SLC Agrícola - Integrated Report 2019

Message from Management

Our year was marked by the triple recognition of our people management practices and the advance in digital agriculture. The integrated vision of sustainability, investment in innovation and the establishment of lasting relationships contributed to the success of the strategy and the good results for the year.

Aurélio Pavinato
CEO of SLC Agrícola

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Who we are

Our company, SLC Agrícola, is one of the largest producers of grains and fibers in Brazil. We operate in six different states, and contribute to strengthen the agribusiness, a strategic sector for the country’s economic growth and development.

We are experts in the cultivation, harvest and processing of soybean, corn and cotton, with a business model that integrates modern technologies, high scale of production, standardization of units, efficiency in cost management and socio-environmental responsibility.

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Our numbers in 2019

16
farms

459 thousand
hectares of planted area

99.4 thousand
hectares of preserved areas

3,630
effective employees and seasonal workers

Our Big Dream

Sustainability

Our sustainability view is aligned with Our Big Dream. It is transversal to operations and is materialized in several initiatives, like the efficient use of inputs driven by technology, qualification and digital inclusion of our employees, development of communities where we operate and environmental preservation as necessary condition to the future development of our activities.

Strategy

Our strategy conducts the company to build an operational structure that maximizes profitability on assets, with lower demand for investments and expansion of operational efficiency. The migration to an asset light type business model creates competitive advantages and distinguishes us in the agribusiness sector.

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Strategy

Another evolution made possible by this change is the increase of leased lands participation in the portfolio. In the 2018/2019 crop, over half of the area under our management was cultivated in third parties’ properties.

Strategy

Production cycle

Click on the drawing plates and learn more about the environmental aspects and impacts of each stage of our activities, as well as the mitigation measures we have adopted

Agricultural planning

It is where the variables for production in crops are dimensioned, including cost planning, machinery, labor and inputs. The main environmental aspects of this stage are related to the use of fuel to transport the team and energy consumption for the meetings. The use of fuel and energy, even on a small scale, brings the need to use natural resources, contributing to reduce the availability of these resources. The use of fuels results in the emission of atmospheric pollutants that can contribute to the increase of greenhouse gases. To minimize them, we have adopted the practice of videoconferencing and optimized travel.

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Input purchase

Necessary phase to guarantee the execution of the agricultural planning. The main environmental aspects of this stage are related to energy consumption and waste generation by the supply team in the offices, which although occurring on a small scale and magnitude, can contribute to the reduction of natural resources and possible contamination generated by the inadequate disposal of waste, if this occurs. We continuously strengthen campaigns for conscious consumption and selective collection in the units in order to minimize these impacts.

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Receipt of inputs

Arrival of inputs at the farm, to be used in activities. For the inputs to reach the farms, the carriers use fuels and generate atmospheric emissions. In addition, vehicle maintenance generates waste, which are the main environmental aspects of this phase. Such aspects can generate impacts of smaller magnitudes such as the contribution to the reduction of natural resources, the contamination of the air by emissions and the contamination if the disposal of waste is done in an inadequate way. The management of our suppliers provides for environmental criteria to be respected, in addition to monitoring the atmospheric emissions of vehicles before access to the farms.

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Soil preparation

The preparation of planting areas aims to maintain the health of the soil, generating good productivity. The impacts that can occur at this stage are the contribution to the reduction of natural resources, since fertilizes may come from mineral sources, and fuels are used. Machine emissions can generate air contamination. The waste generated, if disposed of inappropriately, can generate contamination. The use of technology in the fleet reduces the demand for fuel, and precision agriculture minimizes the use of fertilizers. Another care is in the separation of waste, through selective collection and proper treatment of waste.

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Planting

This phase includes the planting of the crops themselves, together with fertilization, when necessary. The main environmental aspects at this stage are consumption of natural resources, since fuel and fertilizers of mineral origin are used for soil fertilization, atmospheric emissions from the machines, and generation of waste by the maintenance of the equipments. The impacts are similar to the soil preparation, as well as the mitigation measures adopted. In this way, we reduce the consumption of fuels, fertilizers and corrective materials as much as possible and expand the selective collection and correct destination of contaminated waste.

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Crop handling

For the proper growth of crops, this stage includes the application of pesticides and fertilizers that contribute to keeping the soil and plants healthy. The environmental aspects and impacts are similar to those of the two previous stages, related to the consumption of natural resources and fuels, the generation of waste and atmospheric emissions. In addition to the measures adopted in the other two stages to mitigate these impacts, the integrated management of pests and diseases stands out in the crop handling phase.

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Harvest

The removal of crops and delivery to the storage and processing units for grains and cotton demands the use of fuels for the movement of machines, and generates waste and atmospheric emissions, which can contribute to the reduction of natural resources and contamination of the air and, in case of improper waste disposal, and of the soil. We plan the routes in the fields and rely on technologies shipped in the fleet to minimize the need to displacement - and consequently the fuel consumption -, in addition to properly carrying out preventive maintenance and disposal of waste generated by the exchange of parts and by the operational activities.

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Drying and processing

Before being stored, the grains go through a drying step. Cotton, on the other hand, undergoes processing, when it is ginned and cleaned. In these processes, we consume energy, biomass and natural gas, and there is also the generation of waste and atmospheric emissions. This can lead to air contamination, reduction of natural resources and contamination if waste is disposed of inappropriately. We optimize the consumption of energy sources for these activities through campaigns of conscious consumption. We also have filters in the units to avoid the emission of pollutants and we have adopted with discipline the selective collection and proper separation and disposal of waste.

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Shipment

The delivery of commodities to customers generates impacts associated with logistics, as occurs in the stage of receiving inputs, however, in this case, for the transportation of our products. Vehicles used by carriers consume fuel and generate emissions, in addition to requiring periodic maintenance, in which parts and other waste are discarded. In the management of our suppliers, we require compliance with sustainability parameters, such as monitoring emissions prior to entering farms. Thus, we encourage the adoption of appropriate environmental practices among the carriers that serve us.

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Our certifications

The grains and fibers we produce are traded with clients in the Brazilian market and abroad. The certification processes of units attest to external publics the quality of management tools and good practices we adopt.

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Strategy

Integrated Management System

ISO 14001, OHSAS 18001 and NBR 16001

Quality Management System

ISO 9001

Soybean

RTRS (Round Table on Responsible Soy) and ProTerra

Cotton

ABR (Responsible Brazilian Cotton) e BCI (Better Cotton Initiative)

Innovation

Research and development of new technologies and agricultural practices drive efficiency and productivity in our operations. These benefits increased with the advance of digitalization and connectivity, which led to important transformation in all stages of the production cycle in the last years.

AgroExponencial

The AgroExponencial Program is the platform that connects our company to startups with innovative solutions for problems that are not being addressed by our traditional supplier chain currently. Seven finalists were selected in 2019 and conducted pilot activities in our units.

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People

We invest in the training of our people, prioritize life above all else and strengthen our corporate culture, generating pride in belonging. In our relationship with communities, our greatest legacy is related tothe training of our employees in Youth and Adults Education, in addition to direct investments in education and culture actions.

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People

Planet

Our commitment to the lowest possible environmental impact is put into practice on several fronts: from technology as an ally to reduce the consumption of inputs and the generation of waste to the preservation of habitats, also contemplating the strategic objective of reducing our GHG emissions.

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Planet

Prosperity

Our financial results confirm the assertiveness of our strategy. In 2019, despite a challenging scenario, the gains in productivity of soybean and corn, record net revenue and land sale in Maranhão were noteworthy.

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Prosperity

Downloads

• Integrated Report
• Management Report