Modupe Gbadeyanka
By Modupe Gbadeyanka
A Memorandum of Understanding (MOU) for the utilisation of satellite mapping solutions and traceability data points for sustainable and deforestation-free supply chains has been sealed between Bangkok Produce Merchandising Public Company Limited (BKP) and Louis Dreyfus Company (LDC).
While BKP is a subsidiary of a world-leading agro-food Charoen Pokphand Foods Public Company Limited (CPF), LDC, is a leading global merchant and processor of agricultural goods.
Both parties, through this deal, reaffirm their commitment and efforts to advance decarbonization and use integrated value chains to deliver more sustainable and low-carbon products and services.
They also intend to explore opportunities for further systems integration with a focus on enabling real-time data transfer and improving the digital traceability solution to be compatible with EU Deforestation Regulation (EUDR, Regulation (EU) 2023/1115) and sustainability certification standards, such as the Round Table on Responsible Soy (RTRS), the International Sustainability & Carbon Certification (ISCC) and ProTerra standard.
It was gathered that the two companies will work together for commercial, sustainable, and technical efforts including shared traceability data points, systems and satellite mapping verification along its supply chains.
The agreement covers soy products from LDC in Brazil destined for several Asian countries, where Bangkok Produce Merchandising and CPF produce and sell feed and food.
Commenting on the partnership, the chief executive of BKP, Mr Paisarn Kruawongvanich, said consumers today are increasingly prioritising responsibly sourced products and the firm is meeting that demand.
“We are working with leading global companies to leverage our capabilities in accelerating traceable sourcing, processing, operation and commitment toward CPF’s Net-Zero goal by 2050.
“This agreement with LDC demonstrates how we are working with partners to bring the full supply chain together to transform agriculture, driven by innovation.
“However, this cannot be done alone as the whole food and agriculture system needs to work together to drive quicker innovation that carries a lower impact on our environment,” Mr Kruawongvanich stated.
On his part, LDC’s Group Chief Commercial Officer, Head of Food & Feed Solutions and Head of Asia, Mr James Zhou, said, “We are pleased to join forces with CPF in establishing the Traceability Pilot Project, toward more traceable, low-carbon and sustainable supply chains.
“This project fully aligns with LDC’s commitment to fostering sustainable practices across our business activities, delivering impactful solutions that meet customer and consumer demands, and ultimately contributing to a more sustainable and resilient future of food and agricultural production.”
