Markets and Trade

An estimated one-third of agrifood exports are traded within global supply chains (FAO, 2022). While this global trade supports economic growth and development, meeting and facilitating global demand for commodities also impacts our forests, which are home to an estimated two-thirds of the world’s biodiversity. Since 1990, an estimated 420 million hectares of forests have been lost through deforestation (FAO, 2020). Nearly 90% of tropical deforestation has taken place as a result of agricultural expansion (FAO, 2021).  

Up to 39% of tropical deforestation is estimated to be the result of the international trade of commodities that are sold in high-income markets (Godar et al, 2019). While deforestation takes place upstream in supply chains, businesses and governments around the world all play a critical role in curbing deforestation.  

To help companies reduce the risks of deforestation and forest degradation, FAO and OECD developed the OECD-FAO Business Handbook on Deforestation and Due Diligence in Agricultural Supply Chains. This handbook is informed by FAO’s extensive work and experience on halting deforestation and forest degradation and promoting responsible governance of tenure. The handbook is available in three languages and a shorter version (“brochure”) is available in five languages as follows:

The OECD-FAO Business Handbook on Deforestation and Due Diligence in Agricultural Supply Chains is available in: English| Spanish| Italian

The brochure version of the OECD-FAO Business Handbook on Deforestation and Due Diligence in Agricultural Supply Chains is available in: English SpanishFrenchIndonesianPortuguese

FAO’s work on Responsible Business Conduct (RBC) in Agriculture – which includes the uptake of the OECD-FAO Guidance for Responsible Agricultural Supply Chains, and the OECD-FAO Business Handbook on Deforestation and Due Diligence in Agricultural Supply Chains – is rooted in  cooperating with governments, businesses and other institutions in trade-related developmental impacts. On agricultural supply chains and deforestation, FAO’s Markets and Trade Division works in cooperation with the Forestry Division to combine expertise on global trade, business and supply chains with expertise on sustainable forest management. 

 

Publications
2023

This handbook was developed by OECD and FAO to help companies embed considerations on deforestation and forest degradation into their corporate due diligence procedures. It is informed by FAO’s extensive work and experience on halting deforestation and forest degradation and promoting responsible governance of tenure.

2023

The OECD-FAO Business Handbook on Deforestation and Due Diligence in Agricultural Supply Chains aims to help companies incorporate deforestation and forest degradation considerations in their supply chain due diligence and responsible sourcing efforts and adopt a holistic approach to deforestation risk and forest-positive outcomes.

Projects