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Supply Chain Management

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% Cattle suppliers monitored based on socio-environmental criteria

GRI 13 GRI 304-2 GRI FP1 SASB FB-MP-160a SASB FB-MP-430a.2 SDG 12 SDG 15
2020 2021 2022
Brazil 100% 100% 100%
Paraguay 75% 100% 100%
Colombia - - 80%
Argentina - - 90%
Uruguay - - -

Context

The Company monitors 100% of direct suppliers in Brazil and is also committed to expanding geospatial monitoring to other countries where it has operations: in Paraguay, the goal was to monitor 100% of direct suppliers by 2021 – goal completed; in Colombia by 2023; in Uruguay by 2025 and in Argentina by 2030.
In Brazil, the Company is the only one to monitor 100% of the direct supplier farms with georeferenced maps in all the biomes where it operates (Amazon, Cerrado, Pantanal and Atlantic Forest and Caatinga). Thus, it ensures that its direct suppliers in Brazilian territory are not associated with illegal deforestation, as well as the invasion of protected areas or indigenous lands. It was also a pioneer in territorially expanding the supply chain traceability systems to Paraguay where, since 2021, 100% of direct suppliers are monitored.
In 2022, Minerva Foods also began expanding monitoring to Colombia and Argentina where more than 80% and around 90% of direct suppliers, respectively, are already monitored. In Uruguay, implementation is in progress and the Company carried out a study of the local socio-environmental legislation for later definition of criteria for monitoring and implementation of systems.

% Compliance in Audits for Social-environmental Monitoring

GRI 13 GRI 304-2 GRI FP1 SASB FB-MP-160a SASB FB-MP-430a.2 SDG 12 SDG 15 TCFD
2020 2021 2022
Audit of the Federal Public Ministry of Pará 99,74% 100% 100%
Audit of the Livestock Farming Public Commitment 100% 100% 100%
Independent Audit of Paraguay 100% 100% 100%

Context

In 2022, the efficiency of the Company’s geomonitoring system was again validated by third party audits. Once again, Minerva Foods achieved 100% compliance with the Conduct Adjustment Agreement (TAC) of Pará. This audit was conducted under the supervision of the Federal Public Ministry, achieving one of the best results among the main players in the market. For the ninth year in a row, Minerva also achieved 100% compliance with the Public Livestock Commitment signed in 2009. The results were confirmed by BDO RCS Auditores Independentes.
In Paraguay the audit conducted by BDO RCS Auditores Independentes reported a 100% compliance for Minerva Foods. All audit reports are public and available on the Company’s website.

Number of suppliers identified as having a significant risk for the occurrence of work analogous to slavery

GRI 13 GRI 409-1 SASB FB-MP-160a SASB FB-MP-430a.2 SDG 12 SDG 8
2020 2021 2022
Brazil 8 28 12
Paraguay - 0 0
Colombia - - 0
Argentina - - 0
Uruguay - - -

Context

In Brazil, the company monitors 100% of direct cattle suppliers, evaluating socio-environmental criteria such as: encroachment on indigenous lands or quilombola areas; producers engaged in the practice of work analogous to slavery, listed on the public registry of the Ministry of Labor and Social Security; and ranches located on illegally acquired land or obtained through acts of violence. This is to ensure that no commercial transactions are entered into with suppliers engaged in any of these criteria. In all other countries, the company follows up on denunciations made through the media and other official channels, given the lack of a public database. In Brazil, for 2022, 12 suppliers were blocked from doing business with the Company for failure to comply with the previously described criteria. No such occurrences were registered in any of the other countries.

 

Slaughter by Division

GRI FP11 SASB FB-MP-000.B SASB FB-MP-410a.1 SDG 15
2020 2021 2022
Total heads slaughtered (thousands) 3.173,60 3.572,30 4.388,4
Brazil Division - cattle (thousands) 1.484,80 1.375,20 1.719,7
Latam Division - cattle (thousands) 1.688,80 2.197,10 2.033,1
Australia division - sheep (thousands) - - 635,4

Context

The annual slaughter expansion is driven by the consistent international demand for beef, in addition to the increasing availability of animals ready for slaughter, especially in Brazil. The Australian operations underwent site adaptation reforms, management standardization and did not operate at full capacity in 2022.

Slaughter by breeding type

GRI FP11 SASB FB-MP-000.B SASB FB-MP-410a.1 SDG 15
2020 2021 2022
Total head of cattle slaughtered (thousands) 3,173.60 3,572.30 4,388.4
% of animals raised on pasture 41,61 54,40 44,7
% of animals raised in semi-confinement 10,91 11,30 15,9
% of animals raised in confinement on pasture 7,65 4,40 5,5
% of animals raised in confinement 39,83 29,80 33,9

Context

Grass-raising is a predominant feature of agricultural activity in South America. Semi-confinement and confinement on pasture are fattening and finishing strategies, in which the animals remain 100% of the period in the pasture and receive additional nutrition (feed) in the trough. The semi-confinement or confinement diets are produced with grains or derivatives (composed mostly of corn, soy and mineral core ingredients) and there is no use of animal by-products or growth hormones or similar for fattening and finishing.

% new suppliers evaluated based on environmental criteria*

GRI 304-2 GRI 308-1 SASB FB-MP-160a SASB FB-MP-430a.2 SDG 12 SDG 15
2020 2021 2022
Brazil - 100% 100%
Paraguay - - 100%
Colombia - - 80%
Argentina - - 90%
Uruguay - - -

Context

By integrating Minerva Foods’ internal systems with SMGeo Direto, all livestock purchases are subject to verification, and in the event of any liability or irregularity, the transaction is denied and the supplier is blocked until the irregularity is corrected.

*Indicator started to be reported in 2022.

Number of suppliers identified as having a significant risk for the occurrence of environmental impacts

GRI 13 GRI 304-2 GRI 308-2 SASB FB-MP-160a SASB FB-MP-430a.2 SDG 12 SDG 15
2020 2021 2022
Brazil - - 414
Paraguay - - 243
Colombia - - -
Argentina - - -
Uruguay - - -
Total 154 374 657

Context

In Brazil, 414 suppliers were suspended in 2022, representing 4% of the supplier base. The primary causes for suspension were illegal deforestation violations and embargoes issued by IBAMA (Brazilian Institute for the Environment and Renewable Natural Resources).
In Paraguay, illegal deforestation and encroachment on indigenous lands were among the main reasons for irregularities detected, leading to a total of 243 suppliers (9.9%) failing to comply with social and environmental criteria.
Monitoring systems are currently being implemented in other South American countries.

Number of hectares of direct supplier farms monitored by country (millions)

GRI 13 GRI 304-2 SASB FB-MP-160a.2. SDG 12 SDG 15
2020 2021 2022
Brazil 10,60 14 16
Paraguay 3,60 12 14
Colômbia - - 1
Argentina - - 3
Uruguay - - -

Context

Addressing forest conservation and biodiversity, in 2022, the Company monitored: more than 600,000 hectares in the Amazon biome, for a total of more than 9 million hectares monitored throughout the years; 1.83 million hectares in the Cerrado, for a total of more than 6 million hectares monitored throughout the years; and more than 1 million hectares in other biomes – Caatinga, Atlantic Forest, and Pantanal. All in all, the Company, based on socio-environmental criteria to combat illegal deforestation, monitored more than 16 million hectares and more than 19,000 suppliers throughout Brazil for 2022.
In Paraguay, the Company monitors over 14 million hectares among 4,000 suppliers; over 1 million hectares in Colombia and 3 million in Argentina.