SUSTAINABILITY REPORT 2019

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Pracharath Rak Samakkee Project
The President and CEO of ThaiBev, Thapana Sirivadhanabhakdi, has taken on the important mission to be the head of the private sector working group, working together with General Anupong Paochinda, Minister of Interior, as the head of a government working group, to drive local economic and social enterprise development under the San Palang Pracharath public-private partnership initiative. This project operates in conjunction with the government’s important policies to bring together various sectors, including the public sector, private sector, civil society, and academia, to solve problems and find ways to drive the country’s local economy.


The Working Group on Local Economic and Social Enterprise Development has introduced His Majesty King Bhumibol Adulyadej The Great’s (Rama IX) Sufficiency Economy and philosophy on the development of “Understanding, Accessing, Developing,” in accordance with the royal initiative to truly realize the needs of the local people, help create opportunities for them to generate income, and improve their quality of life and the local economy. The ultimate goal is to drive and develop the country towards stability, prosperity, and sustainability.

The working group also adheres to the first Royal Command of His Majesty King Maha Vajiralongkorn Phra Vajiraklaochaoyuhua (Rama X), “I shall continue, preserve, and build upon the royal legacy and shall reign with righteousness for the benefit of the people forever,” as a framework for creating concepts and principles of operation focused on three areas, namely agriculture, value-added products, and community-based tourism. The working group has jointly established a company in the form of a social enterprise under the name Pracharath Rak Samakkee (Social Enterprise) Co., Ltd. in 76 provinces nationwide. It has also established a company called Pracharath Rak Samakkee Project Social Enterprise (Thailand) Co., Ltd. to team up with 20 private companies for them to be a central unit for successful linkage between different sectors.


Through this integration, the company has achieved results and generated revenue for communities comprising more than 60,000 households, with a total revenue of 543 million baht. The project has also led community products (OTOP) sales to grow from 109,000 million baht in 2015 to 125,208 million baht in 2017 to 154,000 million baht and 190,000 million baht in 2018 and 2019 at a rate of 15 percent, 23 percent and 24 percent respectively. The rate is considered high when compared to the country’s gross domestic product which grows at three-to-four percent per year. This success has driven the government to create the Social Enterprise Promotion Act of 2019.

This collaboration to move forward in the form of social enterprise has allowed the government to see the importance of this type of business as a forum for cooperation that will lead to sustainability in accordance with all 17 United Nations Sustainability Goals (SDGs). Therefore it enacted the Social Enterprise Act 2019, which was announced in the Royal Thai Government Gazette on February 27, 2019. This Act is the first law certifying the status of a juristic person to be a social enterprise in this region.

It can be seen that the joint operation of San Palang Pracharath publicprivate partnership initiative has great potential to change and reform the country. It is considered the main driving force of the Thai economy on the local level to enable communities to run businesses based on sustainable practices.

Project Outcome

generated revenue for communities comprising more than
60,000 households

a total revenue of
543 million baht

The project has also led community products (OTOP) sales to grow

from
109,000 million baht
in 2016
to
125,208 million baht
in 2017
to
154,000 million baht
in 2018
to
190,000 million baht
in 2019
15%
23%
24%

at a rate of 15, 23 and 24 percent respectively, which is significantly higher than Thailand’s GDP which has grown by 3-4 percent annually, supporting the establishment of the Social Enterprise Promotion Act 2019
The operating principles are based on the principles of the Sufficiency Economy Philosophy. Important strategies and action plans follow one goal, and are divided into three working groups, and five processes for 76 provinces nationwide.

Know-how
1. Creating Professions
2. Giving Knowledge to Youth
Environment
1. Environmental Conservation including Forest, Soil, Water, and Ocean
2. Creating Discipline in Waste Management
3. Effluent Management Campaign

Thai Handicraft Pakaoma Project


This project commenced its activities on August 12, 2016. The project aims to raise awareness about the diversity and usability of Pakaoma, a local fabric of Thailand with a long history. By developing their quality and improving production techniques, the project also aims to make the processing of hand-made Pakaoma to become more diverse and meet the needs of consumers. As a result, the value of these traditional products that have been produced in the Thai countryside for a long time is increased and local communities are able to gain a more sustainable income.

In addition, the project is focused on finding Pakaoma that reflect the distinctive identities of various communities around the country, as well as providing opportunities for students and the general public to have a creative platform for expression through a design contest of hand-woven Pakaoma in various categories. In the past year, the project has initiated a cooperation with the Thai Pakaoma community to create innovations for Thai Pakaoma by producing garlands of Pakaoma and bouquets of Pakaoma. The project also sponsored the winners of the Pakaoma design contest “Nava-atalak” (innovative identity) to travel to observe activities at Bunka Fashion College, a world class design and fashion institute, and IFF Magic, a fashion event in Japan.

Furthermore, the project also led to the organization of the Pakaoma Design and Development Contest for the third consecutive year under the concept of “Pakaoma, the Precious Identity of ASEAN METROPOLIS” with 282 individual design submissions. The contest was divided into four categories, namely fashion design, jewelry design, home textile design and fabric design.

Over the past three years, the Thai Handicraft Pakaoma Project has increased the income for 15 Pakaoma-producing communities participating in the project threefold, with a total income of over 51 million baht.

Insight
Suphattra Saengkongme

A descendant of the Thai Pakaoma community, Ban Sa-ngor Traditional Cloth Weaving Group (Daranakhi Pakaoma), Bueng Kan Province

“Pakaoma has always been in my life because in our house my grandma is the one who weaves them and my mother is the one who transforms them. She used to use natural colors but later changed to chemical colors instead. Until one day, we all came together and thought that we have to revive our sense of community; we have to use our local wisdom to create a unique identity. We then started to use brown-orange from the soil gathered in our community, green from tree leaves, and gray from the combination of three beautiful natural colors. All of these colors are long-lasting and come from our Ban Sa-ngor community. We then used marketing to help with our products.

It was a difficult task. We have to always think about how to make it sustainable and how to provide the community with income and have a better quality of life. Therefore, we must not stop to keep improving.”

Krisana Charoensuke
Chairman, Eri Silk Production and Processing Group, Enterprise in Amnat Charoen Province

“We are pleased and happy that Pracharath Rak Samakkee Amnat Charoen came to help develop our group in many aspects, including in regards to the design of weaving patterns to meet the needs of the market, assistance with the procurement of production equipment and the calculations of costs and wages in production, and also marketing. Therefore, all 42 members in the group now have more income due to the continuous orders our group received.”

Sapai Sainaew Project (Local cloth for bags and straps)


“Yaam,” a type of colorful shoulder bag, has been with the Thai people for a long time. It is a reflection of their ethnic identity and the way of life of the community. So that the Thai-style shoulder bag will not be forgotten, especially among the new generation, ThaiBev has supported the “Sapai Sainaew Project” since April 2018. The project focuses on improving their design and production so that they meet the needs of consumers and increase revenue for the community. The project receives cooperation from partners such as the Textile Industry Development Institute which helps develop weaving techniques, colors, and patterns, and offers volunteer designers to help create beautiful and interesting products.

Furthermore, ThaiBev works with Pracharath Rak Samakkee Social Enterprise (Thailand) Co., Ltd. to help promote marketing and sales support at various events, including sales via online channels such as Facebook and Instagram under the account name Sapai Sainaew. In addition to the team’s trips to the area to collect in-depth information and help the community develop their products, they also take the community products to sell at various local events such as Baanlaesuan Fair and OTOP Fair, and also to overseas markets. The products have been well received by customers, and as a result, the villagers’ income has increased.

Currently, the Sapai Sainaew Project has a membership of more than 2,932 people in more than 20 provinces, generating a combined revenue (at all sale events supported by ThaiBev) of almost ten million baht in the last 16 months (April 2018-September 2019). Among the communities that ThaiBev and Pracharath Rak Samakkee support, many groups can now stand on their own and continue to develop their own products.

Many of them have increased their income, such as Baan San Kong and Baan Sridonchai in Chiang Rai Province and Mae Chaem in Chiang Mai. In addition to improving the products, another important aspect of the project is that many of the young people in the communities who might otherwise leave their hometowns come back to help their parents to develop the products. Thus this project helps keep families together.

Insight
Somsri Pricha-udomkan

Traditional Yaam maker in Ban Mae Ming, Mae Chaeng District, Chiang Mai Province

Somsri is a Pagayor Karen housewife living in Mae Chaem. She did not have a chance to go to school and cannot speak Thai clearly. Her husband passed away from illness. With debts needing to be paid, Somsri chose to weave Yaam to make a living. She taught herself to be very skillful. Somsri formed a group and gathered female members in the village to join. At present, Pracharath Rak Samakkee has helped her group to sell over 100 bags. In total, there are a total of 20 members in the group.

“At first, farming on the mountain top was a happy life. Then my husband got cancer and died. I had 2 children to raise and a debt of 600,000 baht. I felt very discouraged. I wondered if I could go on any longer. Until one day, I gathered up my strength and decided to continue to fight.”

Phairat Sararat

The 6th Generation Lao Khrang Weaving Producer, Lao Cotton Weaving Group, Ban Na Pho, Ban Rai District, Uthai Thani Province. Currently, the weaving group has a total of 77 members.
“My great-grandmother was a weaver. She taught my grandmother to weave, and my grandmother taught my mother. So, I probably have to carry on the Lao Khrang’s way of weaving so it can continue to exist.

Every time we return home, the villagers are waiting for us. They know that we will come back with money from selling the clothes.”

A student in the Trading Hour Project

at Wat Thep Nimit School in Phuket Province
“I just realized that I can paint and that I like it so much. Instead of playing around, I spend my free time painting Krajood bags, which makes me very happy.

I can also earn some money from painting, so I do not have to ask for money from my parents to go to school everyday.”

Nakarin Yano

Owner of Yano Handicraft hand-woven cotton brand, Saraphi District, Chiang Mai Province
“We teach female inmates in a northern prison to do embroidery on Yaams or shoulder bags. We just hope that they will gain some money and professional skills to carry forward after they are released from prison.

For former inmates, when they leave the prison, no one would want to hire them. Many of them end up back in prison. It is like a vicious cycle in which nobody’s right or wrong.

For us, if they are released with some skills and income, we are confident that many of them will choose not to go back to prison. In the end, when they are imprisoned, they get to work, they get to earn some money, and when they are out, they are ready to start a new life. We only hope for this.”

Kampu

Owner of a local clothing store called Fai Plueak Mai in Mae Chaem, Mae Chaem District, Chiang Mai Province
“I have seen my grandmother and my mother weaving since I was small. I had the idea to create a brand from the beautiful fabrics created by my mother.”

The Pracharath Rak Samakkee (PRS) team first met Kampu standing in the booth selling items made by her family. Kampu is from Chiang Mai, and she helped her mother developed the embroidery work in Mae Chaem.

From the first day PRS met her, Kampu has come a long way, upgrading the original work from cotton clothes naturally dyed using tree bark from Mae Chaem, her mother’s unique method, to create her own brand called ‘Najai.’

Suriya Wongchai

Owner of the Lue Lai Kham Museum in Ban Sridonchai, Chiang Khong District, Chiang Rai Province
“I had a dream since childhood that I would like to open a Tai Lue Weaving Museum to pass on our roots to our descendants.”
Chumphon Aphisuk

An artist in Nan Province
“It is a great encouragement to make the communities proud of the things they create through their own ideas, stories and two hands, and for all the time they spend each day embroidering all these patterns. Encouragement acts as reward for their hearts.”
The Hospital Food Safety Project
This project has been in operation since mid-2017. It is an integrated collaboration between the Ministry of Public Health, Ministry of the Interior, Ministry of Agriculture and Cooperatives, Ministry of Commerce and universities, with the Pracharath Rak Samakkee network acting as the community liaison. The aim of the project is to find safe production areas for raw food materials both within the province and nearby provinces, to organize farmer groups, to gather the raw materials, and to provide delivery service/transportation of them to hospitals in the participating provinces. Another important goal is to generate income for farmers and community enterprise groups in the area so that they have a market for their safe and sustainable vegetables and fruits. In the end, people in the country will be healthier and happier as a result of the project.

Today, the Pracharath Rak Samakkee network in 29 provinces can deliver safe agricultural products to 41 hospitals nationwide, and more than 63 million baht in revenue has been generated for communities.
Hospital Food Safety Project Flow Diagram
Insight
Thikhamphon Sriworakun

Managing Director, Pracharath Rak Samakkee Kanchanaburi (Social Enterprise) Company Limited

“Pracharath Rak Samakkee Kanchanaburi (Social Enterprise) Co., Ltd. has continuously driven the Hospital Food Safety project since 2017, with a network of 206 farmer members from five districts. Apart from sending fruits and vegetables to Phahonphon Phayuhasana Hospital, since the beginning of this year we have been able to create networks and provide products to seven hospitals in Bangkok and its surrounding provinces, including Bamrasnaradura Infectious Diseases Institute, Prasat Neurological Institute, Navamin 9 Hospital, Queen Sirikit National Institute of Child Health, Priest Hospital, Maha Vajiralongkorn Thanyaburi Hospital (Khlong 10 Cancer Center), and the National Cancer Institute of Thailand. The project has been able to generate over 10 million baht of income for farmers.”

Boonma Mukkaew

Egg farmer and product collector for Krabi Hospital Food Safety Project

“Since Pracharath Rak Samakkee Krabi came into operation here, farmers and villagers in the community have a better life. They have additional careers and have additional income. In an economic downturn when rubber prices fall low, farmers have changed their lifestyles.

They turn to grow organic vegetables so that consumers can get quality vegetables from Krabi province. Illnesses among consumers is reduced. For all of this I must thank Pracharath Rak Samakkee Krabi very much.”
“Ready-to-Mill” Household Rice Miller Project

Pracharath Rak Samakkee Social Enterprise (Thailand) Co., Ltd. jointly developed a compact rice miller suitable for household rice milling. It is able to produce a sufficient amount of rice for household needs and thus maximize the benefits households receive from the rice they grow. The milling process takes no more than five minutes to complete.

One of the important goals of the development of this household rice milling innovation is to create a new supply chain based on a new marketing channel for farmers, one that allows them to sell native rice varieties directly to consumers at a higher price than through traditional sales. The innovation also helps to encourage farmers to develop their production skills, whether it is through rice drying, selection, packaging or transportation, in order to ensure quality before delivering directly to consumers. The technology also creates more direct income for farmers.

Currently, more than 100 “Ready-to-Mill” household rice millers have been ordered.

Promoting Community-based Tourism via [ Cheunjai Thailand ] TV Program

ThaiBev supports the budget for producing “Cheunjai Thailand,” a creative travel documentary TV program. The goal is to promote community-based tourism and community products nationwide under the operation of the Pracharath Rak Samakkee network. The program has been continuously broadcasting and has featured 144 episodes until now. Since its first broadcast on July 3, 2016, the program has received positive audience feedback and helped the general public to learn about new tourist attractions operated by communities.

The program has also helped bring the communities that have been featured to various fairs and events, enabling them to generate income of over 30 million baht.

Commitments and Achievements
  • Since its implementation, the nationwide network Pracharath Rak Samakkee has driven more than 930 projects, divided into three areas, namely agriculture, value-added products and community-based tourism, covering more than 68,000 households with more than 545 million baht generated in income. In addition, since January 2019, more than 41 million baht has already been generated for the community.
  • Many community products received support for distribution to various public and private organizations, including sales at Pracharath stores and through online media. This has already generated more than nine million baht of income for the communities.
  • Network partners are linked together in order to provide space for communities to sell the products of the Pracharath Rak Samakkee network. This year, these events have generated more than 500,000 baht in revenue for the communities, totaling 15 million baht since the project started operating.
Insight
Aphichat Todilokwet

Former Director-General Department of The Community Development Former Secretary of Public Sector for the Working Group on Local Economic and Social Enterprise Development
“Together with ThaiBev, the Department of Community Development has supported and promoted the local economy at the community level under the philosophy of the Sufficiency Economy. The project brings together community funds to develop Local Economy on three levels, including:

1. Promote career creation and income at the household level
this is in accordance with the goal of enhancing the honest livelihood approach that encourages people not to be exploited by others, reduce dependency on outside resources, avoid spending extravagantly, and stop all vices.

2. Promote collaboration
a group is organized to collectively buy and sell products. This will help community entrepreneurs to initiate production and trading.

3. Create cooperation and network (interdependent):
this is an expansion of the economic production system and is part of the economic system at the community and local level. It is considered a form of social enterprise. Although the implementation of the Pracharath Rak Samakkee Project is something new in Thai society, through hard work over the past four years, we have been able to promote local economy and social enterprise in order to create stronger local market.”
Moving Forward
The local economy development is divided into three steps as follows:
  • Create Foundation and Network (2016-2019)
    Started with the formulation of a network framework, mechanism design, and the local economy development operation through the establishment of Pracharath Rak Samakkee Social Enterprise network covering all 76 provinces nationwide and the Pracharath Rak Samakkee Social Enterprise (Thailand) Co., Ltd. To build understanding of the integrated development process, each provincial social enterprise individually initiated projects in parallel with national projects such as the Household Rice Miller Project, the Thai Handicraft Pakaoma Project, Sapai Sainaew Project, and Hospital Food Safety Project. The Business Development Institute for Society Foundation (FINSEDT) was also set up to drive the social enterprise sector across the country.
  • Create Success in Every Province (2020-2022)
    Encourage the Pracharath Rak Samakkee Social Enterprise network in all 76 provinces nationwide to build a model of success in three areas, namely agriculture, value-added products, and community-based tourism, and to pass on and exchange knowledge to network members. The main goal is to create a business network from the community level to the national level.
  • Further Develop and Expand (2023-2026)
    Create opportunities for further development and expand the success of community businesses to national and global business levels.
Project Overview

Thai Handicraft Pakaoma Project
consists of
15 participating
communities nationwide and has been able to generate more than
21 million baht
in revenue

The Sapai Sainaew Project
boasts
2,932 members
in more than
20 provinces
and has been able to generate nearly
10 million baht
in revenue

The Hospital Food Safety Project
involves
29 province
s under the Pracharath Rak Samakkee network and has been able to deliver agricultural products to
41 hospitals nationwide
and generate more than
63million baht
in income for the communities

Community-based tourism has been promoted via the
“Cheunjai Thailand”
TV Program Project, which has been broadcast on Amarin TV Channel 34 for
44 episodes
which covered
73 provinces 126 communities
income for the communities increased by
30-85%
and the number of visitors increased by
20-70%