KCG Corporation

1 16.06.2017

“Creating a Sustainable Food System”

2

1. Current issues and Thailand’s development of Food Safety, Food Security and the access to

sufficient, safe and nutritious food

Thailand Current Status

3 Source: The index was constructed by the EIU and sponsored by DuPont.

Quality and Safety of Environment

4

Moderate environment 56.8

Source: The index was constructed by the EIU and sponsored by DuPont.

Thailand Current Status

5 Source: The index was constructed by the EIU and sponsored by DuPont.

Challenges affecting agricultural development

6

Risk Factors • Depletion of Natural Resources in Thailand • Climate change is more severe • Almost small-scale farming are facing high production

cost • Increase in Bioenergy Demand and Production • Free Trade Agreements and ASEAN Economic

Community

7

2. How can we use innovation and technology to support the country’s agriculture in a sustainable

manner?

8

Middle Income Trap Inequality & Imbalance

Innovative/Value-based Industry/

High Income Country

National Strategy of Thailand

Better performance and faster time

Sales/Profit Organization with Knowledge and Innovation

Time

Benefits of Innovation

General Organization

9 Source: K Poonsawat, CPALL

• Produce at lower cost and higher volume of agricultural products (low cost/high efficiency)

• Enable all year around production

• To develop value added products from basic raw materials to increase usage and create higher value and margins (Waste not)

10

Benefits of Innovation

The world-class R&D facility & the heart of KCG’s product innovation

“To Research and Develop value added products and services for our customers by using Innovation and Technology while responding to

customers need and creating highest satisfaction to consumers.”

KCG Excellence Center

Innovation

Riceberry Rice Products

14

https://www.google.co.th/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwit_IXC26_UAhUDPY8KHSoYCqwQjRwIBw&url=https://msfsshop.wordpress.com/2016/06/19/%E0%B8%A5%E0%B8%AD%E0%B8%87%E0%B8%8A%E0%B8%B4%E0%B8%A1-7fresh-%E0%B9%80%E0%B8%94%E0%B8%99%E0%B8%B4%E0%B8%8A%E0%B8%AA%E0%B8%95%E0%B8%A3%E0%B8%AD%E0%B9%80%E0%B8%9A%E0%B8%AD%E0%B8%A3%E0%B9%8C%E0%B8%A3/&psig=AFQjCNHYyLR5SNQZjZWyj9MVJb3NkDnNZw&ust=1497061662745530

31.10.2015

16

3. Implementing technology in food production could lead to reduction in workforces and

increase unemployment, what is your mitigation plan for this issue?

• Automation leads to less errors, better product quality and safety

17

Automation in Food Industry

18

Shift from labour to skilled workers

• Reduce labour workforce, have more skilled labour so they have more value and hence earn higher income.

• Change from labour to skilled staff, can add more value to the organization.

• Can be more innovative as move away from routine work.

19

Job Rotation

Explores hidden talents

Individuals explore their interests

Identifies knowledge, skills and attitude

Motivates employees to deal with new challenges

Increases satisfaction

Aligns competencies with requirement

21.06.2016

KCG Innovation

21

4. What does it mean by Sustainable Food System? Example of KCG

Sustainable Food System

22 Source: http://wdbx.org/calendar/new-humanist-forumsustainable-food-systems

Sustainable Food System

23

Sustainable food system takes into

account environmental,

economic, social and nutritional health for

all

Production

Processing

Distribution

Access

Consumption

Waste recovery

Resilient

Inclusive

Connected Participative

Responsible

Diverse

KCG’s Contribution: Production

• Promote organic farming, no chemical use.

24

• Promote use of Riceberry rice to help Thai farmers instead of import flour

“We strive to use local agricultural products”

เพ่ือนพึง่ภาฯ อ่ิมสขุ Riceberry อินทรีย์ก้าวไกล

8-14.08.2016

Planet

• Develop green products

• Reduce energy consumption

• Reduce water use in operation

• Reduce waste in operations

• Reduce emissions from operations

• Make more use of product value chain

• Rendering waste less toxic before disposing of it in a safe and legal manner

26

KCG’s Contribution: Processing

People • Internal Process

- Employee benefits, salary

- Retain and motivate employees,

- Improve safe work environment

- Staff health care and education

- Support education for staff’s children

27

KCG’s Contribution: Processing

KCG บางนา Big Cleaning Day

CSR Activities– ชุมชน

KCG’s Contribution: Processing

29

GMP-Codex HACCP ISO

9001:2008

ISO 17025:

Calibration

Chem &Micro

KCG Corporation Bangna and Theparak Branch

Quality System Standard

2012-2015 2007 2002 2009- 2011 2005

NOW BEFORE 1974-2011

FUTURE

1974

KCG Corporation Bangna and Theparak Branch

2017 2018

2018 2017

2019 2020

30

2016 2021

KCG’s Contribution: Distribution

• Promote reliable and sustainable communication of food product information throughout the supply chain

• Raise awareness on the need to adopt sustainable diets

• Distribute system that is carefully monitored, data logger

31

Transportation - Types of Trucks

Frozen -18oC Chilled 0-8oC Air-Con 18-22oC Ambient 25+oC

Total 113 trucks

Logistics & Distribution Network

KCG’s Contribution: Access

• KCG supplies to B2B and B2C market

• E-commerce

• Accessible price range

33

KCG’s Contribution: Consumption

• Promote health and well being

• Provide healthy foods

• Healthy Foods at lower costs and accepted by consumers, localized taste

• Supermarket with health foods segment

34 Allowrie Processed Cheddar Cheese Slice (Light)

Good source of Calcium

Low fat & Cholesterol

Zero gram trans fat

No cholesterol

35

Educate consumers

Nutrition facts

Inform, educate, persuade

Through marketing functions- Advertising, promotion,

packaging, and labeling

KCG’s Contribution: Waste

• Add value to waste from broken Riceberry rice

36

Waste NOT!

Broken Rice 40 ฿/kg

Riceberry Pancake Premix 79 ฿/box (400 g)

Mix fruit syrup

Red

Yellow Green

Orange

• Wastes from Mix fruit product

KCG’s Contribution: Waste

Need research to add value

5. Implication for Thailand

38

Thailand with

sustainable community

Local Products Growth of

organic products

Health and

Functional Foods

Zero waste/

recyclable packaging

Sustainable agriculture

Implement

SEP

Innovation-based

products

Talent Mobility

39

Implications for Thailand

40

Implications for Thailand

• Preparation for Free Trade Agreement

• FDA Regulations

(Nutrition label, Nutrition & Health claim)

41

Good Quality of Life

Implications for Thailand

Decrease poverty

6. Thailand’s opportunities in becoming a key player to address

Zero Hunger Goal

42

43

“End hunger, achieve food security and improved nutrition and promote sustainable agriculture”

Zero Hunger

44

Indicators of SDGs for Thailand

UN Spec Done Need

Improve Need

investigate Irrelevant

12 8 1 3 0

14 11 1 2 0 26 17 0 9 0

11 5 0 6 0

14 8 1 5 0

11 7 2 2 0

6 4 1 1 0

17 8 1 8 0

12 10 1 1 0

UN Spec Done Need

Improve Need

investigate Irrelevant

11 6 0 5 0

15 6 2 6 1

13 3 0 10 0

7 4 0 1 2

10 3 3 3 1

14 3 0 11 0

23 10 0 13 0

25 6 1 17 1

241 119 14 103 5

Source : Office of the Nation Economic and Social Development Board

Total

Agriculture and biodiversity in Thailand

45

46

Thailand as Food Exporter

Source: Economic Intelligence Center (2016)

13th Rank of The World Food Exporter 2016

47

Thailand’s opportunities for Zero Hunger Goal

/Social

A solid foundation to help us grow

48

King Bhumibol’s New Theory Farming System

30% Pond

Store rainwater during rainy season, during dry season, serves to supply water to grow crops and raise aquatic animals and

plants.

30% Rice Cultivation

During rainy season for family’s daily consumption throughout the year to cut

down on expenses and allow farmers to be self-

reliant.

30% Trees/Crops

Grow fruit and perennial trees, vegetables, field crops, herbs for daily

consumption. If surplus, it will be sold.

THE SEP STRATEGY FOR ERADICATING POVERTY

49

- Doi Tung Development Project Established in 1988, utilized a multi-pronged approach to substitute Arabica coffee trees for opium. Not limited

to opium eradication alone, the project combines agriculture, education, healthcare and the building of a brand. DTDP now covers some 15,000 hectares and benefits around 11,000 people from 29 different villages

Source: Ministry of Foreign Affairs of the Kingdom of Thailand

50

Thailand’s opportunities for Zero Hunger Goal

2) Kitchen of the World

o Increase crop productivity • R&D • Technology

o Develop value-added agro-industries • Upgrade quality to be

world class o Promote cooperation with

the international community • Prepare cooperative

frameworks with foreign countries

Source: Office of the National Economic and Social Development Board

“Thailand: The Land of Zero Hunger”

SEP

New Theory Farming

Government Management

Thailand 4.0

Zero Huger of Thailand

51

Zero Hunger THAILAND

52

Thank you for your attention

We don’t only do R&D, We create and innovate so we can be your “strategic partner”