C.P. Group, through its subsidiaries Charoen Pokphand Produce Co., Ltd. (CPP) and Bangkok Produce PLC (BKP), is taking bold steps to address environmental and supply chain challenges in Myanmar. Partnering with the Myanmar Corn Industrial Association (MCIA), the company has launched a state-of-the-art traceability system for the country’s corn supply chain, employing satellite imagery and blockchain technology.
Tackling Environmental Challenges
The initiative aims to eliminate corn production practices that contribute to environmental degradation, such as deforestation and slash-and-burn farming. By identifying and flagging corn grown in forested areas or through harmful practices, the programme targets a significant reduction in cross-border smog and haze pollution. This is a critical step in improving air quality and building trust in both domestic and international markets.
Cutting-Edge Technology for Sustainability
The programme will initially cover 570,000 acres in Myanmar’s southern Shan State, one of the country’s largest corn-growing regions. The traceability system integrates advanced technologies to ensure sustainable practices across the supply chain, offering 100% traceability for both seed and feed corn.
Mr. Worrasit Sitthivichai, Chief Operating Officer of CPP Myanmar, highlighted the initiative’s alignment with the vision of C.P. Group leaders, including Mr. Dhanin, Mr. Supakit, and Mr. Suphachai Chearavanont, who are committed to supporting sustainable development through swift and innovative action.
Six Steps to Sustainable Corn Production
The traceability system involves six key stages:
- Registration and Plot Mapping: Farmers and traders are registered, and their plots are mapped with precise coordinates.
- Satellite Imagery Verification: Satellite technology validates cultivation areas, preventing deforestation and field burning.
- Forest Boundary Compliance: Historical data since 2020 ensures adherence to the EU Deforestation Regulation (EUDR), with non-compliant areas excluded.
- Hotspot Monitoring: From January to May, hotspots are tracked, identifying high-risk areas prone to burning.
- Burnt Area Calculation: Burned regions are removed from the total cultivable land area.
- Data Transparency: Net cultivable areas and production data are recorded from cultivation through export, ensuring full transparency.
Transforming Myanmar’s Corn Industry
“This pilot in southern Shan State sets a new benchmark for Myanmar’s corn industry,” said Mr. Worrasit. “Our traceability system boosts buyer confidence, reduces environmental harm, and ensures sustainable practices through cutting-edge technology.”
MCIA Chairman Mr. U Aung San Aung praised the programme for providing Myanmar’s corn producers with access to high-standard international markets while fostering environmental sustainability. Dr. Pyo Ko Ko Naing, Managing Director of Alliance Eagles Group Limited and MCIA Secretary, added that the initiative supports haze mitigation efforts and environmental protection, pledging continued collaboration with farmers and traders.
The Bigger Picture
Shan State’s southern region, located in Myanmar’s highlands bordering China, Laos, and Thailand, spans 104.2 million rai, with forested land accounting for 74.8% and agricultural land 7.8%. Corn cultivation represents 22% of its farmland, making it a key agricultural activity second only to rice.
C.P. Group’s traceability initiative underscores its commitment to addressing consumer demands for transparency, environmental responsibility, and supply chain sustainability. By integrating advanced technologies, the programme aims to transform Myanmar’s corn industry into a model of economic, social, and environmental progress.