BEIJING, CHINA — COFCO International and COFCO Group’s China Sheng Mu Organic Dairy Co., Ltd., the largest organic dairy company in China, announced on Jan. 15 that they have signed a Memorandum of Understanding (MOU) to supply deforestation and conversion-free soybeans from Brazil to China.
The MOU is for an initial 12,000 tonnes of soybeans per year, with both parties agreeing to gradually increase the volume, COFCO said. A third-party verification will be undertaken by COFCO International for the purpose of the supply.
The announcement follows the MOU for 50,000 tonnes signed by COFCO International and Mengniu Group in November 2023, which was the first soybean order in China with a clear “deforestation- and conversion-free (DCF)” clause. It was executed as part of the pilot action of the Green Value Chain Taskforce initiated by the Tropical Forest Alliance of the World Economic Forum.
In 2023, COFCO improved its Environmental, Social and Governance (ESG) Risk Rating from Morningstar Sustainalytics, which measures a company’s exposure to and management of ESG factors. Improvements mainly were driven by advancements in the company’s emissions reporting, climate risk management, deforestation policy, biodiversity programs and efforts to improve the carbon and water intensity of its operations.
COFCO International is the overseas agriculture business platform for COFCO Corp., China's largest food and agriculture company. COFCO International is focused on the global grains, oilseeds, sugar, coffee and cotton supply chains, with assets in 37 countries across the Americas, Europe and Asia-Pacific.
