Bunge Global Employs Blockchain to Enhance Soybean Supply Chain Transparency

Bunge Global SA, in collaboration with Bangkok Produce Merchandising Public Co. Ltd. (BKP), a subsidiary of Charoen Pokphand Foods Public Co. Ltd. (CP Foods), has successfully tested a blockchain-based traceability platform to monitor the shipment of 185,000 tonnes of deforestation-free soybean meal from Brazil to Thailand. This initiative enables CP Foods to track the soybeans from their farm origin through processing and transportation to final delivery, significantly enhancing transparency in the soybean supply chain.

The partnership aims to ensure that soybean products meet rigorous environmental and social standards. BKP, a key player in feed ingredient trading, is crucial to these shipments, with an additional 180,000 tonnes expected to be shipped by July. Both Bunge and BKP adhere to strict verification standards for sustainable sourcing, particularly in high-priority Brazilian regions that have maintained zero deforestation since 2020.

The blockchain platform not only verifies compliance with socio-environmental protocols but also provides customers with detailed information, including carbon footprint data and insights into regenerative agricultural practices on sourcing farms. By integrating blockchain technology, both companies seek to bolster consumer confidence through a secure and immutable record of sustainability credentials.

Bunge’s Vice President of Agribusiness in South America highlighted that the introduction of blockchain technology enhances transparency and consumer trust in sustainable soybean products. He emphasized that this initiative is part of a broader socio-environmental monitoring system developed over the last decade, connecting sustainable products to markets with growing demand.

The CEO of BKP stated that the partnership is vital for linking blockchain traceability solutions with suppliers, partners, and farmers globally. The initial shipments of deforestation-free soybean meal represent a significant milestone for CP Foods, moving the company closer to its goal of achieving a 100% deforestation-free supply chain by 2025.

Since October 2023, Bunge and CP Foods have collaborated to develop a blockchain-powered solution aimed at creating a sustainable, digitally integrated supply chain. This includes oilseeds and byproducts sourced from Bunge in Brazil for distribution across various Asian markets.

The ongoing testing of this system focuses on automating the connection between Bunge and BKP’s supplier management systems and their socio-environmental monitoring tools. This integration allows customers to track product traceability while accessing detailed socio-environmental information from sourcing farms. Blockchain technology provides an additional layer of trust by ensuring that records remain unalterable once entered into the system.

A director from Bunge’s Asian distribution division noted the longstanding relationship between Bunge and CP Foods, stating that this collaboration showcases Bunge’s ability to develop customized solutions that align with customer sustainability goals.

As of late 2022, Bunge's supplier monitoring system encompasses over 16,000 farms across approximately 20 million hectares in South America. Utilizing advanced satellite technology, the system detects land use changes and monitors soybean planting on each property. Bunge currently monitors all direct suppliers in areas at risk of deforestation and plans to extend this oversight to indirect suppliers by 2025. More than 97% of the soybeans sourced by Bunge in Brazil are now deforestation and conversion-free, putting the company on track to meet its 2025 sustainability targets.

This partnership exemplifies a significant advancement in sustainable agricultural practices, showcasing the effectiveness of blockchain in enhancing supply chain transparency and boosting consumer trust in deforestation-free products. By leveraging digital tools, CP Foods and Bunge are paving the way for a more sustainable and transparent future in food production.