Several supply chain models have been evaluated and the Area Mass Balance model was found to be one of the most efficient and effective systems for scaling up sustainable production, taking into account important factors such as costs, feasibility, added value and volume. This model provides you the opportunity to link producers to the purchasing companies, at fair costs. In other words, a supply chain model with the focus on scaling up the amount of certified producers and the volume of certified soy with the final goal of embedding certified sustainable soya in the supply chain.
It is possible to supply RTRS/CRS credits according the Area Mass Balance supply chain model.
Area Mass Balance
The Area Mass Balance supply chain model is a combination of the Book & Claim system and the Mass Balance system. The principle of the CRS Area Mass Balance model is the following: farmers are selected and certified in areas where Cefetra sources its soya for the European feed industry. The physical flow of soya is bought directly from processors in Brazil, Argentina and Paraguay. Based on general accepted logistical lines, the soya will finally end up at one of the ports in these countries. Cefetra is able to monitor and link specific crush regions to the volume of soybean meal which is loaded and shipped to the port of Amsterdam, Rotterdam, Antwerp, Gent, Hamburg and the United Kingdom (hereinafter ‘European ports’). This means that the mass balance can be calculated based on the input (=certified farms) and output (=physical flow) of soya, crushed at a specific area, from South-America, and the input (=physical flow) of soya into the European ports.
In short, for credits delivered according the Area Mass Balance model, the same quantity of physical soya has been certified according to the requirements of the CRS/RTRS program in the same region. When credits are bought according to the Area Mass Balance model, the compound feed producer is assured that sustainable progress is realized on farms in the region where the soya is cultivated.
For Cefetra’s Area Mass Balance model the countries of origin are divided into sub-regions. Brazil is divided in three regions (i.e. North, Central and South Brazil), Argentina and Paraguay are divided in northern & southern regions, which is the basis of the mass balance calculation. Cefetra sources its physical flow mainly from the central and southern region of Brazil, and so a lot of effort is put into the certification of soya from this region. Next to that, certification efforts are also directed to farms in north-Argentina and south-Paraguay as physical soya is also originated from these regions. Cefetra has been sourcing soya from Paraguay only since a few years, and thus the certified volume of soya is modest yet growing.
The Cefetra soya certification program focuses on improvement at farm level, while gradually increasing the amount of certified responsible soya in the physical supply chain.