RTRS Field trip 2023 report

RTRS 2023 FIELD TRIP TO UBERLANDIA MINAS GERAIS BRAZIL OCTOBER | 2023

RTRS FIELD TRIP | MG / BR | OCT.23

RTRS 2023 Field Trip The Round Table on Responsible Soy Association (RTRS) organized a field trip to Uberlandia - Minas Gerais, Brazil - which took place on October 6 and 7.

In the context of the RTRS 2023 Meeting Point, the Association organized a field trip as an optional activity following the annual international conference. This activity was intended to promote understanding about the impact of RTRS certification and also to provide an insight of what happens along the sustainable supply chain, from the origin of soybean and corn production to processing and distribution.

33 representatives from more than 20 organizations from 8 countries (Argentina, Belgium, Brazil, Germany, Japan, the Netherlands, Paraguay and the United Kingdom) participated in the trip.

The field trip included two farms and a soybean processing plant in the state of Minas Gerais, near Uberlandia.

•

On the morning of October 6, the participants visited Mr. João Emílio Rocheto’s farm, Fazenda Agua Santa, in the municipalities of Perdizes and Santa Juliana, Minas Gerais.

•

This property has been part of the Produzindo Certo Platform since September 2015. The consultancy services and technical support they receive every year from the team of experts of the Bayer-Unilever partnership, helps them achieve and maintain the RTRS certification.

•

Fazenda Agua Santa has been certifying an average of 18 thousand tons of RTRS soybeans per year since 2016. It is part of the Aliança da Terra - Group IV, which in 2022 certified a total of 235,274 tons.

•

The property is located in a preserved area with more than 230 documented bird species, representing more than 30% of all birds existing in the Cerrado biome and 2% of the total number of birds known in the world.

Total Area

10.232 hectareas

Soybean planted area in 21/22 growing period 3.388 hectares

*In this case, the planted area was 4,739.77 hectares.

Total volume of certified soy

DAY 1

RTRS FIELD TRIP | MG / BR | OCT.23

Day 1

2022

2021

Property area designated by law to serve the purpose of native conservation:

15.401 tons

21.714 tons*

2.047 hectares

Permanent Preservation Areas (PPA):

Total number of workers:

20%

427

They also learned in detail about other activities in the farm: • The production of eucalyptus to provide energy to the farm and used in the construction of containers for the cold chambers and the composting of waste.

• The “Núcleo Ambiental Agua Santa del Cerrado - NASC ”Project (Agua Santa del Cerrado Environmental Core) is an environmental education project that started with a partnership between Fazenda Agua Santa, Bembrasil Alimentos and BASF.

DAY 1

RTRS FIELD TRIP | MG / BR | OCT.23

The visit started with a presentation by the people responsible for the certifications at Fazenda Agua Santa. During the tour, the participants got to know: • The living and dining areas for employees.

• The cold chambers for seeds and grains.

• The biofactory for analyzing bacteria, which enabled reducing by 20% the use of agrochemicals.

• Agrochemical tanks that comply with the RTRS Standard for Responsible Soy Production.

To obtain RTRS certification, this property receives technical support from the team of experts resulting from the joint work of CJ Selecta and Produzindo Certo.

For many years we have served as promoters and facilitators for the expansion of RTRS soybeans in Latin America. This initiative represents an achievement for Produzindo Certo and its producers, because it proves that, with the support of other stakeholders in the chain, it is possible to successfully implement the requirements of the RTRS Standard for Responsible Soy Production”.

Charton Locks Associate Founder and Director of Operations of Produzindo Certo

DAY 1

RTRS FIELD TRIP | MG / BR | OCT.23

After the visit to Fazenda Água Santa, the participants visited Mr. Angelo Trevisan’s farm, Fazenda São José, in the municipality of Araguari, also in Minas Gerais, mainly engaged in agricultural activities.

DAY 1

RTRS FIELD TRIP | MG / BR | OCT.23

In terms of its commitment to certification, CJ Selecta started in 2019 to involve its customers with RTRS Credits Supporting Responsible Soy, with an average uptake of 60,000 per year.

Since 2022, CJ Selecta has been serving as a Group Manager working alongside RTRS certified producers in Brazil.

The objective is to source sustainable soybeans to produce the RTRS Mass Balance Soy Protein Concentrate (SPC) and then distribute it to its stakeholdersengaged in animal feed production for the aquaculture sector in Chile. CJ Selecta works as Group Manager with nine RTRS certified producers, certifying a total of 24,916 hectares and 95,623 tons of soybeans in Minas Gerais and Goiás, Brazil.

The field trip provided a better understanding of the reality of soybean producers. It was also a way for the CJ Selecta group of producers to get to know RTRS and its members better, and to develop a sense of belonging. At the same time, touring the fields and the plant was relevant for our own people because they were able to show their work and perceive up close the recognition for their achievements”.

Patricia Regina Campos Sugui Environmental, social and corporate governance (ESG) Manager at CJ Selecta

RTRS FIELD TRIP | MG / BR | OCT.23

Social impact of RTRS certification Under the RTRS Production Standard, soy not only meets the most stringent environmental criteria (including third-party verification, deforestation and zero conversion), but also a broad set of social and labor requirements.

The RTRS certification system is a truly holistic approach to implementing responsible business and agricultural practices, preserving biodiversity, soil and water, and protecting human and labor rights. It includes respect for the customs and cultures of indigenous peoples as well as the improvement and well-being of local communities.

110 hectares in the farm, 22% of its total area, have been reserved for the preservation of native vegetation. 8% of this area, has been in turn reseved for the recovery of native vegetation.

In addition, 94% of its Permanent Preservation Area (PPAs) is preserved and has waterways up to 10 meters wide, with permanent preservation areas 30 meters wide on the river banks.

Soybean planted area

Estimated soy total volume

2023 325 hectares

Total Area

502 hectares

2023

Property area designated by law to serve the purpose of native conservation

Permanent Preservation Area (PPAs)

Total number of workers

1.072 hectares

110 hectares

94%

3

DAY 1

RTRS FIELD TRIP | MG / BR | OCT.23

Fazenda São José has undergone the external audit process in September 2023 and is currently making final adjustments.

During the visit, the group received a detailed explanation of the regenerative agricultural practices at Fazenda São José, including soil management, crop rotation, irrigation methodology and water treatment, among others.

Crop rotation and the use of cover crops stand out as farming practices that avoid plowing. The deeper roots of cover crops reach the nutrients down in the deeper layers of the soil and transfer them to the plants. After the decomposition of these plants, nutrients become available in the surface layers of the soil, making them more accessible to crops. In addition, the biomass generated by these plants protects the soil against erosion caused by wind, rain and other environmental factors.

Another benefit is the regulation of soil temperature, which improves water retention, providing a more favorable environment for plant development. In addition, cover crops help eliminate weeds, thus reducing the use of herbicides.

DAY 1

RTRS FIELD TRIP | MG / BR | OCT.23

RTRS certified producer Experience and Regenerative Agriculture

Day 2

In 2019, a unit for processing soy molasses into specialty fertilizers was built on the same site as the soybean crushing and byproduct production plant, thus opening up a new domestic market for the company. In 2020, CJ Selecta opened a new plant for alcohol production from soy molasses, which obtained RTRS Chain of Custody certification two years later.

Before starting the plant tour, Alessandro Reis, Operations Director at CJ Selecta, welcomed the participants and introduced Patrícia Reginas Campos Sugui, CJ Selecta ESG Manager, Gisela Introvini, Director of Fundação de Apoio à Pesquisa do Corredor de Exportação Norte (FAPCEN) and Vice President of RTRS, and Lieven Callewaert, President of RTRS.

DAY 2

RTRS FIELD TRIP | MG / BR | OCT.23

On October 7, the group visited CJ Selecta’s Soybean Processing Plant, located in an area of more than 50 hectares in the city of Araguari (Minas Gerais), with outstanding logistics channels for its products. CJ Selecta’s plant was built to the highest technological standards and is constantly updated to maintain high levels of quality, safety and operational efficiency.

RTRS FIELD TRIP | MG / BR | OCT.23

DAY DIA 22

We hope to further strengthen Brazil with the presence of producers who have been certified or are on the right path to certification, like the ones we met on this visit. They help us reduce social differences, preserve our biomes and produce food. That is the formula for success”.

Gisela Introvini Director of FAPCEN and Vice President of RTRS

Our daily effort, service and resilience also makes us very proud because they allow us to build a company committed to sustainability. Thinking differently and acting differently is what got us here”.

Alessandro Reis Operations Director at CJ Selecta

Visiting certified fields really allows us to go back to the root of our mission and recognize the responsible agricultural practices carried out by producers and further extended on to soybean processing. Learning about the transformation of soy into various byproducts is another example of the potential of RTRS value chains, with producers and industry working together on a “regenerative ”pathway based on the RTRS Production and Chain of Custody Standard.”

Lieven Callewaert Alliance4Soy representative and RTRS President

DAY 2

RTRS FIELD TRIP | MG / BR | OCT.23

These are the words of Gisela Introvini, Alessandro Reis and Lieven at the opening of the CJ Selecta plant tour:

.

DAY 2

RTRS FIELD TRIP | MG / BR | OCT.23

At the end of the tour, the participants had the opportunity to close the field trip planting trees in CJ Selecta facilities.

The companies we visited work according to RTRS principles and criteria and approach sustainability as a central component of their business strategy. From Rabobank’s perspective, that’s very important because in our view companies that have a comprehensive sustainability strategy are able to minimize risks and identify opportunities, and in doing so, they will be the winners in the future. That’s a type of investment that Rabobank is happy to finance”.

Every company in Europe, especially in the Netherlands, where I’m from, wants to be responsible. At Nevedi we assumed that responsibility many years ago. So, I think it’s very important to have certified soy in Europe to show that the soybeans you buy were produced in a responsible way.

Henk Flipsen Director of the Dutch Feed Industry Association (Nevedi) DAY 2

RTRS FIELD TRIP | MG / BR | OCT.23

What did the participants say?

Richard Piechocki Global Head of Sustainability, Trade and Commodity Finance Rabobank

It was very interesting to share with the other participants in the chain, mainly those from Europe, and to exchange views from different perspectives on our common goal, which is to build and work for the sustainability of the system.”

We believe it is essential to show people from other regions, such as Europe, what is really happening in Brazil and prove by themselves the efforts being made to preserve nature. As we can see, this is happening. It is a fact”.

Andrés Laxague

Frederik Jan Esselink

Production Manager at Tecnocampo S.A. RTRS

Sustainable Development Senior Manager MVO - Dutch Oils and Fats Industry

certified producer in Argentina

RTRS FIELD TRIP | MG / BR | OCT.23

Highlights of RTRS Certification in 2023 •

A total of 1,865,298 hectares and 6,203,015 tons of RTRScertified soybeans were recorded worldwide.

•

77,824producers worldwide were certified against the RTRS Standard for Responsible Soy Production, of which 77,452 are in India and were certified under Group Certification. In Brazil, there are 15 producer groups that bring together 293 producers and, together with individual and multi-site certified producers represent a total of 1,379,753 hectares and 5,290,675 tons of certified soy.

•

30 new sites in B elgium (2), B razil (14), Chile (12), Japan (1) and Switzerland (1) were certified against the Chain of Custody Standard. This number includes 4 ports and 2 transhipments terminals.

• By the end of the year, there were a total of 436 certified sites ready to receive, process and market RTRS-certified physical soybeans in 16 countries in the Americas, Europe and Asia. These included 260 storage facilities, 86 processing plants, 58 ports, 40 transshipment terminals and 40 commercial offices. This is an increase of 18% compared to 2022.

• 115 RTRS soybean producers certified their corn production against the RTRS Standard for Responsible Corn Production, representing a total of 454,710 hectares and 3,383,541 tons of certified corn.

Find more details on www.responsiblesoy.org and access the RTRS Highlights 2023

RTRS FIELD TRIP | MG / BR | OCT.23

About CJ Selecta

About Produzindo Certo

With 39 year experience in agribusiness, CJ Selecta is engaged in the manufacturing of soy byproducts for various sectors. Since 2017 the company is part of the South Korean group CJ CheilJedang. CJ Selecta is known for its innovative projects and recognized as one of the main sustainable plant protein manufacturers for the feed industry in Brazil and abroad. The company is committed to conducting its activities under the highest standards of quality and sustainability, and across the entire supply chain.

Produzindo Certo offers a real solution for companies concerned with ensuring a verified supply network according to the highest standards of social and environmental commitment.

CJ Selecta has been RTRS Member since 2007.

The organization It has been RTRS Member since 2009.

With an exclusive protocol of evaluation and use of technology, it combines face-to-face actions with satellites to provide solutions to customers and enable changes in the rural environment, from diagnostics and guidance to full management of the supply network, always in the awareness that only a profitable activity ensures respect for the recommended practices.

OCTOBER | 2023