Charoen Pokphand Foods Public : CPF vows to end IUU across Asian seas

Charoen Pokphand Foods Company Limited (CPF) vows to end the use of Illegal, Unreported and Unregulated Fishing (IUU) not only in its supply chain but also convincing suppliers across the region to undertakes sustainable practices in line with global standard for supply sourcing, traceability system and good labour practices.

Previously, CPF announced the target for 2020 to implement 100% auditing of critical suppliers on sustainability aspects covering environmental, human rights, and labor issues, specifically on fishmeal suppliers. It is noted that fishmeal is one of the ingredients it uses in the company's shrimp feed production and it is the only linkage between the Company and the ocean.

To achieve the goal, the company has encouraged and supported its fishmeal suppliers to develop sustainability in the supply chain as well as at the origin of raw material. In 2019, CPF anticipates that the sourcing of fishmeal in Vietnam, India, and the Philippines operations will partially come from certified fishmeal factories under the International Fishmeal and Fish Oil Organization Responsible Supply standard (IFFO RS), the best international standard for fishmeal production and sourcing. At present, 100% of fishmeal used in its operation in Thailand is already certified IFFO RS and totally come from the by-product of fish-processing plants.

Dr. Sujint Thammasart, DVM, Chief Operating Officer - Aquaculture Business of CPF, said IFFO RS certification will guarantee transparency and sustainability in CPF's fishmeal supply chain. In addition, it will set the new standard for the company business across the world.

'We have a purchasing policy to only purchase by-product fishmeal, which is traceable and sourced from processing plants certified by IFFO RS or the IFFO RS Improvers Programme (IFFO RS IP), and by-catch fishmeal from suppliers which have been certified according to international standards or legally examined by various parties including officials, representatives from Department of Fisheries, traders, consumers and academia,' Dr. Sujint said, pointing that the IFFO RS standard will strengthen competitiveness in the long run.

Suppliers will be trained and consulted in the area of Good Manufacturing Practice (GMP+), the global certification scheme for good production of feedmill & feed raw materials. In this year, the company provided training for critical suppliers. 95 suppliers participated in training on human rights, labor practices, as well as preventive occupational health, safety and work environment culture.

CPF has strong intention to promote sustainable practices by strictly purchasing fishmeal only from IFFO RS certified factories. It will allow the company to trace back its fishmeal supplies from factories through fishing boats/ fishmeal origin.

Since 2014, CPF's CEO made a statement to stakeholders to condemn all aspects of human trafficking and slavery. The company ceased buying fishmeal from suppliers suspicious of IUU fishing. It is important to note that CPF is the first company to offer premium price as an incentive for certified fishmeal sources.

In addition, the company announced the principle of validation to affirm legal fishing practice and prevent human trafficking. It also sets up a 10-point-plan to reduce the reliance of fishmeal in shrimp feed. As a result, the use of fishmeal has dropped significantly to around 5%-15% of the ingredient thanks to the continuous development in shrimp feed formula.

Extending the help beyond its supply chain

Since 2014, CPF also jointly sets up organizations to promote sustainability and end unfair practices in fishery worldwide including Thai Sustainable Fisheries Roundtable (TSFR) and Seafood Task Force. These organizations create a network to implement sustainable seafood agendas by eliminating forced labor, human trafficking, and Illegal, Unreported and Unregulated Fishing (IUU) across the sea.

The roundtable established in 2014 to improve fishery practices in Thai seas using Fishery

Improvement Plan (FIP) as an approach. Seafood Task Force committed to support FIPs from TSFR, which aims at developing traceability system and sustainable practices in fishery industry.

For almost 4 years, CPF representative serves as one of the members of the Board of Directors of the Seafood Task Force and has an important role in driving supply chain management by utilizing technology to monitor vessel behavior. Since 2016, it has been continuously developed a Vessel Monitoring System (VMS) with the government agencies to effectively monitoring, control, and surveillance (MCS) IUU fishing in Thailand and worldwide.

On the ground, the company has funded Songkhla's Fish Marketing Organization, Fishermen's Life Enhancement Centre (FLEC) and Labour Voices center to hear concerns from workers and improve the life of those fishermen and their families.

Also, CPF extends successful practices from Thailand's operation to its aquaculture business in Vietnam, India, and the Philippines.