August 2010 Álvaro Luiz Dilli Gonçalves Human Resources and Sustainability Manager Principles and...

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August 2010 Álvaro Luiz Dilli Gonçalves Human Resources and Sustainability Manager Principles and Criteria to Soybean Usage in Biofuel Producing

Transcript of August 2010 Álvaro Luiz Dilli Gonçalves Human Resources and Sustainability Manager Principles and...

Page 1: August 2010 Álvaro Luiz Dilli Gonçalves Human Resources and Sustainability Manager Principles and Criteria to Soybean Usage in Biofuel Producing.

August 2010

Álvaro Luiz Dilli GonçalvesHuman Resources and Sustainability Manager

Principles and Criteria to Soybean Usage in Biofuel Producing

Page 2: August 2010 Álvaro Luiz Dilli Gonçalves Human Resources and Sustainability Manager Principles and Criteria to Soybean Usage in Biofuel Producing.

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About the SLC Group

Funding of Schneider Logemann & Cia Ltda, Horizontina/RS (current SLC Group)

First mechanical grain harvester industry in Brazil

Funding of Agropecuária Schneider Logemann Ltda, Horizontina/RS (current SLC Agrícola S.A.)

Funding of SLC S.A., Horizontina/RS Deere & Co. acquires 20% of SLC S.A.

SLC S.A. became SLC-John Deere. Deere & Co. totalizes 40% of SLC-John Deere

Deere & Co. acquires 100% of SLC-John Deere

Funding of SLC Alimentos, Porto Alegre/RS

Acquisition of Ferramentas Gerais, Porto Alegre/RS

1945

1977

1979

1996

1999

2000

2001

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About SLC Agrícola

1977

1980

2007

2008

Funding of Agropecuária Schneider Logemann Ltda, Horizontina/RS (current SLC Agrícola S.A.)

Beginning of the expansion towards the Middle-West

Initial Public Offering - IPO

Follow-On Offering

SLC Agrícola has been consolidating itself as a benchmark in the global agricultural sector

1997 First cotton harvest

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Strategic and DiversifiedLocation of Farms

Pamplona FarmCristalina – GOOwned Area: 17,094 haPlanted Area : 18,021 ha

Parnaíba FarmTasso Fragoso – MAOwned Area: 39,334 haPlanted Area: 27,614 ha

Palmeira FarmBuriti – MAOwned Area: 14,625 haPlanted Area: 2,735 ha

Planorte Farm(1)

Sapezal – MTOwned Area: 23,794 haPlanted Area: 33,742 ha

Paiaguás Farm(1)

Diamantino – MTOwned Area: 34,960 haPlanted Area: 38,206 ha

Planalto Farm(1)

Costa Rica – MSOwned Area:17,489 haPlanted Area: 19,680 ha

HQsPorto Alegre - RS

Planeste Farm(1)

Balsas – MAOwned Area: 22,787 haPlanted Area: 30,412 ha

Panorama FarmCorrentina – BA Owned Area: 12,982 haPlanted Area: 21,849 ha

Piratini FarmJaborandi – BA Owned Area: 25,355 haPlanted Area: 6,873ha

Palmares FarmBarreiras – BAOwned Area: 12,855 haPlanted Area: 24,219 ha

11 Production UnitsOwned Area: 247,886 hectaresPlanted Area 2009/10: 223,351 hectares(1) Units with 2nd crop.

Cuiabá

Goiânia

Brasília

São Paulo

Campo Grande

Porto Alegre

Cerrado Biome

São Luís

Salvador

Palmas

Parnaguá FarmSanta Filomena – PI Owned Area: 26,611 haFirst crop in 2010/11

Pamplona FarmCristalina – GOOwned Area: 17,094 haPlanted Area : 18,021 ha

Parnaíba FarmTasso Fragoso – MAOwned Area: 39,334 haPlanted Area: 27,614 ha

Palmeira FarmBuriti – MAOwned Area: 14,625 haPlanted Area: 2,735 ha

Planorte Farm(1)

Sapezal – MTOwned Area: 23,794 haPlanted Area: 33,742 ha

Paiaguás Farm(1)

Diamantino – MTOwned Area: 34,960 haPlanted Area: 38,206 ha

Planalto Farm(1)

Costa Rica – MSOwned Area:17,489 haPlanted Area: 19,680 ha

HQsPorto Alegre - RS

Planeste Farm(1)

Balsas – MAOwned Area: 22,787 haPlanted Area: 30,412 ha

Panorama FarmCorrentina – BA Owned Area: 12,982 haPlanted Area: 21,849 ha

Piratini FarmJaborandi – BA Owned Area: 25,355 haPlanted Area: 6,873ha

Palmares FarmBarreiras – BAOwned Area: 12,855 haPlanted Area: 24,219 ha

11 Production UnitsOwned Area: 247,886 hectaresPlanted Area 2009/10: 223,351 hectares(1) Units with 2nd crop.

Cuiabá

Goiânia

Brasília

São Paulo

Campo Grande

Porto Alegre

Cerrado Biome

São Luís

Salvador

Palmas

Parnaguá FarmSanta Filomena – PI Owned Area: 26,611 haFirst crop in 2010/11

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Growth Strategy: Planted Area(thd hectares)

* SLC Agrícola estimates

117.2

250.0

223.4 219.7

170.7

2006/07 2007/08 2008/09 2009/10 2010/11

Δ: +45.6%

Δ: +28.7%

*

Δ: +11.9%

Δ: +1.7%

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Breakdown of crops:2009/2010 Crop-year

* SLC Agrícola estimates

Soybean Cotton Corn

120,776

64,654

34,817

351,023

241,827227,221

Area (hectare)

Production (Tonelada)

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2,693

2,8412,726

2,901

3,046

SLC Center-West

Brazil US Argentina

Soybean Yields5-Year Average: 2005/06 – 2009/10 (kg/ha)

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Sustainability

Serving to the most rigorous markets;

Managing economic, environmental and social risks;

Managing focused in improving processes;

Identify, monitor and search for new solutions to

reduce possible impacts caused by our operation;

Enrich competition for commodities supply and

prices.

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Integrated Management

Policys, Guidelines, Goals, Indicators

NB

R 1

6001

ISO

14001

Bett

er

Cott

on Init

iati

ve

RTR

S

UTZ

Cert

ified

OH

SA

S 1

8001

PSO

AL

Inst

ituto

Ald

ogão S

oci

al

Business Sustainability

Intagrated Management

Page 10: August 2010 Álvaro Luiz Dilli Gonçalves Human Resources and Sustainability Manager Principles and Criteria to Soybean Usage in Biofuel Producing.

The Round Table on Responsible Soy (RTRS) is an international multi-stakeholder initiative founded in 2006 that promotes the use and growth of responsible production of soy, through the commitment of the main stakeholders of the soy value chain and through a global standard for responsible production.

The Association distinguishes between Participating and Observing Members. Membership is open to actors of the soy value chain and civil society who may apply to become a Participating Member in one of these three constituencies: Producers, Industry, Trade & Finance, Civil Society Organizations.

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RTRS - Round Table on Responsible Soy

Page 11: August 2010 Álvaro Luiz Dilli Gonçalves Human Resources and Sustainability Manager Principles and Criteria to Soybean Usage in Biofuel Producing.

RTRS - Organizational Chart

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Page 12: August 2010 Álvaro Luiz Dilli Gonçalves Human Resources and Sustainability Manager Principles and Criteria to Soybean Usage in Biofuel Producing.

RTRS - Goals

Promoting a global dialogue on soy that is economically viable, socially equitable and environmentally sound.

Reach consensus among key stakeholders and players linked to the soy industry.

Act as Forum to develop and promote a standard of sustainability for the production, processing, trading and use of soy.

Act as an internationally recognized forum for the monitoring of global soy production in terms of sustainability.

Mobilize diverse sectors interested in participating in the Round Table process.

Add on recently Principles & Criteria EU RED to biofuels in the plataform

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RTRS - Timeline

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Page 14: August 2010 Álvaro Luiz Dilli Gonçalves Human Resources and Sustainability Manager Principles and Criteria to Soybean Usage in Biofuel Producing.

There are 5 Principles with 27 Criteria covering the following disciplines: (1) Legal Compliance and Good Business Practice. (2) Responsible Labour Conditions. (3) Responsible Community Relations. (4) Environmental Responsibility. (5) Proper Agricultural Practice.

The RTRS counts with 141 members in 20 different countries;

In order to obtain recognition from the European Commission for the EU-RED (Directive of Renewable Energies), the RTRS will submit its application in the first round, once the Commission begins the process of evaluation of voluntary standards. For that objective, the RTRS Biofuels Working Group developed an EU-RED add-on. The add-on contains all requirements of the directive, and will be optional for those farmers that produce soy for biofuels to be exported to one of the European Union member states.

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RTRS – Principles and Criteria

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SLC Agrícola & RTRS

2008: SLC Agrícola as an effective member;

2009: SLC Agrícola as an effective member in Board (Management 2009/10);

Actively participating on the below technical groups (2009/10):

*International Technical Group (ITG)

*International Technical Verifying Group (ITVG)

P&Cs Legal Compliance and Good

Business Practice

Responsible Labour Conditions

Responsible Community Relations

Environmental Responsibility

Proper Agricultural Practice

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SLC Agrícola & RTRS

Stakeholders

New MarketsManagement Improvements

Processing Improvements

Page 17: August 2010 Álvaro Luiz Dilli Gonçalves Human Resources and Sustainability Manager Principles and Criteria to Soybean Usage in Biofuel Producing.

RTRS – Main Highlights (P&C)

Principles

Main Dificulties

1•Uncertainties Brazil’s current legistation;•Land Ownership situation in Brazil;

2•Complying with working journey in pick periods (planting, handling and harvesting);

3

•Precariousness in historical data obtention to construct social and economic profiles of our communities and races;

4•Compliance with Brazilian Forestry Code x and identification of

HCVA in property levels;•Definitions politics to Payment for Enviromental Services (PES);

5

•Consolidation of crop rotation concept;•Restrictions to chemicals usage x eficiency in sustainably

replacing them;

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Page 18: August 2010 Álvaro Luiz Dilli Gonçalves Human Resources and Sustainability Manager Principles and Criteria to Soybean Usage in Biofuel Producing.

RTRS – Implementing Process

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Internal Auditing (Effectiveness and Correcting Actions)Continuing Progresses

(Objetives and Goals)

Execution (controlling tools and intruments )

Detailed Schedule (Gap

Fulfillment)

Initial Diagnose(RTRS Protocol)

Page 19: August 2010 Álvaro Luiz Dilli Gonçalves Human Resources and Sustainability Manager Principles and Criteria to Soybean Usage in Biofuel Producing.

RTRS – Implementing and Handling P&Cs

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Soybean Producing Impacts

Applicable Law Definition ofRequisites

Definition of ProcceedsAnd Operational Controls

Definition of Metrics and Indicators

Compliance with Law

Identifing Opportunities of Improvement

Definition of GoalsDefinition of Management Plans

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RTRS – Lesson Learned

In the future there will be no agriculture without sustainability practices; Certified Agriculture.

P&C compliance will take land owners to a better property;

Cost reduction perspective in middle-terms;

Sustainability will guarantee best results in the long term.

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RTRS – Challenges in Producers Optics

Instigate consuming markets do get only certified soybean;

Establishments that allow RTST recognition;

Plan to establish payment measures to environamental services;

Plan to help producers to join RTRS methods (steps 1,2 e 3);

Capacitate operacional working-force.

Page 22: August 2010 Álvaro Luiz Dilli Gonçalves Human Resources and Sustainability Manager Principles and Criteria to Soybean Usage in Biofuel Producing.

Investment in ImprovementsUSD 640,751,00

Page 23: August 2010 Álvaro Luiz Dilli Gonçalves Human Resources and Sustainability Manager Principles and Criteria to Soybean Usage in Biofuel Producing.

Thank [email protected]

+ 55 (51) 3230 77 90