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Bangkok Produce Merchandising (BKP), a subsidiary of Charoen Pokphand Group (CP Group), and Bunge have signed a MoU for a strategic partnership that marks an advance in agricultural commodity supply chain transparency.
Following successful testing of a blockchain platform for sustainable soybean traceability, the companies will adopt this solution for soybean and soybean meal originated by Bunge in Brazil and supplied to BKP and Charoen Pokphand Foods for food and animal feed production in Thailand and other Southeast Asian countries.
The companies are also committed to further developing innovative solutions for seamless system integration aimed at enhancing visibility and transparency across sustainable agricultural commodity supply chains, as well as collaborating on low-carbon initiatives with supply chain-wide impact, considering CP Group’s ambition to achieve net-zero emissions by 2050 and leveraging Bunge’s extensive experience in leading regenerative agriculture initiatives.
Adopted at scale
Since 2023, Bunge and CP Group have collaborated on technical, operational, and commercial feasibility studies for sustainable and digitally integrated supply chains. Last year, the partnership enabled the validation of blockchain technology for traceability in a pilot involving a shipment of approximately 375,000 tons of soybean meal. With the current agreement, the solution will be adopted at scale.
Both companies are expecting combined data related to this operation to be transacted using blockchain, which gives full digital traceability of the grain, from farm origination, processing and transport to its final destination. The immutability of data guaranteed by blockchain technology adds an additional layer of reliability, increasing transparency across the supply chain.
“With the blockchain platform, we are creating a direct and verifiable connection between our food production and end customers, providing comprehensive information on our responsible supply chains and ensuring that every link in the chain contributes to a more transparent and trustworthy future. The success of the pilot has also enabled us to expand our commercial commitment with CP Group, developing other business avenues, such as Regenerative Agriculture,” said Julio Garros, Bunge Co-Chief Operating Officer.
Thiti Lujintanon, CEO of BKP, said: “Partnership with global agriculture leaders like Bunge, will enhance CP Group’s supply chain and ensure CP Group stays competitive in a global market. The expansion of collaboration will include access to advanced logistics, digital platforms, and sustainable sourcing models that improve efficiency, reduce costs, and open new markets for both parties. We are looking for long-term business growth that can deliver consistent value to our customers across the globe.”
Comprehensive trade agreement
The expansion of a partnership between the companies in 2025 will also include comprehensive trade agreement from upstream operations, like procurement of key agricultural raw materials, joint development of efficient procurement processes, and improvement to transportation processes, all the way to downstream of CP Group’s animal feed plants in this region.
“The sourcing of products under the partnership will follow the socio-environmental verification protocols for suppliers from both Bunge and CP Group. Both companies are committed to deforestation-free supply chains in 2025. The platform also gives access to socio-environmental information from originating farms, including documentation for soybean certified by standards such as the Round Table on Responsible Soy (RTRS), where applicable. The effort is a part of CP Group’s commitment to achieve driving a net zero supply chain in 2050,” Mr Lujintanon explained.
“Bunge believes in the power of collaboration to create advanced sustainability standards, and the partnership with CP Group is an example of how we can scale the solution and provide our value chain with greater transparency and comprehensive data for supply chains aligned with our shared purpose,” added Pamela Moreira, Bunge Senior Director of Sustainability for South America.
Blockchain platform
The blockchain platform was developed by Bunge in partnership with Justoken, a Bunge Ventures’ portfolio company specialized in blockchain infrastructure.
Bunge was the first global commodity exporter to achieve traceability and monitoring for 100% of its direct and indirect soybean purchases in priority areas in the Brazilian Cerrado.
The company utilizes state-of-the-art satellite technology to monitor areas where the risk of deforestation is higher. Currently, the system covers 46,000 farms and 36 million hectares in South America.