Supply Chain Stewardship

We recognise that we are able to influence responsible behaviour in our suppliers, and are ensuring that we leverage this ability for optimum results. While meeting the needs of our business partners, suppliers and vendors we expect them to adhere to our Supplier Code of Practice which encompasses the ESG elements of business ethics, environmental management, human rights and occupational health and safety.

We have identified our critical suppliers, namely suppliers of packaging materials and raw ingredients with sales exceeding RM1 million per annum or suppliers we are unable to replace. Our goal is to assess all critical suppliers and ensure they comply with our Supplier Code of Conduct by 2025.

Our 2025 Commitments
Supply Chain Stewardship
  • 100% of active key suppliers accept and comply with F&N’s Code of Business Practice by 2025
  • 100% of critical suppliers assessed to ensure compliance with Code of Business Practice

Since 2013, we have been collaborating with local Thailand-based farmers in cooperatives which supply FNDT with fresh 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.

We continued to build the capability of over 2,000 farmers from 10 milk cooperatives, mainly in Nakhorn Ratchasima Province, through a Farming Excellence System, which consists of 3 key programmes:


Beginning July 2019, we, together with Soonthorn Metal Can (our can supplier) and Thepsathit Milk Cooperative (one of our milk suppliers in Thailand), came together to tackle the water shortage problem during the annual dry seasons by providing a champagne tank and piping route to the Thepsathit community in Chaiyaphum Province. This programme is able to supply 1,680,000 liters of water every month for up to 180 households across communities in Chaiyaphum province. This also provides sufficient water supply for up to 24 farms, consisting of 955 cattle, to minimise disruption from drought and ensure farmers can continue their farming operations sustainably.