Abstract

•Stickiness is key for accountability of supply-chain actors•The soy traders with the largest market share are geographically stickier•Stickier traders also show higher soy-deforestation risk•Stickier traders are also signatories of zero-deforestation commitments Consumption of food in locations far from production is a cause of forest loss, especially in developing countries that lack the resources, capacity, or political will to distinguish legal from illegal deforestation. In response, civil society and consumers have pushed companies to make zero-deforestation commitments. For these commitments to be effective, supply chain transparency is crucial, but stickiness also plays a key role. Stickiness refers to stable and consistent commercial relationships between companies and regions. Stickiness may influence how companies attain zero-deforestation commitments. For instance, companies with non-sticky sourcing patterns may move geographically, not committing to achieving long-term sustainability. Here, we look at the soy trade in Brazil, the world's largest exporter, to analyze supply chain stickiness and explain why it is essential to curb deforestation. We show that stickiness is associated with deforestation risk. Commodity trade is central to the global economy but is also associated with socio-environmental impacts, for example, deforestation, especially in producer countries. It is crucial to understand how geographic sourcing patterns of commodities and commercial relationships between places and actors influence land-use dynamics, socio-economic development, and environmental degradation. Here, we propose a concept and methodological approach to analyze the geographic stickiness of commodity supply chains, which is the maintenance of supply network configurations over time and across perturbations. We showcase policy-relevant metrics for all Brazilian soy exports between 2003 and 2017, using high-resolution supply chain data from www.trase.earth. We find that the Brazilian soy traders with the largest market share exhibit stickier geographic sourcing patterns, and that the supply network configurations between production places and traders become increasingly sticky in subsequent years. Understanding trade stickiness is crucial for supply chain accountability, because it directly affects the effectiveness of zero-deforestation commitments. Commodity trade is central to the global economy but is also associated with socio-environmental impacts, for example, deforestation, especially in producer countries. It is crucial to understand how geographic sourcing patterns of commodities and commercial relationships between places and actors influence land-use dynamics, socio-economic development, and environmental degradation. Here, we propose a concept and methodological approach to analyze the geographic stickiness of commodity supply chains, which is the maintenance of supply network configurations over time and across perturbations. We showcase policy-relevant metrics for all Brazilian soy exports between 2003 and 2017, using high-resolution supply chain data from www.trase.earth. We find that the Brazilian soy traders with the largest market share exhibit stickier geographic sourcing patterns, and that the supply network configurations between production places and traders become increasingly sticky in subsequent years. Understanding trade stickiness is crucial for supply chain accountability, because it directly affects the effectiveness of zero-deforestation commitments. Over recent decades, the growth in agricultural trade has promoted economic development and food security but also resulted in negative socio-economic and environmental impacts.1Paitan C.P. Verburg P. 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For example, companies implement ZDCs, NGOs monitor compliance, and governments provide the tools. Examples of ZDCs can be in the form of sustainability roundtables (e.g., Roundtable on Sustainable Palm Oil), and broader governance fora (e.g., Tropical Forests Alliance).12Lambin E.F. Gibbs H.K. Heilmayr R. Carlson K.M. Fleck L.C. Garrett R.D. le Polain de Waroux Y. McDermott C.L. McLaughlin D. Newton P. et al.The role of supply-chain initiatives in reducing deforestation.Nat. Clim. Chang. 2018; 8: 109-116Crossref Scopus (179) Google Scholar The Amazon Soy Moratorium (ASM), another ZDC example, was the first voluntary ZDC in the tropics. It was a response from soy traders to pressure from retailers and NGOs, resulting in the agreement to not purchase soy from areas deforested after July 2006 in the Brazilian Amazon. The ASM is reputed to have reduced direct deforestation to soy fields from 30% to 1% of annual soy expansion in the Brazilian Amazon.13Gibbs H.K. Rausch L. Munger J. 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Knowledge of how much, how, and why supply chain actors engage with each other and with specific sourcing regions remains limited. Moreover, we need an improved understanding of how and why actors shift sourcing locations over time and how this influences land-use dynamics and socio-environmental outcomes.12Lambin E.F. Gibbs H.K. Heilmayr R. Carlson K.M. Fleck L.C. Garrett R.D. le Polain de Waroux Y. McDermott C.L. McLaughlin D. Newton P. et al.The role of supply-chain initiatives in reducing deforestation.Nat. Clim. Chang. 2018; 8: 109-116Crossref Scopus (179) Google Scholar,15Garrett R.D. Levy S. Carlson K.M. Gardner T.A. Godar J. Clapp J. Dauvergne P. Heilmayr R. le Polain de Waroux Y. Ayre B. et al.Criteria for effective zero-deforestation commitments.Glob. Environ. Chang. 2019; 54: 135-147Crossref Scopus (60) Google Scholar,19Meijer K.S. A comparative analysis of the effectiveness of four supply chain initiatives to reduce deforestation.Trop. Conserv. 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Land institutions and supply chain configurations as determinants of soybean planted area and yields in Brazil.Land Use Policy. 2013; 31: 385-396Crossref Scopus (79) Google Scholar Agricultural traders that have volatile geographic sourcing patterns likely have weaker connections, credibility, and engagement with farmers, and thus less capacity to transmit the zero-deforestation signal or demand to their suppliers. Volatile traders can move from high to low deforestation risk regions after signing a ZDC, thereby mitigating the direct risks in their supply chains, but failing to improve the overall outcome. Traders with more enduring commercial relationships may have enhanced relevance and impact in their actions. Trade persistence justifies robust accountability frameworks to reduce deforestation in specific supply chains, as it increases the likelihood that these supply chain actions will send a strong and sustained signal to the actors in the production landscapes.14Gardner T.A. 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The objectives of this paper are to develop (1) a conceptual framework to analyze the geographic stickiness in global commodity trade, conceived as a measure of the stability and rigidity over time of supply chain configurations, i.e., of the network of trade linkages and flows between specific regions and actors; (2) metrics to operationalize this framework and to measure stickiness empirically; and (3) hypotheses on how stickiness influences the existence and effectiveness of supply chain ZDCs, and, more broadly, the governance of supply chains for socio-environmental sustainability. We focus on agricultural commodities and their relation to land use, but the notion has broader relevance for other supply chains and sustainability issues. Empirically, we use the first supply chain maps linking subnational producing regions of Brazilian soy to global markets, identifying trading companies, between 2003 and 2017, developed by the Trase initiative (www.trase.earth). 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