The initiative offers to assist breeders, helping them improve quality and benefitted 100 families in the region in 2017; The goal is to reach 470 producers in 2019.
Sao Paulo, January 2, 2018 – JBS has signed an agreement with small-scale livestock breeders in the São Miguel do Guaporé region of Rondônia, to purchase 15,243 head of cattle by 2019 as part of the Social Fuel Seal development program for biodiesel production.
In 2017, the first year of the project, the company purchased 1,961 head of cattle, generating R$ 3.5 million in revenue for around 100 local families. Over 6 thousand head of cattle per year will be purchased in 2018 and 2019 under the agreement.
The goal is to reach 50 thousand head of cattle in 2018-2019, which would generate R$ 90 million over the two-year period, benefitting 470 families in the region.
Social Fuel Seal
The partnership between JBS and the livestock breeders in São Miguel do Guaporé is part of an initiative by JBS Biodiesel and JBS Carnes to train local livestock breeders and help them improve their pastures, manage their properties and herds and bring in genetic improvements, backed by the company’s guaranteed cattle purchases.
The training is incentivized under the Social Fuel Seal program, run by the Special Secretariat for Family Farming (Sead) and the Ministry for Agricultural Development (MDA) and is linked to the National Biodiesel Usage and Production Program (PNPB).
The Social Fuel Seal is offered exclusively to farmers to encourage biodiesel development and generation using oilseed products, like soybeans. Beef tallow, one of several products that are produced by meat processing, is the second most important source of raw material for biodiesel in Brazil, which means its inclusion in the PNPB livestock chain for 2015 could give the economy a big boost.
The JBS project in São Miguel do Guaporé innovated by involving livestock farmers in the program.
“Families that breed livestock used to trade with smaller buyers and local meatpacking plants. As part of the project, they are able to increase cattle quality and productivity, generating more added value and creating an opportunity to serve more demanding customers who pay more for high quality meat. They gain in scale”, said Fabio Dias, Livestock Breeder Relationship manager at JBS.
Training and genetic improvement
JBS offers livestock breeders free assistance from a technical team that includes agricultural engineers, livestock specialists and veterinarians who specialize in cattle reproduction.
The team also provides financial planning guidance, preset sales options, bonuses for cattle quality and guarantees to buy 100% of all contracted cattle.
The team not only analyzes potential cattle producers who might join the program, it also ensure they comply with environmental and employment laws and meet the company’s supplier requirements.
In one year, the project issued 279 technical assistance reports that provide recommendations on pasture improvement, management and financial administration, as well as guidelines for soil analysis and correction, facilities and genetic improvement.
1,125 reproductive procedures have been carried out using artificial insemination, using Aberdeen, Angus and Nelore bulls. The process includes gestation monitoring with ultrasound exams carried out on each breeder’s property.
In 2017, JBS produced 210 million liters of biodiesel at its plants in Lins (SP) and Campo Verde (MT). Part of this output was backed by the families that breed livestock in São Miguel do Guaporé.
“If we hit our targets for the 2018-2019 period, we should produce around 500 million liters of biodiesel, with the support of the project for local livestock breeders”, said Alexandre Pereira, director at JBS Biodiesel.
Since joining the Social Fuel Seal program in 2007, JBS Biodiesel has helped over 5 thousand small-scale grain producers through purchases of soybeans.
JBS is one of the world’s leading food industry companies with approximately 235 thousand employees in over 20 countries. The company owns a portfolio of brands that are acknowledged for their excellence and innovation, including Doriana, Friboi, Moy Park, Pilgrim’s Pride, Primo, Seara, Swift, Gold’n Plump and others, serving over 300,000 customers of more than 150 nationalities worldwide. The company’s focus on innovation also reflects its management approach to related businesses in areas such as leather, biodiesel, collagen, personal hygiene and cleaning products, natural wrappings, solid waste management solutions, metal packaging and transportation. JBS has adopted best sustainability practices throughout its value chain and constantly monitors its suppliers using satellite imagery, georeferenced maps of supplier farms and monitors official data from government agencies; the company also focuses on the highest possible food safety and quality standards and has adopted a number of animal wellfare procedures.
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