China’s largest food processor and manufacturer COFCO International has delivered its first shipment of deforestation- and conversion-free (DCF) Brazilian soyabeans, World Grain reported.
Delivered on 31 May to Tianjin, China, the 50,000-tonne shipment of DCF soyabeans was part of an agreement with the Mengniu Group, the 4 June report said.
Initiated through the World Economic Forum’s (WEF) and Tropical Forest Alliance’s (TFA) Taskforce on Green Value Chains for China, the deal was the first in China to include a DCF clause, World Grain wrote.
As a major exporter of Brazilian soyabeans, COFCO International said it was taking steps to improve traceability, risk management and supplier performance.
COFCO has set a target of achieving a deforestation-free soyabean supply chain by 2025 and to reduce emissions from land use change in line with its climate strategy.
As part of this strategy, the company was working with industry initiatives such as the Taskforce on Green Value Chains for China, the Soft Commodities Forum and the Agricultural Sector Roadmap to 1.5°C, the report said.
“Our industry must take action to help strengthen our food systems, promoting sustainable agricultural practices that protect our climate and environment and helping to ensure a secure supply for affordable food for all while protecting farmer livelihoods,” COFCO International CEO Wei Dong was quoted as saying.
As the world’s largest buyer and importer of soyabeans from Brazil, demand from the Chinese market is key for the transition toward DCF soyabean production and trade, according to COFCO International.
The new DCF deals with Chinese businesses were aimed at supporting emission reduction targets and broader climate goals, addressing social and environmental issues and responding to changing consumer expectations, the report said.
“The Chinese market plays an important role in global agricultural commodity trade and has great potential to drive a green transition throughout value chains,” Tropical Forest Alliance executive director Jack Hurd was quoted as saying.
“As a market leader in China, COFCO International has paved the way for sustainable procurement at a larger scale.”
To ensure the soyabeans reaching Mengniu Group were deforestation- and conversion-free, COFCO International used a mass balance model, a volume-tracking system that enables a specific quantity of soyabeans to be sold as certified.
In preparation for the European Union Deforestation Regulation (EUDR), the company also had plans to source, process and ship segregated soyabeans, where certified volumes are kept physically separate from source through to processing, storage and distribution.
COFCO International loaded its first fully traceable and segregated shipment of soyabean meal out of Argentina for delivery to Ireland in May.
COFCO International has assets in 36 countries across the Americas, Europe and Asia-Pacific and is active in global grain, oilseeds, sugar, coffee and cotton supply chains.
