Mitr Phol Group Sustainability

Menu
Menu
Edit Template

Key Stakeholders: Shareholders/ Farmers/ Customers and Consumers/ Government and Civil Society Sector

Sugarcane is a crucial raw material for Mitr Phol’s sugarcane and sugar industry, as well as its related businesses. Ensuring the security of this raw material is a top priority for Mitr Phol. To address this, Mitr Phol ModernFarm was established aiming to promote sustainability for sugarcane farmers and the broader sugarcane industry in Thailand. This initiative provides opportunities, equality, funding, knowledge, and technology through the proper development of land, sugarcane varieties, cultivation methods, harvesting, and transportation. Moreover, it helps reduce costs for farmers and addresses issues associated with traditional sugarcane farming, which can impact the quality and yield of the crop.

2023 Target and Performance
Target
Performance
The fresh sugarcane delivered to the sugar mills
92%
by 2026/2027
69.6%
Develop the irrigation infrastructure in the promoted sugarcane plantations.
Accumulated irrigated area of 1.13M rai
by 2024/2025
Accumulated irrigated area of 0.92M rai

Management Approach

Aligned with Mitr Phol Group’s corporate philosophy, “Grow Together,” Mitr Phol ModernFarm was initiated with the aim of creating sustainability for sugarcane farmers and the broader cane and sugar industry in Thailand through the following operations.

Encourage Farmers to Adopt the Mitr Phol ModernFarm Approach

  • Legume Rotation Crops: Continuous sugarcane planting without fallowing leads to the accumulation of pests. Therefore, it is important to include a fallowing period and crop rotation, especially with legumes. Legumes host rhizobium bacteria in their root nodules, which capture nitrogen from the air and convert it into fertilizer for future sugarcane crops. This natural method enhances soil quality, breaks the cycle of diseases and pests, reduces the need for chemicals, and provides additional income from the sale of legume crops.
  • Controlled Traffic: Forming beds with bed renovators facilitates the use of agricultural machinery at every stage, from land preparation and cultivation to nourishment and harvesting. By specifying gaps between furrows and raising beds above the surface, agricultural machinery can move along the furrows without trampling on the raised beds. This helps reduce soil compaction and damage during harvest and increases ratooning ability.
  • Minimum Tillage: In traditional sugarcane farming, farmers plow entire fields before planting new sugarcane. However, with the new approach of Mitr Phol ModernFarm, farmers plow only the raised beds, which helps maintain soil structure and reduces land preparation by about half. This method saves fuel and soil preparation time, allowing farmers to plant new sugarcane in time before soil moisture depletes.
  • Trash blanket: Cutting sugarcane and leaving a trash blanket on the soil surface helps retain soil moisture and control weeds, thus reducing the need for herbicides and increasing yield per rai. The decomposing sugarcane leaves turn into organic fertilizer for the next sugarcane crop. In addition, refraining from burning sugarcane leaves preserves the soil surface and maintains beneficial soil microorganisms.
  • Reduce water consumption on-farm irrigation system: Typically, sugarcane requires about 1,500-1,700 millimeters of water per year. However, climate change has led to insufficient and unevenly distributed rainfall, causing sugarcane to suffer from drought almost every year. This is one of the reasons for the decline in sugarcane yield. Therefore, proper irrigation planning is essential to improve the efficiency of water management and sugarcane cultivation.  

Mitr Phol encourages sugarcane farmers to adopt the practices of “Mitr Phol ModernFarm”

in all factory areas by supporting farmers who own sugarcane harvesters as local prototypes. In 2022/2023, the accumulated area was 657,860 rai.*

* an increase of 28,580 rai from 2020/2021.

Mitr Phol works with families of contract farmers

in total 36,387 families and over 100,000 agricultural workers

* generating income of more than 22 billion baht for farmers and communities per year.

Deployment of Advanced Technology and Information Technology

  • Deployment of sensor technology to measure soil moisture to improve water use efficiency: The Company began using the technology on its sugarcane plantations and has extended its application to demonstration plots at each sugar mill.
  • Promotion of Smart Farming by replacing traditional farm tractors with drones and helicopters: This helps reduce costs, increase daily capacity and working speed, and reduce fuel consumption. Moreover, the Company has engaged contractors with drones and helicopters to survey sugarcane fields and spray pesticides and ripening chemicals.
  • Deployment of the GPS Guidance system in sugarcane planting and transportation processes: The GPS Guidance system is deployed in the following processes.  
  • Application of artificial intelligence/machine learning (AI/ML) for sugarcane farm management in the Farm Focus Project: This project aims to increase sugarcane production efficiency to 20 tons per rai by developing four AI/ML models and one digital channel for managing sugarcane farms, as follows;
    • Land Use and Land Cover Model This model analyzes satellite imagery with geographic and environmental data to identify land use and land cover at the time the images were taken. This information helps extension officers promote new farmers or purchase sugarcane in target areas.
    • Crop Health Monitoring Model This model uses satellite imagery and field data to analyze sugarcane health throughout the growing season. It detects abnormalities in sugarcane fields, distinguishing between planted and ratoon cane, to provide timely recommendations for sugarcane farm management.
    • Yield Estimation Model This model forecasts sugarcane yield on the harvesting date during the harvesting season using Sentinel-2 satellite imagery, field data, and historical yield data from the past three years. It estimates yield for each sugarcane plot, aiding in farm management decisions to increase productivity.
    • Harvest Monitoring Model This model monitors the harvesting progress of Mitr Phol’s registered sugarcane plots using Sentinel-1 and Sentinel-2 satellite imagery. It can monitor harvesting activities every 3-5 days and can penetrate cloud cover to provide consistent data. 
    • Farm Advisor System This system integrates the four AI/ML models to provide comprehensive farm management advice. It covers new land acquisition, crop growth monitoring, yield estimation, and harvest tracking. The advice generated by the system is delivered through the GGIS by OneAgri tool, which is a productivity tool, to extension officers.
  • Developing a cane management information system (Cane MIS): The Cane MIS System is designed to facilitate smooth and efficient sugarcane trading between Mitr Phol and farmers. This system connects related data into a cohesive platform as follows:
    • Spatial data from geographic information systems for managing payments, promotions, and sugarcane purchases from farmers based on specific criteria.
    • Contract information or sale and purchase terms, including the quality of sugarcane grown by farmers under contract farming.
    • Sales information for other services, such as the purchase of agricultural and logistics services (e.g., equipment rental). 
    • Farmer financial information, including deductions, loans, and advance cash withdrawals through payments and financial processes to generate statements for farmers.
  • Cultivation planning with the Farm Pro 360 application: The Farm Pro 360 application is a tool for cultivation planning and management of resources, such as chemicals, labor costs, and machinery. The application collects and processes relevant information to plan sugarcane cultivation throughout its life cycle. For example, crop assignments help determine necessary agricultural activities and calculate costs based on the activities performed on farms. The application also considers the availability of machinery, labor, and consumable supplies. The collected information can also be used to track compliance with Bonsucro standards and serve as a database for analyzing greenhouse gas emissions. This functionality is crucial for monitoring operations to achieve Mitr Phol's goal of net zero emissions.
  • Digital Cane Contracting: Digital cane contracting involves using technology to manage sugarcane sales contracts between companies and sugarcane farmers. This method increases convenience, speed, and transparency in business transactions, and enhances data management through digital systems. Contracts can be created, and sugarcane trading information tracked via online platforms, boosting efficiency, and reducing errors associated with paper-based processes. Additional services include agricultural loans, academic advice on precision farming, and efficient data collection systems, helping farmers manage their sugarcane farms more efficiently and accurately.
  • Analyzing satellite imagery with the Normalized Difference Vegetation Index (NDVI) data: Satellite imagery and normalized difference vegetation index data from the survey were analyzed to quantify the health and density of sugarcane fields. This method allows the Company to distinguish healthy sugarcane areas from unhealthy ones. Mitr Phol’s experts can then provide advice on the proper management of sugarcane plantations, ensuring that the crops receive adequate water and nutrients for growth.
  • Drip Fertigation: Drip fertigation is the application of water-soluble fertilizer through the existing on-farm irrigation system. This method addresses the issue of insoluble granular fertilizer, especially in areas with limited rainfall or irrigation. Drip fertigation can increase fertilization efficiency to 80-90%, compared to the 20-50% efficiency of granular fertilizers. The method ensures that sugarcane plants receive nutrients thoroughly and grow evenly across the entire plot, while also reducing nutrient loss due to leaching.

Building Employee Knowledge through Mitr Phol ModernFarm Academy

This initiative aims to enhance employee knowledge and transform them into professional farmers with both academic and practical expertise in growing sugarcane and other crops using modern farming systems. It also aims to disseminate this knowledge to farmers, promoting efficient production, competitive costs, and environmentally friendly practices. Furthermore, it cultivates a sense of responsibility among employees toward the community and society. In 2023, the ModernFarm Academy provided training to 40 smart farmers and 90 extension workers and units supporting sugarcane operations, with a target of reaching 100 employees and 100 smart farmers by 2024. 

Sustainable Sugarcane and Sugar Production
in Accordance with Bonsucro Standard

Mitr Phol encourages farmers to obtain Bonsucro certification, a global standard for sustainable sugarcane and sugar production, aiming to reduce the social and environmental impacts of sugarcane and sugar production processes and demonstrate a commitment to improving production efficiency, which helps enhance competitiveness. The Bonsucro Standard comprises 5 principles as follows:

These 5 principles encompass the entire chain of sugarcane and sugar production. All processes can be inspected and traced from beginning to end. Mitr Phol Group is the first sugar producer in Thailand and the second in Asia that has been certified against the Bonsucro standard since 2016.

In addition, all suppliers; both teir 1 and non teir 1 are required to comply with sustainable agricultural practices including but not limited to: reduction of GHG emissions, water consumption & environmental pollution, protection of soil health and prevention of the destruction of ecosystems.

Mitr Phol has also set a target to extend the Bonsucro standard certification

to 10,000 rai at the Mitr Kaset Sombun Sugar Mill in Chaiyaphum Province aiming to cover a total of 510,000 rai across all 8 sugar mills by 2026.

Green Sugarcane Harvesting Operations

The government has a policy to encourage sugar mills to accept fresh sugarcane and reduce the burning of sugarcane leaves before harvesting. There has been a campaign encouraging farmers not to burn sugarcane to help solve air pollution caused by smoke and ash from burning sugarcane leaves, which troubles nearby residents. Sugar mills are also affected by the lower quality of burnt sugarcane. Therefore, measures have been put in place to promote and support fresh sugarcane harvesting for sugar mills as follows:

  • Support and develop farmers from the land preparation process by preparing the land for the use of agricultural machinery to replace human labor.
  • Encourage farmers to form groups of farmers with large cultivation areas and use sugarcane harvesters for fresh cane harvesting as follows:
    • Offer harvesting services for farmers who are short of labor through the agricultural equipment unit. Currently, there are 120 sugarcane harvesters available for this service.
    • Support potential medium and large-scale farmers, helping them form sugarcane harvesting groups, by providing 363 cutting machines to local farmers.
    • Provide guarantees for farmers applying to join the interest compensation scheme for sugarcane farmers, which supports the management of water resources and the purchase of agricultural machinery from 2022 to 2024. This support will help farmers access low-interest government loans while increasing sugarcane production efficiency and addressing the issue of particulate matter.
  • Encourage farmers to use a sugarcane leaf removing machine before cutting sugarcane by providing 606 sugarcane leaf removing machines.
  • Establish a policy of purchasing fresh sugarcane leaves to be used as fuel for biomass power plants at 900 baht per ton.

In 2022/2023, Mitr Phol purchased more than 594,544 tons of sugarcane leaves to be used as biomass fuel and over 12,932,420 tons of fresh sugarcane, or 69.6% of the total sugarcane delivered to sugar mills. The Company has set a goal to increase the proportion of fresh sugarcane delivered to their mills to 92% by 2026/27

On-farm Water Management

Seeking Additional Water Sources

Water and irrigation on sugarcane farms are a major contributing factor to the effectiveness of Mitr Phol ModernFarm’s 4 pillars. Typically, sugarcane requires 1,500-1,700 millimeters of water annually. However, climate change has led to insufficient and unevenly distributed rainfall. Sugarcane is threatened by drought almost every year, resulting in decreased sugarcane yield. Therefore, good preparation for irrigation is essential to improve water management and sugarcane productivity. Mitr Phol has sought additional water resources by digging farm ponds and securing underground water for farmers. In 2022/2023, the accumulated irrigation areas covered 943,800 rai, comprising:

In addition, the Company plans to dig an additional 1,620 farm ponds, benefiting 142,125 rai of farmland, and to drill an additional 12,900 artesian wells, benefiting 129,000 rai of farmland.

Development of a Drip Irrigation System

A drip irrigation system on sugarcane farms is the most efficient method because it requires very little water and can use water from various sources such as farm ponds, artesian wells, natural water sources, and electric water pumping stations. The system can control weeds and prevent harm to sugarcane as water is dripped directly onto the sugarcane stools. Despite its high efficiency, the investment cost is also high. Many companies offer the system for sale and provide promotions in collaboration with sugar mills, allowing farmers to purchase the system in installments through the mills. Currently, the Company has implemented the drip irrigation system over the areas of 130,000 rai, or 8% of total sugarcane farm areas.

Collaboration with External Agencies

  • Collaborative irrigation projects with government agencies: Mitr Phol has requested support for irrigation projects from the Royal Irrigation Department, the Land Development Department, the Department of Water Resources, the Department of Groundwater Resources, and the Ministry of Energy covering over 20,000 rai each year. The Company collects local farmers' needs, organizes meetings, establishes water user groups, and submits project requests via local administrative organizations. These requests are then reviewed by the Provincial Water Resources Subcommittee and included in the National Irrigation Development Plan. In 2023, Mitr Phol requested support for the following projects:
    • Royal Irrigation Department: 3 projects covering 19,000 rai, supporting 8,700 rai of sugarcane promotion areas
    • Land Development Department: 210 ponds covering 1,050 rai, supporting 1,050 rai of sugarcane promotion areas.
    • Department of Groundwater Resources: 75 projects covering 2,250 rai, supporting 750 rai of sugarcane promotion areas.
  • Local economy promotion projects: Mitr Phol has responded to the policies of the Office of Policy and Criteria Promotion Commission through collaboration with local organizations to develop projects aimed at enhancing competitiveness and improving the quality of life for local communities so that they become stronger and more self-reliant. In 2023, Mitr Phol sought support for the following projects:
    • Development of Solar-Powered Agricultural Groundwater Distribution Systems: 176 projects supporting 10,400 rai of sugarcane promotion areas.
    • Expansion of Government Water Distribution Systems: 2 projects supporting 2,400 rai of sugarcane promotion areas.
    • Shallow Groundwater Recharge Ponds: 174 projects supporting groundwater recharge of 500,000 cubic meters per year.