The sponsor has presented plans to address these impacts to ensure that the proposed project will upon implementation of the specific agreed measures, comply with the environmental and social requirements, the host country laws and regulations and the World Bank/IFC environment and social policies and the environmental, health and safety guidelines. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow, and the attached Karsten Farms Environmental Action Plan (EAP).
- Farming practices and Certification Schemes:
Farm practices and packing houses are operated and maintained in compliance with World Bank/IFC policies. All Karsten Farms in South Africa receive annual certification from British Retail Consortium (BRC, since 1999), EUREP Good Agricultural Practices (EUREP GAP, since 2002), and Tesco’s Nature Choice certification (since 2003). Karsten has developed an in-house environmental and quality control system to enable the implementation of its environmental / social policy and compliance with certifications requirements. Karsten’s practices/policies include, but are not limited to:
- Compliance with the Hazard Analysis and Critical Control Point (HACCP) system
- Annual recertification events
- Quality management system that includes management systems for food safety, quality, environmental and social affairs
- Sustainability and quality of water supply for irrigation
- Soil management and chemical / fertilizer/ pesticide usage; pest control
- Occupational health and safety in processing, agriculture and allied facilities
Annual environmental audits conducted at each of the farms cover sustainability of water usage, fauna and flora, soil erosion, potential negative impacts of the farm operations, etc. A full time staff member is dedicated to the implementation of the recommendations listed in the environmental audits and to maintain compliance with the various certification schemes listed above. Operational plans and procedures are incorporated into a management plan described within a manual.
- Water Extraction and Sustainability:
Karsten environmental policies address optimum water usage and waste minimization practices for its farms and packing houses. At Hoogland, water is extracted from a well and a water levy paid to the government that is not related to quantity extracted. Although, at the present time no monitoring is carried out of the water level, Karsten’s management has agreed to put in place a monitoring plan for groundwater quality and usage. Karsten uses between 800 to 1,000 m3/hectare/year of water (from the Orange River) for irrigation of about 800 hectares spread over eight farms owned by Karsten in the Upington area. Water need is carefully assessed periodically through regular soil analysis. The amount of water used for irrigation has been reduced by about 40% through the use of micro/drip irrigation and detailed monitoring of soil moisture over the previous two years. Further testing is being carried out to enable an even greater reduction of water extraction from the river.
- International Waterways Policy:
Karsten uses water from the Orange River for irrigation of their farms in the Upington area. Since water from the Orange River is shared by other countries, IFC’s Policy on Projects on International Waterways (OP 7.50, November 1998) applies to this project. Water rights from the Orange River are shared on an equal basis between Namibia and South Africa. Water rights are paid annually on the basis of the surface to be irrigated. Karsten pays a water levy to the South Africa Ministry of Water Affairs for an allocation of 15,000m3/hectare from the Orange River. Karsten presently uses far less water than its allocation, and water usage is anticipated to continue to be far less than the allocation even after additional land is brought under irrigation. As this is an ongoing scheme and Karsten’s anticipated use will continue to be less than the quota presently allocated to Karsten, notification to other riparian states is not required.
- Pesticide Use:
Pesticide use and application are strictly regulated by existing certification requirements that mandate Integrated Pest Management (IPM) and Integrated Crop Management (ICM) practices within the framework of commercial agricultural production. In farms located in the Upington area, a technical team is carrying out pilot tests on biological farming with wheat as cover crop in between harvest, and on the production of organic table grapes.
Pesticides are stored in specific building(s) only accessible to the manager in charge of pesticides application. The preparation room is adequately equipped with shower, washing and changing facilities and emergency health and safety equipment. All personnel handling pesticide are regularly provided with both theoretical and on site training. Pesticides residues in final products are analyzed annually by a certified South African laboratory.
- Use of CFC / Refrigerants and Other Hazardous Material:
All chemicals are stored in a separate building under controlled access. Chemicals that are stored in outside tanks are kept within fenced and locked areas with adequate secondary containment. Refrigerants for packing houses and cold stores are either R-22 or ammonia. Ammonia is stored in a locked and fenced area and empty containers are returned for refilling to the distributor. Showers and washing facilities are provided at these locations. All employees handling chemicals are provided adequate training by Karsten.
- Waste Management:
Karsten’s environmental policy aims at waste minimization and procedures have been implemented to maximize reuse/recycling in their operations. Organic waste is composted into mulch for use on farms, while non organic waste is sorted into recyclables (glass, metals, building material, wooden pellets) and non recyclables. Small quantities of non recyclable and non-hazardous material (such as plastics used in packaging and other scrap) are disposed on site at a designated waste disposal area. Karsten is working toward improving a better management practice for this waste stream.
Chemical and pesticide containers are washed three times and punched before incineration in a designated/permitted hazardous waste incinerator on site. Rinse water is returned to the application tank as per EUREP GAP certification requirements. Residue from the incinerator is buried in a secure landfill. There are no sanitary landfills in the area to safely dispose these residues offsite. Obsolete chemicals are returned to the producing firm through a local collection contractor.
Sanitary wastewater is either treated in a series of clay lined ponds with passive aeration or stored in clay lined ponds that are regularly pumped by the local municipality for treatment at the local waste water treatment plant. In some farms, workers houses are linked to septic tanks that are also periodically cleaned out by the local municipality.
- Workers Welfare and Labor Policies:
The Karsten Group employs about 1,000 permanent farm laborers and up to 4,000 migrant laborers during the harvesting seasons (about 3 months). Migrant labor is needed twice a year on some of the farms. In many cases (70to 80%) the same laborers come back to Karsten farms every year. All staff, permanent and migrant, are housed with their families and provided with meals, crèches (government subsidies are supplemented by Karsten) and health facilities (on site clinic and a government sponsored mobile clinic). Karsten also provides access to training schemes, including a government sponsored program on reading and writing skills. Transport to the nearest local schools when schools are not located on the farm premises is also provided by Karsten. Older retired staff members keep their houses on farm premises and get access to the clinic.
The Karsten Group has several type of actions designed for empowerment of the work force. A social program is carried out by a minister resident on the farm with strong support from the management. This program aims at the development of leadership skills and the building up of self confidence. The program works with peer group leaders and discussions and counseling are carried out on marriage, drug abuse, HIV/Aids, youth, leadership and child care.
- HIV/AIDS Policy:
HIV Aids programs were first developed on the farms in 1999 and an awareness manual was produced and distributed with training carried out by peer group leaders. Additional training is also provided via religious programs. The Karsten policy on HIV Aids is to help affected workers (estimated at 20% of the workforce) to enroll into a government program to get free therapy. A “Get to Know Your Status” program has been started to achieve this and a first round of voluntary testing took place earlier this year. Karsten Group provides free antibiotics and vitamins to farm workers.
- Black Economic Empowerment Actions:
Karsten first started a pilot share to workers scheme in 1994 with thirty three managers under the government Black Economic Empowerment initiative in which shares were paid for with funds from a profit sharing scheme. A second pilot scheme was started in 1997 with government funds for three hundred and thirty employees. A third scheme was launched in 2005 and attracted three hundred and eighty applicants who became share holders. Funds for this last scheme came from a profit sharing scheme as well.
- Social and Community Development Policies:
Several community development actions were carried out over the last ten years and in particular a program for returning migrant workers on HIV/AIDS, involving twenty trainees was supported by the company after their return to their rural communities. After eight months this program taken over by the government and has been replicated by several mining companies that also employ a significant amount of temporary migrant labor. Under a ‘Fair Trade’ scheme, money is set aside and used for the community. In 2004, a sum of 100,000 Rands was set aside which the workers Fair Trade Commission elected to use this money for specific projects in their rural community of origin.
- Karsten Group Expansion in Egypt:
As part of its diversification strategy, Karsten group started its involvement in Egypt in 2003 through the management of two existing farms. One farm of 100 hectares is located in Nouba Ria, about 60km from Cairo along the Cairo/Alexandria road. This farm has been certified under EUREP GAP and produces 70,000 cartons of table grapes/year for export. Karsten group is expecting this farm to be fully compliant with its environmental and social policies within a year and has developed a specific training program aimed at women and children to better fight child labor, as practice prohibited on its land but still culturally considered acceptable in the area. Irrigation water at this farm is extracted from the Nile River. The second farm of 50 hectares is located in Khatatba, 50km from Cairo along the Cairo/Alexandria road and currently produces 20,000 cartons of table grapes for export. This farm extracts water from the local aquifer for its irrigation. Karsten Group has agreed to regular monitoring of the ground water quality and level to ensure that its water extraction does not threaten the sustainability of the aquifer.
Karsten Group is planning to further increase its production by buying lands and planting grapes in the Wadi Noukra area. Farming, environmental and labor practices in the Karsten Managed farms outside South Africa are still not to the standards currently in place in South Africa. Karsten Management is expecting to achieve EUREP GAP and BRC certification for all its operations in Egypt within the next three to five years.
- Land Acquisition in Egypt:
As part of its development and diversification objective, the Karsten Group is planning to purchase agricultural land for table grape production. Two hundred and eighty five hectares of additional land is to be bought from the government that is not currently used or occupied. It is located in Wadi Noukra, east of Aswan.
