Beijing Hormel Foods Company Limited

completed

- 2 - April 2, 1996International Finance CorporationA Member of the World Bank GroupInternational Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS)Project Name China-Shandong Sand’s Food Development Co. Ltd.Region AsiaSector Food and AgribusinessProject No. 0050561. Shandong Sand’s Food Development Company Ltd. (Sand) is a joint venture between IBP Inc. (USA), Sand Investment L.L.C. (USA) and Zhonglu Biological Engineering Development Company Ltd. (Zaozhuang Municipality, Shandong Province, PRC). The proposed project involves the erection and operation of farms for raising 175,000 hogs per annum and a facility for slaughtering and processing of 1,000 hogs per day into medium to high grade meat products. The facility will be located in the Shandong Province, China.2. This is a category B project according to IFC''s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of information submitted by the project sponsor and the technical appraisal and site review completed by IFC''s Agribusiness Department staff. The following potential environmental, health and safety impacts of this project were analyzed: • site locations; • air emissions; • liquid effluent treatment; • utilization of treated liquid effluent; • solid waste management; • utilization of solid wastes; • noise control; and • general employee training, and health and safety.Information provided on how these potential impacts would be addressed in the Sand project is summarized in the paragraphs that follow.3. The Sand project is being developed in an agricultural area situated in the Shandong Province and will involve raising, slaughtering and processing hogs. The sites was formerly used for agricultural production.4. The air emissions from the project is related to boilers operated on coal and odors from the rendering facility. The project boilers will be designed and equipped to comply with local requirements and World Bank guidelines for air emissions. The rendering facility will be equipped with air scrubbers to reduce odor problems.5. The farming operations will incorporate an aerobic lagoon system for animal waste. The output from the lagoons will be used to irrigate and fertilize crops adjacent to the site. The slaughtering and processing plant wastewater will be treated in a comprehensive wastewater treatment system before discharge. The treated wastewater will be discharged to a river or used as irrigation water as appropriate. The treated wastewater will comply with local requirements and World Bank guidelines for discharge water.6. Solid waste from the slaughter house and processing plant will consist of guts and other organic solid wastes from the process. The solid waste will be processed at the rendering plant where the waste is cooked and processed into animal feed.7. Equipment for the slaughter house and processing plant will be selected to limit the noise from the facility, and room enclosures will be incorporated. The noise levels will be kept within local requirements and World Bank guidelines.8. The facility will be designed according to IBP’s policies and guidelines to ensure a proper quality of the product and a safe working environment. A fire protection system is also included in the design. The training of employees will be carried out according to standards established within IBP.9. IFC will ensure ongoing compliance with World Bank environmental, health and safety policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by Shandong Sand’s Food Development Company Ltd. and by conducting periodic supervision.10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Shandong Sand’s Food Development Company Ltd.''s proposed project will meet World Bank environmental, health and safety policies and guidelines, and host country requirements.L:\WPEU\NIELS\CHINA\SANDFOOD\ERS.DOCApril 2, 1996 9:01 AM