Bunge (NYSE: BG), a prominent leader in agribusiness and food industries, has teamed up with Bangkok Produce Merchandising Public Company Limited (BKP), a subsidiary of Charoen Pokphand Foods Public Company Limited (CPF or CP Foods), a global titan in food production, to venture into the realm of blockchain technology. Their mission? To ensure a sustainable and deforestation-free supply chain for soy. So far, three colossal shipments, collectively weighing in at 185,000 metric tonnes of deforestation-free soybean meal, have sailed from Brazil on a destined course to Thailand, allowing CP Foods to trace the soybeans’ journey from the farm of origin right through to their processed state, subsequent transportation, and final delivery in Thailand. On the horizon, another trio of ships is ready to set sail by July 2024, bringing along an additional 180,000 metric tonnes of soybean meal.
These soy products strictly adhere to both Bunge’s and BKP’s rigorous socio-environmental supplier verification protocols. They hail from high-priority regions that have maintained zero deforestation since 2020, in line with the sourcing standards outlined by CP Foods. But that’s not all. This cutting-edge platform also offers customers a peek behind the curtain, providing insights into the carbon footprint of the sold volumes and whether the farms have embraced regenerative agricultural practices.
Paisarn Kruawongvanich, the Chief Executive Officer of Bangkok Produce Merchandising, emphasized the commitment to transparency and traceability. “Our initial collaboration with Bunge has paved the way for the first batch of fully traceable, deforestation-free soybean meal shipments to reach CP Foods in Thailand. This achievement is a monumental stride towards Charoen Pokphand Foods’ ambition of achieving a 100% deforestation-free supply chain by 2025,” Kruawongvanich proudly shared.
Adding more layers of credibility and trust, Rossano de Angelis Jr., Bunge’s Vice President of Agribusiness in South America, highlighted the long-standing efforts Bunge has invested in creating a transparent and traceable supply chain. “By incorporating blockchain technology with our well-established socio-environmental verification systems, we’ve strengthened consumer confidence in our soy. This unique positioning allows us to connect sustainable products with markets where demand is soaring,” de Angelis Jr. enthused.
The alliance between these industry giants officially commenced in October 2023 when they announced a groundbreaking partnership. Their objective? To develop technical, commercial, and operational feasibility studies for blockchain-based traceability, cultivating a sustainable and digitally integrated supply chain. This extensive agreement encompasses oilseeds and their by-products sourced by Bunge in Brazil, destined for CP Foods’ numerous production and sale markets across Asia.
Ongoing testing aims to seamlessly automate the linkage between Bunge and BKP’s supplier management and socio-environmental monitoring systems through a sophisticated digital platform. This technological marvel empowers customers to track and receive real-time product traceability data and a treasure trove of socio-environmental information about the sourced farms. The immutable nature of blockchain data fortifies reliability, making every piece of information integrated onto the platform unchangeable.
Mohit Purbey, Bunge’s Distribution Director in Asia, elaborated on the importance of their longstanding relationship with CP Foods. “Our deep-rooted and trustworthy partnership with CP Foods has been instrumental to the success of this initiative. This is a testament to Bunge’s capability to tailor solutions that help our customers meet their sustainability pledges,” Purbey opined.
Since the end of 2022, Bunge’s monitoring system has cast a wide net, covering over 16,000 farms spanning approximately 20 million hectares across South America. Armed with cutting-edge satellite technology, the system adeptly identifies changes in land use and soybean planting activities on each monitored property. In Brazil alone, Bunge currently surveils its entire network of direct suppliers in deforestation-prone areas and aims to encompass indirect suppliers by 2025. A resounding 97% of the soy sourced by Bunge in Brazil is already deforestation and conversion-free, propelling the company ever so closer to its 2025 goal of completely deforestation-free chains.
Blockchain in agribusiness? Sounds like a buzzword-filled way to greenwash their operations. How do we know it’s genuinely deforestation-free?
It’s true that companies often use big words, but blockchain can actually ensure transparency and traceability. It’s hard to fake data on a blockchain.
Sure, but who’s verifying the data? If it’s the same companies behind it, there’s a potential conflict of interest.
Auditors can still review blockchain data. It’s about creating an unalterable record that external parties can trust.
Even if they’re using blockchain, that doesn’t mean the farms are truly following sustainable practices. Show me the proof beyond buzzwords.
They mention using satellite monitoring. That’s a pretty solid method to check if land use is changing or not. It’s more than just talk.
Wow, 97% deforestation-free soy by Bunge? That’s impressive! Props to them for making strides in sustainability.
Indeed, but the remaining 3% still matters. They need to address that to be truly impactful. Until then, it’s not a complete win.
Agreed. The fact that they’re so close to their goal is promising, but it’s also vital to hold them accountable for that last 3%.
What about the extra emissions from all this shipping? Isn’t this counterproductive to the sustainability goal?
Good point. Shipping does contribute to carbon footprints. It would be interesting to see if they’re working on reducing that aspect too.
Exactly! They need to address every part of their supply chain, not just sourcing.
Well, maybe their next partnership will be with renewable shipping companies. One step at a time, right?
This seems like a great initiative to me. I hope more companies follow suit. Imagine if we had blockchain for every crop.
Blockchain for every crop sounds good in theory, but implementing and maintaining it is complex and expensive. Small farmers might struggle.
True, but maybe larger corporations can help subsidize the costs for smaller farms or governments can provide support.
More corporate propaganda. All these ‘green’ efforts are just PR stunts to cover up their actual environmental damage.
While I agree that skepticism is healthy, dismissing every corporate sustainability effort as propaganda is not productive either.
It’s not about being unproductive; it’s about recognizing the truth. Until there’s systemic change enforced by policy, don’t trust the corporations.
Zara, valid points, but can we at least agree that some steps in the right direction are better than no steps at all?
Fascinating! This could genuinely revolutionize how we think about sustainability in agriculture. Bravo, Bunge and CP Foods!
Let’s see if other companies follow their example. Competition could drive even more innovation.
Exactly! The more the merrier in terms of sustainable practices. We need more companies to jump on board.
Does anyone else find it ironic that a food giant in Thailand is relying on soy from Brazil? What about local agriculture?
With issues like this, you have to balance local capabilities with global needs. Sometimes local demand surpasses local supply, and imports fill the gap.
The use of satellite technology to monitor land use is truly impressive. This could have applications far beyond agriculture.
Blockchain and agriculture? Seems like an odd pairing. We really need to see hard data and clear results to buy into this.
I wonder if consumers in Thailand care about this level of traceability? It feels like companies are more excited about this than actual buyers.