Bunge and BKP expand blockchain partnership for deforestation-free soy supply

THAILAND – Bunge, a global leader in agribusiness and food, and Bangkok Produce Merchandising Public Company Limited (BKP), a subsidiary of Charoen Pokphand Group (CP Group), have signed a Memorandum of Understanding (MOU) to expand the use of blockchain technology across their agricultural supply chains.

This strategic partnership builds on successful pilot tests and aims to enhance transparency and sustainability in the global soy trade.

The collaboration, which began in October 2023, has already demonstrated the power of blockchain technology through the successful tracking of approximately 375,000 metric tons of deforestation-free soybean meal shipped from Brazil to Thailand.

The blockchain platform, developed in partnership with Justoken, a Bunge Ventures portfolio company, ensures immutable and transparent data flows, providing end-to-end visibility for CP Group’s food and animal feed production in Thailand and other Southeast Asian markets.

“With the blockchain platform, we are creating a direct and verifiable connection between our food production and end customers, providing comprehensive information on our responsible supply chains,” said Julio Garros, Bunge’s Co-Chief Operating Officer.

The technology not only verifies compliance with stringent socio-environmental standards but also provides data on carbon footprints and regenerative agricultural practices, aligning with both companies’ commitment to deforestation-free supply chains by 2025.

Thiti Lujintanon, Chief Executive Officer of Bangkok Produce Merchandising, emphasised the partnership’s role in maintaining competitiveness.

“This partnership will enhance CP’s supply chain and ensure CP stays competitive in a global market. By connecting blockchain-based traceability solutions with our suppliers, partners, and farmers worldwide, we are ensuring transparency and sustainability across our operations,” Lujintanon said.

The expanded partnership will include comprehensive trade agreements that focus on upstream operations, procurement processes, and transportation improvements, as well as downstream operations for CP Animal Feed.

Both companies are also committed to developing innovative solutions for system integration and collaborating on low-carbon initiatives.

These efforts align with CP Group’s ambitious goal of achieving net-zero emissions by 2050 and leverage Bunge’s expertise in regenerative agriculture, which includes monitoring over 16,000 farms across 20 million hectares in South America using advanced satellite technology.

Since late 2022, Bunge has monitored 100% of its direct suppliers in Brazil’s deforestation-risk areas, with plans to cover indirect suppliers by 2025.

Currently, over 97% of the soy sourced by Bunge in Brazil is deforestation- and conversion-free, bringing the company closer to its 2025 sustainability goals.

CP Group, a global leader in food and agriculture, complements these efforts with its Responsible Supply Chain Management Framework, which adheres to international standards such as the UN Global Compact and supports six Sustainable Development Goals (SDGs).

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