Raffinerie Tirlemontoise, BENEO and Puratos collaborate with Belgian farmers to launch joint Climate Farming Project
Raffinerie Tirlemontoise, a beet sugar producer, BENEO, a leading manufacturer of functional ingredients, and Puratos, a global leader in bakery, patisserie, and chocolate ingredients, have joined forces to launch a pioneering Climate Farming Project. The ambitious initiative supports Belgian farmers in implementing more sustainable farming practices and promotes regenerative agricultural principles that contribute to enhancing soil health and reducing environmental impact.
Addressing climate change and ensuring resilient farming practices is crucial to meet the demands of future generations. The project partners recognise that this requires collaboration between the agricultural sector and the food industry. Empowering farmers through training and stimulating the exchange of knowledge are key components of this joint commitment.
The project is already underway and will run until 2025, involving 15 pilot farms across Belgium. Together, they will cultivate sugar beet, wheat and chicory according to various regenerative farming methods in an area equivalent to the size of more than 1,100 football fields.
Throughout the project, farmers will work on specific farming measures. This includes strategies such as reducing mineral nitrogen fertilization and pesticide use through more organic means and enhancing biodiversity by planting flower strips and hedges next to the fields. Improving the biomass of cover and catch crops that are planted after the main crop harvest will also reduce soil erosion and enhance soil fertility and biodiversity in agroecosystems. In addition, it will aim to reduce the tillage and soil work to different degrees as a measure to combat erosion. These efforts are supported by the localised application of mineral fertilisers, the use of organic fertilisers, biopesticides and the early sowing of multi-species catch crops.
At the outset, the Climate Farming Project engaged in a comprehensive diagnostic phase using a farm assessment tool called Greencard. This initial evaluation was crucial in setting measurable objectives and selecting appropriate regenerative agriculture practices, which could then be implemented in subsequent phases. The results can be used to expand these practices to other farmers working with BENEO and Raffinerie Tirlemontoise.
Fabrice Flamend, a farmer from Eghezée, Belgium, and member of the Climate Farming Project, shares his perspective: “It is clear that the agricultural sector must move towards a more regenerative approach. While there are many ideas on how to achieve this, involving farmers and their expertise from the field in these discussions is vital. We need to uncover feasible techniques where factors such as soil condition, crops, equipment and profitability can be taken into account. This is why I am excited to be part of the Climate Farming Project. It provides a platform to exchange know-how and experience between farmers, and the companies that process our crops. Through the Climate Farming Project, we can work together on solutions that will future-proof agriculture.”
Through this partnership, Raffinerie Tirlemontoise, BENEO and Puratos underscore their shared commitment to sustainable farming practices and the pursuit of innovative solutions, all while respecting the needs of farmers and future generations.
ADM, a global leader in sustainable agriculture supply chains, is advancing its commitment to fostering sustainable farming practices and enhancing community resilience through a strategic partnership with Swayam Shikshan Prayog (SSP), a non-governmental organisation dedicated to empowering women in low-income, climate-threatened communities. The core of this collaboration is SSP’s innovative Women-led Climate Resilient Farming (WCRF) model—an empowering force that enables women to act as influential change agents, driving the adoption of food-secure practices on their farms.
Funded by ADM, the project kicked off last December and is scheduled to run for a year, supporting some 1,500 women farmers across 30 villages in Maharashtra district. In the face of climate change in India, where erratic weather conditions have wiped out crops across an area of 9.4 million hectares in Maharashtra1, small farmers in the region, especially women, face struggles, including crop failures and limited resources. Yet even among adversity, women’s roles in agriculture remain crucial and transformative.
“While the WCRF model is centred on Marathwada in the Indian state of Maharashtra, we recognise the broader challenges across India and have incorporated our philosophy and practises into various corporate social responsibility programmes since 2019,” said Amrendra Mishra, Country Manager of India and Managing Director of Oilseeds at ADM. “Recognising the profound impact of climate change on the livelihoods of small and marginal farming households in the region, ADM is committed to driving positive change and resilience. Through comprehensive training and the promotion of economic and social resilience, we aspire to contribute to the enduring sustainability of women and their households. Our efforts focus on improving productivity, increasing income, enhancing family health and nutrition, and building resilience for a more robust and secure agrarian community.”
Through the WCRF model, ADM aims to equip women farmers with the necessary tools and knowledge for climate-resilient farming practices. The project not only addresses environmental concerns but also empowers communities from within, paving the way toward a sustainable and food-secure future for all involved. The WCRF model centers around four key components: empowerment, food security,
livelihoods, and natural resources.
To implement this model effectively, SSP has established a supportive network that involves collaboration with the government, agro-tech partners, training partners, and knowledge and resource partners. On the ground, Krishi Samvad Sahayak (KSS), an agriculture conversation facilitator, plays a pivotal role, serving as a bridge between the model’s network and women farmers by disseminating the model, ensuring constant communication, and providing support for the women farmers involved.
“SSP has been working closely with ADM for the past two years, and together we have embarked on meaningful initiatives that brought positive results,” said Mr. Upmanyu Patil, Director of Programs at SSP. “In our first year, we built 100 farm ponds in Dharashiv District and developed water conservation plans for 100 villages. In the current year, we are dedicated to promoting climate-smart agriculture reaching out to 30 villages and 1,500 farmers in the Marathwada region. Leveraging ADM’s ability to implement and scale as an industry leader, we believe that the potential for collaboration is vast. Collectively, we can support market linkages, ensure access to government schemes, and advance water-efficient irrigation practices and crops, supporting and empowering local female farmers to become change- makers in agriculture.”
1ISAS: The Climate Emergency Situation in Maharashtra: A Big Challenge for Uddhav Thackeray
Amid low rainfall in São Paulo State since the end of the Summer (in late March), farmers have been concerned about the effects of the current lack of moisture on orange trees. According to Inmet (Brazilian Institute of Meteorology), it has not rained in SP for 50 days, the longest drought since 2012. To make things worse, last month was the hottest July in SP in all times.
For the oranges still on tree (from the 2022/23 season), although major damages have not been reported, the drought is concerning. In dry-land groves, some fruits wilted, reducing both quality and size for the in natura market, making them only suitable to the industry. Besides, some oranges and leaves fell off due to high water stress.
Also, the effects of greening on oranges have increased this year in many Brazilian areas. It is important to consider that, according to Fundecitrus, last year, greening affected 22.37 % of the orange trees in SP, the highest average.
On the other hand, the lack of rains is necessary to cause groves some water stress, which is crucial for blooming. According to Cepea collaborators, in northern SP, where groves are irrigated, many farmers began irrigating the plants in mid-June, and trees are now beginning to bloom. In these areas, conditions have been favourable so far. In dry-land groves, blooming is expected to occur as soon as it rains in the citrus belt.
BRAZILIAN MARKET IN JULY – The demand for citrus increased in Brazil in July, favoured by the atypical warm weather during the month. On the other hand, although the orange harvesting was in full swing in SP last month, industries’ purchases were high, which pushed up quotations.
As observed for other agricultural products, the production costs of citrus farming have increased sharply in Brazil, due to higher inputs prices, majorly fertilisers. This scenario is concerning farmers in Brazil, considering that citrus production was low in the two previous seasons, which resulted in higher costs per unit.
Even if productivity and production increase in the 2022/23 season – compared to that in 2020/21 and 2021/22, because of the slightly more favourable weather –, higher inputs prices are expected to limit a possible reduction in the production cost per unit. Thus, profit margins may be lower than the expected, despite orange valuations in 2022/23 – so far, the ceiling orange price is at BRL 32.00 per 40.8-kilo box, harvested and delivered to processing plant (considering only large-sized processors).
Tight profitability may continue to constrain investments in both crops’ renewal and replating, mainly because shorter-cycle crops, such as soybean crops, are currently more attractive and bring better opportunities to farmers.
Last year, after five consecutive years of stability, the area allocated to citrus farming shrank in São Paulo and the Triângulo Mineiro (citrus belt), according to data from Fundecitrus, which may happen again in 2022.
Lower profit margins may also hamper adequate crop management in the citrus belt. Lower investments in crops’ renewal and replanting added to difficulties related to crop management may reduce orange production even more in the mid-term. Low supply may underpin prices, since the stocks of orange juice at the processing plants in SP are not high, and production needs to be higher for inventories to be replenished.
Citrus market
The domestic demand for oranges has not been high enough to raise prices. According to Cepea collaborators, many purchasers are trying to pay lower prices, putting farmers off selling oranges in the domestic market.
Brazilian citrus farmers claim that, if prices drop lower than the current levels, sales in the in natura market will become unviable. Currently, juice processors are bidding prices up to BRL 32/box (harvested and delivered). Although the values paid by processors include the harvesting and freight, the quality standard required by this segment and the risks of default are lower, making sales to the industry more attractive.
In this scenario, if the demand from processors continues high and prices, attractive, sales to the in natura market are expected to decrease, at least during the Winter and the beginning of Spring, when supply increases, while demand decreases. Also, most oranges have not reached the ideal maturation stage yet, allowing farmers to wait and sell the oranges when the processing activities in the 2022/23 season begin, forecast to late May/early June.
Koa is disrupting transparency in the cocoa industry. The Swiss-Ghanaian start-up is launching a system, using blockchain technology, that proves transactions and higher income for cocoa farmers. In an international collaboration with the companies seedtrace (Germany) and MTN Group (South Africa), Koa has implemented a new, tamper-proof and scalable transparency system that records payments made to cocoa smallholders. Mobile money payments are verified in real-time and are irreversibly stored on a blockchain. Transactions are made publicly available, differentiating themselves from existing certification labels, providing consumers with direct proof that farmers receive the full payment.
Over the last decades, supply chain scandals and cocoa farmer poverty have continued to rock the cocoa industry, leading to increased consumer demand and political efforts to improve transparency and accountability within the cocoa industry. Yet, consumers struggle to put their trust in brands and their initiatives. While products carry certification labels, the inevitable question remains: How can I be sure that farmers receive the money that they’re entitled to?
Koa, the Swiss-Ghanaian start-up making use of cocoa food waste, has set sail to disrupt transparency standards and to enable consumers to obtain assurance. “We want to get rid of long, non-transparent supply chains,” emphasises Anian Schreiber, Managing Director and Co-Founder at Koa. “Instead of claiming good practices, we put our cards on the table to let the consumers witness each transaction to farmers.” The start-up is known for upcycling the white pulp that surrounds the cocoa beans, thereby significantly increasing the income of Ghanaian smallholders, while offering a solution to reduce farmer poverty. Koa is working with over 2,200 cocoa farmers and will add an additional 10,000 farmers to its value chain in the next two years.
Removing the room for errors and opaque marketing messages
To develop the pioneering transparency system, Koa collaborated with Berlin-based seedtrace, a SaaS start-up on a mission to make supply chain transparency the norm. Existing certification labels often validate transactions through non-transparent, error-prone control procedures, with farmers regularly only receiving a portion of the funds claimed to be earmarked for them. To combat this, seedtrace created a system that removes the room for error and enables customers to monitor the extra income paid to farmers. “We verify each transaction and store it on an open, low-emission blockchain. Together with Koa, we thereby set new standards assuring that the information is verified, cannot be manipulated and is accessible in real-time for all stakeholders,” explains Ana Selina Haberbosch, CEO at seedtrace.
Blockchain enables full transparency
The new system is unique as it connects blockchain with mobile money transactions. “Instead of having a person enter information on the blockchain, it links the data from mobile money transactions. This combination allows us to verify additional farmer income, deliver full proof and increase trust among stakeholders,” says Francis Appiagyei-Poku, Finance and Administration Director at Koa. To make this possible, Koa and seedtrace have partnered with MTN Group, Africa’s largest telecommunications operator, who’s mobile money transaction data serves as secure inputs for the blockchain provided by US company Topl. 360-degree transparency is achieved by implementing clear, transparent, and compliant data management processes that protects individual data and keep farmers informed of data use.
Oberweis first to integrate the system
Leading the way towards full transparency is Jeff Oberweis, the renowned pastry chef from Luxembourg, who sends consumers on a journey from cocoa farmers to the final product. A QR code on the packaging of the product containing Koa ingredients leads consumers to the seedtrace platform where they can see the additional farmer income. “In 2022, we want to have proof that people are paid fairly and that we work on an equal footing throughout the value chain. Koa’s integration of the blockchain guarantees total transparency and allows us to set an example to the industry,” emphasises Jeff Oberweis.
What is blockchain?
Blockchain technology is at its very core a database, distributed across many servers in a network. The biggest benefits of using blockchain for supply chain management are transparency and traceability. Essentially, blockchain allows organizations to store information about transactions and their impact in an immutable and transparent way, ensuring that information about upstream events arrives downstream unaltered. Since the companies Koa and seedtrace are using a public blockchain and every actor has their own copy of the chain, it cannot be tampered with, which increases the transparency and trust- worthiness of the provided information.
Since Koa pays farmers with mobile money (real money) through the mobile payment provider MTN, the tracing partner seedtrace can verify every individual transaction. Once triggered by Koa, seedtrace verifies through MTN whether the transaction arrived with the right person and the right amount before storing the data immutably on the blockchain.
With the anticipation of the drought and rainfall below the average in the first quarter of 2021 in São Paulo (SP), the development of the oranges from the 2021/22 season is below the expected, majorly in non-irrigated groves. At the current stage of groves development (fruit enlargement), moisture is crucial, which is warning farmers about the volume to be harvested this season.
So far, it is believed that production will be small, but larger than that in the 2020/21 season (due to the weather in the second semester of 2020 and its effects on flowering and settlement).
Besides the number of fruits, which is not forecast to be high, citrus farmers have been concerned about quality issues that may occur because of low moisture. The top complaints are related to size (since fruits may take longer to reach the ideal size) and wilted oranges (riper fruits), largely pear and early oranges. On the other hand, until the end of April, fruit drop, which may also be worsened by the lack of rain, was not significant, according to farmers.
In order to avoid higher quality loss, some farmers may accelerate the harvesting, even if the oranges have not reached the ideal size and ripening, which may hamper sales and constrain price rises.
INDUSTRIAL YIELD – On the other hand, industrial yield may be favored by the lack of rainfall in citrus-producing regions, since less boxes of oranges may be necessary to produce a ton of concentrated juice.
