Charoen Pokphand Foods PCL. (CPF) maintains its policy to buy maize only from growers who do no harm to the environment, in line with its emphasis on responsible supply chain and traceability. Assistance is available for farmers attempting to meet environmental standards and earn stable income, for sustainable and mutual growth.
The policy has been exercised through Bangkok Produce PLC (BKP), CPF’s raw material sourcing arm. It highlights socially- and environmentally-responsible business operations under the Sustainable Sourcing Policy, whereby mutual growth of all stakeholder groups is in focus. The policy has been well-honored by maize suppliers who ably identify the plantation areas with 100% legal land deeds under the “no mountain, no burning, we buy” motto. Farmers have also enjoyed supports as CPF strives to achieve the sustainable supply chain.
Since 2016, CPF has enforced the Corn Traceability system, to ensure that the corns for its feed mill plants come from the fields that are not located in forest areas or burnt for subsequent plantation activities. The latest move concerns the GPS Tracking system that allows 100% real time tracking of corns from farms to all CPF’s feed mills in Thailand.
On another front, CPF has proceeded with its efforts to bolster farmers’ strengths for sustainable and mutual growth. The “self-sustaining farmers, sustainable corn” project was launched in 2015, to enhance corn plantation efficiency through close consultation from CPF’s experts. For resource optimization and a cut in production cost, large plantation fields and modern technology like Chat Bot have been promoted, to allow farmers’ access to daily ex-factory maize prices as well as the data of harvest and transportation trucks in their community.
During the harvest months of October through December, CPF has increased the number of standard maize buying spots in communities near plantation fields as an alternative to farmers. Able to save transportation cost, farmers enjoy an increase in income as CPF covers partial harvest and transportation expenses for the farmers who sell their produce at the spots.
Since the “self-sustaining farmers, sustainable corn” project was launched 5 years ago, the project has covered 9,554 farmers and 241,220 rai of plantation fields. The average yield per rai in 2020 was 1,200 kg, compared to 909 kg produced by the fields not covered by the project. The increasing yield generated extra income for farmers by Bt29,628 per household on average.
Under the Sustainable Sourcing Policy, CPF strives to buy main raw materials like maize, palm oil, tapioca, soybean meal and fish meal only from fully-traceable sources, to ensure natural resource sustainability and raise farmers’ living standard.
BKP has recently extended the Corn Traceability system to cover the fields in neighboring countries. Since 1 April 2020, Myanmar C.P. Livestock Co., Ltd, a business unit of Charoen Pokphand Group, has bought maize only from the fields in Myanmar that can present legal land deeds. Farmers with proper land deeds in Myanmar have been registered and taken part in conserving Southeast Asia’s fertile forests and preventing forest fire smoke.