March 7, 2024 \u2013 Coordinated action from all value chain actors is needed to increase demand for sustainably produced soybeans and develop effective incentives that reward farmers for adopting more sustainable practices, new research shows.<\/p>\r\n\r\n\r\n\r\n
A new report<\/a> from the International Institute for Sustainable Development (IISD) unearths recent production and consumption trends. It explores why voluntary sustainability standards (VSSs) have yet to fully take off in the soybean sector.<\/p>\r\n\r\n\r\n\r\n Soybean plantations have encroached on important forest land across the globe, meaning that the sector is one of the biggest contributors to greenhouse gas emissions in global food systems. Establishing deforestation- and conversion-free supply chains is critical to ensuring the sector sustains and nourishes us without harming the natural environment that it relies on.<\/p>\r\n\r\n\r\n\r\n \u201cVSSs support and promote practices that can help soybean farmers and workers preserve vital ecosystems and build resilience to climate impacts,\u201d says Vivek Voora, an expert in agricultural commodity markets at IISD. \u201cHowever, uptake of VSSs in the sector has been slow, with VSS-compliant soybean production representing less than 3% of total global production.\u201d<\/p>\r\n\r\n\r\n\r\n Demand for VSS-compliant soybeans is low because the main consumers of these commodities, traders and processors, are unwilling to pay higher prices for them. As a result, VSS-compliant soybean producers often must sell their soybeans as conventional, without premiums. This is financially unsustainable, considering the costs and efforts involved in achieving and maintaining certification.<\/p>\r\n\r\n\r\n\r\n \u201cWhile our research shows that farmers in major producing countries might benefit from premiums and higher prices when selling VSS-compliant soybeans, these are not guaranteed, as VSSs in the sector have not yet implemented a formal system for setting minimum prices and premiums for certified soybeans,\u201d says Steffany Berm\u00fadez, IISD\u2019s commodity pricing expert. \u201cRecognizing the social and environmental costs of growing soybeans in the market pricing structure of the commodity would make VSS-compliant soybeans more competitive\u2014because the way they are grown can reduce some of these external costs.\u201d<\/p>\r\n\r\n\r\n\r\n Pursuing certification can improve farmers\u2019 environmental performance and productivity, help them save costs on inputs, and provide them with access to finance. However, the report concludes that more direct financial incentives are needed, such as payments for ecosystem services, to motivate more farmers to get on board and reward them for their investments and results in adopting more sustainable practices. It calls upon VSS-setting bodies, major soybean trading and processing companies, governments, and private sector actors to all play their parts in paying the price for sustainability in the sector.<\/p>\r\n\r\n\r\n\r\n Contact<\/strong><\/p>\r\n\r\n\r\n\r\n For more information or to set up an interview, contact media@iisd.org<\/a>.<\/p>\r\n\r\n\r\n\r\n