BRF’s Innovative Grain Purchasing Approach
Discover BRF’s sustainable transformation in this insightful article. Learn how the Brazilian food giant plans to increase direct grain purchases to 40%, enhance supply chain control, and achieve 100% traceability with suppliers by 2025. Explore their commitment to environmental responsibility, including ceasing purchases from deforested areas, setting a new standard in the industry.
BRF, Leading Brazilian Food Processor, to Enhance Grain Purchase Strategy for Improved Traceability
In a significant move towards sustainable sourcing, BRF BRFS3.SA, a top-tier food processor in Brazil, has announced its ambitious plan to intensify direct grain purchases from local farmers. This strategic shift aims to elevate the company’s traceability standards, a vital step in ensuring a sustainable and transparent supply chain.
Related: BRF SA’s Deepening Financial Troubles
BRF Targets 40% Direct Grain Purchases in Sustainability Push
The company, renowned as one of Brazil’s largest purchasers of corn and soybeans, has set a target to procure 40% of its grain directly from farmers by the upcoming year. This initiative marks a considerable increase from the 17% direct purchases recorded last year and 32% in 2023. Such an expansion in direct procurement underscores BRF’s commitment to enhancing control over its production chain and achieving its traceability objectives.
In an effort to facilitate this transition, BRF has undertaken significant organizational changes. These include redeploying staff from corporate sectors to rural units and bolstering grain purchasing teams in key agricultural states like Mato Grosso and Minas Gerais. These moves demonstrate the company’s dedication to strengthening relationships with local farming communities and enhancing the efficiency of its supply chain.
BRF Sets Ambitious Goal for 100% Supplier Traceability by 2025
Further amplifying its commitment to sustainability, BRF has updated its goal to achieve 100% traceability from both direct and indirect suppliers by 2025, as articulated by Raquel Ogando, the company’s Director of Reputation and Sustainability. Currently, BRF boasts complete traceability of direct grain suppliers in critical biomes such as the Amazon and Cerrado. Additionally, the company is on track to increase traceability from its indirect suppliers to 75% this year, a notable rise from the previous 45%.
In a bold stance towards environmental conservation, BRF has also declared its intention to discontinue grain purchases from legally deforested areas in the Brazilian Cerrado biome by the end of 2025. This decision aligns with the company’s long-standing policy of not sourcing grains from deforested areas in the Amazon since 2008. Ogando highlighted that from 2026, BRF will completely cease working with grains from any legally deforested areas, aligning with the science-based targets initiative (SBTi) principles.
BRF to Halt Grain Purchases from Legally Deforested Areas in Cerrado by 2025
This series of strategic decisions by BRF not only fortifies its position as a leader in sustainable food processing but also sets a benchmark in the industry for responsible and environmentally conscious business practices. The company’s efforts reflect a growing trend among global corporations to prioritize sustainability and traceability in their supply chains, ensuring a better future for the planet and its inhabitants.
Related: Cargill 2025 Deforestation Elimination Plan
