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CP Foods pursuing contract farming strategy for job security and sustainability in Thai Agriculture sector
28 Jan 2022
CP Foods pursuing contract farming strategy for job security and sustainability in Thai Agriculture sector

Charoen Pokphand Foods Public Company Limited (CP Foods) has continued the contract farming project for more than 40 years to help promote careers with secured and sustainable income, aiming enhance quality of life of more than 5,900 smallholder farmers in Thailand, bolstering sufficient high quality and safe meat production.

 

CP Foods is among a very first companies in the country that introduced contract farming model in 1975 to promote employment and stable income among Thai livestock farmers, covering broiler, swine and egg businesses.  Currently, the company has a network of more than 5,900 farmers participated in the project, almost 2,000 farmers has participated in the schemes for more than 10 years. The company provides "mentors" to help advise and sharing new knowledge related to animal husbandry practices and technologies.

 

To response the global trend, the company has supported contract farmers to adopt automation and technology to enhance efficiency, Good Labour Practice principle to manage their workers. The company also supports the farmer to utilize renewable energy in the farm by installing biogas system and utilize biogas from swine farming. Moreover, CP Foods encourage farmers to build solar panels generate electricity in the fields. This is not only helping them to have better productivity but also guiding them towards a more sustainable way.

 

CP Foods also promotes biosecurity measures to prevent outbreak that occur in both humans and animals by sending the company's experts to teach farmers regularly. To prevent COVID-19 and animal outbreak, the company encouraged farmers to build accommodation for workers, enabling them to stay full-time in the farms and, subsequently, prevent infections from external sources. Subsequently, CP Foods operation has been run smoothly despite the outbreak of COVID-19 and animal diseases.

 

To ensure that farmers are treated fairly, CP Foods revised its contract farming agreement to allow more involvement of farmers in decision making process.

 

The agreement is developed in line with UNIDROIT (The International Institute for the Unification of Private Law), the most well-known independent intergovernmental organization on private law. This guideline was endorsed by the Food and Agriculture Organization of the United Nations (FAO).

 

As a result, the program was praised by the Food and Agriculture Organization of the United Nations (FAO) for being a good guideline that help improving standard of agriculture products and well-being of farmers in many developing countries.

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