Sustainable U.S. Soy Logo Pilot program being rolled out in North Asia (Taiwan, Korea, Japan, China) and in the Philippines. Different Programs with Coordinated Focus 9
10 The Alliance for Sustainable Agriculture 19 Field to Market: The Alliance for Sustainable Agriculture focuses on defining, measuring and advancing the sustainability of food, fiber and fuel production George Thomas 10
11 Uniting the Supply Chain to Deliver Sustainable Outcomes for Agriculture Responding to the Challenge Corporate Sustainability Commitments United Soybean Board 11
12 Reduce GHG emissions across value chain by 25% by 2020 Reduce GHG emissions across value chain by 28% by 2025 Halve the GHG impact of products across the lifecycle by 2020 Fertilizer optimization on 14 Million acres of U.S. farmland by Guiding Principles Engage the full supply chain including producers Focus on commodities crops with unique supply chains Science based Outcomes based Technology neutral Commitment to individual grower data privacy Emphasis on continuous improvement Measure broadscale trends and field scale outcomes 24 12
13 Field to Market Crops Current Corn Soy Wheat Cotton Rice Potatoes Proposed Alfalfa Sugar beets Corn silage Barley Peanuts Sorghum Oats 25 Environmental Indicators Land use Soil erosion Soil carbon Water use Energy use Greenhouse gas emissions Water quality Biodiversity (in pilot phase) 26 13
14 Deliverables: What We Are Doing National indicators report: Documentation of overall trends Grower Fieldprints: Individual opportunities for continuous improvement Supply chain projects: Direct engagement in continuous improvement Public data and models Collaboratively developed Outcomes based 27 National Indicators Report The Sustainability Story of U.S. Agriculture Kimberly Vardeman 14
15 National Indicators Report Criteria Outcomes based Practice/technology neutral Transparent and credible science On farm production outcomes within a grower s control 29 Fieldprint Projects Supply Chain Partnerships for Continuous Improvement James Jordan 15
16 Moving beyond a web based calculator to a sustainability platform Integration into other farm management software through an API Data management protocols being developed for third parties 31 Fieldprint Projects Sample of Iphone screenshot from Ohio famer Demonstrate use of calculator on the ground to test utility at the grower level and through the supply chain Engage farmers across geographies, crops, and supply chains Sponsors include grower organizations, supply chain companies, conservation organizations, and NRCS 32 16
17 Supply Chain Partnerships in 20+ States Corn Cotton Potatoes Rice Soy Wheat 33 Future of Field to Market Building a Supply Chain Sustainability Program Keith Weller - USDA 17
18 The Future: FTM s three basic functions 1. Benchmarking and data collection 2. Identifying opportunities for continuous improvement by leveraging existing tools/programs/initiatives 3. Aggregating information and enabling supply chain sustainability claims 35 SAI Platform Alignment MOU between Field to Market and SAI Platform announced on March 2, 2017 Formally recognizes FTM s Fieldprint Platform as an accepted means of fulfilling the requirements of SAI Platform s Farm Sustainability Assessment Acknowledges robust legal and regulatory framework in the United States Field to Market growers who adhere to applicable US laws achieve the FSA bronze level with a streamlined pathway for reaching silver or gold 18
19 FTM-TSC Memorandum of Understanding Signed in August Commitment to content harmonization in overlapping product category areas - Commitment to data platform interoperability - Collaboration on innovation projects Fieldprint Platform recognized as an accepted data collection and reporting tool for four TSC KPIs: - Greenhouse Gas Emissions Intensity - Irrigation Water Use Intensity - Soil Erosion - Yield Results can currently be applied to eight product categories including soy 37 USSEC.ORG USSOY.ORG While the U.S. Soybean Export Council (USSEC) does not guarantee the forecasts or statements of USSEC Staff or Contractors, we have taken care in selecting them to represent our organization. We believe they are knowledgeable and their presentations and opinions will provide listeners with detailed information and valuable insights into the U.S. Soy and U.S. Ag Industry. We welcome further questions and always encourage listeners to seek a wide array of opinions before making any financial decisions based on the information presented. Accordingly, USSEC will not accept any liability stemming from the information contained in this presentation. 19
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