SAO PAULO (Reuters) – China’s state-run food group COFCO International and Modern Farming Group, which makes milk products, have signed an agreement “to supply and accept soybeans” coming from sustainable areas of production in Brazil, the world’s top supplier of the oilseed.
According to a statement from the World Economic Forum’s Tropical Forest Alliance on Wednesday, the deal is valued at more than $30 million and marks the first soybean order in China under a “clear deforestation- and conversion-free (DCF) clause.”
The agreement is part of efforts to curb commodity export-driven deforestation in global soybeans, beef, palm oil and pulp and paper markets.
“This purchase order for DCF soybeans is a milestone and sends a positive market signal from China to the global commodity market,” Jack Hurd, Executive Director of the Tropical Forest Alliance, said in the statement. “We look forward to having more companies involved in similar actions (…)”
China, which buys grains and meats from large suppliers including Brazil and the United States, is the main destination for a number of agricultural commodity exports produced in the South American farm powerhouse.
According to the statement, TFA is a platform hosted by the World Economic Forum which that aims to achieve the transition to deforestation-free supply chains by engaging companies, government authorities and civil society groups.
(Reporting by Ana Mano; editing by Diane Craft)
