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 ones 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 organized medium size to large producers • But also 16.000 tons from India from small, often 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: o Seed treatment o 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 organizations 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)
Recommend
More recommend
