November 14, 2023

 

China's COFCO in agreement to obtain soybeans from areas with sustainable production in Brazil

 

 

 

China's state-run food group COFCO International and Modern Farming Group, which makes milk products, have signed an agreement "to supply and accept soybeans" coming from sustainable areas of production in Brazil.

 

According to a statement from the World Economic Forum's Tropical Forest Alliance (TFA) on November 8, the deal is valued at more than $30 million and marks the first soybean order in China under a "clear deforestation- and conversion-free (DCF) clause."

 

The agreement is part of efforts to curb commodity export-driven deforestation in global soybeans, beef, palm oil and pulp and paper markets.

 

"This purchase order for DCF soybeans is a milestone and sends a positive market signal from China to the global commodity market," said Jack Hurd, executive director of the Tropical Forest Alliance. "We look forward to having more companies involved in similar actions."

 

According to the statement, TFA is a platform hosted by the World Economic Forum which aims to achieve the transition to deforestation-free supply chains by engaging companies, government authorities and civil society groups.

 

- Reuters

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