Bangkok Produce Merchandising Public Company Limited (BKP), a subsidiary of Thailand's Charoen Pokphand Group, signed a memorandum of understanding with Louis Dreyfus Company (LDC) from the Netherlands last Friday (1/19). The collaboration aims to utilize satellite technology to monitor soybean supply chain, ensuring no deforestation occurs and working towards achieving net-zero carbon emissions goals.
Due to the increasing global demand for deforestation-free products, the two companies will collaborate by sharing supply chain traceability data, systems, and satellite verification methods. This includes Louis Dreyfus Company's procurement of soybean products in Brazil and their shipment to multiple Asian countries, primarily serving as raw materials for animal feed, with the aim of establishing consumer confidence. Both Bangkok Produce Merchandising Public Company Limited and Louis Dreyfus Company have production and sales operations for feed and food in the Asian region.
Paisarn Kruawongvanich, CEO of Bangkok Produce Merchandising Public Company Limited, stated, "We value our collaboration with global leading companies to strengthen our responsibility towards society and the environment in the supply of feed ingredients. The signing of the memorandum of understanding with Louis Dreyfus Company aims to integrate technology and innovation to ensure that the agricultural supply chain is free from deforestation, aligning with the net-zero carbon emissions goal by 2050 and playing a significant role in global food production sustainability."
Both parties have not only reiterated their commitment to carbon reduction and value chain integration but also actively sought opportunities for system convergence, including real-time data transfer and optimization of digital data tracing systems, in compliance with the EU Deforestation Regulation (EUDR) and to ensure sustainability standards keep pace with international initiatives such as verification by The Round Table on Responsible Soy Association (RTRS), International Sustainability and Carbon Certification (ISCC), and ProTerra Standard, requiring that agricultural products do not have negative impacts on communities and the environment throughout the planting, harvesting, and processing.
Since 2016, Bangkok Produce Merchandising Public Company Limited has been collaborating with local suppliers or farmers to implement traceability measures for agricultural raw materials. In the following year, they began utilizing satellite technology and in 2023, partnered with animal feed supplier BUNGE to enhance credibility using blockchain technology, expanding the traceability system to over 16,000 farms in South America, covering approximately 20 million hectares of land.
