Environmental & Social Review Summary
Project Number
24433
Company Name
ECOM Agroindustrial Corp. Limited
Date ESRS Disclosed
May 30, 2006
Country
Latin America and the Caribbean Region
Region
Latin America and the Caribbean
Last Updated Date
Nov 30, 2016
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Jun 26, 2006
Signed : Jun 29, 2006
Invested : Jul 25, 2006
Sector
Coffee, Cocoa, Tea
Industry
Agribusiness and Forestry
Department
Gbl Ind, Manufact, Agribus & Services
Project Description
The project is to provide a corporate loan (the “Facility”) to ECOM Agroindustrial Corp. Ltd. (“ECOM” or the “Company”), a commodity trading company incorporated in Switzerland with operations primarily in agricultural commodities such as cotton, coffee and cocoa, in Latin America, Asia and Africa as well as Europe and United States.
The project is based on the increase and spread of best management practices and so is designed to move the broader supply chain to exceed minimum compliance standards. The Facility will be on-lent to producers supplying coffee to ECOM in parts of Latin America (mainly Nicaragua, Guatemala and Costa Rica) and will fund capital improvement and technical assistance and training projects identified by ECOM and certification agencies to improve the productivity and sustainability practices of coffee producers, enabling the latter to be certified.
ECOM is an integrated supply chain manager with a strong focus on origin markets, which differentiates it from most other trading companies. Rather than operating purely as a commodity trader, ECOM has hands-on involvement in commodity origination and processing, which enables it to offer value-added services and also control risk throughout the value chain. Ecom has a strong commitment to sustainable agricultural development and the provision of extension services to producers. At this time many initiatives are operating at a local level and the current program is to coordinate and systematize processes across the group
The project is based on the increase and spread of best management practices and so is designed to move the broader supply chain to exceed minimum compliance standards. The Facility will be on-lent to producers supplying coffee to ECOM in parts of Latin America (mainly Nicaragua, Guatemala and Costa Rica) and will fund capital improvement and technical assistance and training projects identified by ECOM and certification agencies to improve the productivity and sustainability practices of coffee producers, enabling the latter to be certified.
ECOM is an integrated supply chain manager with a strong focus on origin markets, which differentiates it from most other trading companies. Rather than operating purely as a commodity trader, ECOM has hands-on involvement in commodity origination and processing, which enables it to offer value-added services and also control risk throughout the value chain. Ecom has a strong commitment to sustainable agricultural development and the provision of extension services to producers. At this time many initiatives are operating at a local level and the current program is to coordinate and systematize processes across the group
Overview of IFC's Scope of Review
The review of this project consisted of appraising technical and environmental/social information submitted by the project sponsor and by visits to coffee plantations and operations, cocoa plant, and a hog farm in Mexico. The following potential environment, health and safety and social impacts of the projects were analyzed:
- Corporate environmental and social management systems and capacity;
- Supply chain management;
- Ambient and point source air emissions, including workplace air quality;
- Liquid effluent management;
- Solid waste management;
- Occupational health and safety; and
- Labor practices.
In the facilities visited local management is responsible for the EHS standards and its compliance. The facilities visited had standards that were in compliance with national law requirements. Improvements in their management systems as indicated in the CAP will help them to comply with IFC guidelines.
(Coffee Plantation (Ixhuatlan del Café): The plantation visited can be considered as best practice in relation to pesticide management, agricultural practices and working conditions. It is part of the Starbucks and Nespresso certification process.
(Coffee Mill (Ixhuatlan del Café): It is a well managed operation. It has reduced the consumption of water and generation of liquid effluent by converting the process from wet to an almost dry production process. The mill has finished the installation of a wastewater treatment plant.
(Decaffeination Plant (Cordoba): This is a well managed facility, however some health & safety issues were identified which ECOM will address as part of the implementation of the management system.
(Cocoa Plant (Veracruz): This is a well managed facility, however some health & safety issues were identified which ECOM will address as part of the implementation of the management system.
(Hog Farm (Perote): This operation is located in an area with low business activity. It is creating economic development in the surrounding communities and generating job opportunities. The operation is very well managed and they will begin producing energy through the recuperation of methane generated in the effluent treatment pools.
- Corporate environmental and social management systems and capacity;
- Supply chain management;
- Ambient and point source air emissions, including workplace air quality;
- Liquid effluent management;
- Solid waste management;
- Occupational health and safety; and
- Labor practices.
In the facilities visited local management is responsible for the EHS standards and its compliance. The facilities visited had standards that were in compliance with national law requirements. Improvements in their management systems as indicated in the CAP will help them to comply with IFC guidelines.
(Coffee Plantation (Ixhuatlan del Café): The plantation visited can be considered as best practice in relation to pesticide management, agricultural practices and working conditions. It is part of the Starbucks and Nespresso certification process.
(Coffee Mill (Ixhuatlan del Café): It is a well managed operation. It has reduced the consumption of water and generation of liquid effluent by converting the process from wet to an almost dry production process. The mill has finished the installation of a wastewater treatment plant.
(Decaffeination Plant (Cordoba): This is a well managed facility, however some health & safety issues were identified which ECOM will address as part of the implementation of the management system.
(Cocoa Plant (Veracruz): This is a well managed facility, however some health & safety issues were identified which ECOM will address as part of the implementation of the management system.
(Hog Farm (Perote): This operation is located in an area with low business activity. It is creating economic development in the surrounding communities and generating job opportunities. The operation is very well managed and they will begin producing energy through the recuperation of methane generated in the effluent treatment pools.
