MARFRIG GLOBAL FOODS S.A.

Enhancement of procedures and policies for indirect suppliers

Last year, Marfrig developed a screening protocol for suppliers in the Amazon and Cerrado biomes, which will be externally verified in 2023. The tracking and geomonitoring processes and systems now allow to monitor 100% of its direct suppliers in the Amazon biome. This means that all of the farms with which Marfrig maintains commercial relations have adopted sustainable production practices, and are in areas that are free of deforestation.

These monitoring and management practices are expanding across the entire supply chain, including the indirect suppliers, the most challenging and impactful part of the supply chain of the sector. Marfrig’s monitoring protocol has now identified 72% of its indirect suppliers located in the Amazon biome, and 71% in the Cerrado (Brazilian savanna). The most critical areas (at high and very high risk of deforestation) are already fully monitored in both biomes.

Suppliers Network Map

Marfrig developed a comprehensive tool called Direct and Indirect Supplier Network Map. The map aims to visualize and assess the connections between livestock farmers and direct suppliers of Marfrig, to measure how many indirect suppliers maintain links with the farms that supply Marfrig directly, as well as to see the status of these relationships. The Map counts on several databases and information, including the Socio-environmental Risk Map (identifies high-risk areas and engage suppliers to gather annual information about their cattle sources), the Marfrig Registration process (socio-environmental analyses of supplier properties, compliance checks and eventual support of regularization), the Conecta monitoring tool (utilizes blockchain technology to track production and socio-environmental compliance in the supply chain), the Livestock Breeder’s Portal as well as Visipec (the cattle production monitoring tool that is expected to become a complementary indirect supply chain data checking support).

Marfrig Green+ program progress

By the end of 2022, more than 2,500 farms were reinstated as suppliers by demonstrating their firm commitment to the principle of inclusion.

Among the several results that this initiative has attained since it was launched three years ago, the highlight of 2022 is the reinclusion of more than three thousand farms into the supplier base, after they returned to operate in accordance with the company’s socio-environmental commitments. The reinclusion of farmers was possible thanks to the technical support of the Marfrig Club program team and to legal advice. Marfrig encourages farmers to adopt good practices and assists them with pending environmental, labor, and documentation issues, which enables them to meet the company’s criteria. As part of the reinclusion, Marfrig carried out environmental diagnoses for farmers in the Amazon and prepared, together with them, an action plan to restore vegetation on the farms.