Stakeholder meeting of the new SASI: More than the sum of its parts

An article by Jan Rübel

With white chalk on a black board, the Berlin tak Theater announces the only performance of the next two days on the sidewalk. A few minutes before the start, dozens of performers hurry past the sign to the entrance - towards a special play. They won't be reciting texts, however, but getting to the bottom of a question: How can global agricultural supply chains be made more sustainable, for the benefit of all? “We are in a paradigm shift,” says a woman on stage inside. “It's no longer a question of whether you live it, but how,” says Bärbel Kofler, Parliamentary State Secretary at the German Federal Ministry for Economic Cooperation and Development (BMZ), referring to the ongoing transition of global agricultural and food systems and their supply chains. “All stakeholders must be brought together to cooperate on their implementation.”

The room here represents the whole world on a tiny scale. 120 people from business and science, civil society and politics - they will spend these two days exploring challenges and best practices, legal requirements and their impact. They will share experiences from their work on agricultural supply chains, evaluate the status quo and want to define ways forward: all under the umbrella of the newly founded Sustainable Agricultural Supply Chains Initiative (SASI), financed by the BMZ and implemented by the Deutsche Gesellschaft für internationale Zusammenarbeit (GIZ).

Paul Garaycochea outlined the initial situation in his introductory remarks. “Global agricultural supply chains shape the lives of many millions of people,” says the head of department at the BMZ. “700 million live in extreme poverty, climate change and deforestation are causing crop losses.” Substantial action for sustainability has its costs. “But inaction will become more expensive.” SASI would offer a flexible and comprehensive toolbox for partner countries, companies and producers. “This is based on the experience and expertise of existing GIZ projects.” The sun shines brightly through the floor-to-ceiling side windows onto the black wooden floor.

The SASI initiative is driving over 150 such projects along supply chains worldwide, promoting sustainable practices in the areas of deforestation, regulation, gender equality, living income and digitalization - all cornerstones that the meeting will illuminate here. The new platform combines three previous BMZ projects: The Initiative for Sustainable Agricultural Supply Chains (INA), the Global Project Sustainability and Value Creation in Agricultural Supply Chains (AgriChains) and the Fund for the Promotion of Innovation in the Agriculture and Food Sector (i4Ag). Common goal: to achieve synergy effects and further develop the work; an association to be more than the sum of its parts.

In the rectangular hall, two illuminated screens at the ends create a field of tension. In between, 14 tables with seven seats each and a few rows of chairs to the side, all close together so that people can't help but get to know each other - for example during the thematic block “Sharing Experiences”, in which the 120 participants wander back and forth between six points of contact where specific lessons learned are discussed. “Access to finance is the main challenge for smallholder women farmers,” says Chrissa Marey Borja, Program Manager at Grow Asia, about a project to empower women in Indonesian cocoa supply chains. “We go door-to-door to educate women about market access and climate-friendly techniques.” Or Beatriz van Daim from Tradin Organic, who presents a new navigation tool for due diligence. “With the data we collect, we can identify which farmers risk not meeting the conditions of new trade regulations.” And there is Sarah MacKay from Producers Direct, who presents an AI tool: “Farmers upload a photo of their crop, the AI counts the fruit - then sends predictions and tips.”

Two political processes frame the Berlin stakeholder meeting: on the one hand, there is the EU regulation on deforestation-free supply chains (EUDR), which was postponed by one year this October. And then there is the EU Supply Chain Directive with its agreed due diligence obligations - both powerful instruments. “EUDR is a game-changing tool,” says Indra Van Gisbergen at the panel on the Team Europe Initiative launched by Germany, which supports partner countries in the transition to deforestation-free supply chains. “The postponement of the EUDR is at the expense of forests and is bad news for farmers and indigenous peoples,” criticized the forest governance campaigner from Fern. Simon Gmeiner from the EU Commission replies: “We stand by the goals of the EUDR. We just want to give the stakeholders more time.” We are at a crucial moment. “This is not a slowdown. It's now about stepping up efforts.” Lisa Kirfel-Rühle from the BMZ puts it similarly: “You don't have to wait a year now, you can get started now,” says the deputy head of division with a view to the private sector. And Hamad Mota Kalaf, a diplomat from the Brazilian embassy in Germany: “We welcome the postponement. The important goal of deforestation should be done in dialog with partner countries to ensure operationality.”

The tables in the hall are adorned with small glass vases, but there are no flowers in them, just mint, parsley and dill. Everything appears to be geared towards functionality. One of the many different green DIN-A6 cards on the wall reads: “Do you think farmers have the best ‘field’ experience at this event?” Cooperation with them is at the heart of SASI's work, says Florian Reil from GIZ as he introduces the SASI Business Development Team on the podium, “and also with all other stakeholders”. With the new SASI platform, it is now possible to analyze more systematically which of the more than 150 projects should be scaled up. Charlotte Haeusler Vargas from the team adds with an appeal: “If you want to scale but are wondering how to do it - contact us!”

The stakeholder meeting is thematically divided into two parts. The first day is dedicated to projects along the agricultural supply chains, the status quo. The second, on the other hand, is dedicated to new beginnings and transition, and early in the morning we are already in the middle of a panel debate on the implementation of the EU Supply Chain Directive. “Will the financial sector also be included in an updated version?” is one question from the tables. “The Commission wants to look into this further,” replies GIZ advisor Peter Moehringer. “Sooner or later it will be added.” But how do buyers, retailers and producers agree on more sustainability? “The directive is a roof,” says Daniel Schönfelder, ”and contracts can form a floor underneath.” The Lead European Legal Advisor at the renowned Rutgers Law School warns against purchasing companies using contractual exit clauses to end a deal too quickly in the event of human rights violations. “But the buyer also has a responsibility.” There is no obligation to perfection, but to continuous improvement. The question of how to find out specific figures on production costs during contract negotiations comes from the floor. “You need long-term contracts,” Schönfelder replies. “Then they also open their cost books.” However, he adds, it is difficult to increase costs when the price is high.

Of course, higher wages increase production costs. The Organization for Economic Cooperation and Development's (OECD) new handbook on due diligence to enable living wages outlines how this can develop into a benefit for all and will be officially presented at the stakeholder meeting; around 700 people have also joined online for this event. “This human right is a prerequisite for the realization of other human rights,” comments Kofler, Parliamentary State Secretary at the BMZ, on Living Wages. “Now we can see how we can practically achieve better living wages,” she says of the book. “It sets the direction.” Allan Jorgensen is standing next to her, “It's a great moment to be here,” says the head of the OECD's Center for Responsible Business Conduct. “Global supply chains are part of the solution to wage problems.” But what does that look like in practice? Katharina Wortmann, Group Director at Aldi Süd, speaks on the podium. “It's a journey,” she says, outlining her company's efforts to achieve better wages for farmers. “We can't do it alone, we often only buy ten percent of the harvest realized on a farm.” However, she sees a good change in buyers.

Finally, Rainer Lademann will shed light on the relationships between buyers and producers in the shadow of competition in his lecture from a scientific perspective. “Producers are dependent on buyers,” says the honorary professor at the University of Göttingen. “The latter has better outside options.” But how do you increase the producers' share of the final price? In any case, Lademann also sees other factors for profitable action: “Company profits increase when they pursue a strong marketing strategy. This is not necessarily a question of company size.”

It is early afternoon when it becomes fundamental and internalizing again at the end. Antonie Fountain doesn't choose one of the two stages at either end for his impulse, but goes to the middle of the room. “Most of us started working for sustainable chains to make the world a little bit better,” he says to those gathered around him. Fountain is co-founder and managing director of the Voice Network, a global alliance of non-governmental organizations and trade unions working to make cocoa supply chains sustainable. “It's a long journey full of disappointments.” Hope is not easy. But Fountain takes them on a different journey: He begins by outlining the progress made by humanity, the reduction in the proportion of people below the poverty line over the past 200 years, the fall in child mortality and the fact that human rights and environmental protection are now being considered together, the generally heightened awareness of good governance. He contrasts this negatively with rising global temperatures and dwindling forests. “We are in trouble. We must be aware that the world around us is burning.” So what can we do? In the end, he gives five words that would help: “Regulated, transparent, collaborative, professional and decommoditized - we just need to do five things! We can do it!” At the end of the meeting, his final sentences reflect what State Secretary Kofler and many others said during these two days, which ran like a common thread through the discussions: “The only constant is change. The question is: How do we change it?”