Fraser & Neave Holdings Bhd Sustainability Report 2021

Farming Excellence System – Thailand introduced new technologies and equipment to help farmers increase productivity, lower cost, improve milk quality, and reduce waste. F&N provided a Bundling Machine Grass Silage or Corn and a Tiller Fertiliser Machine at a cost of THB425,000 to Thepsathit Dairy Cooperative in Chaiyaphom Province. This initiative reuses the cow’s waste as fertiliser for corn and corn silage fermentation to reduce the cost of cow feed. To maintain the quality of fresh milk, the team developed a digital platform to support the milk collecting centres and farmers to improve milk quality and to encourage traceability from farm to factory. After implementation, the receiving time of the raw milk was reduced significantly by 70%. The second solution is to develop a new method of milk transportation to simplify running routes, reduce environmental impact and monitor raw milk data by real time. This new milk transportation method can reduce more than 200,000 kg CO 2 emission per year. Understanding the challenges brought about by weather and climate changes, F&N installed a large water storage tank to raise water security. This minimises the need to travel long distances to access reservoirs and water resources, especially during times of droughts. This THB460,000 investment is able to supply 1,680,000 liters of water every month for up to 180 households across communities in Chaiyaphum Province. This provides su+cient water supply for up to 24 farms, consisting of 955 cattles, to minimise disruption from drought and ensure farmers can continue their farming operations sustainably. Since 2013, F&N has been collaborating with local Thailand-based farmers in cooperatives which supply F&N Dairies Thailand with fresh milk. This year, we continued to build the capability of over 2,000 farmers through the Farming Excellence System, which consists of 3 key programmes: 1 2 3 Booklet and guidelines to share information about good farming practice to improve milk quality Mobile application to conduct assessment at farms: • Good Manufacturing Practice (GMP) assessment, focusing on cleaning, antibiotics’ drug usage and physical properties inspection of raw milk • Online COA assessment to monitor the waiting and delivery time to F&N, to ensure quality of raw milk Sustainable farming • Water champagne tank project to tackle the water shortage problem • Use of wastewater and cow’s dung in the plantation of feed such as napier grass and corn. Supplier engagement at F&N takes a ground-up and collaborative approach. F&N understands the problems the suppliers face and provide solutions accordingly. Apart from organising seminars and producing quarterly educational newsletters for the farmers, F&N 062 R E S P O N S I B L E S U P P L Y C H A I N