Organic growth: Tesco Lotus partners long-time egg supplier to add value to the kitchen’s most common staple

Monday 05 September 2016 15:35
With the growing popularity of healthy living lifestyle among Thai consumers, organic products are finding more and more room on supermarket shelves. Tesco Lotus, Thailand's leading multi-channel retailer, has turned to its egg supplier to develop organic egg production from the ground up, with the support from the Department of Livestock Development, in a collaborative effort under the government's Pracha Rath framework, promoting cooperation between public, private and people sectors.

Ms. Pornpen Nartpiriyarat, Head of Quality at Tesco Lotus, said that: "We have witnessed a significant growth in the number of customers who lead a healthier lifestyle and are incorporating more organic products into their shopping baskets. In order to fulfill that need, we wanted to increase the volume of organic eggs offered at our stores. Instead of looking externally, we looked internally for a supplier who was ready and willing to work with us and take on a new challenge of developing an organic egg farm from scratch. We found that partner in Akara Group, one of our key egg suppliers. Akara Group has worked with Tesco Lotus since 2011 and shares our vision of constantly innovating to offer more for our customers."

"Growing Together" has been central to supplier partnerships at Tesco Lotus. Beyond providing multi-platform distribution channels that reach customers nationwide, Tesco Lotus also focuses on co-development and co-innovation with our suppliers. Going organic is not without challenges. Aside from the financial investment in the initial stage, the whole process requires meticulous care, from constructing a separate barn with an outdoor area where the hens can roam freely, and securing organic feed. We anticipated the process would take around two to three years, but with the support from the Livestock Development Department, we were able to achieve our goal in just seven months."

Mr. Thanawut Ualapan, Vice President of Akara Group, said that: "Formerly Sang Tong Farm, Akara Group has been working with Tesco Lotus for five years. From our humble beginning in a shop house, we have grown into a GMP, HACCP and ISO2200 certified egg producer. With our desire to continue to grow, we did not hesitate to take part in this organic egg project with Tesco Lotus. Our organic farm sits on 22 rai of land, with four barns. Our hens have access to outdoor space where they can roam freely. Space of one square meter is shared by four hens on average. The hens are fed organic feed. They can also peck on the organic yard outside, where we also grow organic herbs which can be used in place of antibiotics. An important part of organic egg production is ensuring the hens are happy and stress-free. We currently have 4,000 hens producing 3,500 organic eggs per day. After the sorting and screening process, we are left with 2,800 organic eggs per day, which we supply to Tesco Lotus. We plan to increase our production capacity for organic eggs to 20,000 eggs per day in the future."

Mr. Ayut Harintranon, Director-General of the Department of Livestock Development, said: "Organic farming is on the national agenda, driven by the Ministry of Agriculture and Cooperatives. Our aim is to increase organic farming among Thai farmers and operators by 20% annually, in order to help them add value to agricultural produce and livestock. Today's consumers are increasingly health-conscious, so there is demand for organic products. The department's role is to provide advice and assist in the certification process, so that Thai organic products are up to par with international standards."

"I congratulate Akara Group for its successful efforts in developing and getting the organic egg farm certified. The road to organic farming can be a challenging one, requiring meticulous care every step of the way and higher investments. However, the return is also higher."

The "Akara Eggology" organic eggs are available now at Tesco Lotus priced at 89 baht per pack, each pack containing 10 organic eggs.