1 April 2020

PT Sugar Labinta are Building a Resilient and Sustainable Supply Chain to Weather the Storm

PT Sugar Labinta are Building a Resilient and Sustainable Supply Chain to Weather the Storm

Referring to the recent Czarnikow report on How Coronavirus is Impacting Supply Chains, by our Head of Structure Finance, Tanya Epshteyn:


"The impact of the coronavirus epidemic on worldwide production and movement of goods, together referred to as the supply chain, will soar by mid-March and continue to rise. That's when stockpiled supplies will dry up, and manufacturing and production will slow down or stop because of the lack of ingredients available. The availability of these products is reliant upon a number of factors, all of which have been impacted by the virus. Crops may go unharvested as labour becomes unavailable, possible ports close as a result of shut borders, resulting in the procurement and movement of goods becoming increasingly challenging."


The business world is in a phase of uncertainty, anxiety, and confusion - So how do we continue to advance our values of environmental and social integrity within our food supply chains?


We must build resilience and not forget our business sustainability goals, which have become integral to many of our own respective long term business strategies. Maintenance of our long term goals will become increasingly crucial throughout this pandemic and even more so as we emerge on the other side.


It is paramount that agricultural and food manufacturing supply chains which are under immense pressure continue to ensure the safety and protection of their workers and maintain high social and human rights standards. The COVID-19 pandemic should not be an excuse for businesses to unnecessarily cut corners within the supply chain. Reducing attention to human and labour rights, production standards and environmental policy may create devasting long term effects to both the business, labour force and the environment.


It is, for this reason, we are delighted to see that VIVE participants, such as PT Sugar Labinta are continuing to drive their sustainability agendas, and are striving to maintain the VIVE programmes' standards during this challenging time.


This week, PT Sugar Labinta imported 19,000 metric tonnes of VIVE Claim Level raw sugar, which was shipped last week from Kaset Thai Sugar Mill in Thailand. This sugar will be processed at PT Sugar Labinta’s Lampung refinery and will be available for sale to industrial buyers.


The VIVE programme would like to thank PT Sugar Labinta for their commitment to a sustainable future and commend them for becoming the first importer of VIVE Claim Level sugar into Indonesia. 


The VIVE Programme works with participants to ensure health checks are offered to all employees. We encourage participants to complete a Risk Assessment to identify employees who may be at increased risk of disease. This reduces the risk of infectious diseases throughout the supply chain and ensures healthy working conditions are facilitated to care for workers’ wellbeing. 


For more information on both Labinta and Kaset Thai Sugar Mills involvement in the VIVE programme, please see the specific reports below:


VIVE congratulates PT. Sugar Labinta and PT. Kebun Tebu Mas for achieving the VIVE Claim Level.


VIVE in Thailand - increased participation and volumes!


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