RTRS working group presents new trading system for certified soy
IDH co-initiated and financed a RTRS working group to produce a model for cost efficient transport of responsible soy. South American producers and traders and European traders, processors, NGOs and retailers worked out together a solution by combining three existing traceability systems in a cost efficient pragmatic step-wise approach that will stimulate production of responsible soy.
Segregated trade and transport of certified soy is expensive when volumes are relatively low. High prices for responsible soy will not help change the market when costs are mainly absorbed by transport and control. In that case it will not benefit producers of responsible soy.
The Round Table on Responsible Soy (RTRS) aims to make the mainstream soy market fully responsible. However, the RTRS understands that full separation and traceability of responsible soy at mainstream volumes will - at this point - be highly inefficient and costly. Right now some even call full traceability for the mainstream market “unsustainable” as the extra costs do not reach the producer and therefore do not contribute to the goal of responsible production.
Noticing this problem IDH co-initiated and financed a Traceability and Market Claim Working Group consisting of delegates of South American producers and traders and European traders, processors, NGOs and retailers to work out a solution. This month the multistakeholder working group presented its long term step-wise approach to the RTRS Executive board for approval.
Three step model
In the coming years volumes of responsible produced soy will gradually increase.
In the first phase a system of trading certificates will help support the production of responsible soy and give the industry the chance to show commitment.
Industries buy certificates of certified, responsible soy producers. The benefits go directly to the producers, the responsible soy is transported together with non-responsible soy, not adding extra costs:
When volumes increase over the next years, a second system comes in place: Mass Balance.
Responsible soy is separated up to the level of individual tanks, sites, or grouped sites. From there the soy that is transported is for a certain % trades as responsible soy. In this system RTRS soy is EU RED compliant (the EU directive which is compulsory for mainstream bio fuels in Europe):
Finally, when volumes of responsible soy further increase the third system: Full Traceability comes in place.
Responsible soy is produced and separately transported through the supply chain to the end user:
The three step model of the working group fits into current business practices and gives industries the opportunity to show commitment. It also aims to stimulate demand for responsible soy (products) and increase supply of responsible soy.
Download the working group report
The working group was facilitated by NewForesight™ and financed by IDH.
For more information:
IDH soy programme
www.responsiblesoy.org
www.newforesight.nl
This month the RTRS welcomed some interesting new members as well. The British companies ASDA, Waitrose and ForFarmers received membership of the RTRS, as well as WIlmar International. The Swiss company Migros also received membership of the RTRS. Switzerland is a GMO free country for all products, feed included. Migros wants to introduce the RTRS principles in the whole soy-feed supply for Switzerland.
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