Unilever is to partner with U.S. tech company Orbital Insight on a pilot project to trace agricultural commodities sourced, especially palm oil. It claims to be using geolocation data and satellite imagery to identify the individual farms and plantations supplying the palm oil mills in its extended supply chain. The pilot project will be tested out at palm oils mills in Indonesia and soy mills in Brazil, working jointly with its established supply chain monitoring projects.

Palm oil producers and environmental activists alike have expressed dismay at a move by European officials to phase out palm-oil based biofuel by 2030. Officials in Indonesia and Malaysia - who together produce 85% of palm oil globally - say the move is discriminatory and have vowed a vigorous response, including lobbying EU member states, bringing the matter before the World Trade Organisation, and imposing retaliatory measures on EU goods.
Environmental activists, on the other hand, say the policy does not go far enough leaving loopholes allowing palm oil to be treated as a renewable fuel, allowing continued expansion of palm plantations into peat forests. They also criticize the policy’s failure to label soybean oil as high risk, with growing evidence that soy cultivation may have greater deforestation risks than palm oil.

The World Economic Forum recently published research suggesting consumers in a few key emerging market producer countries (Indonesia and Brazil) and importing countries (China and India) together account for 40% of global consumption of the four commodities most associated with tropical deforestation—soy, beef, palm, and wood products. The authors project that by 2025 demand for these commodities within these four countries could increase by 43%, resulting in forest areas equivalent to the size of Nigeria being cut down every. Increasing demand for meat and calorie-rich foods, regulatory changes, and shifts in constraints for domestic production will all be key factors in fueling demand in these emerging market economies.

British fast food restaurants and grocery chains, including Tesco, Morrisons and McDonald’s, buy their chicken from Cargill, which feeds its poultry with imported soy, much of it apparently coming from the Bolivian Amazon and Brazilian Cerrado — areas rapidly being deforested for new soy plantations. Retailers have so far not used their leverage over Cargill to compel it to support a soy moratorium expansion.

A new CDP study released that a substantive portion, 24% on average, of the revenue of 187 international companies depend upon commodities linked with deforestation, which are cattle products, palm oil, soy and timber products. Moreover, only about 40% of the studied companies have evaluated how the availability or quality of these commodities can impact their business growth strategy over the next five or more years. However, on the positive side, more and more companies become to recognize the benefits in scaling up their forest-protection efforts.

Norway is now the first country committed to the zero deforestation, which precludes deforestation in public procurement. Any companies related to deforestation will not be able to have contract with the Norwegian government. For crops associated with large-scale rainforest destruction like soy, timber, palm oil and beef, if they are to be procured by the government, they will have to be produced in a sustainable way. In addition, now there are recommendations for Norway’s Government Pension Fund Global (GFPG), the largest sovereign wealth fund in the world, to consider biodiversity when making investment decisions.

Standard Chartered has signed up to the ‘soft commodities compact’ which ensures their palm oil, soy and timber clients’ activities are consistent with ‘zero net deforestation’ by 2020. Many global food manufacturers have signed up to anti-deforestation initiatives in recent years and now pressure is being put on banks to do the same. Nine other banks have already signed this agreement, including RBS, UBS and Santander.

Archer Daniels Midland, the third largest global supplier of agricultural commodities and one of the world’s leading soy traders, is launching their Responsible Soy Standard. Under this new programme, yearly assessments will be conducted by expert third parties to determine if growers are complying with a number of environmental, legal, social and agronomic standards.
Despite soy production acting as a leading driver of deforestation across South America, palm oil has remained the priority commodity for companies in the fight against deforestation. While 117 private companies have pledged to reduce the impact of their involvement with palm oil, only 27 have done the same with soy. It is hoped that ADM’s commitment could lead to other organisations following their lead and expanding their commitments to deforestation across commodities.
Experts have warned, however, that although commitments like these have led to deforestation in the Brazilian Amazon, the problem is simply being moved elsewhere. Much of the conversion of natural ecosystems for soy cultivation now occurs in other areas including Argentina, Bolivia and Paraguay.

A study published in the journal Science, led by Holly Gibbs of the University of Wisconsin-Madison, found that the moratorium on forest conversion established by Brazilian soy giants in 2006 dramatically reduce deforestation for soy expansion in the Amazon, and have been more effective in cutting forest destruction than the government's land use policy in the region. The study is based on spatial analysis across thousands of farm in the Brazilian Amazon and cerrado, a woody grassland, and researchers compared forest loss before and after the moratorium was established.

Large scale landowners are estimated to be responsible for around half of deforestation in the Amazon, compared to 12 per cent by smallholders, but a report from the Stockholm Environment Institute (SEI) has found that since 2005, the contribution to annual deforestation by the largest landowners has fallen by 63 per cent, while that of smallholders has increased by 69 per cent. In 2013, overall deforestation increased by 28 per cent compared with the previous year. One of the authors said that part of the reason for the rise was that many conservation areas had been scaled down or had their protection status changed, and flagship public-private initiatives, such as a moratorium on trading soya beans from newly deforested areas in the Amazon, were about to end. Furthermore, a boom in infrastructure projects in the Amazon since 2009, including the building of new roads and dams, may also be contributing to Brazil’s rising deforestation rates. The report recommended schemes that would provide credit to Brazil’s 6 million small landowners living in rural areas in the Amazon and promote more efficient farming techniques among small farmers and large landowners.

A new report by Forest Trends, a US based NGO, found out that around five football fields of tropical forest have been illegally cleared every minute between 2000 and 2012, which losses have been driven by consumer demand for beef, leather and timber in Europe and US. The values of this trade in commodities including timber, leather, beef, soy and palm oil, accounting for $61bn a year. The majority of the illegal deforestation for commercial agriculture has been in Brazil and Indonesia. The local governments are lack of capacity to enforce laws to against illegal logging. Report found that licences and permits to cut the trees are often acquired through corruption. Authors believe that consumer countries in EU could have done more to tackle the problem. Strong regulations rather than voluntary actions is the better solution. The biggest concern for campaigners now is the spread of illegal deforestation to new countries in Latin America, Africa and Asia.

A recently published paper in the journal Science assesses how Brazil managed to reduce its deforestation rates by 70% over the course of a decade and points to a three-stage process in which bans, better governance in frontier areas and consumer pressure on companies worked, if fitfully and only after several false starts. While the Brazilian Forest Code from the mid-1990s mandated that 80% of farm land had to be set aside as a forest reserve, deforestation rates reached their highest as the code was not enforced. However, from 2005 Brazil’s President Lula da Silva made halting deforestation a priority which led to better cooperation between enforcement agencies and public prosecutors. At the same time, improvements in the efficiency of cattle breeding, a fall in export earnings from soybeans and an NGO campaign to boycott Brazilian soybeans caused deforestation to plummet. Then in 2009, once soybean expansion resumed, the government focused its efforts on the counties with the worst deforestation rates and banned them from getting cheap credit until the rates fell. Other reinforcing factors included a proper land registry, a cattle boycott, an amnesty for illegal clearances before 2008 and money from a special $1 billion Amazon Fund financed by foreign aid.

A new Global Witness report, ‘Deadly Environment’, shows there has been a surge in the killing of activists protecting land rights and the environment over the past decade with three times as many deaths in 2012 compared to the previous 10 years. Between 2002 and 2013, at least 908 activists were killed in 35 countries with only 10 convictions. The most deadly countries in the scope of the report were Brazil (448 since 2002), Honduras (109), Philippines (67), Peru (58) and Thailand (16). The deaths are linked to activism against a range of activities including illegal logging, cattle ranching, soy bean farming, mining and the building of hydroelectric dams.

The US Government and 20 of the world’s largest companies from the Consumer Goods Forum (CGF) have announced a partnership to eliminate deforestation from supply chains by 2020, starting with palm oil, soy, paper and beef. Production of these four commodities in four countries alone causes 50% of global deforestation. Leaders from the CGF companies, the US and other governments and NGOs will meet in the Autumn to identify practical actions to achieve the deforestation commitment.