COFCO International, part of the global agribusiness, and China Sheng Mu Organic Dairy Co, a subsidiary of the COFCO Group and a leader in organic dairy products in China, have entered into a significant agreement. This pact aims to provide Brazilian soybeans which respects strict criteria against deforestation and land conversion for Sheng Mu in China.
Signed on January 15, the initial memorandum of understanding (MoU) covers the supply of 12,000 tons of soybeans annually. The companies also plan to progressively increase this volume, as reported by COFCO International.
To ensure compliance with established standards, COFCO International has committed to carrying out verifications through third parties. This announcement follows a previous memorandum of understanding signed in November with Mengniu Group to supply 50,000 tonnes of soybeans. Furthermore, this notable agreement in China includes the “deforestation and conversion free (DCF)” clause, being a first in the country.
The agreement with the Mengniu Group is a pilot initiative of the Green Value Chain Taskforce, as it is linked to the World Economic Forum's Tropical Forest Alliance.
Finally, COFCO International operates globally in grains, oilseeds, sugar and cotton, with assets in 37 countries in the Americas, Europe and Asia-Pacific. It represents the international face of COFCO Corporation, China's largest food and agriculture company.
Source: Oils & Fats International
