In addition to ensuring the quality of raw materials that meet the Company’s standards, the Company has announced
Biodiversity and Zero Deforestation Commitment
in line with Net-zero commitment to reduce greenhouse gas emissions according to Science Based Targets initiative (SBTi)’s guideline. The Company set a target to achieve zero deforestation for four key agricultural raw materials including maize, soy, palm oil and cassava across global operations by 2025. The Company works towards this target by developing a blockchain-based traceability system and using advanced satellite imaging technology for governance. The Company is also in progress of connecting traceability atabases with suppliers and farmers in the supply chain, along with procuring certified raw materials recognized by international standards with traceability. Notably, the Company does not use the contract farming system with feed plantation farmers both in Thailand and overseas operations.
Mechanism of Maize Traceability System
Maize farmers in the supply chain shall register with their personal information along with location of the plantation areas, the size of the plot, and the status of land ownership which is based on a legal document of land title deed or an official document certifying that the plantation areas are permitted as agricultural land. Maize collectors shall register with their personal information or establishment registration details, along with the establishment’s location. Upon the transaction, maize farmers and maize collectors shall record trading information in the system every time. Currently, the Company has adopted blockchain technology to track each trading transaction for transparency within supply chain. The Company has also integrated the geolocation of the registered plantation reas (GPS Coordinates) with a real time satellite-based hotspot tracking system, using the same database as NASA (NASA FIRMS: Fire Information for Resource Management System), to monitor stubble burning in registered maize farmers’ plots in the supply chain.
When a hotspot is found on the registered plot, the Company will investigate and issue a warning notice to the farmer with knowledge sharing on how to properly manage stubble without burning. In case of repeated stubble burning, the Company reserves the right not to purchase maize from aforementioned plots for at least 1 year. The Company established public channel to report maize stubble burning to safeguard society and the environment in accordance with the “No purchasing and importing maize products from deforestation and stubble burning area” policy.
Report Channel for Maize
Stubble Burning
Website
F.Farm Application
For Android Only
The Compony is committed to controlling the quality of palm oil before entering the food and animal feed production systems to produce products that meet the Company's standards. The Company is also aware of the impact of converting tropical rainforest areas to agricultural areas for planting oil palms,resulting in ecosystem changes and biodiversity loss. The Company, as a leader in the argro-industrial and food industry, aims for 100% of its palm oil to be traceable and deforestation-free by 2025. For animal feed business, the Company has developed a Palm Traceability System which will be expanded in 2024. For food business in Thailand and Vietnam operations, the Company currently procures parts of palm oil from production sources that meet international standards, e.g. the Roundtable on Sustainable Palm Oil (RSPO) which ensures that the palm oil purchased is free from deforestation.
Cassava is one of the key raw materials in the food and animal feed industry, The Company places great importance on the quality of raw materials purchased. The Company has developed a Cassava Traceability System for feed business, and has expanded the succes in Thailand in the fourth quarter of 2023. This was achieved through collaboration between suppliers and farmers in the suuply chain who registered under the Company's traceability system.
For processed cassava used in the food production business, the Company has collaborated with suppliers and farmers to collect data. The Company is in the process of expanding the traceability system to plantation areas to ensure zero deforestation sourcing.
The Company emphasizes the pre-purchasing quality control of fishmeal, which is another importance source of protein in aquatic feed. The Company is aware that fishmeal is a raw material that is a risk of sustainability issues, both in the social and environmental dimensions, e.g. illegal fishing, use of forced labour in the supply chain, etc. Although the Company does not operate fishing business and does not own fishing vessels, the Company is deeply committed to supporting the sustainable procurement of fishmeal to reduce sustainability risk and impacts that may occur in the supply chain. Thus, CPF Fishmeal Sourcing Restrictions has been established, allowing only two types of fishmeal to be sorced as follows:
