Building supply beyond the skilled producers the case of soy in - - PowerPoint PPT Presentation

Building supply beyond the skilled producers the case of soy in India

Gert van der Bijl

International coordinator soy programme Solidaridad Gert.vanderbijl@solidaridad.nl

• www. Solidaridadnetwork.org

ISEAL Conference Bonn 30 May 2012

Who is Gert van der Bijl?

• Graduated as development economist
• Coordinator Solidaridad soy programme
• Member of Executive Board of RTRS

Soy programme Solidaridad

• South America, India and China, starting up in Africa
• Working with soy producers on sustainability and

connecting them to chain partners

• Work mainly with RTRS standard for soy:

– As link responsible producers to markets – To be used as reference for producers.

• Worked with Fair Trade soy, organic soy and ProTerra

(non-GM) for niche markets, but see RTRS as only standard with potential to become mainstream

Building supply from unskilled producers the case of soy in India

Overview presentation

1. Soy production and sustainability 2. RTRS as standard and as community of change 3. Soy production in India and sustainability 4. Experiences with promoting responsible soy production in India 5. Lessons

Soy production and sustainability

Soy production and sustainability

• Soy fastest expanding crop worldwide: production

doubled since 1995, mainly expanding in South America (50% of production)

• Increase of 20% next 10 yrs (+ 15-20 mln ha).
• US, Brazil + Argentina: 70% of production, mainly on

large farms (Brazil: 16% on family farms)

• Expansion jeopardizing communities and
• biodiversity. Concerns about pesticide (mis)use.
• 75% of all production = GM. Sustainability issues

comparable in GM and non-GM.

Issues in soy

deforestation pesticide use

Soy production and smallholders

• China and India are nr. 4 (9 mln ha) and 5 (6

mln ha) in production worldwide with as much as 20 mln and 5 mln soy farmers.

• Millions of smallholders growing soy in Africa
• With sustainability issues similar to South

America (e.g. pesticide use) but also specific

• nes added

Pressure from campaigns

Characteristics of soy supply chain:

90% of soy crushed into meal and oil

80% of the soy is sold as:

But soy also sold as…

Soy is hidden commodity:

• Bulk commodity
• Most consumers not aware that they are

actually buying soy or that soy is used

• Limited role of consumer demand for

sustainable products

• Brands in dairy, but very few brands in meat

and eggs (except for homebrands) So:

• Farmers’ incentive possible only if at low cost

Round Table on Responsible Soy

• First informal meeting in 2004, but formally

created in 2006

• Multistakeholder platform with 160 members

(producers, trade and CSOs) from 20 countries

• Not only a standard but community of change, incl.

code of conduct + producer support

• Affiliate member ISEAL

Basics of RTRS standard

5 Principles:

• 1. Legal compliance & good business practice
• 2. Responsible labor conditions
• 3. Responsible community relations
• 4. Environmental responsibility
• 5. Good agriculture practices

Translated into 27 Criteria and 98 indicators

RTRS certification

• RTRS standard ready in 2010
• In 2011 first 420.000 tons of soy certified :

400.000 ton from South America: all well

• rganized medium size to large producers
• But also 16.000 tons from India from small,
• ften illiterate farmers
• 300.000 ton sold (mainly certificate trade)

Prospects for RTRS certified

• A-brands in food and animal production stepwise

committing to 100% RTRS: Unilever, FrieslandCampina, ARLA, Ahold

• Collective commitments (feed, processing industry &

retail) in NL + BE. Other EU countries to follow?

• Demand expected to increase from 1 mln ton in

2012 to 5 – 10 mln tons in 2015

• For years to come skilled and well organized farmers

may easily supply certified market

• Challenge to have impact on smallholders

Farm Support Program

• Cooperation between Solidaridad and Round Tables for soy,

sugarcane, palm oil, cotton and beef

• To support (small scale) producers and workers in

introducing Better Farm Management Practices prepare them for certification

Soy in India: characteristics

• nr. 5 in production and nr. 4

in export worldwide

• around 5 mln families

produce soy on 8 mln ha.

• expansion 5-6% / yr, mainly

area, limited yield increase

• small scale: 1-2 ha./ family
• 50% soymeal for export,

mainly Asia, some to Europe, importer soyoil

Issues in soy in India

• Low productivity (1 ton/ha)

(3 ton/ ha in South America)

• Soy is 60 – 70% of family income
• Sustainability issues:

– Poverty – Lack of knowledge of Good Agricultural Practices (e.g. pesticide use) and lack of support structure – Inequality men - women, – Lack of farmers’ organization

Reaching out to soy farmers in India

• Solidaridad started activities in soy farming in

India in 2009

• In 2011 27.000 soy farmers trained in 17

districts in Madhya Pradesh, the main soy state

Private company involvement

• Soy programme in India was supported by

European dairy companies that wanted to invest in sustainability of soy production via ‘pre certificate trade’

Soy training activities in India

• RTRS and certification
• Good Agricultural Praktices
• Integrated Pest Management

(lead farmers + demonstration fields)

• Safe use of pesticides +

distribution of gloves and masks

• Water management
• Minimum wages + equal

payment men and women

Experiences with responsible soy in India

• Establishing Internal Control

Systems (ICS) for group certification and support

• Many farmers have managed to

increase yield by 20-30%

• With often less input
• By sometimes simple measures

including:

• Seed treatment
• Better line spacing
• Higher yields possible with better

nutrient management.

• In 2011 the first 10.000

farmers certified

Reaching out to soy farmers in India

Crucial factors: 1. Working with NGOs (7 at the moment) with experience in rural development as implementing

• rganizations

2. Coordinating structure (India Soy Forum) for Training of Trainers, tools, involvement of researchers, knowledge sharing 3. Producer companies: existing structure to organize farmers (men and women), partly started from programme: instrumental in setting up ICS and support structure

Plans for 2012 – 2015

• 1. To expand to 100.000 – 150.000 farmers
• 2. To test with farmers’ service payment
• 3. Further company involvement:

– There is some interest from European companies to buy certificates – Crucial will be to involve companies in India, like Ruchi Soya, Hindustan Lever, Cargill and ADM with or without brands and communication with consumers

Lessons / moving beyond skilled farmers

• 1. Skilled soy farmers may

provide enough certified soy to satisfy demand in years to come

• 2. To increase impact

additional effort needed to involve smallholders

• 3. Standard used as reference

for GAP / improvement and for certified sale if there is demand

Lessons from soy in India on moving beyond skilled farmers

• 4. Central structure crucial for

cost effective scaling up

• 5. Farm organisation crucial
• 6. Institute with structural

relations with farmers needed (producer company, crusher / mill)