RESPONSIBLE RAW MATERIAL SOURCING

 

Influenced by the volatile market environment and continuously changing customer demands, companies must actively adapt their respective business operations, manufacturing practices and distributions strategy to efficiently replace and/or replenish inventories, to meet the current market products and service’s needs, enabling consumers to meet their respective daily needs. This is achieved through raw material sourcing, conducted in a responsible manner, which determines a company’s ability to control the quantity, quality and origin of raw materials, ensuring that raw materials sourced are grown, processed and transported with Environmental, Social and Environmental (ESG) considerations, minimizing negative environmental and social impacts throughout the value chain. This consideration extends to all raw materials sourced, including animal products, fruits and vegetables and raw materials. Furthermore, the need for responsible raw material sourcing is expected to intensify, as global biodiversity continues to be affected from climate change, as reported by the World Economic Forum, resulting in ecosystem degradation, effecting the quantity, quality, and availability of raw materials, driving up operational expenses and product and service prices.

 

 

 

To integrate responsible raw material sourcing throughout the operations, BJC applies responsible raw material sourcing practice through emphasizing sustainable natural resource management. This is guided by the established corporate wide Sustainable Sourcing of Agricultural Raw Materials Policy,  Animal Welfare Policy and GMO Policy, which clearly outline BJC’s approach and expectations to raw material sourcing. The policy states that BJC and its subsidiaries will reduce water consumption, reduce environmental pollutions, protect soil health, prevent the destruction of ecosystems and reduce GHG emissions, contributing to a sustainable operation. BJC also expects and encourages suppliers to act in line with this commitment.

 

 

Sustainable Agricultural Programs

 

Programs to reduce water consumption

 

 

Farming Water Control by BJF

BJC recognizes the critical importance of effective water management, as water is essential for sustaining life and vital for business operations. Berli Jucker Food (BJF) continues to educate farmers in northern Thailand on appropriate water management to improve water efficiency through various initiatives. Since its implementation in 2018, BJF's farming water control approach has become one of its main water management projects. This initiative focuses on reducing water usage on farms, particularly during the potato growing process. By accurately determining the water needs at each stage of growth, the project minimizes water waste. Additionally, this water control method helps protect overall potato yields. Since potatoes have shallow roots and low tolerance for water stress, this approach reduces the risk of crop rot due to overwatering. 

 

Year   2022   2023

Water use reduction
(
Million cubic meters)

  1.34   1.23

Area (Arces)

  1,989 (5032 rai)   1,829 (4,627 rai)

 

 

 

 

 

 

 

 

 

 

 

 

Smart Farming System

Big C supports farmers in incorporating technology into their agricultural businesses through the Big C Big Smart Local project. The objectives of this initiative are to:

Enhances production efficiency: By optimizing resource utilization, the Smart Farming System enables farmers to increase their yield while maintaining resource consumption at sustainable levels.

Streamlines labor utilization: The system addresses labor shortages by reducing reliance on manual labor.

Promotes resource conservation: Through optimized irrigation and energy usage, the Smart Farming System helps manage electricity and water consumption effectively, aligning farming practices with principles of sustainable production and consumption.

Enhances equipment longevity: By implementing predictive maintenance algorithms, the system minimizes equipment downtime and prolongs the lifespan of farming machinery.

 

 

 
Program to reduce environmental pollution         

 

 

Cooperative Farming System at BJF

Berli Jucker Food (BJF) continued to support and uplift farmers through various initiatives and knowledge sharing, such as supporting farmers to elevate farming practices beyond industrial expectations by complying with the Good Agricultural Practices (GAP) of the Department of Agriculture. Registered farmers' compliance is regularly monitored through annual audits by Department of Agriculture personnel, fostering a positive relationship between farmers and BJF while safeguarding product quality and safety. The GAP system remains an important tool for monitoring farming practices, including production yield, growth duration, product quality, and fertilizer use. Compliance with the system also encourages farmers to use organic fertilizers instead of chemical fertilizers.

 

Year   2022   2023

Province

 

Chiang Rai/ Phayao

 

Chiang Rai/ Phayao

Area (Acres)

 

1,371 

 

 3,689

Chemical fertilizer reduction (Tons)

 

190

 

667

 

 

 

 

Sustainable agriculture in Northern Thailand

Big C is making significant strides in promoting the production of organic products and avoiding the use of chemicals in agriculture, focusing on environmental protection across all nine northern provinces of Thailand. This initiative directly engages farmers from Mae Hong Son, Chiang Rai, Lamphun, Lampang, Phrae, Nan, Phayao, and Uttaradit.

The project is centered on educating farmers about sustainable farming practices that minimize chemical inputs. Big C provides comprehensive training sessions to farmers, emphasizing alternative methods and organic farming principles whenever feasible.

A crucial aspect of the initiative involves strict monitoring and control of chemical residues in crops. Farmers are trained to conduct regular checks for residues before harvesting to ensure that produce entering the market is free from harmful chemicals.This meticulous approach not only enhances food safety but also reduces environmental pollution from chemical fertilizer use.

Year   2022   2023

Organic products (Tons)

 

161

 

200

 

 

Programs to protect soil health      

 

 


Organic fertilizers

Emerging from the Remote School initiative, Rong Reaun Fun Nam Nom embodies a captivating story of sustainability and community empowerment. This program imparts knowledge on compost fertilizer production to schools in Chiang Mai province. Over 30 schools benefit from this endeavor at the Northern Agricultural Product Center in Chiang Mai. The compost fertilizer is used in school gardens to improve soil health and reduce the reliance on chemical fertilizers. By adopting these practices, the initiative helps protect soil health, ensuring it remains fertile and resilient. This sustainable approach prevents soil degradation, supports biodiversity, and promotes healthier plant growth, fostering a more sustainable environment for future generations.

   

Crop rotation in a potato farm
Berli Jucker Food (BJF) trains farmers in Chiang Mai, Chiang Rai and Phayao who farm on area of more than 7.5 Millon sq.M. (4,712 Rai) about crop rotation in potato farm to help maintain and prevent the deterioration of soil health.

 

 
 

Deforestation-free agricultural areas verification

BJF has designated field officers to promote potato cultivation in suitable areas, ensuring that there is no deforestation. These officers conduct thorough inspections, including reviewing title deed (N.S.4) and Certificates of Utilization (The Nor Sor Sam, NS-3), or a document authorizing land utilization issued by relevant government agency,  which certifies that the owner has occupied the land and put it to good use, before approving cultivation on the designated 4,627 rai of farmland.

 

   
Programs to prevent the destruction of ecosystems      

 

 


Biodiversity Procedure
BJC has longed recognized the important role of biodiversity to the overall health and wellbeing of the ecosystem. In 2023, has developed the BJC’s Standard Operating Procedure of Biodiversity Management, as a guideline for all business units to take early steps to secure biodiversity, and seize opportunities that enable BJC to remain competitive and to create net positive impact on biodiversity, implemented through diverse initiatives to minimize negative operational impacts on biodiversity throughout the value chain.

 

Biodiversity assessment

BJC evaluates the biodiversity effect of all BJC factories in Thailand. In addition, BJC intends to examine biodiversity effect with essential suppliers, particularly agricultural suppliers, in order to develop an action plan for managing biodiversity impact from the business operation.

 

 

 

 

 

Construction of Check Dam by BJF

Since 2022, Berli Jucker Food Co., Ltd. initiated the construction of irrigation dams for agricultural purposes. This was done to ensure the availability of water resources for potato farmers within the community, which is an important growing region for contracted potato farmers working with the company.

 

Year   2022   2023
Stakeholder  

Fai Kwang Subdistrict

 

Sotus International Co.,Ltd

Basf (Thai) Co.,Ltd

Vee Kaset Limited Partnership

San Sai district

Area (Hectares)   500    593

 

This will also benefit the development of the community's irrigation systems, which will provide a reliable water source during the drought. In addition, the dams will serve as a spawning pool for aquaculture, which will diversify the food sources available to the community. Eventually, the dams will prevent soil erosion. 

 

 

 
 

Sustainable Sourcing at CPC

Berli Jucker Cellox Ltd. (CPC) is a leading manufacturer of paper-based products, including various types of toilet paper, facial tissue, napkins, and multi-purpose paper, crafted to meet customer needs. Paper pulp is a critical raw material for CPC, and the company is dedicated to protecting the well-being of its paper sources by minimizing negative impacts on surrounding society and the environment. This commitment is reinforced through CPC’s sourcing of paper pulps from suppliers certified by accredited bodies, such as the Forest Stewardship Council TM (FSC TM) Chain of Custody certification (CoC), ensuring deforestation-free production of paper-based products.

 

 

 

 
Programs to reduce GHG emissions      

 

 
The Big Tree Planting Project 

In 2023, BJC made significant steps towards its '1+5 Environmental target' by spearheading the 'Big Tree Planting Project by BJC', during which over 20,000 trees were planted across 100 Rai (40 Acres) in Chiang Rai province.
Also in 2023, BJC and its subsidiaries achieved a total reforestation of 42,848 trees planted across 250 Rai (40 hectares), equivalent to 28% of the 150,000 tree target.

 

 

 

 
 

Crop Residue Management Initiative

In 2023, BJF continued to support and uplift farmers through various initiatives and knowledge sharing, such as improving crop residue management. Farmers are encouraged to manage their crop residues by plowing instead of burning. Burning crop residues eliminates the opportunity to improve organic matter content and can potentially lead to substantial nutrient loss.

   

 
 

Direct Purchase Program for Local Agricultural Products in 9 Northern Provinces 

Big C has established a collection center for vegetables and fruits at the Chiang Mai Provincial Cooperative. This initiative bypasses middlemen, ensuring that quality products are delivered to consumers through Big C store across Thailand.

 

Year   2022   2023
Local products offerings in retail (Tons)   4,072   4,500
Number of Branches   1,530   1,751
Value (Million Baht)   161   200

 

The program covers all 9 northern provinces, including Mae Hong Son, Chiang Mai, Chiang Rai, Lamphun, Lampang, Phrae, Nan, Phayao, and Uttaradit. It aims to support Thai farmers and small businesses in every aspect, enhancing agricultural products and fostering robust grassroots economic growth.

 

 
Other Programs  
   

Program to support expatriate workers

BJC demonstrates a strong commitment to supporting human rights within its supply chain. In Chiang Mai province, Big C has taken significant steps to aid 36 migrant workers employed by its suppliers. These efforts have ensured that the workers can work legally in Thailand, transitioning them into the formal employment system. As a result, these migrant workers now receive legal protections and benefits that are on par with those provided to Thai workers, including fair wages, safe working conditions, and access to social security. This initiative underscores BJC's dedication to promoting ethical labor practices and ensuring that all workers, regardless of their origin, are treated with dignity and respect.

 

 

 
For more information ► BJC Sustainability Report 2023  

 

 

 

Local Spending 

 

Local suppliers refers to a supplier or service provider whose products or service offered are procured and/or sourced from raw materials available from surrounding areas.  

Significant Location of Operations refers to suppliers with the majority of their business operations within Thailand. 

 

Performance  Unit FY2020 FY2021 FY2022 FY2023

Total Procurement Spending

Baht

122,085,241,282

123,342,954,911

126,636,213,370

131,117,202,491

Spending on purchasing of products and services from local suppliers and contractors for significant operations (i.e. In Thailand)

Baht

118,468,555,667

115,543,666,329

117,434,274,598

121,204,515,902

Percent of spending from local supplier comparing to the total general procurement budget

Percentage (%)

97

94

93

89

 

 

Animal Welfare 

 

 

 

BJC has committed to engage in responsible raw material sourcing practices to conserve the well-being and availability of resources for future generations, while minimizing negative impacts on the economy, societal and environmental factors. One of the implemented approaches is the commitment to protect and elevate animal welfare throughout the value chain, paralleled with upholding stakeholder benefits and business competitiveness. Guided by the BJC Animal Welfare Policy, BJC encourages the humane treatment of animals across the supply chain, throughout the animal’s life cycle. The policy covers;

 

1. Cooperating with business partners, farmers, and livestock producers to ensure that suppliers adopt the practical and commercially viable standards of farm animal welfare, including pets and other live animals which cover breeding, growing, transporting and slaughtering (if relevant). The animal welfare is based on the 5 freedoms as follows;

 

 

2. Supporting business partners, farmers, and livestock producers to be responsible for using antibiotics, as well as minimizing the application of antibiotics on animals’ health and welfare.

3. Not using products or raw materials from animals that pose a risk to moral principles, affect animal welfare, or create negative impact to consumers’ health such as genetic modification, animal cloning and the use of chemical substances to accelerate animal growth.  This is applied to all Big C brands.

4. Supporting cage-free animal husbandry with enough living space, especially, chicken livestock that produces chicken products and eggs, for all Big C brands.

5. For distributing BJC’s animal food and equipment, the standards and safety must be applied in accordance with relevant laws, rules and regulations.

6. BJC does not distribute any products that contain raw materials from reserved wildlife and does not support activities that affect animal health and welfare.

 

Animal Welfare Disclose

 

BJC Group places importance on animal welfare, which is directly related to the quality and safety of food, and encourages the humane treatment of animals in supply chain throughout animal life cycles. In 2023 BJC has conducted activities or business operations related to animal welfare as follows:

 

  1. BJC does not sell product from illegal antibiotic-treated animal. BJC also expects all suppliers to use antibiotic at minimum or only when needed.
  2. BJC does not sell product from genetically modified animal or cloned animal. BJC also requests all suppliers not to sell GMOs product to BJC.
  3. BJC does not sell any product that contains illegal growth-promoting substance.
  4. BJC does not own animal production or operation. BJC also conducts onsite audit at the operation site of critical suppliers of fresh food products.
  5. BJC supports and put an effort to increase sales volume of cage-free eggs.
  6. BJC collaborates with The Department of Livestock Development to obtain the certification of “Pasusut OK” (The Department of Livestock Development certifies the stores that sell hygienic meat as well as products from the farms that have Good Agricultural Practices certification).

 

BJC has a process for auditing suppliers’ farms. The agreement made with the suppliers clearly specifies that the suppliers must be compliant with related animal welfare law, and they do not use animal products from genetically modified or cloned animal. Therefore, in 2023, BJC’s animal products do not contain illegal antibiotics or growth-promoting substances, and no genetically modified or cloned animal is used in any production process.

 

GMO 

Given the increase awareness and concerns for Genetically Modified Organisms (GMOs) amongst modern customers, BJC has developed a clear policy, committing to deliver high quality and safe products to consumers, achieved through compliance with the corporate-wide Genetically Modified Organism Policy, committing BJC to adhere to all applicable GMOs laws, regulations and standards of any country in which it operates, ensure procurement of raw materials from a reliable source, which are traceable. Should any sourced raw materials contain GMOs, it must be managed and stored according to prevent contamination or leakages. GMOs products must publicly disclose information on products label as required by applicable laws and regulations, to regulate the sourcing of raw materials containing GMOs, and uphold customer trusts. 

 

Organic Products 

Recognizing a growing number of health-conscious consumers, expressing an interest in healthy products, such as organic fruits and vegetables, BJC is committed to sourced high quality organic products, which are safe and nutritious in a responsible manner for all customers. This commitment is evident in the Sustainable Sourcing of Agricultural Raw Materials Policy, clause 10, where BJC is committed to support the distribution of organic products to promote the health and safety of customers. To achieve this commitment, organic products are offered through three key channels as follows; 

 

We Are Fresh 

Over 2,000 products are sourced directly from local and international farmers grown, using one of the following three key organic approaches, Organic, Hydroponic, and Hygienic. Products offered include, fresh fruits and vegetables, meat products and eggs, sourced from certified farmers, which meets the department of livestock farming standard quality, carefully controlling every step throughout the value chain, free from rd meat accelerators growth hormone and safe from antibiotics, for all fish, pork, chicken, eggs and seafood products (for both freshwater-saltwater) fish, white shrimp and dried seafood products. All products are gauranteed to have cleanliness and safety from toxic chemical residues. In addition, over 200 We are Fresh products are organic. 

 

N&P Organic

Natural and Premium Food Company Limited offers organic products including vegetables, herbs, mushroom, eggs and ready to cook foods, grown in the most optimum climate to ensure the quality. The farming approach also ensure that no harmful chemicals and additive hormones are used, ensuring that products such as eggs are free range, antibiotics free, artificial and other growth Hormone free, chemical free, artificial coloring free and free from the use of bird flu vaccines, resulting in a more natural and healthier, lower in cholesterol and more nutrition, especially vitamin E, Beta carotene and Omega 3.

 

Royal Project Vegetable

The Royal Project was first implemented by the late his majesty King Bhumibol Adulyadej, the 9th King of Thailand to improve the standard of living of the hill tribes’ communities, to replace opium poppy cultivation with a more sustainable highland agriculture practice. Today, organic vegetable production by the Royal Project is well known throughout Thailand, producing high quality fruits and vegetables products throughout Thailand.

Close Loop Recycling by ThaiBeverage Can Limited (TBC)


Thai Beverage Can Limited (TBC) adopted a 'Close-loop' approach tomanufacturing, where each companies implemented initiatives to increase utilization of recycle raw materials ingredients, instead of unprocessed raw materials. 


Responsible Raw Material Sourcing Documents


Environment
PDFEnvironmental Management Policy
192.84 KB 
PDFAnimal Welfare Policy
135.62 KB 
PDFGenetically Modified Organisms Policy
128.05 KB 
PDFSustainable Sourcing of Agricultural Raw Materials Policy
169.06 KB 
PDFSustainable Raw Material Certification
8.32 MB 
Others
PDFAssurance Statement of SR 2022
162.58 KB