Supply Chain Management

ØResponsible Supply Chain
As a key producer and supplier within the food industry value chain, Dachan bears the dual responsibility of safeguarding food safety and promoting sustainable development. To ensure that products are safe and compliant from the source, Dachan has established a rigorous supplier management system covering the procurement of raw materials, additives, and packaging materials, while continuously strengthening supply chain transparency and risk management capabilities.
In 2024, Dachan worked with a total of 1,268 suppliers, all of whom were incorporated into the risk management and assessment framework. Through standardized processes, Dachan ensures that its suppliers meet multiple requirements, including legality, quality, safety, and sustainability, working together to build a responsible supply chain.

ØSupplier Selection and Evaluation Mechanisms
※ New Supplier Selection
    To ensure that business partners operate legally and can guarantee product quality, Dachan conducts an initial document review for new suppliers through its procurement department. Required documents include factory registration certificates, business registration certificates, manufacturing licenses, or import permits.
Once the basic requirements are met, the procurement department completes the New Supplier Evaluation Questionnaire to assess quality management, environmental hygiene, production capacity, and supply stability. After approval through internal authorization procedures, the supplier is included in the Approved Supplier List.
Since 2023, Dachan has implemented a Supplier Commitment Letter system, inviting new suppliers to sign and commit to sustainability principles covering human rights protection, environmental protection, occupational safety, and ethical business practices. In 2024, 16 new suppliers were added, with a 94% signing rate.
※ Existing Supplier Evaluation
    For existing suppliers, Dachan conducts annual evaluations based on the previous year’s cooperation performance, carried out by the procurement department. Evaluation criteria include product quality, price competitiveness, on-time delivery, and service cooperation, with results recorded in the Supplier Performance Evaluation Form.
In cases of quality issues or significant deficiencies, a re-evaluation mechanism is initiated, and suppliers may be required to implement corrective actions within a specified timeframe or be phased out. In parallel, Dachan continues to expand the scope of sustainability-related environmental and social evaluation criteria for existing suppliers.
In 2024, Dachan conducted audits of domestic suppliers across five major categories—feed, meat, food products, eggs, and others. A summary of supplier audit statistics is presented in the table below.
                      

※ Food Safety Certifications and Supplier Management
    Dachan actively supports the government’s implementation of HACCP certification for food businesses and gives priority, during procurement, to suppliers that hold relevant certifications. Accordingly, Dachan communicates and works with its suppliers to promote the adoption of ISO 22000, ISO 9001, HACCP, and other certification systems. The procurement ratios of raw materials, materials, and packaging that have obtained the above certifications are systematically tracked and managed to verify whether suppliers have established and effectively implemented international management system certifications.
   In 2024, 533 suppliers passed international management system certifications (some suppliers obtained multiple certifications). A summary is presented in the table below.

                           

ØEnvironmental Sustainable Procurement Policy

                               
ØA summary of Dachan’s raw material procurement items, procurement volumes, and domestic procurement ratios in 2024 is presented below: