One of the pioneers of sugar industry in the Northeast of Thailand, Khun Vichien Tangtongwechakit initiated cane growing practices and encouraged farmers to grow cane in Buriram Province.
tons of cane per day
2.4 – 3.0
Million tons of cane per season
Buriram Sugar Public Company Limited (“BRR”) was originally Sahathairungruang Sugar Company Limited (1963) (Transferred the business from Sahathairungruang Sugar Factory Limited Partnership) and registered on December 20, 1963 with 2 Million Baht of registered capital to support the business of brown sugar production in Buriram.
Buriram Sugar Public Company Limited (“BRR”) and its subsidiaries are one of the pioneers of sugar industry in Northeastern region of Thailand in which Mr. Vichien Tangtongwechakit was the founder who initiated sugarcane growing practices and also encouraged farmers to grow sugarcane in Buriram Province. Buriram Sugar Group (“BSG”) has operated an integrated business of raw sugar and brown sugar manufacturer and distributor both for domestic sale and export more than 50 years including by-products of sugar production such as, bagasse, filter cake (press mud) and molasses to further advance the business utterly which consists of biomass power plant, organic fertilizer and eco-friendly packaging product business, including support business which is sugarcane research and development and logistics service business.
BSG has set short-term and long-term business goals including the sustainable business goal according to the vision and mission as planned.
Create the Sufficiency of Crop Yield and Life Quality of Sugarcane Farmers
The Company set the goal to create the prosperity in terms of yield and to make better life for sugarcane farmers by supporting the sugarcane farming and expanding the plantation more than 250,000 Rai to increase the crop yield to 3 Million Tons including maintaining the standard quality of sugarcane to gain the highest yielding crops per Rai.In the crop year of 2017/18, the amount of cane crushing was 3.15 million tons which is increased in approximately 940,000 tons compared with the crop year of 2016/17. For sugarcane plantation areas presently (crop year 2017/18), such area is totally measured at 239,523 Rai, an increase of 54,411 Rai compared with the crop year 2016/17 (the crop year 2016/17 had the plantation area by 185,112 Rai). In 2017/18, there were contracted sugarcane farmers 11,780, which are increased from the previous year where there were 11,023 farmers. In addition, the Commercial Cane Sugar (“CCS.”) in 2017/18 of BRR and its subsidiaries is approximately 13.71%, and the sugar production is 119.88 kilograms per tons cane as expect.
Even though the production season of 2018/2019 severely underwent drought, it slightly decreased the total of contract farmers at 11,749 along with the sugarcane planting area at 238,074 comparing to the latest season. It is believed that the development, the maintenance of quality guarantee and the persistent distributed knowledge to farmers have prevented the sugarcane crushing volume decreased only in small scale from the 2017/2018 year. It is noted that the quantity of cane crushing was at 2.93 million tons, CCS. at 13.61 and the sugar production per tons of sugarcanes at 120.54 kilograms per tons of sugarcanes.
Due to the aforementioned management, the 2019/2020 crop year of Thailand and Southeastern region still underwent drought. It is noted that the quantity of cane crushing was at 1.79 million tons, but CCS. at 13.75 and the sugar production per tons of sugarcanes at 121.92 kilograms per tons of sugarcanes. Commercial Cane Sugar (“C.C.S.”) value was able to be reserved in order to provide higher quantity of sugar whereas sugarcane crushing quantity decreased. However, the Company has never stopped developing in these issues because it is clearly understood that the source of raw materials is recognized as the most significant components for sugar business and residue from sugarcane plantation and sugar production business. Accordingly, the Company has set its goals to increase the amount of sugarcane crushing from 1.75 million tons to 3.0 million tons within the year 2025.
Investment Expansion, Value Addition to Products and Residue from Sugarcane Plantation and Sugar Production Business Development
In the crop year of 2019/20, the Company manufactured and distributed refined sugar to create value-added products and support the increasing amount of sugar production, focusing on export sales for the factories. The sugar refinery project has currently operated with the maximum capacity of 1,200 tons/day since the third quarter of 2019. This project is valued at approximately 393.75 million Baht.
In term of the biomass power plant business, currently the company group has three plants in total namely, BEC, BPC and BPP. BPP sells the electricity to the sugar factory in order to support its increasing production capacity. However, if Provincial Electricity Authority (PEA) opens the negotiation for power purchase agreement, the company will discuss with PEA about this matter accordingly. Nevertheless, the Company has prepared itself with the supporting systems and power generation technologies, the readiness of community enterprise and other relevant documentations in the event that the government sector opens for the submission of proposal to take into account the qualifications of small power producers for receiving power sales in Quick Win project.
As the business for producing packaging, appliances, devices made from bagasse including pulp, operated by Sugarcane Ecoware Company Limited (“SEW”), it has commercially operated since the first quarter of 2020 year at a speed of 200 - 250 million pieces per annum. The principal packaging are those of foods and medical purposes, whereas SEW is also open for tailored-made to order clients such as packaging for electronic devices. Still, SEW aims to reach its target in international marketplace. Due to the impact of the COVID-19 outbreak, The Company is not able to achieve its export target and therefore required to adapt its marketing strategy to increase sales in domestic marketplace in order to compensate for the loss of export sales, but it is inadequate. As a result, the investment is not fully redeemed.
At the end of the year 2020, given that the COVID-19 pandemic situation was resolved, foreign customers accessed to monitor and evaluate |the production processes of the Company. Currently, it is under an additional stage of commercial negotiation process. Regarding pulp production plans, the Company has established a small pulp mill for the research and experiments of bagasse-based pulp production to be completed within the year of 2020. Meanwhile, the Company also has established a large pulp mill so as to manufacture bagasse-based pulp used as the raw material for its own packaging production factory the construction of mill is expected to be completed by the third quarter of 2021. If the Company has the ability to make its own pulp, it will enable lower material costs.
The company aims to maintain the standard and the leading of management and quality control of sugarcane to produce sugar and residues from sugarcane plantation and sugar production in maximum efficiency since the company deeply understands that the raw material is the most major risk of the businesses therefore if it is well-managed and controlled to generate the stability as well as develop the system and business tools continuously, the company will be able to conduct business securely and sustainably. According to the business of sugar manufacturing factory, the company has planned to expand the investment in the future, depending on global economic conditions and market demands at that time. Furthermore, the company has studying ethanol, marijuana, hemp and other products that are be able to increase revenue and create the business sustainability, including new business line which can create value added to BRR and its subsidiaries.
In order to create the sustainability of business growth and development, the potential and capability to profitability is required; however, it is not the only factor that can completely create the business sustainability. The good governance and ethics, the responsibility for stakeholders, self-learning and development as well as the creative minds to develop the new innovations are also needed for sustainable business operation. As the results, BRR and its subsidiaries commits to develop these 5 sectors as follows:
Human Resource Development
Employees are very important human resources for the business development therefore BRR and its subsidiaries pays attention to every step in human resource management especially the recruitment in order to put the right man in the right job regarding to the process of recruitment from internal and external organization to find the applicants whom the qualifications are matching with the positions including follow the working results to evaluate work performance in accordance with the standards as specified. Furthermore, the company also regulates the employees to comply with the regulations of the company and the “Good Corporate Governance, Code of Conduct Handbook and Anti-Corruption Policy” in order to recognize the priority on stakeholders as well as generate self-awareness on the social responsibility by participating the relevant activities.
Additionally, BRR and its subsidiaries has set “The Policy of Human Resource Development”, which written and collected in a part of “Good Governance and Code of Conduct Handbook 5th Edition” which such policy is effective since 2021.
Sugarcane Farmers Development
According to vision and missions of the Company group which commits to generate the sufficiency of crop yield and life quality for farmer regarding to the business philosophy: “Sugar Made in the Field”, the Company group aims to support and develop the skills of sugarcane farmers in term of the academic and practical knowledge management of sugarcanes farming, from the plating process, crop cares to crop harvesting, including the knowledge to apply the up-to-dated technologies for sugarcane farming management. Furthermore, the company has organized the domestic and international company visit for sugarcane farmers in order to integrate the knowledge for further business and apply it for real work practices. The sugarcane farmer development is considered as the sustainable development which can increase the quality and crop yield per Rai for farmers and also minimize the risk from insufficiency of raw materials as well as generate the certain sufficiency of crop yield for the Company group.
Additionally, the Company group has initiated the concept of “Sugarcane Agriculturist Businessmen” for the purpose of inspiring and educating every farmer to plan and manage the sugarcane farming and other relevant processes appropriately with the practical and theoretical knowledge support from BRR and its subsidiaries closely in order to create the stability for the career of sugarcane farmers which provide the well returns and happiness including pass on experiences as well as inherit the business from generation to generation.
Research, Innovation and Technology Development
Throughout the period of business operation, the Company group prioritize the development of research, innovation and modern technology to develop, improve and strengthen the potentiality for the Company group and sugarcane farmers. The Company group have applied Online Farming Management System, Online Smart Farm System, Management Information System (MIS) and Geographic Information System (GIS) including other technology to support sugarcane planting in order to follow the individual sugarcane fields according to the academic principles and solve the problems real time. Furthermore, the Company group have conducted the research to prevent and eliminate the plant diseases and pests, for example, the outbreak control of plant diseases and insect infestation by using the method of biological control which is the culture of natural enemies such as parasitic wasps in order to control the outbreak of sugarcane borer and green muscardine fungus as well as eliminate stem boring grub.
Nevertheless, the Company group keeps on developing business performance in order to enhance standard of the agricultural management on research, innovation and technology in accordance with Thailand 4.0 Policy of the government which focus on the economy empowered by the innovation. Recently, the Company’s specialist has conducted the research in terms of bagasse-based pulp production and if the Company has the ability to make its own pulp, it will enable lower material costs.
Community and Environmental Development
The Company group believes that the business development has to be collaborated with the development of community and environmental conservation at the same time.
Community Development :
The Company group has set the important mission to enhance the life quality of people in the community through the knowledge management and the career support; therefore, the Company group has organized the sightseeing to develop and create the value-added products including advertise and purchase the local products to make as the souvenirs for special occasions so that the local people can earn a living and be proud of themselves. Moreover, the Company group has developed and supported the education for children and the schools located in the surrounding area of the Company group as well.
In 2020, the Company established S.N.T, a community enterprise, in cooperation with the neighboring communities such as Sao Ae, Non Klang and Non Tao Thong, with the aim to increase profits and build the strength among people in the communities. Because corporate social responsibility is the key to lead BRR to sustainable development path in parallel with the improvement of cane growers, nearby communities’ members, and staff standard of living.
Environmental Development :
The Company group cares and protects the environment, starting from the internal management of factory which is namely production process and landscaping around the plant, and so on. Additionally, the activities about environmental conservation have been conducted with the great participation of local people, governmental agencies and employees of the Company group in order to generate the unity and create the public consciousness on local environmental conservation.
Good Governance and Ethics in development and management
The commitment in organization sustainable development with good governance and ethics is one of important issues of the Company group have prioritized and developed constantly. The Company group has operated the business in accordance with transparency which is disclosure the information pursuant to the appropriate regulations as required to generate the fairness as well as the equality among shareholders. Furthermore, the internal audit system proceeded by independent internal and external auditors was conducted to generate the accuracy and transparency in the business operation.
In 2020, Buriram Sugar Public Company Limited (“BRR”) has determined to conduct businesses in accordance with the policy and measures on anti-corruption continuously, as well as informed and communicated such matter to business partners and related parties, including organized in-house seminars and campaigns for the personnel in the organization. Furthermore, the company has opened the channel for receiving the complaint and suggestion (Whistleblowing) for the complaint from stakeholders through the suggestions box and postage which will be sent directly to the Chairman of Corporate Governance Committee. However, there was no any whistleblowing issue or suggestion received from stakeholders in the previous year.
Moreover, On July 20, 2021, Buriram Sugar Public Company Limited (BRR) was awarded with a renewal of certification of membership of Thai Private Sector Collective Action Against Corruption (CAC) from Thai Institute of Directors Association (IOD) for the second consecutive time, reflecting its commitment to conduct business with transparency in accordance with the Company’s principles of good corporate governance and anti-corruption policy.
On account of overseeing and monitoring the compliance with the good corporate governance, this led to the result of being assessed as “Excellent” (for 3 consecutive years in 2018, 2019, and 2020) with the average score of 94% which is higher than the average score of the overall listed companies of the Stock Exchange of Thailand under the project of the Assessment of Corporate Governance Report of Thai Listed Companies (CGR) in 2020 by Thai Institute of Directors (IOD).
Achieving the long-term goals in sustainable development and business operations with the five main categories, the Company has been selected from the Stock Exchange of Thailand and firstly listed as “THSI” or the 2020 Thailand Sustainability Investment List as the agricultural-industry and food business and also selected as one of 124 listed companies which have been chosen for the list, reflecting the Company’s commitment to the development of sustainable business that prioritize Social, Environment, and Governance (ESG) principle in operational business processes and the Company, therefore, has continually strived towards on sustainable development.