China’s Cofco and Mengniu Group have announced the first Chinese deal to import deforestation-free soybeans from Brazil, with the agreement facilitated by the World Economic Forum’s Tropical Forest Alliance.
State-owned Cofco – China Oil and Foodstuffs Corp. – and dairy giant Mengniu Group subsidiary Modern Farming Group this week signed a Memorandum of Understanding (MoU) for the $30-million deal, designed to align with WEF’s Taskforce on Green Value Chains, launched in June.
The move is seen as an important milestone, after green group WWF in 2021 found that Chinese imports are a bigger driver of tropical deforestation than those of the US and Europe combined.
“Today, more than ever, our industry must take action to help strengthen our food systems, promoting sustainable agricultural practices that protect our climate and environment, and helping to ensure a secure supply for affordable food for all while protecting farmer livelihoods,” Cofco International CEO Wei Dong said in a press release.
China is the world’s biggest importer of soybeans, on track to hit 105 million tonnes this year, according to recent media reports.
“This purchase order for [deforestation- and conversion free] soybeans is a milestone and sends a positive market signal from China to the global commodity market,” said Jack Hurd, the Tropical Forest Alliance’s executive director.
“We look forward to having more companies involved in similar actions to shape global agricultural commodities towards a more sustainable, resilient and responsible model.”
The news comes as a recent investigation by the US non-profit Pulitzer Center claimed Cofco’s Brazilian supply chains were “contaminated by deforestation” and that 15 of the company’s 86 suppliers in Mato Grosso state had been fined or embargoed for violations of state or federal rules.
“At least five and as many as 11 of those 15 suppliers were under an active embargo during the time Cofco did business with them,” the investigation found, though most of its claims have been denied by Cofco.
Mengniu, meanwhile, has this year set a target to achieve zero deforestation for its entire industrial chain by 2030.
“As one of the first companies to join the Taskforce on Green Value Chains, we actively promote the purchase order of deforestation-free soybean by our subsidiary, Modern Farming Group, which has taken an important step to fulfil our commitment,” said Mengniu Group CEO Jeffery Lu Minfang.
“Sustainable development only has milestones, no finish line. We hope to work with more partners to jointly achieve the goal of a green transition in the industry.”
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