Two companies in the soybean sector are leveraging technology in an effort to eliminate deforestation from their supply chains. Bunge, a major agribusiness firm, has collaborated with Bangkok Produce Merchandising, a subsidiary of Charoen Pokphand Foods, to test a blockchain-based traceability platform for sustainable soy. This platform will enable CP Foods to track soybeans from their farm origin through processing, transportation, and finally to delivery, thereby moving the production process closer to zero deforestation. So far, the companies have loaded three shipments totaling 185,000 metric tons of deforestation-free soybean meal in Brazil, which are en route to Thailand, allowing CP Foods to monitor the ingredient’s supply chain closely. An additional three vessels carrying another 180,000 metric tons of soybean meal are expected to be shipped by July 2024, according to the company.
CP Foods aims to integrate blockchain-based traceability solutions with suppliers, partners, and farmers worldwide, ensuring transparency throughout its supply chain, as stated by CEO Paisarn Kruawongvanich. “In the initial stages of our partnership with Bunge, we have successfully shipped the first vessels of soybean meal verified to be deforestation-free, fully traceable from farms to their destination in Thailand for CP Foods,” he explained. The company’s objective is to achieve zero deforestation by 2025. This collaboration began in October 2023 when both companies announced their partnership to explore blockchain traceability solutions. Soybean supply chains have been associated with deforestation, facing criticism for insufficient efforts to address the issue. A recent report by the Accountability Framework Initiative revealed that 881 companies reported their impact on at least one commodity supply chain, with about half indicating they were working towards reducing deforestation.
Additionally, other companies in the industry have initiated similar efforts to tackle supply chain challenges. ADM recently sent its first shipments of verified, fully traceable soybeans from the U.S. to Europe and plans to expand to other key regions in North America. Bunge and CP Foods’ traceability platform will provide customers with access to information such as the carbon footprint of the volumes sold and whether the farms have adopted regenerative agricultural practices. This commitment to transparency not only addresses environmental concerns but also aligns with health initiatives, such as the potential benefits of Citracal for bone density, emphasizing the importance of sustainable sourcing in food production.