Building a more responsible tapioca starch supply chain in Thailand

Improving supply chains takes time and long-term commitment. For over a decade, UPM has worked with suppliers, farmers and international organizations to strengthen responsible practices in its tapioca starch supply chain in Thailand. Today, every factory supplying UPM with tapioca starch is independently audited and verified.

Few people know this better than Petri Riihinen, Director, Paper Chemical Sourcing, and Kimmo Ståhlberg, Director, Supplier Quality and Sustainability, both from UPM Sourcing. Together with colleagues, suppliers, farmers and NGOs across the value chain, they have spent over ten years improving working conditions in the Thai tapioca starch supply chain.

Why tapioca starch from Thailand?

Tapioca starch is a widely used commodity worldwide. At UPM, it serves as a binder in the production of certain paper grades in China and Europe. Tapioca is mainly grown in Asia and South America, regions where human rights risks in agricultural value chains are particularly prominent. Of the alternatives, UPM has assessed Thailand as offering the best conditions for developing responsible sourcing.

Building a more responsible tapioca starch supply chain in Thailand

The supply chain has three tiers: farmers, dealers who coordinate starch purchasing, and processing factories. UPM works with three suppliers in Thailand. Our annual use of tapioca starch is relatively modest at around 14,000 tonnes, which limits direct commercial leverage compared with large global players, many of whom are in the food and beverage industries.

We have chosen to invest in this supply chain because responsible sourcing should not depend solely on volume.
Petri Riihinen, Director, Paper Chemical Sourcing, UPM

From supplier risk segmentation to long-term progress

Since 2013, UPM has studied the operating environment and supply chain risks in its tapioca sourcing in Thailand. Assessments revealed that Thai starch suppliers span a wide spectrum of maturity: some showed clear risk indicators and needed improvement, while others already operated in line with global customer requirements and international standards.

“Based on the initial audits, we saw different levels of supplier readiness. In some cases, there were red flags related to chemical handling, occupational health and safety, and human rights concerns such as children’s rights and migrant worker recruitment practices. But these findings were not representative of all suppliers,” Petri recalls.

Through the audits, UPM identified gaps against its Supplier and Third-Party Code. For suppliers requiring improvement, the early efforts resulted in upgraded chemical storage, improved safety practices, better documentation and stronger awareness of responsible recruitment, Petri and Kimmo explain.

With suppliers already at a high level of maturity, collaboration focused not on correcting red flags but on maintaining assurance and building long-term supply reliability. “In the beginning, the discussion focused on the roles of suppliers and buyers, and the business continuity risks for both sides if compliance was neglected,” Kimmo says.

External stakeholders, including the Thai Tapioca Starch Association, the International Labor Organization (ILO) and the International Organization for Migration (IOM), supported alignment with regulations and good industry practice.

Working with long-term partners

One of UPM’s longstanding partners in tapioca sourcing is SMS Corporation, a privately owned Thai company and a prime example of a strong supplier from the beginning. Thanks to its well-organized farming platform, SMS has operated in line with international standards from the beginning, and its direct, lasting relationships with farmers have made it UPM’s key partner in improving practices across the wider chain.

In 2017, the two companies agreed to work together on a long-term basis to further develop the sustainability of the tapioca supply. While SMS developed a suitable product for UPM, UPM evaluated and qualified SMS as a supplier through independent verification.

“We commissioned independent third-party audits to better assess risks related to migrant workers and recruitment practices. Over time, the dialogue with the owners and key leaders grew into an open working relationship, built on a shared belief that acting sustainably brings added value to both parties,” Petri explains.

“UPM and SMS have built a long-term partnership based on trust, transparency and shared responsibility for the sustainable sourcing of modified tapioca starch. Through open dialogue, independent audits and continuous follow-up, we have worked together to strengthen responsible practices and long-term supply reliability,” says Khem Wanglee, Managing Director of SMS Corporation.

Listening to farmers’ voices

Most tapioca farms are family-owned, and family members often help with farm work. This makes it especially important to ensure that children attend school and that farm work remains appropriate for their age and skills.

Auditing every individual farm would be logistically difficult. To complement the audits, UPM and SMS used SMS’s farming platform to conduct a Farmers’ Voice Survey in 2019 at the SMS factory in Chaiyaphum. This survey reached people that conventional audits rarely hear from. Nearly 500 farmers and workers participated anonymously, and UPM and SMS openly published the findings.

“Based on the main concerns raised, such as workplace safety and access to clean water and electricity, we introduced a targeted training program covering occupational safety, chemical handling, waste management and the prevention of human trafficking. The program is still running today,” says Khem.

Sustainability terms come first

An important milestone was reached in 2021 when sustainability terms were separated from commercial terms in supplier contracts. “Without full compliance with the first, there could be no second,” Kimmo explains.

One key award criterion was membership in the Sustainable Agriculture Initiative (SAI) Platform, a global, industry-led organization that promotes sustainable agriculture. Members must also present a roadmap to reach at least the bronze level of its Farm Sustainability Assessment (FSA).

The bar has since been raised. Since 2025, all factories supplying UPM with tapioca starch are members of the SAI Platform, participate in SMETA four-pillar audits that assess labor practices, health and safety, environmental management and business ethics, and hold at least a silver-level Farm Sustainability Assessment (FSA) verification confirmed by accredited third parties.

“For SMS, sustainability in starch supply chain is strengthened through disciplined collaboration, not one-time certification. Our work with UPM reinforces a clear cycle of audit, verification, corrective follow-up and continuous improvement,” Khem adds.

“This work shows that long-term collaboration with the right partners is essential. There are no quick fixes, steady progress is the objective,” Petri concludes.

UPM Sustainable Supply Chain Program

UPM’s Sustainable Supply Chain Program drives performance, ensures compliance, mitigates risks and supports progress toward shared environmental, social and governance ambitions. Implementation is managed and tracked through UPM’s 2030 sustainability targets and performance indicators.

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