Tesco Lotus showcases 22 Pracha Rath projects
Helping Thai farmers and SMEs achieve sustainable growth ahead of Thailand 4.0 era
10 January 2017 – Tesco Lotus celebrates the success of its 22 Pracha Rath projects, in which it cooperated with government agencies and people in local communities to create positive economic and social impacts for more than 2,500 families in 20 provinces across Thailand. Through the projects, farmers and small business operators have earned additional income from supplying their products to Tesco Lotus and are on the path to sustainable growth as they are equipped with capabilities to compete in the Thailand 4.0 era.
Mr. John Christie, Chief Executive Officer, Tesco Lotus, said that: “For more than 22 years, Tesco Lotus has offered high quality fresh food and products at affordable prices to customers in Thailand. As a leading retailer, we are also committed to contributing to the growth of the Thai economy, social development, and the protection of the environment. In 2016, we had played our part in supporting the government’s Pracha Rath framework by undertaking 22 Tesco Lotus Pracha Rath Ruamjai projects. The success of these projects meant a secure source of income and sustainable growth for more than 2,500 families across 20 provinces in Thailand.”
The 22 Tesco Lotus Pracha Rath Ruamjai projects drew on the strength of each of the three parties involved, namely government, private and public sectors. Government offices contributed technical know how about farming best practices and safety standards, while Tesco Lotus gave advice about crop planning, the basics of business operation, supply chain management, as well as providing distribution channels for farm and locally made products. A majority of the Pracha Rath projects involves the direct sourcing of local produce from farmers, providing them not only a steady source of income, but also an opportunity to grow with Tesco Lotus. Customers also benefit from having access to high quality and safe products at affordable prices.
In 2016, Tesco Lotus purchased more than 150,000 tonnes of produce directly from farmers. This was an increase of 50% on the previous year. In addition, more than 9,000 SME and OTOP operators are able to offer their products through Tesco Lotus’s network of more than 1,800 stores and online shopping platforms.
“The 22 Pracha Rath projects have clearly demonstrated the effectiveness of the Pracha Rath framework. Aside from the tangible monetary benefits for the farmers and local business operators, the projects have laid a strong foundation for the communities involved to be ready for the Thailand 4.0 era. Using a market-led approach, Tesco Lotus has guided farmers and small operators to improve product quality and safety, understand cost structure, and create value for their products in order to compete domestically and look beyond the borders of Thailand.”
“For the coming years Tesco Lotus will continue to roll out more Pracha Rath projects and expand scale of the existing ones to involve larger communities on the provincial and regional levels in order to promote strong networks of farmers and SME operators. Ultimately, this will benefit not only the participating local groups, but also our customers and the people of Thailand, leading to sustainable growth of the Thai economy,” concluded Mr. Christie.
About Tesco Lotus
Tesco Lotus, Thailand’s leading retailer, currently operates approximately 1,800 stores across Thailand under five formats, namely Extra, Hypermarket, Department Store, Talad and Express, serving more than 15 million customers every week. Tesco Lotus also offers products on three digital platforms: Tesco Lotus Shop Online, where more than 20,000 grocery and fresh food product items are available; Lazada.com offers more than 12,000 product items from Tesco Lotus; and weloveshopping.com provides 4,000 Tesco Lotus product items.