Bunge, a leading agribusiness company, has announced a partnership with Bangkok Produce Merchandising Public Company Limited (BKP), a subsidiary of Charoen Pokphand Foods Public Company Limited, to create a blockchain technology aimed at ensuring the sustainability of soy and other products. This initiative focuses on preventing deforestation in the supply chain.
Efforts to Address Deforestation in Brazil
The collaboration is particularly significant in light of the increasing deforestation in Brazil, a major soy-producing country. The issue of land clearance for soy and beef production to meet global demand has been a growing concern. Despite Brazil’s progress in conservation efforts, studies have shown a continued link between deforestation and soybean farming.
Bunge’s Commitment to Sustainability
Bunge has been actively working towards more sustainable practices, especially in regions like Brazil with higher risks of deforestation. In 2021, Bunge launched the Bunge Sustainable Partnership Program to aid grain resellers in evaluating their suppliers’ environmental and social impact.
The company employs satellite technology to monitor land use changes over 16,000 farms, covering up to 20 million hectares in South America. This system has enabled Bunge to ensure that over 97% of its soy volumes are verified as being free from deforestation.
Blockchain Technology for Enhanced Traceability
The partnership aims to enhance supply chain traceability and integrate digitization, focusing on Bunge-sourced grain from Brazil destined for Asian markets, where BKP and CP Foods are significant players in feed and food production. The adoption of blockchain technology is expected to add a layer of reliability to the supply chain verification process.
Rossano de Angelis Jr., Bunge’s Vice President of Agribusiness for South America, emphasized the importance of building sustainable supply chains in collaboration with customers, with blockchain enhancing the robustness of their social and environmental verification system.
Future Collaborations and Goals
The memorandum of understanding with BKP extends beyond current objectives, with potential future collaboration in areas such as real-time data transfer and measuring the carbon footprint of traded volumes. This agreement marks a significant step towards transforming traceability data from the field to the end customers, contributing to more sustainable and transparent agricultural supply chains.
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