China’s flagship food group COFCO International has landed its first cargo of deforestation-free soybeans for domestic use, marking a milestone for a country that has traditionally prioritized price over sustainability in its farm imports. China is a major buyer of agricultural goods, including soybeans and beef, which are drivers of global deforestation, but has lagged behind Western peers in demanding that produce be sourced from land not linked to deforestation or natural habitat conversion.
However, this is slowly changing, with state-run COFCO International, as well as China Mengniu Dairy Company and Inner Mongolia Yili Industrial Group, asking suppliers and consultants for sustainable soybeans in the past year, according to traders and sustainability experts. While the volumes are tiny compared to China’s overall agricultural buying, the implications are significant given the country’s massive appetite for these products.
The participation of COFCO, which brought in Friday’s 50,000 metric ton cargo of Brazilian soybeans worth $30 million with a deforestation and conversion-free (DCF) clause, sends a strong signal of Beijing’s intent to shift towards more sustainable sourcing. “There is a noticeable shift in buying trends among Chinese buyers towards more sustainable and environmentally friendly products,” a Singapore-based broker said.
Some Chinese companies have been “aggressively” asking for deforestation-free soybeans and carbon-neutral vegetable oil since last year, according to a manager with a global trading firm. COFCO International’s Chief Executive, Wei Dong, said the industry must take action to promote sustainable agriculture practices that protect the climate and environment.
The shipment is part of a pilot project driven by the World Economic Forum’s Tropical Rainforest Alliance to curb commodity export-driven deforestation. Its executive director, Jack Hurd, said COFCO’s participation will stimulate more Chinese demand for sustainable products, marking an important step for a country that has long prioritized cost over environmental impact in its agricultural sourcing.