Key Takeaways
- Bunge and CP Foods have jointly tested a new blockchain traceability platform for soy.
- This tech not only tracks every step from farm to table but also ensures all shipments are deforestation-free.
- This traceability encompasses not just the logistic aspects but also detailed environmental data, such as the carbon footprint and adoption of regenerative practices by the farms.
- The application of blockchain in agribusiness illustrates how technological innovations can significantly improve not just business efficiency but also contribute to ecological goals.
Bunge (NYSE: BG), a global leader in agribusiness, and Bangkok Produce Merchandising Public Company Limited (BKP), part of Charoen Pokphand Foods, have jointly tested a new blockchain-based traceability platform for tracking sustainable soy shipments from Brazil to Thailand.
The initiative has already seen three shipments totaling 185,000 metric tons of soybean meal, all adhering to rigorous deforestation-free protocols, the company mentioned in a statement. These shipments are part of a larger effort, with an additional three vessels carrying 180,000 metric tons expected by July 2024. This innovative use of blockchain technology allows for comprehensive tracing of soybeans from their origin through processing and transportation, right up to delivery.
The system tracks not only the soybean’s journey but also its environmental footprint. The technology offers insights into the carbon footprint of the sold volumes and monitors whether the farms implement regenerative agricultural practices.
Paisarn Kruawongvanich, CEO of Bangkok Produce Merchandising, emphasized the broader impact of their approach, stating, “The company is working to connect blockchain-based traceability solutions with suppliers, partners, and farmers worldwide, ensuring transparency across its supply chain.”
This move is particularly significant for CP Foods, which aims to achieve a 100% deforestation-free supply chain by 2025.
Rossano de Angelis Jr., Bunge’s VP of Agribusiness in South America, highlighted the technological advancement, “Adding a layer of blockchain technology improves the transparency in end-to-end traceability. This development boosts consumer confidence in our projects and reflects our decade-long efforts to develop a robust socio-environmental verification system.”
Since October 2023, Bunge and BKP have been actively working on this blockchain solution, which not only automates the connection between their management systems but also ensures that all data entered is immutable, enhancing reliability.
Mohit Purbey, Bunge’s Distribution Director in Asia, spoke about the foundation of this partnership: “The longstanding relationship with CPAL Foods has been crucial. Our joint efforts exemplify how tailored solutions can help meet sustainability commitments effectively.”
The monitoring system features state-of-the-art satellite technology, capable of identifying changes in land use and soybean planting on each monitored property. In Brazil, Bunge currently monitors its entire direct suppliers in areas at risk of deforestation. Currently, over 97% of the volume of soy sourced by Bunge in the country is deforestation and conversion free.
With Bunge’s monitoring system now covering over 16,000 farms and about 20 million hectares in South America, the company is making significant strides towards its goal of a deforestation-free supply chain by 2025.
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