PS1: Social and Environmental Assessment and Management Systems:
Bioparques is a tomato business established in 2002, comprising 3 companies: (i) Agricola la Primavera S.A. de C.V. (“La Primavera”), an open field and mesh house tomato producer in the state of Sinaloa; (ii) Bioparques, the greenhouse tomato producer in Jalisco; and (iii) Kaliroy Produce Inc. (“Kaliroy”), the main exporter and distributor of the company tomatoes is located in Arizona, USA. Bioparques greenhouse operations, with semi-hydroponic production, offer better quality fruit since they are grown in relatively controlled environment under plastic. Tomatoes are grown above ground in packets of coconut shell-peat, with drip irrigation to each plant. Other greenhouse tomatoes are grown on the ground. Bioparques has implemented improved agricultural practices in all operations. The greenhouse production system, is regarded more environmentally friendly. To ensure food safety in their produce, Bioparques has obtained Primus Labs certification. Also, the company is certified by the Mexican government food safety program SENASICA; and, during November 2008 obtained a certification seal from “Mexico Calidad Suprema” (Supreme Quality seal in Mexico).
Bioparques is generally an environmental and social conscious organization. Being an existing IFC client, Bioparques aims to operate within the Mexican environmental regulatory framework (including municipal regulations), IFC Performance Standards, and WBG General EHS Guidelines. Bioparques has implemented a training plan to ensure knowledge on Environmental and Social issues, as part of the Induction for new employees. The training plan will be continued under this new investment.
Bioparques has mainstreamed a formal community grievance system for their workers and families living in the company-owned migrant housing facilities.
Social and Environmental management system: The social and environmental management agenda at the company is implemented without the benefit of a formal management system. The agenda follows the action plan identified in the Environmental and Social Impact Assessment document (ESIA), and the interventions agreed with IFC during the first investment. During the first phase, the company appointed a manager for environmental and community affairs. Also, Bioparques updated its human resources policy to include all elements of PS2, developed strong community engagement, hosted community regreening events planting trees, ensured implementation of continuing education, and implemented an auditable child labour monitoring plan in all their operations. Bioparques installed fire safety standards in all their greenhouse and packing operations, and conducted fire drills. Further, the company implemented sustainable agricultural practices. As per the Environmental and Social Action Plan (ESAP), Bioparques will develop a management system encompassing social, occupational health and safety, food safety, human resources, and environmental affairs management for all its operations. The SEMS and associated procedures shall comply with Mexican regulations, IFC Performance Standard 1, and WBG Environmental Health and Safety (EHS) General Guidelines.
Senior Management Reporting and Monitoring: The company will implement a process for monitoring and periodic reporting to senior management and monitoring activities that have been identified to have potentially significant impacts on social issues and the environment, during normal operations and upset conditions.
PS2: Labor and Working Conditions:
Human resource policy: Bioparques operates within the Mexican labour law and IFC Performance Standard 2, to maintain and promote fair treatment and safe and healthy working conditions to employees. The Human Resources policy includes references to non-discrimination, freedom of association and collective bargaining, child labor and forced labor. All compensation and benefits are explained during the inception period of each employee.
There are no contractors or suppliers of fresh produce. Bioparques strives to be a non-discriminatory and equal opportunity business enterprise. The appointed Environmental and Social Manager is a handicapped person.
Worker’s Organisation: There is freedom of association. A special feature of this company is the presence of migrant farm workers who reach Bioparques for employment purposes. These families are usually very poor with little chances of employment in the towns where they originate. Social projects supported by Bioparques, as part of their human resources management strategy, include: day care centers; schools legally registered in the Mexican educational system with qualified teachers; health care units with medical doctors, nurse and social worker; rural homes with sanitary facilities for worker and their families; social security; potable drinking water, etc. The housing compound for migrants was found satisfactory. Bioparques has formalized, and disseminated a grievance process for their employees.
Protecting the workforce and child labour auditable monitoring procedure: The appraisal visit identified that Bioparques employs individuals of 16-17 years of age performing non-dangerous seedling development and grafting greenhouse operations, as it is allowed by Article 173 of the Mexican Labour Law. Local government and civil society associations report that in such rural areas, employment opportunities for underage have a clear positive effect in reducing poverty. According to the law, school attendance by these workers and shorter shifts are required. Such requirements are observed and monitored by Bioparques in compliance with the Mexican labour law. The Company has developed a Child Labour Policy, and has implemented an auditable monitoring plan in all their operations. The Company will further continue the monitoring of child labour in all their operations (Culiacan and Guadalajara) to ensure compliance with IFC Performance Standard 2, national law of Mexico, and with ILO Conventions 138 on Minimum Age, and 182 on Worst Forms of Child Labour. Actions to be reported will include all requirements of the Mexican law, IFC Performance Standard 2, and also monitoring of child school attendance and performance, monitoring methods and tools, training of monitors, development of indicators, database development, extracurricular and community activities, challenges faced, and sustainability of the monitoring procedure to ensure that the it becomes embedded in the Company normal operations.
Innovative schooling and continuing education programme: The company will continue the implementation of the schooling and continuing education programme provided by the Company to their employees.
Occupational Health and Safety: The OHS issues are managed at the farm and greenhouse level, and will be upgraded. During the induction period, technical and hygiene procedures are fully explained to employees. The company will present to IFC for review and approval satisfactory evidence that a management systems procedure has been implemented to manage health and safety hazards, including employee training of safety awareness and in house capability for job hazard analyses. Bioparques will undertake an assessment of OHS procedures and safety at Culiacan and at Bioparques in Guadalajara, to ensure that all plants are operated in full compliance with local regulations, an internationally recognized OHS certification (e.g. OHSAS 18000), and in accordance with WBG General EHS Guidelines. The company will implement any corrective measures and training needs identified in the assessment. The management system procedure will include implementation of traffic signals, regulatory signs, transport regulations and safety for all vehicles including All Terrain Vehicles (ATVs). Bioparques will implement and obtain internationally recognized certification (e.g. OHSAS 18000) for the occupational health and safety (OH&S) management system.
Use of helmets in “Rodacargas” (Stand-up rider lifts) at Bioparques packing facility: The company operates Stand-up rider lifts (rodacargas) at the packing facilities of Bioparques at Guadalajara. As part of the ESAP, the company will provide CPSC approved bicycle helmets to all employees operating the “rodacargas”.
Evaluation and monitoring of work stations: ambient noise, temperature, and particulate at Culiacan and Guadalajara: Bioparques will evaluate and monitor working stations at Culiacan and Guadalajara for noise levels at the packing plant and submit a report to IFC. Further, Bioparques will evaluate exposure to temperature, particulates, etc., in the packing lines and inside the greenhouses, including the areas for soil preparation, seedling development area and grafting, and submit the report to IFC. Mitigation actions will be described in the workplace monitoring report and implemented by the company in a timeline acceptable to IFC.
Life and Fire safety: The company installed state-of-the-art fire equipment and fire safety standards in all their greenhouse and packing operations. A quality control plan ensures that all fire equipment will function properly in case of an emergency. Bioparques will perform three fire drills per annum; one general, and two partial drills in all corporate operating facilities.
PS3: Pollution Prevention and Abatement:
The greenhouse operations are connected to the national electricity grid, but have back up diesel generators used only in emergencies. During 2009 and up to June 2010, these have been used only 75 hrs, predominantly for testing. Electricity consumption during 2009 has been 6,442,416 KW. Water is sourced from surface water (El Nogal dam), and two wells. Water use during 2009 has been estimated as 1,842,325 cubic metres (1142, 226 sourced from the dam; 700,099 from wells). The annual precipitation in the area is estimated at 820 mm. In a hydrogoelogical study performed by the Comision Nacional del Agua (CONAGUA, Mexican water authority), the aquifer water reserve has been estimated at 54,770,230 cubic metres, with an annual recharge capacity of approximately 76,000,000 cubic metres, over an area of 4452 Km2.
Waste Management: Bioparques operations generate 214 tons of crop (organic) residues. No burning of crop residue is performed to avoid air pollution, and the company has developed a composting procedure for nutrient cycling.
Annual use of plastic for greenhouse agricultural operations is 108,231 tons. Bioparques manages waste in a fashion in line with best practices to reduce environmental impact. Main waste: cardboard-100 tons; plastic-217 tons; metal waste-27 tons; pesticides containers-1 ton; burned oil-600 liters. Medical waste and hazardous waste are handled through Sterimed, a licensed company.
Refrigeration Agents: To contribute to international efforts to protect the ozone layer and combat climate change, Bioparques has agreed to use an ozone-friendly refrigerant in all existing refrigeration equipments in its facilities.
Wastewater management system for sanitary discharge: Effluents include greenhouse and packing liquid effluents; storm water, and sanitary wastewater. Bioparques has partially implemented sanitary effluent treatment procedures. Sanitary effluent is placed on pits, and disposed of using several licensed supplier companies to handle and transport the loads to final disposal at government approved distant locations, with associated transport costs. Yet, given the increase of operations and associated boost in workforce, Bioparques needs to transition from this model, and address the issue of sanitary discharge to perform all stages of the process. The company will define procedures for final disposal of the sanitary waste. As part of the ESAP, the company will address gaps and develop a plan to implement required modifications for liquid wastewater management to comply with regional regulatory limits, licenses, and WBG General EHS Guideline limits. This plan will include specific actions, investments, and timeline.
Integrated pest and disease management: The company has basic elements (for example biological control, use of natural pesticides, etc.) of a comprehensive integrated pest management (IPM) and some on disease management (IDM). Bioparques will develop an IPM/IDM system. Use of pesticides shall be minimized and continually evaluated. The company will implement the IPM/IDM system as designed by consultant report. With help of the medical services, Bioparques will continue monitoring the cholinesterase levels in workers applying pesticides. An individual will be shifted to a different activity if their cholinesterase level is equal to or less than the limit set at 5,200 U/L.
Bioparques will eliminate the use of WHO Class 1a and 1b chemical formulations in their premises. The company will provide adequate PPE based upon MSDS and/or ICSCs for the materials used. If applicable, Bioparques will modify pest management service contracts to ensure adequate PPE based upon MSDS and/or ICSCs, and training of their employees. Bioparques will provide documentary evidence of the training of employees handling pesticides, specifically in the use of adequate Personal Protection Equipment (PPE) based upon MSDS and/or ICSCs, and will fully integrate pest management procedures into the SEMS procedures manual
Sustainable water resource use and recycling: Bioparques’s key business challenge is ensuring an adequate supply of water to sustain a profitable level of quality tomato production. This in turn depends on the appropriate long term use of the groundwater resource at premium in the Jalisco areas where the company operates. Currently, the company uses a semi-hydroponic system in their operations, and the irrigation water (where soil nutrients are applied), is not recycled. It is discharged as liquid effluent with consequent loss of valuable groundwater resources as well as loss of expensive soil nutrients. Bioparques will implement at Bioparques 1 and Bioparques 2, a system to recycle runoff water from all greenhouse operations. A proposal will be to recycle runoff water from one set of greenhouses, to the new soil tomato planting operation. A reforestation plan, prioritizing locally adapted and less-water demanding tree species, will be irrigated from the runoff of another set of greenhouses. The water recycling engineering proposals in each of the two cases, shall include, but not limited to, quantity of water to be recycled, analytical laboratory evidence of quality of runoff effluent to be recycled, the number of Ha of tomato or reforestation to be irrigated, further needs to abstract groundwater or surface water resources, environmental and social benefits, timeline, and budget. To monitor groundwater abstraction, Bioparques will install computer-based groundwater level monitoring tools in all wells at Cualiacan and at Bioparques Guadalajara.