ADM to Expand Traceable Soybean Pilot After First Deliveries to Europe
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Insights
The initiative by ADM to ship verified, fully traceable soybeans from the U.S. to Europe is a significant advancement in the agricultural supply chain, demonstrating a commitment to sustainability and traceability. The implementation of traceable soybeans aligns with the upcoming EU deforestation regulations, which aim to prevent the import of commodities linked to deforestation. This proactive adaptation may position ADM favorably in the market, as it shows readiness to comply with stringent environmental standards.
From a supply chain perspective, the use of cutting-edge technology, such as the FBN's Gradable digital platform, indicates an industry shift towards greater transparency and accountability. The ability to verify, trace and segregate products is becoming increasingly important for consumers and regulators alike. ADM's expansion of this program could set a precedent for other companies in the sector, potentially leading to a more sustainable and ethical agricultural industry.
The successful pilot and subsequent expansion of ADM's traceable soybean program may have a ripple effect on consumer perception and market demand. As consumers and businesses become more environmentally conscious, the demand for sustainably sourced products is growing. ADM's early adoption of practices that ensure a deforestation-free supply chain could enhance its brand image and appeal to a segment of the market that prioritizes environmental responsibility.
Moreover, the potential market implications of ADM's traceable soybean program could extend beyond just the company. As regulations tighten and sustainability becomes a key differentiator, other players in the industry may need to follow suit or risk losing market share. This could lead to increased investments in similar technologies and practices across the sector, ultimately influencing commodity prices and trade flows.
ADM's traceable soybean program is a direct response to the evolving regulatory landscape, particularly the EU's upcoming deforestation regulations. These regulations are expected to have a substantial impact on global agricultural practices, as they will require companies to prove that their products are not contributing to deforestation. ADM's initiative showcases how companies can adapt to these new policies by investing in traceability and sustainability.
The long-term implications of such regulations and ADM's compliance could encourage other agricultural firms to adopt similar practices, potentially leading to a broader shift towards environmentally responsible farming. This can have a cascading effect on global environmental policy, as successful implementation by industry leaders like ADM may prompt regulators to introduce more stringent sustainability requirements in the future.
Successful pilot has resulted in 2.4 million bushels (64,000 metric tons) of verified, fully traceable
Program to expand to additional
ADM traceable soybeans being loaded for shipment to
“At ADM, our future and success depend on the farmers we work with and for, which is why we’re committed to helping support their businesses and their legacies by ensuring that global markets remain open to
“While there are still issues – including how full compliance will be defined, measured and enforced – to work through in advance the EU’s deforestation regulations, we are confident in our ability to continue to deliver to customers in Europe,” said Jon Turney, ADM’s vice president, EMEA Crush. “We will continue to work with stakeholders – including farmers, government and industry – across our supply chains in the
ADM’s traceable soybean program is an outgrowth of its International Sustainability & Carbon Certification (ISCC) certified bean program, and utilizes cutting-edge technology – such as FBN’s Gradable digital platform – as well as ADM’s origination and transportation capabilities to verify, trace and segregate participating beans from farms to their final destination.
In the wake of the successful pilot, which delivered 2.4 million bushels (64,000 metric tons) of fully traceable soybeans to European customers in 2023, ADM intends to broaden the program to additional North American locations in 2024, providing the opportunity for interested farmers to continue to participate in current and new global markets that generate greater value and preference for their crops.
About ADM
ADM unlocks the power of nature to enrich the quality of life. We’re a premier global human and animal nutrition company, delivering solutions today with an eye to the future. We’re blazing new trails in health and well-being as our scientists develop groundbreaking products to support healthier living. We’re a cutting-edge innovator leading the way to a new future of plant-based consumer and industrial solutions to replace petroleum-based products. We’re an unmatched agricultural supply chain manager and processor, providing food security by connecting local needs with global capabilities. And we’re a leader in sustainability, scaling across entire value chains to help decarbonize our industry and safeguard our planet. From the seed of the idea to the outcome of the solution, we give customers an edge in solving the nutritional and sustainability challenges of today and tomorrow. Learn more at www.adm.com.
Source: Corporate Release
Source: ADM
View source version on businesswire.com: https://www.businesswire.com/news/home/20240111796840/en/
ADM Media Relations
Jackie Anderson
media@adm.com
312-634-8484
Source: ADM
FAQ
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