Achieve EUDR Compliance for Soy

What is the Current Landscape of Soybean Production?

Soybeans and their derivatives (soybean meal and soybean oil) are the most traded agricultural commodity worldwide, accounting for nearly 9 percent of the total value of global agricultural trade. In 2022, the European Union (EU) imported approximately 15.5 million tons of soybeans, with Brazil being one of the EU’s primary suppliers, accounting for a significant portion of these imports.

The EU market is highly dependent on soybean imports to meet its feed and food demand, with around 14% of Brazilian soy exports going to the EU. Soybeans are also used as a biofuel feedstock, with the most biodiesel in the USA being made from soybeans.

How Will the EUDR Impact the Trade of Soybeans?

Relevant products must be traceable to the farm plot by geolocations and polygons uploaded into EU information systems. Each origin will be benchmarked for risk and grouped into “low,” “standard,” or “high”-risk categories. 

The soybean sector must undergo significant changes to align with the new sustainability standards:

• Traceability Enhancement
  Soybean producers will implement tracking systems to ensure transparency and verify the origins of cocoa beans, ensuring compliance with regulations. This will build consumer trust and create new market opportunities for compliant producers.
• Opportunities for Sustainable Practices
  Soybean producers can access the European market by offering sustainably sourced, deforestation-free soy. This promotes innovation in sustainable agriculture, enhancing soil health, biodiversity, and farmers’ livelihoods.
• Supply Chain
  Soybean producers and retailers must collaborate with suppliers to ensure responsible sourcing, investing in traceability technologies, farmer training, and long-term partnerships with compliant producers.
• Compliance Requirements
  Soybean producers and exporters must now provide detailed documentation proving that their soy is not linked to deforested areas. EUDR on soybean production will provide strict compliance with deforestation-free sourcing.

What Gaps Need to be Addressed by Producers, Growers and Traders for EUDR Compliance?

A few challenges that could come out of the EUDR for soybean producers/traders include:

• Traceability and Transparency: Establish a clear and transparent supply chain to ensure that soy is sourced from deforestation-free areas, including the maintenance of detailed records and documentation to prove compliance with EUDR requirements.
• Land Use and Deforestation Monitoring: Implement satellite and remote sensing technologies to monitor land use changes and ensure no deforestation occurs and adopt and enforce policies that commit to zero deforestation in soybean production.
• Regulatory Compliance: Understand and comply with all relevant EU regulations and standards related to soybean imports and regularly update practices and policies to align with evolving regulatory requirements.
• Country-Specific Regulations: Ensure that production is done in accordance with all country-of-origin regulations. 

Addressing these gaps will not only help in complying with the EUDR but also promote sustainable and responsible soybean production, benefiting both the environment and the industry.

How Do Certification Schemes Factor into This?

Of the certification programs that are relevant to soy, such as the International Sustainability & Carbon Certification (ISCC), 2BS and ProTerra, only ISCC offers an EUDR add-on module for certified soy. The EUDR add-on to ISCC offers enhanced layers of compliance, specifically tailored to meet the requirements of the regulation. They facilitate certificate holders in demonstrating adherence to the new EU laws, minimizing the need for substantial adjustments to their current practices and management systems.

How SCS Can Help

SCS can support clients with our comprehensive EUDR services by offering tailored solutions that address each aspect of the EUDR compliance process. Here’s how we can help:

EUDR Consulting Services 

• Corporate regulatory and implementation education and advisory
• Needs assessment and strategy development
• Due diligence system development and review
• Gap and risk assessment
• Commodity and value chain traceability
• Customized verification checklists

Compliance Assessments: Review and assessment of EUDR compliance of various players within your supply chain. 

Due Diligence Integrity Assessments: Review and assessment of EUDR due diligence statements (past or current). 

Self-Paced Training: Self-paced training on EUDR compliance for those in the coffee, wood, palm oil, cocoa, and other EUDR impacted industries.

With these services, SCS enables clients to not only meet but also exceed EUDR requirements, safeguard their reputation and ensure sustainable, deforestation-free practices across their supply chains.

For more information contact: EUDR Business Group