The selection of suppliers follows the prescriptions of the Government Procurement Act. In addition, it is clearly stated in all relevant bidding documents that new suppliers shall comply with the principles of fair trade, environmental protection regulations, Labor Standards Act, and Occupational Safety and Health Act. Due to the complexity of human rights assessment mechanism, TSC currently screens the suppliers based on the self assessment of the human rights compliance prescribed in the procurement agreement by the suppliers. In 2021, the percentage of new suppliers meeting the selection criteria reached 100%. To work in line with the implementation of green procurement promotion plan approved by the Executive Yuan, TSC purchases eco friendly and green products. The green procurement ratio in 2021 was 99.83%. 

          Moreover, to support domestic industries, priority is given to the sources of goods manufactured or services provided by domestic suppliers. At present, apart from the 100% of bulk grain raw materials in the Livestock Business and sugar raw materials in the Sugar Business that are imported from abroad, domestic suppliers are prioritized for the supply of the remaining raw materials.

          All the procurement of TSC must comply with the relevant provisions of the Government Procurement Act in order to achieve justice, openness and fairness, and the results have been good. The internal control system set up the Key Points for Financial and Labor Procurement Operations, Key Points for Bulk Grain Purchase, Operating Points of Project Purchase and Performance Management, and Operating Points of Public Selection of Technical Service and Labor Procurement. TSC has set up an outsourcing center as a dedicated unit in charge of purchasing and organizes doubts, objections, complaints and consulting related to the Government Procurement Act so as to complete the procurement system and increase procurement efficiency. New suppliers and existing suppliers should all meet the requirements of the Procurement Act.

          In 2021, the total purchase amount (based on the contract amount) was NTD 19.64 billion. Among them, the purchase amount of bulk grain purchase and imported sugar was NTD 5,497 million. In 2021, the amount of foreign purchases accounted for approximately 28% of the total purchase and the domestic purchases accounted for 72%.

          The main raw materials imported in 2021 include raw sugar, corn and soybeans. No recycled raw materials were used as the raw materials for the production of food products. TSC’s new product packaging design is in line with the EPA’s regulations on the restriction against excessive packaging of products to reduce both the amount of packaging materials used and the generation of waste as well as the environmental load.