Bunge (NYSE: BG), a global agribusiness leader, and Bangkok Produce Merchandising Public Company Limited (BKP), a division of Charoen Pokphand Foods, have jointly tested an innovative blockchain-based traceability platform. This new system aims to meticulously track sustainable soy shipments from Brazil to Thailand, ensuring they comply with stringent deforestation-free protocols.
Initial Success and Future Plans
The pilot phase of this initiative has already witnessed the successful transportation of 185,000 metric tons of soybean meal via three shipments. These shipments adhered to rigorous standards aimed at preventing deforestation. The companies announced plans for an additional three vessels carrying 180,000 metric tons by July 2024. This blockchain technology enables comprehensive tracking of soybeans from their origin through processing, transportation, and final delivery.
The platform not only tracks the physical journey of the soybeans but also monitors their environmental impact. It provides detailed insights into the carbon footprint of the shipped volumes and verifies whether the farms involved are utilizing regenerative agricultural practices.
Enhancing Supply Chain Transparency
Paisarn Kruawongvanich, CEO of Bangkok Produce Merchandising, underscored the broader implications of their approach. He emphasized that the company is committed to connecting blockchain-based traceability solutions with suppliers, partners, and farmers worldwide to ensure transparency throughout the supply chain. This initiative is crucial for CP Foods, which has set a target to achieve a 100% deforestation-free supply chain by 2025.
Rossano de Angelis Jr., Bunge’s Vice President of Agribusiness in South America, highlighted the technological advancements, noting that incorporating blockchain technology enhances end-to-end traceability transparency. This development not only boosts consumer confidence in their projects but also reflects a decade-long effort to develop a robust socio-environmental verification system.
Since October 2023, Bunge and BKP have been actively working on this blockchain solution. The system automates the integration between their management systems and ensures that all data entered is immutable, thereby enhancing reliability.
Partnership and Technological Integration
Mohit Purbey, Bunge’s Distribution Director in Asia, discussed the foundational aspects of this partnership. He emphasized that the longstanding relationship with CPAL Foods has been crucial, and their joint efforts demonstrate how tailored solutions can effectively meet sustainability commitments.
The monitoring system utilizes advanced satellite technology capable of identifying changes in land use and soybean planting on each monitored property. In Brazil, Bunge currently monitors all direct suppliers in areas at risk of deforestation. Over 97% of the soy sourced by Bunge in the country is deforestation and conversion-free, illustrating their commitment to sustainable practices.
Expanding Coverage and Future Goals
Bunge’s monitoring system now covers over 16,000 farms and approximately 20 million hectares in South America. This extensive coverage is a significant step towards the company’s goal of a deforestation-free supply chain by 2025. The integration of blockchain technology plays a crucial role in achieving this objective by ensuring transparency and accountability across the supply chain.
In summary, the collaborative effort between Bunge and BKP to implement a blockchain-based traceability platform represents a significant advancement in the agribusiness sector. By leveraging this technology, the companies aim to enhance transparency, monitor environmental impact, and meet their sustainability commitments effectively. This initiative not only benefits the environment but also increases consumer confidence in sustainable agricultural practices, paving the way for a more transparent and accountable supply chain.
