Perdigao Expansion

completed

- 2 - August 21, 1995Environmental Review Summary (ERS)Project Name: Brazil-Perdigão S. A. Comércio e IndústriaRegion: Latin America and CaribbeanSector: Food and Agribusiness Food and AgribusinessProject No.: 0050581. Perdigão S. A. Comércio e Indústria (Perdigão) is the second largest poultry and pork meat processor in Brazil and operates 5 integrated poultry facilities and 6 pork facilities in several States. The company was founded in 1934 to commercialize food products, and in 1940 and 1955 began its activities in the pork processing and feed production and poultry slaughtering business respectively. The proposed project involves an investment in Perdigão’s ongoing expansion program, which includes the optimization of 7 facilities operated by the company. These are: Frigorífico de Capinzal, Frigorífico de Videira, Frigorífico de Marau-Aves, Frigorífico de Marau-Suinos, Frigorífico de Serafina Correia, Frigorífico Herval D’Oeste, and Frigorífico de Salto Veloso.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 Perdigão expansion project is summarized in the paragraphs that follow.3. Perdigão has an established leadership structure committed to complying with internal environmental policies as well as meeting national and local environmental guidelines. Although the company has no stand-alone environmental policy, such issues are the responsibility of the engineering department, which is under the direct responsibility of the President of the company.4. Stacks at Perdigão’s facilities are equipped with scrubbers to reduce particulate emissions and odors. The capacity of the treatment system will meet increased emission levels resulting from the optimization and expansion of the production lines. Additionally, the project contemplates the installation of a new, more efficient boiler at the Frigorífico de Capinzal.5. The seven Perdigão facilities included in the optimization project are equipped with waste water treatment plants. Effluents from the facilities undergo a secondary treatment process prior to discharge into adjacent rivers. The treatment at each facility achieves a BOD5 removal efficiency greater than 92% prior to discharge. Perdigão has recently invested heavily in waste water treatment systems. These systems are now under final startup and optimization phase. Presently, Perdigão’s liquid effluents are generally in compliance with local regulations and will ultimately be optimized to comply with World Bank guidelines as part of the project implementation.6. Solid waste are handled responsibly at the Perdigão facilities. Plastics and paper wastes are cleaned, stored and sold for recycling, while general domestic waste is collected by the municipal sanitary service and disposed of at local landfills. Organic waste is processed at Perdigão’s own rendering facility.7. Ambient noise levels are not exceeding World Bank guidelines due to the type of machinery employed by the industry.8. Perdigão offers health and safety training associated with the particular activities in which the workers are to be involved. In addition the company offer training in general safety issues such as fire protection, use of fire protection devices and similar activities. Perdigão also has organized fire brigades which hold periodic mock exercises to ensure readiness. The company also conducts seminars on waste handling and management, and industrial ergonomics.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 Perdigão S. A. Comércio e Indústria and by conducting periodic supervision.10. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Perdigão S.A. Comércio e Indústria’s proposed project will meet World Bank environmental, health and safety policies and guidelines, and host country requirements.