Advance traceability for sustainable cattle supply chain

Brazil’s cattle sector faces significant challenges related to land-use compliance, supplier monitoring, and the lack of scalable mechanisms for verifying deforestation-free production. To address these risks and support its decarbonization goals, the implementing company has prioritized supply chain traceability, producer engagement, and restoration initiatives. The company aims to reduce emissions associated with land-use change (Scope 3, Category 1 and 11) while improving the resilience and productivity of small producers.

Location of the Initiative: Brazil

The implementing company established a solutions hub to assist rural producers with environmental compliance, productivity enhancement, and individual animal traceability.

The initiative integrates two core programs:

1. Traceability Accelerator

   • Provides individual animal identification tools.

   • Includes the donation of 2 million electronic ear tags and 175 tag readers to Adepará and local producers.

   • Delivered in partnership with The Nature Conservancy (TNC) and the government of Pará.

2. Green Offices 2.0

   • Offers environmental regularization services, technical support, and management assistance.

   • Supports small producers in improving productivity and profitability while complying with environmental legislation.

Together, these programs help connect producers to verified sustainable supply chains and support the state’s goal of phased implementation of full individual cattle traceability by December 2027.

Sustainability Impact

Climate

Expected climate impacts include:

• Reduced emissions from land-use change through improved environmental compliance and restoration

• Lower intensity emissions through productivity gains and improved pasture management

• Enabling impact by establishing a traceability infrastructure that supports state-wide monitoring and enforcement

Nature

The initiative has enabled:

• Environmental regularization of over 18,000 rural properties

• 7,005 hectares undergoing forest restoration, directly contributing to biodiversity recovery and improved land stewardship

Social

• Technical assistance currently supports 900+ family farmers, helping to increase profitability and long-term economic resilience

• Rural producers gain improved market access through compliance with traceability and environmental requirements

Business Impact

Benefits

• Improved supplier compliance reduces exposure to deforestation-related risks

• Increased transparency strengthens supply chain governance and stakeholder trust

• Producer productivity gains can stabilize sourcing volumes and reduce volatility

• Strengthening relationships with small producers supports long-term supply security

Costs

Costs include:

• Procurement of electronic tags and tag readers

• Operation of Green Offices (staff, field teams, administrative support)

• Technical assistance services

Dependencies:

• State-level regulatory alignment and readiness.

• Producer willingness to engage and adopt traceability technologies.

Cost mitigation strategies:

• Leveraging partnerships with government and NGOs.

• Scaling adoption to reduce per-unit technology costs.

Typical Business Profile

Best suited for:

• Companies in livestock value chains.

• Organizations sourcing from small and medium rural producers.

• Regions with land-use compliance risks and limited traceability systems.

• Businesses seeking to reduce Scope 3 agricultural emissions.

Approach

• Identify priority regions with high environmental risk.

• Engage government agencies and technical partners (e.g., TNC).

• Deploy traceability tools (ear tags, tag readers).

• Establish local support offices for compliance and technical assistance.

• Conduct producer outreach and training.

• Monitor uptake and adjust support services as needed.

• Integrate traceability data into supply chain verification systems.

Stakeholders Involved

• Project Leads: Sustainability and supply chain teams.

• Internal Functions: Procurement, compliance, technical assistance units, traceability/IT teams.

• Main Providers: TNC (technical partner), Adepará (state agency), technology/equipment suppliers.

• Other Stakeholders: Family farmers, rural associations, state government of Pará.

Key Parameters to Consider

• Maturity: Individual traceability is an emerging but rapidly scaling practice in Brazil.

• Timeline: Full implementation in Pará planned by December 2027.

• Technical Requirements: Digital infrastructure for data capture and verification.

• Enabling Conditions: Clear regulatory frameworks and local government collaboration.

• Geographic Specificity: Particularly valuable in deforestation-risk regions of the Amazon biome.

Implementation & Operations Tips

• Provide hands-on training to ensure producer adoption of traceability tools.

• Maintain close collaboration with government agencies to align compliance requirements.

• Use simple, accessible communication materials for rural engagement.

• Ensure stable field presence through properly staffed local offices.

Monitor early results to refine support services and scale effectively.