Mitr Phol Group Sustainability

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

As an agro-industrial business, Mitr Phol relies heavily on agricultural produce, particularly sugarcane, as a key raw material driving its operations. Effective management of sugarcane farming and water resources is therefore essential to ensuring a stable supply for the business, while also supporting sustainable income for farmers, in line with the Company’s “Grow Together” philosophy. To support sustainable agriculture, Mitr Phol initiated the Mitr Phol ModernFarm project, aiming to increase productivity and reduce costs while minimizing social and environmental impacts. The project provides opportunities, equality, funding, knowledge, sugarcane varieties, and technology. It also supports the conservation of natural resources such as soil and water, and builds knowledge and skills for personnel to manage sugarcane farms with maximum effectiveness and efficiency.

2024 Target and Performance
Target
Performance
Being certified for sustainable sugarcane production
Short-Term Goals:
48,000 hectare by 2023/2024
During 2023/2024,
47,460.8 hectare
Long-Term Goals:
96,000 hectare by 2030
Promotion of sugarcane farming based on
the Mitr Phol ModernFarm approach
Short-Term Goals:
106,272 hectare by 2023/2024
During 2023/2024,
101,978.72 hectare
Develop the irrigation infrastructure in the promoted sugarcane plantations.
(Accumulated irrigated area)
Short-Term Goals:
180,096 hectare by 2024
Achieved
100%

Management Approach

Committed to developing a sustainable sugarcane and sugar industry, Mitr Phol promotes farming practices based on the Mitr Phol ModernFarm approach, incorporating modern information technology and enhancing the knowledge and skills of its personnel and partner farmers through the Mitr Phol ModernFarm Academy. The Company also encourages sugarcane farmers to obtain Bonsucro and VIVE certifications, international standards for sustainability, to ensure transparency and sustainability across every stage of its sugarcane and sugar production process.

Encourage Farmers to Adopt the Mitr Phol ModernFarm Approach

Guided by Mitr Phol Group’s corporate philosophy, “Grow Together,” the Mitr Phol ModernFarm initiative was launched to promote sustainability for sugarcane farmers and the broader sugarcane and sugar industry in Thailand. It integrates environmentally friendly farm management practices with innovative technologies to help farmers increase yields, reduce costs, and improve their quality of life sustainably, under the framework of the 4 Pillars and irrigation systems, also known as 4 Pillars Plus.

  • 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.  

In addition, Mitr Phol places strong emphasis on reducing the use of chemicals in sugarcane cultivation and is committed to ongoing improvement. The Company currently offers a mobile soil analysis program to help farmers apply fertilizers based on the specific needs of their crops. This approach ensures that sugarcane receives only the necessary nutrients, helping to maintain the balance of beneficial soil microorganisms. Mitr Phol also promotes biological farming practices by breeding and releasing natural enemies into sugarcane fields to control pests and reduce reliance on chemical pesticides in agricultural areas.

Encourage Farmers to Adopt the Mitr Phol ModernFarm Approach

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 the 2023/2024 crop year, the accumulated area reached 101,978.72* hectare.

* an increase of 1,293.92 hectare, from 2022/2023.

Mitr Phol works with families of contract farmers

in total 40,577 families and over 18,000 agricultural workers

* generating more than 6 billion baht per year for farmers and local communities.

Deployment of Advanced Technology and Information Technology

  • Application of Soil Water Index (SWI) derived from satellite imagery technology: It is used to analyze soil moisture levels to support more efficient water management. Derived from satellite imagery, the SWI enables effective, large-scale monitoring of soil moisture across all farming areas. Its application reduces the need for traditional ground-based soil moisture sensors, allowing farmers to manage water usage more precisely. This not only helps prevent over-irrigation but also contributes to improved sugarcane yields over time.
  • Promotion of Smart Farming with agricultural drones and helicopters:
    The Company promotes Smart Farming management by hiring contractors with agricultural drones and helicopters to survey sugarcane fields and spray pesticides and ripening chemicals, replacing traditional tractor-based methods. This approach helps reduce production costs, increase daily work capacity, speed up operations, and lower fuel consumption. In the 2023/24 crop year, agricultural drones and helicopters were applied across more than 9,127.2 hectare of sugarcane plantations.
  • 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

Mitr Phol ModernFarm Academy aims to enhance employees’ knowledge and skills, equipping them with both academic and practical expertise to become professional farmers. The academy focuses on growing sugarcane and other crops using the Mitr Phol ModernFarm approach, covering the entire cycle from soil preparation and planting to crop care and harvesting. It also aims to transfer this knowledge to farmers, helping them boost productivity, reduce costs, and adopt environmentally sustainable farming practices.

In 2024, the ModernFarm Academy provided training to 89 employees and 95 smart farmers, with a target to train an additional 100 employees and 230 smart farmers by 2025.

Sustainable Sugarcane and Sugar Production in Accordance with International Standards

Mitr Phol is committed to the continuous improvement of its sugar production processes and supports farmers in meeting the international Bonsucro standard for sustainable sugarcane and sugar production. This certification ensures full traceability of raw materials throughout the entire production process. Since 2016, Mitr Phol has been the first sugar producer in Thailand and the second in Asia to be certified against the Bonsucro standard. The Company is dedicated to sustainability, fair labor practices, and environmental responsibility throughout the supply chain, in line with the core principles of the Bonsucro standard, which apply to every stage of sugarcane and sugar production. These principles include:

In 2024, Mitr Phol also planned to expand its certification efforts to include the VIVE Program—a voluntary sustainability initiative focused on continuous improvement across the supply chain of agricultural products and commodities. The program sets clear targets and tracks progress to help companies enhance their practices in alignment with environmental, social, and governance (ESG) frameworks.

Mitr Phol’s target to extend certification to cover over
96,000 hectare of sustainably grown sugarcane by 2030.

A public awareness campaign promoting green cane harvesting practices was conducted under the initiative “Let’s Green the Sugarcane,” communicated through various public signage and outreach materials. ‘นะโม ตัดสด‘ 

Green Sugarcane Harvesting and Sugarcane Leaf Purchasing

Mitr Phol Group has continuously supported green cane harvesting for seven consecutive years by purchasing fresh-cut sugarcane leaves from farmers. This initiative promotes environmentally responsible agricultural practices and facilitates the conversion of sugarcane leaves into biomass electricity. In the 2023/24 crop year, the company launched the campaign "Let’s Green the Sugarcane" to encourage farmers to adopt green harvesting methods. The campaign aims to reduce the environmental, social, and operational impacts associated with sugarcane burning. To achieve this objective, Mitr Phol has implemented a set of measures to promote and support the delivery of green cane to its mills, as outlined below:

  • Support and develop farmers from the land preparation process by preparing the land for the use of agricultural machinery to replace human labor.
  • Promote green cane harvesting among groups of farmers with large cultivation areas as follows:
    • Provide harvesting services for farmers facing labor shortages.
    • Support potential medium and large-scale farmers in forming sugarcane harvesting groups.
    • Arrange for contractors to provide cane harvesting services in the area with 20 machines.
    • 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 2023 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 sugarcane leaf removing machines before cutting sugarcane by supplying the machines to farmers.
  • Establish a policy of purchasing fresh sugarcane leaves to be used as fuel for biomass power plants at 900 baht per ton.
  • Communicate green sugarcane harvesting activities through various formats and channels,
    for example, using eye-catching stickers with catchy slogans and distinctive designs.
  • Encourage farmers to participate in a truck rear decorating contest under the theme “Fighting Together: Supporting Green Cane Harvesting and Reducing PM2.5,” organized by the three Thai Sugar Factory Associations or Thai Sugar Millers Co., Ltd. (TSMC).

In 2023/2024, Mitr Phol purchased 12,615,153 tons of green sugarcane,
accounting for 70.70% of the total sugarcane delivered to its sugar mills.

The Company also purchased 578,528 tons of sugarcane leaves,
generating 611.55 million baht in additional income for farmers.

On-farm Water Management

Water is a valuable resource in agriculture, essential for producing high-quality crops in quantities that meet market demand. However, increasingly severe weather patterns caused by climate change, particularly the intensifying effects of El Niño and La Niña, pose a growing threat to sugarcane production and the livelihoods of those in the sugarcane industry. Given these risks, effective water resource management has become more critical than ever.

Accordingly, Mitr Phol has implemented an irrigation program aimed at ensuring a sufficient water supply for sugarcane production by promoting the development of on-farm water sources and supplemental irrigation to enhance yields. These efforts are intended to minimize or entirely prevent any negative impact from the Company’s operations on surrounding communities and the environment.

Promoting the Development of On-farm Water Sources

The objective of promoting the development of on-farm water sources is to supplement rainfall in order to meet sugarcane’s annual water requirement of 1,500–1,700 millimeters and to reduce the potential impact of drought conditions on sugarcane farms. The targets and performance of this initiative are as follows:
Target
Performance
Areas supported for irrigation development in the 2023/24 crop year
29,752 hectare
32,506.88 hectare
By the 2023/24 reporting period, cumulative areas have been supported and developed for improved irrigation systems
180,096 hectare
180,789.6 hectare

In 2024, the Company achieved its target for accumulated irrigated areas, reaching a total of 180,789.6 hectare, exceeding the target by 693.6 hectare. The irrigated areas are categorized by type of irrigation system as follows:

Promoting Supplemental Irrigation to Enhance Yields

The objective of promoting supplemental irrigation is to increase yields for 2.88–3.2 hectares of newly planted sugarcane and 1.92–2.4 hectares of ratoon cane, while also improving irrigation efficiency to at least 80%, ensuring the crops receive a sufficient and timely supply of water. To achieve this objective, the Company has implemented several strategies, including enhancing irrigation efficiency by promoting the use of on-farm drip irrigation systems, installing solar panel systems, and developing groundwater wells and recharge ponds. Moreover, the Company is utilizing water management technologies such as Crop Health Monitoring Systems, Internet of Things (IoT), and Geographic Information Systems (GIS) to support effective irrigation planning and decision-making. Further details about the promotional strategies for supplemental irrigation to enhance yields can be found in Sustainability Report 2024 

Mitr Phol Oasis Project

As part of its commitment to sustainable agriculture and climate resilience, Mitr Phol has developed and constructed large-scale water reservoirs with a capacity exceeding 1 million cubic meters in flood-prone areas. These reservoirs are designed to capture and store excess water during the rainy season, which is then redistributed to sugarcane farmers during the dry season. This initiative not only helps mitigate the impacts of drought and reduce the severity of recurring floods, but also promotes equitable water access and strengthens the adaptive capacity of local farming communities.

Benefits of the Mitr Phol Oasis Project

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 3,200 hectare 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 2024, Mitr Phol requested support for the following projects:

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 grassroots communities so that they become stronger and more self-reliant. In 2024, Mitr Phol sought support for the following projects:

Mitr Phol Group Sustainability
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