Cargill Inc., the world's largest trader of crops and raw foods, is expanding its anti-deforestation goals and human rights commitment across three of its most troubled supply chains — soybeans, cocoa and palm oil.
With environmental changes a growing concern for many commodity companies, Cargill said last week it is enacting two new policies — one on sustainable soy in South America and the other on new human rights standards — and is updating its four-year-old forest policy.
"Farming and forests can — and must — coexist," Dave MacLennan, Cargill's chief executive, said in a statement. "The world depends on agriculture to feed a growing population but also depends on the long-term viability of our natural resources."
The Minnetonka-based agribusiness has major soybean operations in South America, where farming of the crop has encroached on important ecosystems, like the Amazon rain forest in Brazil. More than a decade ago, Cargill and its industry peers agreed to a purchase moratorium on soybeans grown on newly deforested land in the Amazon.
The company monitors the forest activity of its supply chain using geospatial tools and works to educate Brazilian farmers on its deforestation policy. Last week, the company said it plans to expand protections and supply-chain transparency to other native vegetations beyond forests, including South America's Cerrado, Gran Chaco and Llanos, using less-drastic measures than a moratorium.
"There is a time and place for a moratorium — which is why we signed onto the Amazon moratorium where we were addressing acute issues and laws that weren't supportive," Ruth Kimmelshue, senior vice president of Cargill's business operations and supply chain, said in an e-mail.
"However, our broader approach to ending deforestation, as outlined in this policy, favors engagement and working with suppliers and the industry to adopt appropriate policies and address grievances or conflicts in the supply chain," she added.
Demand for soybeans is growing, reflecting the world's increased appetite for meat, because the crop is often a base ingredient in livestock feed. As the middle class expands in several emerging economies, more people can afford — and want — to eat meat. This growing demand can encourage South American farmers to expand the boundaries of their cropland, leading to deforestation.
