Supply Chain Monitoring
As one of the largest global food companies, we have partners in our production chain to assist us in the mission of taking our products worldwide. Therefore, we have a complex monitoring of the whole process to ensure that our quality assumptions and sustainability are replicated for about of 37 thousand suppliers around the planet. From grain purchases to freight and logistics services, we monitor partners to ensure ethical, sustainable, transparent and 100% aligned with our objectives.
For this, we have our Structured Chain Monitoring Program to strengthen the control of socio-environmental risks, the dissemination of a responsible business model and the evolution of partners in this area. It relies on quality audits, dissemination of the Code of Conduct for BRF Suppliers, public data queries and requirements considered in contractual clauses. Through biweekly access to public lists, available in Brazilian territory, we identify suppliers in disagreement with legal standards of BRF. Labor and compliance aspects are evaluated in general and, if errors are identified, improvement plans are executed or, in serious cases, the cancellation of the contract with the supplier.
LEARN MORE ABOUT SOME OF THE PROGRAM REQUIREMENTS:
Every fortnight, BRF crosses information on the public lists of Brazil, the Brazilian Institute of Environment and Natural Renewable Resources (Ibama), the Ministry of Labor and Employment (MTE) and National Register of Inertial and Suspended Companies (CEIS) with its supplier base. If the supplier is present in any of these lists, he has his registration blocked by the system for future negotiations, until his situation is regularized with the institution and proven by a negative certificate.
Code of Conduct for BRF Business Partners lays down the rules that must guide the ethical and socio-environmental conduct of suppliers in the relationship with the company. The aspects are directly aligned with the internal code – called the Transparency Manual – and our Sustainability Guidelines. That is, what the company genuinely believes to be part of a responsible and transparent performance.
All business partners must comply with national and international legislation related to labor (freedom of association, labor legislation, social security and the rights of children and adolescents) and human rights. BRF does not tolerate and condemns child labor and all forms of work in degrading and incompatible conditions with human dignity that endanger the health and life of the worker, such as an exhausting day, forced labor and bondage among others.
Animal production is our basis for action, so animal welfare is naturally one of our great causes, and we encourage it not only within but also outside the BRF universe. We structure our practices and commitments through the global Animal Welfare Program (BRF). The corporate standards for animal husbandry and slaughter are the same for our own and integrated units, so that program guidelines are used as the standard for all company production. We carry out regular audits and verifications and, in case of nonconformities, a joint action plan is established for adequacy, which may lead to a breach of contract in case of failure to comply with the standards.
A questionnaire requesting technical information is presented to suppliers. In addition, some social and environmental practices in the BRF Code of Conduct are strengthened. The signature of this self-assessment is also monitored.
The Commodity Purchase Board considers two groups of suppliers critical: those with operations located close to the Amazon biome and also the soy processing companies that buy and process raw materials that depend on other grain suppliers in their production process. Compliance with existing content in the Soy Moratorium is required by BRF their suppliers.
Further information on this subject can be found in BRF’s Annual and Sustainability Report.
