Partner LDC December 2022

Field data from 2021

NOTE:

The SCF member companies’ overall performance on traceability to farm for direct sources is referenced in the Monitor Land Use section.
LDC’s reporting scope includes the Brazilian joint venture ALZ Grãos (ALZ), in which LDC has a 33% minority shareholding.
Based on SCF’s methodology, LDC counts 33% of ALZ’s soy sourced in the 61 focus municipalities (FMs) as part of our indirect sourcing profile. For this portion of LDC’s “indirect sourcing”, we consider “traceable to the first point of aggregation” the volumes directly sourced by ALZ that are actually “traceable to farm” – a step ahead on traceability.
ALZ’s sustainable sourcing commitments are laid out in its Grain Sustainability Policy. With close to 100% of its soy sourced directly from producers, ALZ is working toward full soy supply chain traceability.

Soy volume sourced in the Cerrado

Out of total volume sourced from Brazil in 2021

%

sourced in other biomes

%

sourced in the Cerrado

Soy volumes sourced in the 61 focus municipalities

Out of total volume sourced from Cerrado in 2021

%

sourced in other municipalities

%

sourced in the 61 focus municipalities

Soy volume sourced directly and indirectly

Out of total volume sourced from the 61 focus municipalities in 2021

%

indirect sources

%

direct sources

MAPPING OF INDIRECT SUPPLIERS

To the first point of aggregation in the 61 focus municipalities in 2021

%

not traceable to the first point of aggregation

%

traceable to the first point aggregation

VERIFIED DCF SOY

Out of total volume of soy purchased directly and indirectly in the 61 focus municipalities in 2021

%

non-verified DCF soy

%

verified DCF soy

Our observation is that most Brazilian farmers seek to find a balance between agricultural production and conservation of native vegetation. However, we also observe that they lack practical and efficient solutions to support them on this journey. We look forward to presenting the Farmer First Clusters program to our suppliers in Mato Grosso state, for the opportunity it represents to access training in good agricultural practices, assistance with environmental regularization, support for soybean expansion over degraded pasture and financial compensation for conserving surplus Legal Reserve. All these initiatives support LDC’s sustainability commitments and our day-to-day partnership with producers.