The partnership, they outlined, underscores their joint commitment to achieving deforestation-free supply chains by 2025.
BKP, a feed ingredient trading business and a subsidiary of the agro-food giant, CP Foods (CPF), and LDC will engage in commercial, sustainable, and technical initiatives. These include the exchange of traceability data points, implementation of shared systems, and the utilization of satellite mapping for supply chain verification. The agreement encompasses soy products from LDC in Brazil, destined for multiple Asian countries where BKP and CPF are involved in the production and sale of feed and food.
Both companies are also looking to explore opportunities for further integration of systems, with a particular emphasis on facilitating real-time data transfer.
Additionally, they are working towards enhancing their digital traceability solution to align with regulatory frameworks such as the EU Regulation on Deforestation-free Products (EUDR) and established sustainability certification standards like the Round Table on Responsible Soy (RTRS), the International Sustainability & Carbon Certification (ISCC), and the ProTerra standard.
EU regulation
The global demand for deforestation-free products is escalating, driven in part by regulations like the EUDR. This regulation aims to prevent global deforestation linked to agricultural products imported into the EU. The regulation mandates global producers and traders of soy, palm oil, coffee, cocoa, cattle, hides and leather, wood, and rubber to furnish evidence by the close of 2024 showing that their products originate from deforestation-free regions, to continue importing and selling within the EU market.
From December 30 this year companies will have to demonstrate with due diligence and traceability to plot that their imports of soy and those other commodities have not caused deforestation. They are also obliged to prove that no new deforestation has taken place after the 2020 cut-off date for products traded in the EU-27. Non-compliance with the regulation could result in substantial penalties for agri-commodity buyers and the potential confiscation of goods.
Paisarn Kruawongvanich, CEO of BKP, emphasized that the collaboration with LDC showcases their commitment to transforming agriculture through innovative, environmentally conscious practices. He stressed the need for the entire food and agriculture system to unite in driving faster innovation with minimal environmental impact.
James Zhou, LDC’s goup chief commercial officer and head of food and feed solutions, as well as head of its Asian business, believes that partnering with CPF in the establishment of the Traceability Pilot Project is a significant step towards creating more traceable, low-carbon, and sustainable supply chains.
This initiative, he added, aligns seamlessly with LDC's overarching commitment to promoting sustainable practices across its global business activities.
