AIC Sustainable Commodities Scheme (ASCS) - What It Is, Why It Matters and How It Works

In this episode of The AIC Podcast, Sue Whittington, AIC Technical Manager, and James McCulloch, AIC Head of Animal Feed, to take a closer look at the ⁠AIC Sustainable Commodities Scheme⁠ (ASCS) and what it means for the UK feed supply chain.

The conversation explains, in clear and practical terms, why the scheme has been developed, how it supports deforestation‑free sourcing of key commodities such as soya and palm, and how it helps AIC Members meet evolving market expectations and regulatory requirements, including the EU Deforestation Regulation (EUDR).

The episode also explores how the scheme works in practice across different parts of the supply chain, from importers and traders through to compound feed manufacturers.

This episode is ideal for businesses involved in feed and wider agricultural supply chains who need to understand how deforestation due diligence, chain of custody and sustainability requirements are changing, and how a single, independently verified scheme can help streamline reporting and support continued market access.

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Transcript

Wendy Welcome to the AIC podcast, where we share practical guidance and insight for Members and help the industry understand how the agri food supply chain works. I'm Wendy Ford, I'm the AIC Communications Manager, and today we'll be exploring the AIC Sustainable Commodities Scheme. We'll be looking at what it is, why it's been developed, what it involves and how it makes a difference. I'm joined by AIC Technical Manager, Sue Whittington and AIC Head of Feed, James McCulloch. Welcome to the podcast.

Wendy So, Sue, let's start. Can you briefly explain what is the AIC Sustainable Commodities Scheme and what problem is it designed to solve for the feed supply chain?

Sue The scheme aims to provide feed and food supply chains with confidence that commodities such as soya and palm have not originated from deforested land. It's been developed to help AIC Members fulfil any due diligence requirements that they may have within the EU deforestation regulations, and to help them meet requirements of the UK supply chains.

James It's understood that deforestations are an issue in commodity supply chains. The scheme isn't there to solve the issue of deforestation, but what it is there to do is to help drive transparency through the whole supply chain, that commodities that we're handling in the feed industry are not associated with deforestation. So it's enabling our customers, as in livestock farmers, then downstream customers, access information, which gives them the confidence that Sue's talked about, that the feed and the commodities that are made, are introduced into those feed and not associated with deforestation.

Wendy That's great. That gives us a really clear foundation for the scheme. So building on that, why has the Sustainable Commodities Scheme been developed now?

James I think that there are two sort of main, I guess drivers for developing the scheme now the regulatory drivers, as in EU deforestation regulation has seen a major sort of shift in supply chains, considering how they can be and will need to be compliant with that regulation. We've also seen some, regulations proposed as far as UK is concerned, but they're not as developed in terms of a policy, as EUDR. And the other driver is, is clearly market requirements. So, we're well aware that in the UK via, for instance, UK Soya Manifesto, Retail Soya Group, etc. There are, market, requirements and expectations around, the use of deforestation free, commodities. So we, I guess within AIC and AIC Services wanted to play a facilitating role in helping, that information around deforestation, free commodities reach, as I say, our, our downstream, our downstream customers.

Sue The idea around the certification system is that it has been accepted by the whole supply chain, and it will meet the needs for scheme Participants to meet and report on many different requirements through an independently verified and transparent certification system.

James I mean, I would agree with that on the grounds that we're seeing within the AI C sort of feed sector membership, an element I think of frustration with many different reporting requirements coming from, again, downstream customers, be they milk processors, meat processors, retailers, brand owners, etc, etc. The idea behind a single, independently verified scheme like, ASCS, is that those downstream customers can reference that scheme or set out requirements for their suppliers to adopt or participate in that scheme, therefore meeting their requirements. So it, we're hoping it's going to help our membership, have to reduce the number of reporting that requests they get and, hopefully the supply chain can line up behind the AIC scheme.

Wendy That makes sense. So Sue, from your perspective, who is the scheme relevant to and how have you structured it to work across the supply chain?

Sue The scheme is relevant to all importers, traders, compound feed manufacturers. So across the whole supply chain, we split it into two separate modules for ease of use and to clarify the understanding and the different chain of custody models that apply in those different parts of the supply chain, which we'll come on to in a little while. And Module One is applicable for shippers and importers and exporters to demonstrate their alignment with the requirements of the EU deforestation regulations. and that legislation is referenced within that standard. Module Two is relevant for compound feed manufacturers and feed ingredient suppliers who are using those feed products in the UK so they can demonstrate that deforestation free status of those products is continued through the supply chain to their customers.

Wendy So what do Participants need to have in place to demonstrate that they meet the standard requirements?

Sue Through the chain of custody certification, Participants will need to have details available, and evidence required to demonstrate that the commodities they are using and have been produced in accordance with local laws within origin and are free from deforestation in essence.

Wendy So James, how does that work across the two modules?

James Yeah, I guess the distinction, if you're a Module One Participant say you're an importer and so forth, then the audit would require you to demonstrate that you've got evidence that would satisfy the auditor that the commodities you're handling would be compliant with the requirements of the EUDR. So in other words, geolocation coordinates, legality and so forth. The Module Two, you still obviously have to require evidence of, the so-called, EUDR aligned material that you're using in your facility, but the module recognises that you will have, commodities which are compliant with the requirements of EUDR and commodities, which are not. So the Module Two requirements is effectively, an audit of your accounting for flows of material that come in and out of your feed mill.

Wendy You mentioned 'chain of custody', that sounds quite technical. What does that mean in plain English?

Sue The chain of custody applies to any organisation that does actually take ownership of materials, and are making certain claims of those materials, and about the connection between the volume of those materials that they are handling through their systems and then passed on to their customers. So it's a way of tracking the inputs and outputs of certain commodities, that have certain criteria, so attributes, which in the case of ASCS a deforestation free, sourcing.

Wendy And James, can you explain why there are different chains of custody models in practice?

James So yeah, the trace, the chain of custody, delivers the traceability and the credentials. You know that match, then the claim that you're making for those particular products. And then along the way, you know, there are certain I mean, the reason there are different chain of custody models is because there are different processes, logistics involved in moving, you know, primary commodities from where they're produced to their end use and soya bean meals are a good example. You know, it's grown in various parts of the world and produces a soybean, but we don't use soya beans in animal feed we use soya bean meal. So if we need to be able to demonstrate, verify where that meal has come from and what deforestation, attributes it has, then the chain of custody allows us to follow that journey of the bean from farm through processing, shipping, etc, etc.

Wendy That's really clear. So let's lead to the obvious question. What are the benefits of the Sustainable Commodities Scheme and why should businesses choose to participate?

James I mean, the major benefit we see for AIC Members, is to meet the demands of quite a large proportion of their customer base. So those demands might not come immediately from livestock farmers, but livestock farmers, as we know, are selling their products onto processors, retailers, etc.. And certainly within the UK, we have a fairly well, organised, and I guess to an extent vociferous, processor and retailer, base that are asking for commitments from their supply chain. So the benefit for a feed business is to be able to go to their livestock farming customer and say, I can provide you with feed, which meets the requirements that that are being asked. Further down the chain via the retailer and the processor. And so it's effectively a market access issue in that if you're within the scheme, it's helping you guarantee market access.

James I think the other aspect is that if we're looking at it, regulatory compliance, we know that say, for instance, the UK beef supply chain that is supplying beef into the European market, is going to have to comply with the requirements of EU DR for the beef but they are also saying to us that their customers in Europe. So maybe the European retailers and processors who are buying British beef will say, well, but what about the feed that has been given to those animals? Is that compliant with the EUDR as well? So via the scheme, we can provide that confidence to our downstream customers that that indeed there is a compliant feed supply chain in the UK.

Wendy Yes. And that is key.

Wendy So every scheme is different. Is there anything that businesses should focus on when they first get involved? You know, is there anything that they should specifically concentrate on? And what do you think Sue?

Sue I think the main areas for businesses to concentrate on will be those areas where the scheme does differ from the requirements of the food safety schemes. So that will be in the areas mainly around raw materials and raw material sourcing. So supply chain mapping, look at individual products, look at the supply chains and the different routes from their suppliers, through their suppliers, from production, through gathering, centres, through processing, transportation, shipping, storage, etc., and gathering together all of the evidence that they need to demonstrate that due diligence and the fact that, those products have been actually produced legally within the country of origin, which is no mean task to gather all of that information together.

James I think that what we've tried to do with this scheme is present it in a familiar way for our Members so they will recognise the structure, the language and the sections. So you know, luckily our industry is used to compliance, you know, whether it's through UFAS or FEMAS or other schemes. So, they will be familiar with the document and work, and the standard and understand how to navigate around it. Um, so that's one useful thing. I think the other aspect is that it'll be important for them also to ensure they have good and open access in terms of relationships with their suppliers. So in other words, those importers, and shippers that we're talking about, because a lot of the information will reside with those shippers and importers and there has to be, again, sufficient sort of, lines of communication and confidence between feed business and importer to make sure that information flows.

Wendy That's great. So next step, once the business is certified, how is that demonstrated? How is that acknowledged within the industry?

James Again, we've thought about this with, you know, learnings and existing practice as far as our food safety schemes is concerned with the assurance checker on the AIC website, which is, I guess free to anybody that wants to look at it. So the idea is that Participants will be listed, on that site. So if a processor or retailer or somebody overseas wants to see which feed companies or how to access a list of companies that are Participants in the scheme, they just need to go onto the website and check on the AS CS tab, and it'll come up with a list or if they've got a specific business, you know, A, B, C, feed company, I wonder if it's a Participant in the scheme. They can just put that into the search box, and it will come up with whether they are or are not a Participant.

Sue And it'll also list those commodities for which they are, which they are certified in the individual sites that are included within that.

Wendy Perfect. And finally, what are the main takeaways from today's podcast?

Sue I think probably the main thing is that it has been developed with the whole supply chain engaged within that process from commodity importers, compound feed manufacturers, livestock producers, meat and dairy processors, the retailers and food service brands.

James Yeah, I would agree. I think that the way if we can present it as a means of facilitating our Members to do their business and to ensure that the confidence around the types of commodities they're handling can get passed through the chain, it shouldn't be regarded when people talk about audits and standards, they tend to think it's barriers to actually operation. This is actually the other way. We should look at it the other way and say, actually, this is enabling you to operate and meet requirements of many different downstream customers through a single standard.

Wendy That's perfect. Thank you so much for your time today. James and Sue.

James Thank you.

Sue Thank you.