Ceval Alimentos S.A. - Expansion

completed

- 2 - September 29, 1995Environmental Review Summary (ERS)Project Name Brazil-Ceval Alimentos S.A.Region Latin America and CaribbeanSector Food and AgribusinessProject No 0051231. Ceval Alimentos S.A. (Ceval) is one of Brazil’s largest food companies. The company is primarily involved in the processing and sale of poultry, pork and meat products as well as soybean and corn derivatives. Ceval operates facilities in several states. The company was founded in 1972 as part of its parent company’s, Cia. Hering, a textile group established over a century ago. The proposed project involves an investment in Ceval’s ongoing facility expansion program. These include Ceval plants in Seara, Itapiranga, Forquilhinha, Jaraguá do Sul, Itapevi, Nuporanga, Jundiaí, Jacarezinho, Dourados, Sidrolândia, Barreiras, Balsas and Fortaleza.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:· environmental policies;· air emissions;· liquid effluent treatment;· solid waste management;· ambient noise control; and· general employee training, health and safety.Information provided on how these potential impacts would be addressed in the Ceval expansion project is summarized in the paragraphs that follow.3. Ceval has an established leadership structure committed to the implementation of the company’s environmental, health and safety policies as well as continued compliance with national and local environmental regulations. Environmental issues are the responsibility of the company’s Environmental Department.4. Ceval’s operations do not generate significant levels of air emissions. Equipment that potentially emit contaminants are equipped with mitigating devices (cyclones). The company complies with local regulations and World Bank guidelines on air emissions.5. Ceval has recently invested heavily in waste water treatment systems to comply with local regulations. Liquid effluents generated at each facility undergo primary and secondary treatments prior to discharge into local water bodies. These systems are undergoing an optimization phase and at present, effluents are generally in compliance with local regulations; however, the system will ultimately be optimized to comply with World Bank guidelines as part of the project implementation.6. Ceval has implemented an aggressive waste minimization plan, and currently the bulk of the solid waste produced at each facility is either reused on-site or processed for recycling. Organic waste are processed to produce multi-purpose oil and grease and fertilizer. Other waste, such as plastics and paper, are also recycled.7. Ambient noise levels are not exceeding World Bank guidelines due to the type of machinery employed by the industry.8. Hazardous materials handled at Ceval plants include ammonia and hexane. The company stores and handles these products according to international chemical and engineering standards, providing secondary containment and fire prevention devices as required. These products are consumed or recycled in the production process.9. Ceval has a comprehensive occupational health and safety program that extends to worker families through outreach programs. The company provides training and seminars in areas of operational safety, hygiene, and related health issues. Ceval’s safety program involves internal audits, accident investigations, risk management, and strict record keeping. Ceval facilities are equipped with fire prevention and protection devices deployed according to NFPA standards and local industry norms.10. 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 Ceval Alimentos S.A. and by conducting periodic supervision.11. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Ceval’s proposed project will meet World Bank environmental, health and safety policies and guidelines, and host country requirements.