In a move towards achieving a deforestation-free supply chain for soy products, Bangkok Produce Merchandising Public Company Limited (BKP), a subsidiary of Charoen Pokphand Foods Public Company Limited (CPF), and Louis Dreyfus Company (LDC) have formalized a Memorandum of Understanding (MOU) to utilize satellite mapping solutions and traceability data points.
As the global demand for deforestation-free products continues to rise, BKP and LDC have committed to a shared goal of establishing a deforestation-free supply chain by 2025. The collaboration encompasses commercial, sustainable, and technical efforts, including the incorporation of shared traceability data points, systems, and satellite mapping verification throughout their supply chains. The agreement specifically covers soy products from LDC in Brazil destined for various Asian countries, where BKP and CPF are involved in the production and sale of feed and food.
Paisarn Kruawongvanich, CEO of Bangkok Produce Merchandising, emphasized the increasing consumer preference for responsibly sourced products. Kruawongvanich stated, "We are working with leading global companies to leverage our capabilities in accelerating traceable sourcing, processing, operation, and commitment toward CPF’s Net-Zero goal by 2050."
The agreement signifies a joint effort to transform agriculture through innovation and collaborative action. Kruawongvanich highlighted the importance of collective efforts within the food and agriculture system to drive quicker innovation with a lower environmental impact.
James Zhou, LDC’s Group Chief Commercial Officer, Head of Food & Feed Solutions, and Head of Asia, expressed pleasure in joining forces with CPF for the Traceability Pilot Project. Zhou stated, "This project fully aligns with LDC’s commitment to fostering sustainable practices across our business activities, delivering impactful solutions that meet customer and consumer demands, and ultimately contributing to a more sustainable and resilient future of food and agricultural production."
Through the memorandum, both companies reaffirm their dedication to advancing decarbonization and leveraging their integrated value chain to deliver more sustainable and low-carbon products and services. The collaboration aims to explore opportunities for further systems integration, with a focus on enabling real-time data transfer and improving the digital traceability solution to align with EU Deforestation Regulation (EUDR, Regulation (EU) 2023/1115) and sustainability certification standards, including the Round Table on Responsible Soy (RTRS), the International Sustainability & Carbon Certification (ISCC), and ProTerra standard.
