Bunge Global SA, in collaboration with Bangkok Produce Merchandising Public Co. Ltd. (BKP), a subsidiary of Charoen Pokphand Foods Public Co. Ltd. (CP Foods), has tested a blockchain-based traceability platform. This system was used to monitor the shipment of 185,000 tonnes of deforestation-free soybean meal from Brazil to Thailand. The initiative allows CP Foods to track the origin of the soybeans from their farm source, through processing and transportation, and up until their final delivery. This move is a significant step in ensuring the transparency of the soybean supply chain for the company.
This partnership, initiated between Bunge and CP Foods, aims to guarantee that their soybean products meet stringent environmental and social criteria. BKP, a key feed ingredient trading business of CP Foods, is playing a vital role in these shipments. By July, an additional 180,000 tonnes of soybean meal are expected to be shipped, further bolstering the scale of this initiative. The products involved adhere to both Bunge’s and BKP’s verification standards for sustainable sourcing, particularly in high-priority regions in Brazil that have maintained zero deforestation since 2020.
In alignment with these standards, the platform not only verifies compliance with socio-environmental protocols but also provides customers with detailed information. This includes data on the carbon footprint of the products sold and insights into whether the farms have adopted regenerative agricultural practices. By integrating blockchain technology into this platform, both companies aim to increase consumer confidence, providing a secure and immutable record of the soybeans’ sustainability credentials.
Bunge’s Vice President of Agribusiness in South America emphasized that adding blockchain technology significantly enhances transparency in the supply chain. He explained that the confidence consumers have in sustainable soybean products is directly linked to the company’s robust socio-environmental monitoring system, developed over the last decade. This system enables Bunge to connect sustainable products to markets with rising demand for such goods.
The Chief Executive Officer of BKP noted that this partnership is critical for connecting their blockchain traceability solutions to their suppliers, partners, and farmers worldwide. The company is committed to maintaining transparency throughout its supply chain. He highlighted that the initial shipments of deforestation-free soybean meal from Brazil to Thailand were fully traceable from their farm of origin to their destination, representing a milestone for CP Foods. This achievement also moves the company closer to its goal of having a 100% deforestation-free supply chain by 2025.
Since October 2023, Bunge and CP Foods have been working together to develop a blockchain-powered solution to create a sustainable, digitally integrated supply chain. Their agreement includes oilseeds and their byproducts sourced by Bunge in Brazil, which are destined for various Asian countries where CP Foods and BKP produce and distribute food and feed. The blockchain technology underpins this system, enhancing the reliability of the traceability data by ensuring that it remains unalterable once entered into the platform.
The ongoing tests of this system aim to automate the connection between Bunge and BKP’s supplier management systems and their socio-environmental monitoring tools. Through this integration, customers can monitor the product’s traceability and access detailed socio-environmental information from the sourcing farms. Blockchain serves as a crucial element in providing an additional layer of trust, given its capability to create immutable records.
A director from Bunge’s Asian distribution division emphasized the importance of the relationship built between Bunge and CP Foods over the years. He stressed that this collaboration demonstrates Bunge’s ability to create customized solutions that help customers meet their sustainability goals.
As of late 2022, Bunge’s supplier monitoring system spans over 16,000 farms, covering approximately 20 million hectares across South America. Utilizing advanced satellite technology, the system detects changes in land use and monitors soybean planting on each property. In Brazil, Bunge monitors all its direct suppliers in areas vulnerable to deforestation, with plans to include indirect suppliers by 2025. Currently, over 97% of the soybeans sourced by Bunge in Brazil are deforestation and conversion-free, placing the company on track to achieve its 2025 deforestation-free supply chain goal.
This partnership represents a pivotal step in sustainable agricultural practices, demonstrating the value of blockchain in enhancing supply chain transparency and boosting consumer trust in deforestation-free products. By leveraging digital tools, CP Foods and Bunge are working toward a future of sustainable, transparent food production.