COFCO, Mengniu Group ink strategic deal for sustainable soybean supply to China
BRAZIL – COFCO International has signed a strategic framework agreement with Mengniu Group subsidiaries, Modern Farming and China Shengmu Organic Milk, to supply 1.5 million tonnes of certified sustainable soybeans from Brazil to China.
The agreement, formalized at COFCO International’s Santos export terminal, underscores China’s increasing commitment to sustainable commodity sourcing.
The soybeans will be third-party verified as deforestation- and conversion-free (DCF) since December 31, 2020. On-farm audits will ensure adherence to sustainable water management practices, biodiversity conservation, and ethical labor standards, all in compliance with COFCO International’s Responsible Agriculture Standard.
Mengniu Group, one of the world’s largest milk producers, and its subsidiary Shengmu, will receive the certified soybean volumes under a mass balance chain of custody between 2025 and 2030.
The soybeans will play a vital role in supporting the sustainable feed requirements of Mengniu’s extensive dairy production operations across China.
Luiz Noto, CEO of COFCO International Brazil, emphasized the broader significance of the agreement.
“This agreement reflects China’s growing demand for sustainable commodities, benefiting Brazil’s agricultural sector and its farmers. Brazil has made great strides in sustainability, and agreements like this reinforce those efforts while creating new opportunities for producers,” Noto said.
The signing ceremony was attended by senior leaders from Modern Farming, Shengmu, COFCO, and representatives from the World Economic Forum’s Tropical Forest Alliance, along with officials from the port of Santos.
This collaboration builds on previous shipments under the Green Value Chain Taskforce, an initiative of the World Economic Forum, which facilitated COFCO International’s first-ever deal including a DCF clause to ensure commodity production did not harm natural ecosystems.
During the ceremony, COFCO International, the overseas agriculture arm of Beijing-based COFCO Corp., reiterated its commitment to eliminating deforestation from its global soy and corn supply chains by 2025.
In May 2024, COFCO successfully loaded 18,000 tonnes of certified deforestation-free soymeal at its Timbúes port terminal on the Parana River near Rosario.
This marked the company’s first fully traceable and segregated soy shipment, aligned with the upcoming European Union Regulation on Deforestation-Free Products (EUDR).
The company is also working toward meeting Science Based Targets initiative (SBTi)-validated emissions goals aligned with the global 1.5°C climate target.
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