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ADM Expands Soybean Traceability Pilot in Response to Upcoming EU Deforestation Regulations

by Zyrene D.
01/23/2024
in Compliance, Environmental Policies, Global Trade, Green Supply Chains, Importing & Exporting, Industry, Industry, International Relations, Manufacturing, Supply Chain, Supply Chain Transparency, Sustainability & Ethics, Trade Policies

Archer-Daniels-Midland Co. (ADM), a major grain trader, recently announced its plans to expand a pilot program aimed at tracing soybeans within its supply chain. This initiative is part of ADM’s efforts to confirm that these commodities are not linked to deforestation.

The program is set to extend its traceability capabilities to several key locations across North America during the 2024 growing season. This decision follows ADM’s initial success in shipping “verified, fully traceable soybeans” from the U.S. to European markets.

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This expansion is also seen as a proactive response to the European Union’s upcoming regulation, effective from December 30, which mandates companies to demonstrate that their agricultural products do not contribute to land degradation or come from recently deforested areas.

Matt Hopkins, ADM’s vice president of North America River and Export, emphasized the company’s commitment to supporting farmers and maintaining market access for U.S. agricultural products. He highlighted the importance of these efforts in ensuring the continued success of ADM and its associated farmers.

The initial phase of the pilot program witnessed the successful delivery of 2.4 million bushels of traceable soybeans to European customers throughout 2023. ADM utilized technology, including the Farmer Business Network’s gradable digital platform, to authenticate and categorize the soybeans.

Jon Turney, ADM’s vice president of crush for Europe, the Middle East, and Africa, acknowledged the challenges in fully complying with the EU’s deforestation regulations. However, he expressed confidence in ADM’s ability to adhere to these regulations and continue delivering to European customers.

ADM has set a goal to achieve a deforestation-free supply chain by 2025. According to the company’s 2022 environmental report, ADM has already traced 100% of its direct and indirect soybean suppliers in Argentina, Brazil, and Paraguay. The company reports that it is approximately 86% on its way to achieving a deforestation-free supply chain for its soybeans.

Your source for supply chain report news updates: The Supply Chain Report. For international trade insights and tools, head to ADAMftd.com.

#ADMSupplyChain #SoybeanTraceability #DeforestationFree #SustainableAgriculture #TraceableSoybeans #ADMNorthAmerica #EUSupplyChainCompliance #FarmerSupport #SustainableFarming #AgriTech #ADM2024Goals #SoybeanTransparency #SustainableTrade #DeforestationRegulation #ADMPilotProgram #SupplyChainInnovation #AgroSustainability #TraceabilityTech

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