Enabling premiums for certified sustainable sugar

CANEGROWERS achieved a premium by linking a digital copy of their Smartcane BMP sustainability farm accreditation credentials with mass balance traced sugar from farm to end buyer.

CANEGROWERS

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Client challenge:

Sugarcane farmers lacked incentive and rewards for implementing sustainable production practices to enable buyers to make sustainably sourced claims.

Value generated for participants:

SUGARCANE FARMERS

Captured a +$2/t premium above market price for certified sustainably produced sugar.

SUGAR MILLS

Aggregated farm data to demonstrate certified sustainable sugar on mass balance basis, serving as the main commercial data contributor, enabling marketing of by-products as sustainably sourced as well as opening carbon and reef credit opportunities.

BUYER (SOFT DRINK MANUFACTURER)

Received a fully traceable and certified sustainable commodity (refined sugar) that was traceable (on mass balance) back to the supplier farms with fully certified evidences.

FINANCIERS

Provided Sustainability Linked Loans (SLL) with fully digitised and standardised data that facilitated the automated and risk adjusted interest rate calculations.

ASSURANCE PROVIDER

Increased adoption of their sustainable production accreditation program due to the clear financial reward and incentive to participate, ultimately benefiting the environment.  

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