Fraser & Neave Holdings Bhd Sustainability Report 2019

Enhancing Supplier Productivity Since 2013, we have been collaborating with local Thailand-based farmers in cooperatives which supply F&NHB with milk. We continue to introduce new technologies and equipment (for example, milk machine testers and automatic jet cleaning milking machines) to help them increase productivity, improve milk quality, and reduce wastes as part of a circular economy approach. Working closely with the cooperatives, we also organised seminars and produced quarterly educational newsletters for the farmers. This year, we worked with Thepsathit Milk Cooperative, one of our milk suppliers in Thailand, to tackle the water shortage problem during the annual dry seasons by providing a champagne tank and piping route to the Thepsathit community. Around 50 employees volunteered in this programme, which provided more than 200 residents with clean and sufficient water supply during the dry season. The Animal Husbandry Association of Thailand has recently recognised Mr. Chatchawal Maneetap, Agricultural Business Manager in F&N Dairies (Thailand) Limited for his work to support the Thai animal production industry in Thailand. He contributed to the invention of simple-to-use cleaning equipment for milking machines, for which he received the Thailand Kaizen award. Mr. Maneetap also helped to introduce antibiotic and somatic cell count control in fresh milk, which is helping farmers nationwide. We have been a milk supplier to F&N for many years, and have developed a strong relationship that is mutually beneficial. There is a lot of knowledge sharing between the two companies, which is not something you get with all business relationships. We provide F&N with information about the upstream fresh milk farming, while they keep us updated about what’s happening in the downstream dairy business of producing and marketing sweetened and evaporated condensed milk. Because F&N is an international company, they also open our minds to the international standards that a dairy farm like us can aspire to. Through this knowledge, we are inspired to keep improving our standards and quality. At the same time, we provide them information on the issues that local farmers face. This helps them understand the needs of their other fresh milk suppliers. As a relatively new dairy company, TFMs really appreciates the support that we get from F&N. From the time that we opened and started supplying milk to them about two years ago, they have gone beyond being just a client to becoming more like our business partner. Their agriculture team has been working closely with our people to provide us with the knowledge and skills to improve the quality of our milk. They conduct training sessions with our farmers on feeding cattle and how to keep them healthy. They have also helped us acquire new technologies that enable us to run our farms more efficiently. We feel privileged to have found a business customer that takes our interest to heart. With the relationship that we have developed, I am confident that we will continue to be a partner to F&N for many more years to come. Emil Kachchap Division Manager of International Relations, Farm Chokchai R Lerkchai Ramanee Manager, TFMs Milk Collection Center and Farm Sponsored 3 milking tester machines to 3 milk cooperatives, helping 690 farmers in improving milk quality. Organised quarterly seminars for 120 farmers from 4 milk cooperatives, covering various topics including procurement policy, quality evaluation, cost reduction and long-term supply. Supported 45 farmers in the cow feed production project, using Napier grass for total mix ration production to improve milk yield and reduce cost. 01 02 03 Special Feature Mr. Chatcawal Maneetap’s work recognised by the Animal Husbandry Association of Thailand Managing Our Impacts S U S T A I N A B I L I T Y R E P O R T 2 0 1 9 087