CHINA – COFCO International has entered into an agreement to supply 1.5 million tons of certified sustainable soybeans to two dairy companies in China, Reuters reported.
The soybeans will be third-party verified to ensure they are free from deforestation and conversion of natural vegetation from December 2020.
COFCO outlined plans to conduct on-site farm audits to confirm adherence to sustainable production practices throughout the supply chain.
The buyers of the certified soybeans will be China Mengniu Dairy and Sheng Mu Organic Dairy, with deliveries set to take place between 2025 and 2030.
According to COFCO, the deal reinforces its ongoing efforts to meet China’s increasing demand for sustainably sourced agricultural commodities.
The company stated that China’s dairy sector has shown growing interest in sustainability, particularly in securing feed ingredients that align with environmental standards.
Luiz Noto, CEO of COFCO International Brasil, emphasized the significance of the agreement, stating, “This agreement reflects China’s growing demand for sustainable commodities.”
He pointed to Brazil’s progress in sustainability efforts and added that such initiatives not only support environmental goals but also create valuable opportunities for soybean producers committed to sustainable farming.
A report by COFCO indicated that the company has been expanding its shipments of deforestation- and conversion-free soybeans to China as part of its broader sustainability commitments.
The company said that this new deal strengthens its position as a key supplier of responsibly sourced soy, aligning with global efforts to reduce deforestation in agricultural supply chains.
Brazil remains the world’s largest producer and exporter of soybeans, with most of its exports directed to China, where the crop is processed into animal feed and vegetable oil.
According to shipping data, COFCO was Brazil’s fourth-largest soybean exporter to China in 2024, shipping 6.65 million tons.
The company stated that its commitment to sustainability extends beyond soybeans, as it aims to eliminate deforestation from its global soy and corn supply chains by 2025.
“We are taking concrete steps to ensure our supply chain remains sustainable,” COFCO stated, underscoring its commitment to responsible agricultural practices.
The company highlighted that its sustainability strategy includes working closely with farmers, conducting rigorous audits, and implementing traceability systems to ensure compliance with deforestation-free standards.
Industry analysts have noted that China’s increasing demand for sustainable commodities is reshaping global agricultural trade, with major suppliers adapting their operations to meet stricter environmental requirements.
COFCO emphasized that its latest agreement reflects this shift, as more buyers prioritize sustainability in their sourcing decisions
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