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For the second consecutive year, an independent audit has reasserted Marfrig’s good sustainability practices in the Amazon region

For the second time, the audit verified Marfrig's compliance with every point in the public commitment on Amazon Cattle Ranching, whilst also completing the mapping of property limits for all the company’s direct suppliers

São Paulo, June 1st, 2015 – Marfrig Global Foods, one of the world’s largest food companies, published a report based on an audit by DNV-GL (auditing firm hired to independently evaluate the company’s information and processes) that attested to the company’s good sustainability practices in cattle procurement at its units in the Amazon biome, in accordance with the criteria established in the public commitment on Amazon Cattle Ranching, signed with Greenpeace in 2009 and the “2014 Term of Reference for Third Party Audits of the Public Commitment on Amazon Cattle Ranching.”

The audit was conducted from 5th March to 8th April, 2015 and stated that in 2014 no cattle purchase transactions by Marfrig breached points of the public commitment undertaken by Brazil's largest animal protein producers with the non-governmental organization Greenpeace. “The results of this audit reflect the investments in processes, training and technology, as well as the commitment of both the company and its employees to sustainability,” said Andrew Murchie, CEO of Marfrig Beef Brazil.

The public commitment known as “Minimum Criteria for Beef Cattle and Product Operations on an Industrial Scale in the Brazilian Amazon Biome” establishes standards for purchasing cattle from properties located in the Amazon biome, requiring the exclusion from supplier lists of farms involved in deforestation after October 2009, based on the official lists issued by the Brazilian Space Research Institute (INPE), the Project for Monitoring Deforestation in the Legal Amazon (Prodes) and the Real-Time System for Detecting Deforestation in the Legal Amazon (Deter), in addition to any farms appearing on the Ministry of Labor’s list of forced labor, located on indigenous lands or conservation units and/or appearing on the list of banned areas of the Brazilian Institute of the Environment and Renewable Resources (Ibama).

The audit also verified that in 2014 Marfrig completed the mapping of the borders of 100% of all properties owned by its direct suppliers. “This is a very important step that required a significant investment and will allow us to more accurately manage our supply chain in the Amazon biome, helping to ensure respect for animals, society and the environment," said the executive. 
This last survey conducted by DNV-GL also evaluated the company responsible for conducting the geospatial analyses of Marfrig's supply chain and verified zero instances of non-compliance in its evaluation processes and that the company was duly qualified for this activity.

The audit also verified that Marfrig’s cattle procurement team systematically checks the slave labour and banned area blacklists, as specified in the Social and Environmental Control Procedures for Cattle Purchases and that the company’s procurement system automatically prevents any attempt to purchase cattle from properties blocked by the system.

Considering that indirect suppliers are one of the most important points in the supply chain, Marfrig's work plan for 2015 includes expanding the identification of these suppliers using the Request for Information (RFI) tool, which is a document containing data on the origin of the lot to be sent to the meatpacker. The document is a declaration used to map Marfrig's supply chain, measure impacts and create a development plan for suppliers that present problems involving the origin of animals. At Marfrig, indirect supplier information is crosschecked with the websites of Ibama and the Ministry of Labour.

“In 2014, more than 50% of indirect suppliers to units in the Amazon biome were identified, through RFI tool, and our goal is to increase this percentage to 75% by 2015,” said Murchie.

In all, Marfrig monitors 8,303 properties in the Amazon region, which correspond to 26 million hectares, or nearly 6% of a biome that is considered one of the world’s most important for its biodiversity and environmental relevance. The area monitored by Marfrig inside the Amazon biome corresponds, for example, to a country larger than the United Kingdom.

Off all monitored properties, 6,471 are cleared to supply cattle to Marfrig’s five production units in the Amazon biome, which are located in Tangará da Serra (MT), Paranatinga (MT), Rolim de Moura (RO), Chupinguaia (RO) and Tucumã (PA). Currently, the remaining 1,679 properties are banned from supplying cattle to Marfrig.

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