MARKET ANALYSIS

REPORT: INTERMEDIARIES POSE BARRIER TO SUSTAINABLE SOY

For companies looking to purchase sustainable soy, working directly with the farmers may be more effective than going through third-party traders, according to an international team of researchers. The team investigated the origin of multiple commodities associated with high rates of deforestation, including South American soy as well as Indonesia palm oil, cocoa from Côte d’Ivoire, and Brazilian live cattle exports. They determined that 12-42% of the soy coming from Brazil, Paraguay and Argentina is sourced by third-party traders. Many of these intermediate traders did not provide information about the origin or environmental impact associated with their products, author said. Feed companies looking to reduce their carbon footprint may need to engage with their suppliers about the origin of their soybeans if they want to be sure the soy is truly sustainable.