April 5, 2021
CPF expresses commitment to buy maize from environmentally responsible growers
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 a responsible supply chain and traceability, the company said.
According to CPF, assistance is available for farmers who seek to meet environmental standards and earn a stable income based on a sustainable and mutual growth. Such a policy has been exercised through Bangkok Produce PLC (BKP), CPF's raw material sourcing arm. It highlights socially and environmentally responsible business operations under CPF's Sustainable Sourcing Policy, in which mutual growth of all stakeholder groups is the focus.
The policy has been honored by maize suppliers who are able to identify plantation areas with full legal land deeds.
Since 2016, CPF has enforced a corn traceability system, ensuring that corns for its feed mill plants come from the fields that are not located in forested areas or forest burnt down for subsequent plantation activities. CPF's latest move in this regard concerns the use of GPS that allows real time tracking of corns from farms to all CPF feed mills in Thailand.
CPF has also proceeded with its efforts to bolster farmers' capability to achieve a 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 optimisation and reducing production cost, modern technology like a chat bot have been promoted to allow farmers' access to factory maize prices as well as the data of harvest and transportation trucks in their areas.
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 farms. As a result, farmers can enjoy an increase in income as CPF covers partial harvest and transportation expenses for farmers who sell their produce at the spots.
Since the "Self-sustaining farmers, sustainable corn" project was launched five years ago, the project has covered 9,554 farmers and 241,220 rai of plantation fields. The average yield per rai in 2020 was 1,200kg, compared to 909kg produced by ields not covered by the project.
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 also recently extended the corn traceability system to cover fields in neighboring countries.
Since 1 April 2020, Myanmar CP 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 Asian forests and preventing forest fire.
- CP Foods