Good practices

Based on results from studies and in line with the premises defined at the outset, four key points were agreed to be followed in monitoring indirect suppliers

GTFI
Good Practices

The GTFI Good Practices for Implementing Monitoring Systems of Indirect Suppliers in the Ranching Chain take into account several premises, such as respect for the TAC and other commitments by the sector, flexibility in light of the realities of the chain and its actors, data analysis at the property level, and definition of viable, simple, efficient and robust criteria.

The GTFI Good Practices were widely discussed in bilateral meetings with meatpackers, retailers and other stakeholders, and were approved by consensus in plenary during the VII GTFI Meeting, held on March 27, 2019. Throughout 2022, the inclusion of socio-environmental criteria and the exclusion of the flexibility rule were assessed and widely discussed among members, culminating in the update of the Good Practices to their current version.

Based on results from studies and in line with the premises defined at the outset, four key points were agreed to be followed in monitoring indirect suppliers

Key points

for Good Practices in monitoring

Reference date for monitoring

STARTING DATE SUGGESTED BY PRODES 2020, AUGUST 1, 2019.

  • The date of the agreement (2019) was defined to ensure the viability of implementing the Good Practices.

The reference date is aligned with the Accountability Framework initiative (AFi), according to its main recommendations, such as: sectoral approach, time of year aligned with the official monitoring system (Prodes) and cut-off date not later than the date on which the pact is agreed.

By having the guarantee of the viability of the implementation of the Good Practices as a premise, the group found that applying the same cutoff date as the TAC (2009) might lead to a large number of non-compliances, rendering the implementation of the Good Practices in monitoring indirect suppliers by the sector unfeasible and reducing its potential for decreasing deforestation. It was thus agreed that the best strategy would be to establish the year in which Good Practices were agreed on as the cutoff date, and not to allow deforestation after that date.

Minimum property size

EXCLUDE ALL PROPERTIES UNDER 100 HA FROM MONITORING

  • Reduces the number of suppliers who need to be monitored without losing quality / impact, and avoids impact on family-owned properties.

The GTFI is focused on providing solutions for the cattle supply chain. In that regard, when examining the panorama of indirect suppliers in the Amazon, the Group noted that if the industry were to consider only Tier 1 indirect suppliers with properties above 100 ha in size, it would be possible to more than double the reach of monitoring. Those conditions create a practical and positive path for companies to begin including indirect suppliers in existing monitoring systems using commercial criteria.

Socio-environmental criteria

APPLICABLE TO ALL PROPERTIES REGARDLESS OF THEIR SIZE

  • Properties of indirect suppliers cannot appear on the government list of slave labor, on state or federal deforestation embargo lists, or have overlaps with Conservation Units, Indigenous Lands and embargoed areas on state or federal maps.

New socio-environmental criteria were added to the GTFI Good Practices in 2023. The criteria have a legal basis, are aligned with monitoring protocols for direct suppliers that operate in the Amazon and Cerrado and with agreements and commitments adopted by the sector, and were included by consensus based on impact analyses and extensive discussions by the group throughout 2022.

 

 

Good Practices revised periodically

INCLUDING PROVISIONS TO BE DEVELOPED TO ENABLE PRODUCERS TO RETURN INTO COMPLIANCE

  • The Good Practices will be revised based on practical results seen in the inclusion of indirect suppliers in meatpacker monitoring systems and in additional initiatives, such as projects for requalifying producers, as these are being established.

Additionally, the group recognized the need for periodically revising the Good Practices, mainly providing opportunities for incorporating new mechanisms that can enable readjustment and reinsertion of blocked producers into the chain. This point is extremely important for guaranteeing the long-term sustainability of monitoring indirect suppliers.