From Brazilian fields to Norwegian farms

• Brazil has a Federal Constitution and consolidated legislation that provide for the protection of the environment, health and welfare of workers in rural areas.
• The large-scale agricultural export model used in Brazil, i.e. the state of Mato Grosso and particularly in the region where the soy exported to Norway is produced, has been causing severe social and environmental impacts.
• Although Norway is a relatively small player in the global soy market, it has been a leader in the effort to fight deforestation of tropical forests and ensuring good sustainability standards throughout global production chains.
• Denofa, through its Brazilian partner Amaggi, is responsible for most of the soybeans imported from Brazil to Norway; despite Denofa’s good efforts to maintain best sustainability standards throughout its production chain, important challenges still remain to be addressed.
• Openness and transparency of the entire supply chain are key elements to corporate social responsibility. Denofa possesses detailed information on suppliers and cargoes shipped from Brazil to Norway. However, the company has so far refused to disclose such information based on business sensitive reasons that are not entirely clear.
• Denofa relies on comprehensive certification schemes managed by Amaggi to ensure the highest possible sustainability standards in the soy production chain. However, there are certain limitations related to such certificate schemes that may jeopardize the traceability vis a vis the actual situation on the ground. Lack of autonomous third-party verification and full confidentiality clauses are limitations that represent a breach in standards of transparency.
• Interviews with local farmers during the field trip evidence that a departure from Brazilian laws and certification standards may exist in the following areas:
• Use and spraying of pesticides close to houses and villages, which even if compliant with local regulations, represent an unacceptable risk to the health of residents and workers in the areas where the soy exported to Norway is produced.
• Failure to comply with federal and state forest laws by suppliers;
• Concern that Denofa may be importing soy planted inside indigenous lands, in violation of the Constitution.