Europe’s food giants turn a blind eye to deforestation in Argentina

Within the first a part of our report we noticed how soy from deforestation-prone areas in Argentina continues to reach in Europe, regardless of an EU ban on the merchandise of unlawful logging. On this second half, we’ll have a look at how prestigious manufacturers comparable to Parmigiano Reggiano and San Daniele pay money for the identical merchandise by exploiting authorized loopholes and abusing self-regulation.

From silos in deforested areas of the Chaco ecoregion in Argentina, soybeans are transported to the ports of Rosario and San Lorenzo on Argentina’s Paraná River. Right here they’re processed into meal within the urgent vegetation of huge worldwide merchants, after which loaded onto cargo ships certain for Europe.

In response to knowledge from the monitoring service MarineTraffic, since 2019 numerous ships have been plying the Atlantic between these two ports and ports in Italy and Spain. These two nations are respectively ranked first and second in Europe, and fifth and sixth worldwide, for imports of soybean meal or cake from Argentina and likewise thus for publicity to deforestation within the Chaco ecoregion.

In 2019, the European Union as an entire imported 355,979 tonnes of soy (each seeds and meal) from the Chaco ecoregion. About 2.1% of it comes from at the least 2,332 hectares of probably deforested plots. That very same yr, the 2 foremost European importers, Italy and Spain, imported 71,797 and 76,033 tonnes of soy (each seeds and meal) respectively. About 2.1% of it got here from at the least 466 and 500 hectares respectively of probably deforested plots (1). A 3rd of those plots have been situated in Argentina’s Almirante Brown division, which is the world of the Chaco province most hard-hit by deforestation for soy cultivation. That is in line with the newest knowledge supplied by Trase, a platform for monitoring the sustainability of farming commodities. 

As soon as the meal arrives in Italy and Spain, it’s combined with different cereals by feed producers who provide all of the EU’s nationwide livestock sectors (pigs, poultry, eggs, beef, and dairy). It’s noteworthy that Italy and Spain are respectively the primary and fifth largest producers of meat on the EU market, in line with knowledge shared with us by Eurostat. Italy can also be among the many largest exporters of cheese on the continent.

Spanish pigs on the trough

In 2023 up until September, Spain imported greater than 500,000 tonnes of soybean meal from Argentina (in line with knowledge Eurostat shared with us). The commodity was destined as feed for Spain’s pork business, Europe’s largest and fourth-placed on the earth, with an output of over 5 million tonnes in 2022.

In 2021, virtually 4.4 million tonnes of soybean meal and one other 550,000 tonnes of uncooked soybeans have been used to provide feed, in line with knowledge from the Spanish agriculture ministry.

A lot of the meal is imported via the ports of Barcelona and Tarragona, to provide farms in southern Catalonia, Aragon and the east of Castilla y León (the place most of Spain’s pig manufacturing is concentrated). Different shipments arrive at Bilbao and La Coruña, to provide farms within the north of Spain.

In 2019 the primary importers to Spain have been Vicentin (a now-bankrupt Argentinian agency), Viterra (a subsidiary of the British-Swiss Glencore, lately merged with Bunge) and Netherlands-based Louis Dreyfus. They imported 31,507, 10,854 and 9,292 tonnes respectively from the Chaco ecoregion.

In ltaly, Chaco soy is as much as scratch

In response to official Italian statistics quoted by the Associazione Nazionale Cerealisti (a grain merchants’ physique) three quarters of Italian soybean meal imports come from Argentina: 1,196,566 tonnes out of a complete of 1,678,000 tonnes in 2022. In 2023, 870,000 tonnes had arrived from there as of November, in line with the newest knowledge Eurostat shared with us.

In 2019, Italy’s three foremost importers of soybean meal (together with for animal feed) have been China’s Cofco, Argentina’s Aceitera Basic Deheza and the USA’s Bunge, with respectively 30.1, 12.5 and 9.3 million tonnes sourced from the Chaco ecoregion in 2019. These firms accounted for 70% of Italian soybean meal imports from the Argentinian a part of the ecoregion.

Each Cofco and Bunge sited their soybean silos close to plantations that sprung up on land that was deforested, typically illegally, within the division of Almirante Brown. In 2019, the 2 merchants collectively accounted for greater than two thirds (100 hectares) of the areas uncovered to the danger of deforestation in relation to soy export to Italy. Between 2020 and 2022, one other 80,000 hectares of timber have been cleared to make method for soybeans.

On paper, Bunge and Cofco have pledged to not purchase beans from plantations on deforested land. Alternatively, each firms, together with the opposite huge commodity merchants, introduced throughout the latest COP-28 assembly in Dubai that they may wait till 2030 to finish imports from deforested areas of the Chaco and different South American ecosystems with decrease forest density. They’ve this feature as a result of such habitats, consisting of patches of woodland alternating with open areas, will not be protected by the EU Deforestation Regulation which can ban the import of cereals from deforested land in 2025.

Neither firm would speak in confidence to us the origin of the Argentinian soybeans imported into Italy (the place they’re combined with beans from elsewhere). Thus it can’t be dominated out that they arrive from deforested areas in Almirante Brown. We reached out repeatedly to the director of Bunge Italia, Saverio Panico, however he didn’t reply by the point of publication.

Information exhibits that within the final eight months of 2023, a number of batches of soybeans got here out of Chaco province, and particularly from Avia Terai within the close by Independencia division, the place Bunge has one in every of its silos. A 2018 report by the NGO Mighty Earth cites a number of farmers within the space – some engaged on plantations which have arisen from unlawful deforestation comparable to these held by the corporate MSU – as saying they have been promoting beans to Bunge. The latter denied it.

From Could to December 2023 the soybeans arrived within the metropolis of Rosario, which concentrates 80% of Argentina’s capability for processing soybeans into meal. Throughout the identical interval, in line with Marine Site visitors knowledge, six cargo ships left from the adjoining port of San Lorenzo for Ravenna, on the Adriatic Sea, and three others departed for Savona, close to Genoa.

These are Italy’s two main ports of entry for soybean meal. 878,019 tonnes and 240,000 tonnes have been landed on the respective ports in 2022 (in line with knowledge supplied to us by the port authorities). Bunge operates in each ports, whereas Ravenna is Cofco’s solely hub.

The soybeans imported by Cofco and Bunge from Argentina and different South American nations attain the feed producers through brokers at nationwide cereal exchanges.

“We repeatedly buy meal with a protein content material of 46.5% (together with from Argentina), from all importers and particularly from Cofco, […] Bunge and Viterra,” says Graziano Salsi, president of Progeo, one in every of Italy’s greatest agricultural cooperatives and one in every of its high 4 feed producers, with 13,000 member firms and a turnover of €295 million in 2021.

Progeo mentioned it couldn’t assure that the soybean meal it purchased from the 2 merchants is deforestation-proof. With this meal, Progeo produced and bought 5.435 million quintals of feed in 2022. Fifteen % ended up on pig farms (in line with president Graziano Salsi), whereas the majority went to the dairy-cow sector, by which the cooperative is the nationwide chief with a 40 % market share.

The farms which can be provided by Progeo are largely situated in Emilia Romagna, Lombardy, Veneto, and Friuli-Venezia Giulia. That is the place the consortia of producers of well-known manufacturers comparable to Parmigiano Reggiano and Prosciutto San Daniele are based mostly. These farms are the ultimate hyperlink within the soybean’s chain of doubtful sustainability, by which Progeo is an intermediate actor.

Progeo’s product feeds a lot of the cows whose milk is used to provide Parmigiano Reggiano in addition to the so-called “heavy” pigs from which Prosciutto San Daniele ham is made. The slaughterhouses that offer the consortium’s producers with hams are additionally provided by the farms that use Progeo’s feed, in line with info obtained confidentially by consortium members.

Parmesan and San Daniele: protected labels, however not towards deforestation

Parmigiano Reggiano and Prosciutto San Daniele are recognised by the European Union as Protected Designation of Origin (PDO) merchandise. The names could solely be utilized in geographic areas that give the product its particular traits.

The specification of Parmigiano Reggiano authorises using soy in feed, as does that of San Daniele. In its 2022 revision the latter even elevated the admissible percentages, whereas guaranteeing on paper “the traceability […] of uncooked supplies” comparable to feed. Each San Daniele and Parmigiano Reggiano have lately launched digitised tracing methods, however these don’t at the moment cowl the origin of the merchandise used for animal feed.

Notably, within the newest model of its sustainability coverage, printed in 2023, San Daniele makes no dedication to take away deforestation merchandise from its provide chain.

“The duty for verifying the origin of the soy doesn’t lie with the factories that produce the ham, however with the feed producers that offer the farms from which the pigs come,” in line with Nicola Sivilotti, head of communications on the San Daniele Consortium, who nonetheless agrees that the EU Deforestation Regulation ought to be carried out.

The director of the Consorzio Parmigiano Reggiano, Riccardo Deserti, emphasises progress: ‘In recent times we have now been working to interchange soy with different and native protein sources, thus contributing each to creating PDO more and more linked to the territory of origin and to lowering or eliminating using soy from deforestation.”

However Nico Muzi of the NGO Madre Brava is sceptical: “Holders of PDO labels can’t assure that their pigs will not be fed with Argentinian soy linked to the destruction of the Chaco forests. Their complete irresponsibility, like that of the massive feed producers, who import and use soy with out worrying about provenance and influence, makes all European customers accomplices – unwittingly – on this destruction.”

In follow, such well-known Italian manufacturers discover their method simply throughout borders. With a turnover of €350 million in 2022, San Daniele hams exported 57 % of its manufacturing to the European market, with specific success amongst gourmets in France, Belgium, the Netherlands, Germany, Austria, Poland and Switzerland. With €56.5 million in revenues in that yr, Parmigiano Reggiano noticed its personal export share rise to 47 %, excelling in Germany, France, the UK, Spain, Belgium, the Netherlands, Austria, Denmark, Sweden, and Greece (in line with consortium figures).

“The sustainability of the worldwide provide chain is hindered by the truth that massive retailers [supermarkets], in addition to the specs of the protected manufacturers, don’t require it”, factors out an business knowledgeable on situation of anonymity. “So long as the market and the legislator don’t impose sustainability as an obligation, meals producers haven’t any incentive to introduce sufficient checking methods and to supply solely from zero-deforestation soy suppliers.”

An business hiding behind certificates

Additionally importing soybean meal from South America are the agri-food big Veronesi and its competitor Amadori. They’re the 2 largest feed producers in Italy, churning out round 1.2 million and 700,000 tonnes per yr respectively. This makes them the primary prospects for the soybean meal imported to Italy. Collectively they devour round 15% of it, in line with knowledge from nameless business sources.

Extra particularly, Veronesi is the main Italian operator with an built-in provide chain. It produces feed (via its subsidiary AIA) in addition to processed meat, which it then distributes. It feeds soy to its personal cattle that, as soon as slaughtered, find yourself in merchandise licensed and marketed by the group. 

If rumours are to be believed, Veronesi at the moment buys solely soybean meal with 48% protein content material, which in concept Argentina now not produces since 2021. Nonetheless, the Verona-based firm has not formally denied (as has Amadori) that a part of the soy at the moment used can also come – or at the least has come previously – from deforested areas within the Chaco. Veronesi and Amadori each confirmed that they use soybeans from South America. Neither have been in a position to present proof of its sustainability or to say whether or not Cofco and Bunge are amongst their suppliers.

Relating to imported soy, Veronesi is eager to defend its report: “Already in 2019, we have been the one Italian feed producer to affix the formidable initiative promoted by the European Feed Producers Federation (FEFAC) to realize 100% use of licensed sustainable, deforestation-proof soy by 2025.” Of their annual experiences for 2021 and 2020 respectively, Veronesi and Amadori each introduced that this purpose can be achieved by buying credit on the platform of the Spherical Desk on Accountable Soy (RTRS).

RTRS is an business physique whose members are massive commodity merchants (together with Bunge and Cofco), feed and meals producers, and grocery store chains.

Primarily based in Switzerland, RTRS boasts that it could actually assure traceability alongside your entire provide chain, thus guaranteeing that soy licensed as accountable is certainly produced in a method that respects ecosystems and native communities. Every certificates corresponds to a particular amount of soy that has been traced and declared sustainable. Producers of each feed and meat should purchase up certificates issued by RTRS to soy merchants to compensate for the soy of doubtful origin of their provide chain.

However WWF, itself a co-founder of RTRS, now admits that the scheme doesn’t appear to supply actual safety. Nor does the EU Deforestation Regulation recognise the certificates as proof of a sustainable provide chain. When questioned about this, an EU fee spokesperson said that such “schemes (e.g. certification) can […] facilitate danger evaluation [but] operators will nonetheless be required to hold out the suitable checks [and] the duty lies […] with the merchants (on this case of soy)”.

1) Calculations based mostly on the common soybean yield per hectare in Argentina in 2018-19.

Adrian Burtin contributed to this investigation.