GREEN PROTOCOL FOR GRAINS FROM PARÁ

Base Document

Term of Reference for Audit 2021/2022

Contextualization

The Green Protocol for Grains of Pará – PVG (inPortuguese,ProtocoloVerdedeGrãos do Pará), or simply the Green Protocol, aims to promote the development of agricultural activities in the Amazon biome, without prejudice to compliance with environmental legislation, especially the forest code. The PVG was established in 2014 through the Federal Public Ministry and the State Government of Pará in conjunction with the state and municipal government, trade associations, unions, the private sector and rural producers. The PVG has a management committee made up of its own signatories. The objectives of the PVG are:

● Ensuring compliance with the sustainability criteria of the most demanding markets;

● Establish grain purchasing procedures that ensure legal and sustainable origin;

● Strengthen the CAR as a tool for environmental control and land use planning;

● Ensuring legal security for the grain production chain;

● Strengthen the private environmental governance of soybeans in the state of Pará;

● Assist companies in the traceability of sustainable products;

● Provide transparency and credibility through independent auditing.

In this way, the PVG establishes means to guarantee legal compliance in relation to deforestation, while organizing the soy production chain in a traceable way that can be submitted to a third-party audit to guarantee its compliance.

The state of Pará has a territory of 1,245,870.798 km², being one of the largest states in the world in terms of territory. A significant part of the Legal Amazon is inserted in its territory. Within this territory, the state accumulates the most deforested areas in the Amazon biome. The graphs below extracted from the PRODES system illustrate the accumulated deforestation between the years 2008 and 2022. The adhesion of new members must be submitted to the Federal Public Ministry of the state. The list below lists all private sector PVG signatories.

At left: Deforestation increases in the States; At right: Accumulated deforestation increments - Amazon – States

Source: PRODES

CORPORATE NAME AND NATIONAL REGISTER OF LEGAL ENTITIES OF THE ASSOCIATES

APR COMÉRCIO DE CEREAIS DE IMPORT E EXPORT EIRELI 37.082.932/0001-30

ABIOVE - BRAZILIAN ASSOCIATION OF VEGETABLE OIL INDUSTRIES 00.640.409/0001-72

ADM OF BRAZIL 02.003.402/0076-92

AGRA - ARMAZÉNS GERAIS LTDA 29.288.997/0001-09

AGRO AMAZÔNIA PRODUTOS AGROPECUÁRIOS SA 13.563.680/0025-70

AGRO KARAJÁ COMÉRCIO DE CEREAIS E EXPORTAÇÃO LTDA 30.182.564/0002-34

AGROMAIS COMÉRCIO DE GRÃOS LTDA 36.698.859/0001-63

AGRONORTE LOGÍSTICA E AGRONEGÓCIOS LTDA 00.293.663/0002-22

AMAGGI 77.294.254/0001-94

ANEC - NATIONAL ASSOCIATION OF CEREAL EXPORTERS 60.853.306/0001-12

APAVI - PARAENSE POULTRY ASSOCIATION 05.387.709/0001-05

ARMAZENS GERAIS LTDA 24.854.352/0001-72

FJ AGROINDUSTRIAL LTDA 08.533.599/0010-21

FRONTEIRA CORRETORA DE GRÃOS LTDA ME 28.686.402/0001-00

GAVILON DO BRASIL COMERCIO DE PRODUTOS AGRICOLAS LTDA 04.485.210/0001-78.

MASTER GRAIN GROUP 14.119.613/0001-57

HERBINORTE AGRICULTURAL PRODUCTS 10.348.159/0001-55

HP ARMAZÉNS GERAIS EIRELI 31.697.648/0001-92

HUMBERG AGRIBRASIL COMÉRCIO E EXPORTAÇÃO DE GRANES SA 18.483.666/0001-03

JAD COMÉRCIO DE CEREAIS DE IMPORT E EXPORT EIRELLI 27.737.510/0001-00

JUPARANÃ COMERCIAL AGRÍCOLA LTDA 02.219.378/0001-06

LAVROSOLO SOLUÇÕES AGRÍCOLAS LTDA 08.839.710/0001-11

LOUIS DREYFUS COMPANY BRASIL SA 47.067.525/0001-08

MASTER COMÉRCIO E EXPORTAÇÃO DE CEREAIS LTDA 14.119.613/0003-19

BELAGRO - G BELUSSO COMÉRCIO DE GRAIN 32.623.554/0001-31 MIL ARMAZÉNS GERAIS LTDA 24.854.352/0001-72

BERTUOL INDUSTRIA DE FERTILIZANTES LTDA 05.644.974/0006-36

BUNGE ALIMENTOS SA 84.046.101/0371-94

CARGILL AGRICOLA S A. 60.498.706/0001-57

CEREAIS GUARANI LTDA 16.782.818/0001-43

INDEPENDENT CEREALIST 05.275.206/0001-48

CEREALISTA VALE FÉRTIL LTDA 63.831.820/0001-45

CHS AGRONEGOCIO - INDUSTRIA E COMERCIO LTDA 05.492.968/0032-00

CJ INTERNATIONAL BRASIL COMERCIAL AGRICOLA LTDA. 21.294.708/0008-49

COADE - COOPERATIVA AGROINDUSTRIAL DE DOM ELISEU 15.918.791/0001-00

COFCO INTERNATIONAL BRASIL SA 06.315.338/0064-00

COMERCIAL AGRO FERNANDES EIRELI 43.285.172/0001-61

COMÉRCIO DE GRÃOS COLORADO LTDA 47.706.576/0001-32

COOPERNORTE - COOPERATIVA AGROINDUSTRIAL

PARAGOMINENSE 14.718.125/0001-66

DGA AGROPECUARIA EIRELI 39.382.305/0001-40

ENGELHART CTP (BRASIL) SA 14.796.754/0001-04

FERTITEX AGRO 74.649.138/0001-52

FERTITEX AGRO (SANTARÉM) 74.649.138/0011-24

MVM EMPREENDIMENTOS AGRÍCOLAS EIRELI EPP 20.781.341/0001-59

NATIVA AGRÍCOLA LTDA 07.634.396/0009-25

NEULS AGROINDÚSTRIA 08.836.065/0001-83

NOVAAGRI STORAGE AND DISPOSAL

INFRASTRUCTUREAGRICULTURALSA 9.077.252/0001-93

PORTAL AGRO COMÉRCIO E SERVIÇOS LTDA 10.197.621/0002-41

PREMA COMÉRCIO E EXPORTAÇÃO DE CEREAIS EIRELI 18.723.151/0004-86

RM AGRÍCOLA LTDA 18.426.776/0002-14

RURAL BRASIL SA 14.947.900/0025-22

SANTANA PRODUTOS AGROPECUÁRIOS LTDA 05.430.190/0001-09

SANTO ANTÔNIO DA BARRA LTDA ME 12.674.899/0001-07

SÃO PEDRO GRAIN COMMERCIALIZATION 26.796.361/0001-80

UNION OF RURAL PRODUCERS OF PARAGOMINAS 05.262.134/0001-02

SODRUGESTVO AGRONEGOCIOS SA 23.150.901/0008-31

VITERRA BRASIL S.A 32.441.636/0001-65

WK COMMODITIES E TRANSPORTES LTDA 40.120.385/0001-45

An important feature of PVG is that the Brazilian Association of Vegetable Oil Industries (ABIOVE) is at the forefront. The structure of the protocol is similar to the Soy Moratorium and the Monitoring of Soy in the Cerrado.

The standard establishes criteria for legal and environmental compliance, requiring verification of the registration and status of the Rural Environmental Registry (CAR). Subsequently, the productive capacity is evaluated according to the production area declared in the CAR, being the effective planting area. The declared produced volumes must be limited to the productive capacity of the farm, discouraging the acquisition of third parties or the expansion of the agricultural area through deforestation. The products covered by the PVG are rice, soybeans and maize. The average productivity for the 2020/2021 harvest should be respectively 60 bags/ha (3.6 t/ha) 70 bags/ha (4.2 t/ha) and 140 bags/ha (8.4 t/ha).

The rural properties of soy producers cannot be included in the list of embargoed areas issued by IBAMA, available for consultation at https://siscom.ibama.gov.br/geo_sicafi and on the List of Illegal Deforestation in the State of Pará through the link https://monitoramento.semas.pa.gov.br/ldi/. This criterion is essential for qualifying the supplier, assessing the existence of an environmental assessment, embargo for deforestation or for another reason. The verification is done both through the identification of owners and companies and through the geographic coordinates. The figure below illustrates the distribution of embargoed rural properties identified in the Pará List of Embargoed Properties (LDI).

Grain suppliers must also not be enrolled in the slavery-like work list issued through the Ministry of Economy available at https://www.gov.br/trabalho-e-previdencia/ptbr/composicao/orgaos-especificos/secretaria-de-trabalho/inspecao

ABIOVE published a compliance level survey crossing the total soy production in the state reported by the National Supply Company (CONAB) in the amount of 3,568,200.00 tons for the 2020/2021 harvests against 3,209,066.53 tons of soy audited in the PVG. Therefore, approximately 10% of the volume produced was not submitted to a sustainability audit according to the protocol.

The chart below illustrates compliance with the four principles used in the benchmarking analysis among sustainability standards.

Legal Compliance

The Pará Green Grain Protocol requires legal compliance with environmental requirements regarding deforestation, in accordance with the forest code. It also verifies the supplier's and farm's registration on the list of work analogous to slavery.

Management Of Social And Environmental Risks At Stakeholder Level

The Green Protocol for Grains of Pará does not establish mechanisms for socioenvironmental management and relationship with stakeholders.

Good Agricultural Practices

The Green Grain Protocol of Pará does not establish good agricultural practices.

DEFORESTATION CONTROL Compliance with national legislation (forest code)

PVG follows the main Brazilian legislation for the protection of forests, the forest code as a reference for compliance. The certification scope areas are analysed based on the cut-off date established in the legislation.

Compliance with EU RED II

PVG does not meet the EU RED II regulations.

Considerations regarding HCV

Areas of high conservation value (HCV) are territories covered by the forestry code. All territories defined by legislation are treated equally in terms of the need for protection and the prohibition of deforestation. Territories such as native forests or other biodiversity conservation areas can be encompassed through the National System of Nature Conservation Units, the SNUC.

Definition of deforestation in the standard

The PVG does not clearly define deforestation, however, it follows the definition of current local legislation, in particular the Forest Code. As it is an automated detection system, it recognizes deforested areas

Transparency Mechanism

The PVG has a website for publishing news and results. During the first two months of 2023, no disclosures or information or news were found regarding the execution of the protocol during the 2020/2021 harvest.

General Observations

The PVG is a public and private initiative program, acting in mutual interest to reduce the deforestation of the Amazon rainforest. Its performance contributes to the reduction of the deforested area through the commercial restrictions imposed on the signatories of the protocol. Traders' suppliers must comply with the protocol to maintain active business through commercial intermediation with traders and consequent production flow.

The molds for verifying conformity and performance are similar to the Soy Moratorium program, with the participation of ABIOVE, ANEC and Unigrãos, a grain trading company from Goiás.

Although it has an expressive participation, deforestation in general is not discouraged in the region. The cause may be related to other exploratory activities in the region, which are not directly related to soy, or only to soyin the state, and there should be a study covering this topic.

The Green Protocol acts directly with the Public Prosecutor's Office, monitoring is related to legal requirements, and is not a voluntary third-party audit system.

Sources For Consultation

PVG -https://protocolodegraos.com.br/ LDI -https://monitoramento.semas.pa.gov.br/ldi/ Terra Brasilis -http://terrabrasilis.dpi.inpe.br/