China, a major global buyer of agricultural commodities, has taken its first steps towards more sustainable sourcing of farm products, led by its state-run food group COFCO International.
COFCO International recently landed its first cargo of deforestation-free soybeans at the port of Tianjin, marking a milestone in China’s shift towards greener agricultural imports. The 50,000 metric ton shipment of Brazilian soybeans, worth $30 million, had a deforestation and conversion-free (DCF) clause for the first time for a Chinese soy order.
This move comes as China, the world’s top buyer of agricultural goods like soybeans and beef, has traditionally prioritized price over sustainability in its imports, lagging behind Western peers in demanding that its suppliers avoid sourcing from land linked to deforestation or natural habitat conversion.
However, this is slowly changing, with COFCO as well as other major Chinese companies like China Mengniu Dairy and Inner Mongolia Yili starting to ask for sustainable soybeans and other farm products from their suppliers over the past year. While the volumes are still small compared to China’s overall agricultural imports, the implications are significant given the country’s massive appetite for these commodities.
The participation of state-run COFCO in this pilot project, driven by the World Economic Forum’s Tropical Rainforest Alliance, is seen as a strong signal of China’s intent to address the environmental impact of its agricultural supply chain. Experts say this could stimulate more Chinese demand for sustainable farm products and help strengthen global efforts to curb commodity-driven deforestation.