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

Key points for
Good practices in Monitoring

The GTFI Good practices 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.

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: sectorial 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.

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.

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

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.

Good Practices for Implementing Indirect Supplier Monitoring Systems in the Cattle Supply Chain were widely discussed in bilateral meetings with meatpackers, retailers and other stakeholders, and were approved 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.

How the Good Practices

were developed

In 2019, after 4 years dedicated to researching and developing tools that will enable the monitoring of indirect suppliers in the cattle chain, the GTFI decided that it was time to establish the basic points to be included in monitoring procedures. That would allow meatpackers and retailers to begin monitoring indirect suppliers through a predefined baseline common to all parties, the so-called “Good Practices”.

Seeking a technical grounding, the group developed a study focusing on the states of Pará and Mato Grosso, through an analysis of data from CAR and the GTA. After analyzing multiple scenarios, it was possible to reach several conclusions that were vital to the process of constructing the Good Practices for the GTFI, these being:

Reference date for monitoring

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

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

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

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.