PS7: Indigenous Peoples is not applicable as no Indigenous Peoples have been identified within the company’s operational footprint. PS8: Cultural Heritage is not applicable as there are no cultural sites within the company’s operational footprint and no cultural heritage has been identified.

  The key E&S risks considered during appraisal were: (i) Apetit’s EHS management system and technical capacity for its effective implementation, monitoring and performance to date in terms of EHS and social management; (ii) water and energy use and efficiency including opportunities for energy recovery (heat exchangers, biogas generation and use); (iii) solid and liquid waste management and disposal (manure slurry handling and disposal at farms, as well as carcasses and by products disposal), and wastewater treatment;(iv) labor and working conditions; (v) life and fire safety; (vi) animal husbandry, disease control and other aspects of animal welfare, biosecurity and assurance of food safety; and, (vii) certification to sustainable management practices. Land acquisition and impacts to biodiversity were also considered.

The project is categorized as category B according to IFC’s 2012 Policy on Environmental and Social Sustainability. Category B projects are those that have business activities with limited adverse environmental or social risks or impacts that are few in number, generally site-specific, largely reversible and readily addressed through the application of good international industry practice (GIIP); and, specific mitigation measures. In this case, completion of the actions in the IFC Environmental and Social Action Plan (ESAP) will ensure the Project is in line with the applicable national laws and regulations, IFC’s Performance Standards and World Bank Group (“WBG”) general and sector-specific Environmental, Health and Safety (“EHS”) Guidelines, Gaps and mitigation measures are described in the following paragraphs and in the attached Environmental and Social Action Plan. 

 Environmental and Social Assessment. As per Kosovo regulations, an Environmental and Social Impact Assessment (ESIA) to national standards was completed for the slaughterhouse in March 2016. A management plan was not included therefore will be developed in the coming months. A further ESIA will be completed for the cattle farm in order to satisfy local requirements. Both ESIA and the management plans are included in the Environmental and Social Action Plan (ESAP) (action items # 1 and 2 through 6).

E&S Assessment and Management System

Currently, APETIT does not have an environmental and social management system but operates to a full food safety and traceability regime, with the plant certified to ISO 22000 (HACCP). The Food and Veterinary Agency audits the processing plant on a monthly basis and will establish monitoring protocols once the feed lot and slaughter house are established. This will include: (1) vaccination; (2) animal health; (3) animal welfare, and (4) traceability. The project has permits for: meat processing, cold storage, product packaging, slaughtering, importing of biological material and waste disposal. As indicated by Apetit, in future, they intend to export to the EU and it is suggested that they will become GlobalGap certified for their animal rearing operations. The company also intends to comply with the requirements of ISO 45001 (replacing OHSAS 18001) for occupational health and safety management. The specific elements of the quality management system are described in further detail in each of the sections below and by addressing the action items as outlined in the ESAP, the management system can be expected to be in compliance with this Performance Standard.

Policy

Apetit does not currently have an overarching policy defining environmental and social objectives that guide the company for achieving sound environmental and social performance consistent with the principles of the Performance Standards. The company has a food quality policy, which reflects the company’s commitment to provide products that meet the quality expectations of clients. The policy has been approved by the CEO and is posted in various locations around the facility. As stated in ESAP (action #2), Apetit will revise its existing policy to also reflect the company’s commitment to comply with all applicable laws and best practices, minimize its impact on the environment and promote good occupational health and safety practices.

Identification of Risks and Impacts

Apetit has a limited overview of occupational health and safety risks of workers and plans to develop this further by undertaking a job risk analysis as well as assessing the environmental risks of its operations. Per ESAP (action #3), Apetit will assess the environmental, occupational health and safety, and social risks of its operations and develop the necessary corrective actions to mitigate these risks through implementation of management programs following the mitigation hierarchy of avoiding, minimizing, rectifying, reducing, and offsetting worker exposure to such risks. Any gaps in mitigation measures are described in further detail in each of the sections below and will be reflected as action items in the ESAP.

Management Programs

Apetit currently does not have management programs in place for addressing E&S risks in its operations. However, the company’s Food Safety Management System manual (ISO 22,000) lists procedures and processes for managing identified risks and impacts to product quality. Implementation is verified on a regular basis through an internal audit process to identify non-compliances with procedures and develop corrective actions for follow up. This existing framework can be further strengthened based on the requirements of each of the Performance Standards (as described in the following sections), by developing additional management plans to address the findings of the E&S risk identification process mentioned in the above and as per ESAP (action #3), Apetit will develop and implement management programs as described in further detail in each of the sections below and as reflected as action items in the ESAP.

Organizational Capacity and Competency

Apetit has a dedicated food safety manager who reports to the processing director and ensures operations are compliant with food safety regulations and certification requirements. The manager is supported by one other staff member. Her responsibilities also include developing an annual training plan to ensure that all staff are appropriately trained on relevant quality issues as reflected in their job descriptions.  The company will hire, as per ESAP item #4 an EHS manager in the coming weeks to lead work on E&S management. The position will have the responsibility to develop the corporate E&S policies and procedures, assess the E&S risks and impacts of all business units, and develop management programs to meet objectives. S/he will implement the ESMS and ensure adoption and implementation of E&S policies and procedures is undertaken at all operations. Senior Managers are committed to implement good industry practices and comply with IFC Performance Standards with the aim to achieve a company capable of exporting to the European Union in time. EHS meetings are held at the senior management level where they discuss immediate and long-term goals. One such immediate goal is to make investments in tools and technologies to reduce or minimize the possibilities of injuries in the workplace.  Responsibilities for human resources and health and safety of workers (see section below on Labor and Working Conditions) have been assigned to the Director of Human Resources who also reports directly to the CEO. During IFC’s site visit and based on discussions with key individuals, staff were generally found to be knowledgeable of health and safety aspects of operations.

Emergency Preparedness and Response

The Apetitt facility is located in a mixed-use zone on a main road with a hotel (also belonging to the Apetit Group) on the opposite side.  A residential community is located approximately half a kilometer away. Emergency preparedness and response (EPR) is governed by national legislation and the company’s commitment to safe working practices.  At the processing plant and slaughterhouse, fire and wastewater treatment failure are key emergency scenarios. Apetit currently does not have a comprehensive Emergency Preparedness and Response Plan. However, as part of the company’s occupational health and safety procedures, the following measures have been put in place: emergency exits and instructions for evacuation including smoke detectors and fire alarms, a designated assembly point, visibly posted emergency phone numbers, and training on First Aid. The facility is equipped with fire extinguishers (approximately 10) located in strategic locations, which undergo monthly servicing through an external service provider. Currently, no emergency evacuation training exercises are being undertaken, but the company plans to do so once it has developed its Emergency Preparedness and Response Plan as per ESAP action #5. The plan, which will first identify areas where accidents and emergency situations may occur and communities and individuals that may be impacted. Based on that, the plan will describe response procedures, provision of equipment and resources, designation of responsibilities, communications with potentially affected communities and periodic training to ensure effective response.

Monitoring and Review

The current focus of Apetit’s monitoring activities is on production data related to volume of finished product, raw materials used (other than water), quality, and consumer satisfaction/complaints. Monitoring and review also occurs through ISO 22000 external audits and the food safety inspections. The Food and Veterinary Agency typically visits Apetit facilities on a monthly basis.  As stated in the ESAP (item #6),  Apetit will implement a monitoring and verification system based on the results of its risk assessment process to ensure identified gaps are addressed and mitigation measures implemented over time. Independent audits, as per the certification schemes, can be used to provide assurance of acceptable E&S performance. This internal monitoring and review will be conducted by the EHS manager and discussed with the Senior Management team in order to revise the management plans.

 Working Conditions and Management of Worker Relationship: As of February 2019, Apetit employed 104 staff workers at the processing plant and slaughterhouse. All staff are full time and have employment contracts. None are employed by third party agencies. The turnover rate is approximately 3% which is considered low. During the summer season temporary staff are employed to work on crop harvesting and the number of employees may increase by 10%. They are provided temporary work contracts for the length of time they are employed. Contractors are also hired for construction work and contracts are awarded based on the most suitable bid. 

Human Resource Policies and Procedures: Protection of the workforce in Kosovo is specified in the national Labor Law which specifies core rights and responsibilities of an employer and employees, prohibits discrimination in employment based on gender, race, age, ethnicity, religion or nationality, and describes basic terms of employment including minimum age (18 for full-time work). Apetit does not have its own human resources policy or manual, however, relevant aspects of the employment law of Kosovo are included in the employees’ contract. The contracts will be reviewed to ensure they are in line with PS 2 as stated in the ESAP item #9. As stated in the ESAP (item #10), a policy and manual will be developed and implemented.

Working Conditions and Terms of Employment: These are explained fully in the employment contract. All workers are provided with the code of business conduct and also employment specific information that documents their rights, hours of work, benefits and other employment aspects in their contracts.  New recruits enter on two months probationary periods at the farm. Salaries are competency based and above minimum wage for Kosovo. Apetit does not provide accommodation for its staff who mainly live in the surrounding villages. All workers undergo an annual medical visit and benefit from Apetit’s medical insurance policy, which covers 80% of the cost while the remaining 20% of costs are covered by a company fund. Apetit deducts from the salary the required contribution to the national insurance and pension fund for all employees and provides paid and maternity leave in accordance with national law. All workers are paid 5% above the national minimum wage and by law, everyone is paid a 13th-month of salary annually. Apetit employees work in different types of shifts depending on the business area in which they work (administration, sales, and production). Shifts vary depending on production needs and may range from 1, 8-hour shift per day to 2, 12-hour shifts per day. According to the internal code of conduct, any workday beyond 8 hours in duration is considered to be overtime. By law, there is no limit to the maximum number of overtime hours per week, but workers are required to have a day off after 6 consecutive days of work. Apetit provides an on-site cafeteria with a shaded seating area where workers can either eat the lunch they bring themselves or purchase food cooked on-site, which is subsidized by Apetit. There are on-site bathrooms with changing room and lockers, separated for men and women. Transport to and from the site is offered.

Workers Organizations: Apetit staff is not part of a worker’s organization however, there is no objection from management if workers wish to join one or form one or engage in collective bargaining. There are regular team meetings and management maintains an open-door policy to meet with workers.

Non-Discrimination and Equal Opportunity: Gender balance in the workforce is 41% women and 59% men. Woman are eligible to apply for all roles/tasks and Apetit operates on the policy of nondiscrimination and equal opportunities. The HR policy will include language on the client’s approach to sexual harassment in the workplace.

Grievance Mechanism: There is no formal Grievance Mechanism in place and staff will approach their supervisors if an issue arises. This is then dealt with by management. As stated in the ESAP (item #11), a formal Grievance Mechanism will be developed and implemented. 

Protecting the Workforce: The minimum work age is eighteen. No child or forced labor is associated with Apetit operations.

Occupational Health and Safety: An Occupational Health and Safety (OHS) Policy has been developed and is included in all work contracts. It is also displayed throughout the processing plant. OHS roles and responsibilities are determined by either the processing director, or the operational director. No formalized OHS risk assessment nor procedures have been implemented. As per the ESAP (item #3), the OHS manager will undertake a job hazards analysis and develop relevant Occupational Health and Safety procedures to ensure all workers are aware of how to stay safe during operations, such as when working at heights, operating machinery or using agro-chemicals.  Health and safety training is provided to employees and contractors upon induction and thereafter on a monthly/refresher basis. All employees are provided appropriate personal protective equipment (PPE) which is used consistently. The company tracks accidents and incidents. Apetit indicated that in 2018 there were four accidents related to meat preparation (minor cuts) which did not result in any lost time. Apetit does not have an on-site infirmary although there is a clinic within 20 minutes of the facility. There are a number of trained first aiders at the site and sufficient first aid kits are provided. A health center is located approximately 20 minutes from the farm in case of more serious injuries. Regular checks are conducted by the Ministry of Labor and have not resulted in any non-compliances.

The facility’s production activities include the processing of raw meat (either imported frozen or local raw) into a number of meat products including fresh meat cuts, sausages and a range of close to 30 meat deli products from meat cooked at the processing facility. Staff are involved in a variety of operations from handling raw meat to packaging the finished product. This includes working at heights, in cold storage (fridges and freezers), smoke houses, meat cutting room and packaging department. When the new feed lot and slaughter house are operational additional activities will include livestock rearing and cattle slaughtering.

Apetit Quality Management System manual includes limited reference to managing occupational health and safety of employees; the focus is primarily on hygiene (to mitigate potential quality risks in the finished product). The company has yet to conduct a comprehensive job risk analysis to identify types of hazards (for example, impacts of working in cold temperatures, working in the smoke house, cuts from preparing the meat products, etc.), likelihood of risk, and how to mitigate the risk by job function/position in order to implement the necessary safety measures (for example, changes to machinery, work place practices, posting of hazard signs, employee training on hazards, and use of personal protective equipment (PPE) such as gloves, face mask, and rubber boots). Some signage related to quality and food safety (such as use of required Personal Protective Equipment (PPE), hand washing, and prohibited behaviors) was noted around the facility. This is further supported by regular internal inspections to verify the cleanliness and good functioning of the work environment so that any potential risks related to the quality of the product as well as to workers can be addressed right away. Health and safety training are provided to employees and contractors upon induction and thereafter on a monthly/refresher basis. Appropriate PPE is provided and employees are not allowed to work if they do not use the PPE.

Per ESAP (action #12), Apetit will develop a comprehensive job risk analysis to identify types of work place hazards, likelihood of risk and severity of risk and how to mitigate the risk by job function/position in order to implement the necessary safety measures. Procedures will also need to reflect steps to follow in case of an accident or injury, including documenting the occurrence of the injury and corrective measures to prevent reoccurrence, and tracking accident and injury statistics.

The company established a committee for health and safety in October 2018, which consists of 5 members and meets on a regular basis (once a week for one hour). Members of the committee are in the early learning phase and require capacity building and training to become more effective in their role as per ESAP # 13. The committee is headed by a representative of the senior management of the company, who presents to the committee an annual health and safety plan for implementation. The roles and responsibilities of the committee are reflected in an internal code of conduct and include: i) preparing a health and safety plan; ii) coordinating all health and safety activities across company operations; iii) improving awareness and understanding of health and safety issues; iv) proper use of PPE; and v) preventing physical risks (for example due to slipping or heavy lifting), working at heights, and those due to chemical exposure.

Supply Chain

The Apetit supply chain is not considered to be at risk from child labor, forced labor or significant safety issues, given that the principal raw materials purchased are cattle sourced locally or imported raw meat. With regards to veterinary services provided by third parties, Apetit will ensure veterinarians are in compliance with the Performance Standards and in the future, EU requirements.

Workers engaged by Third Parties

When selecting third party suppliers and contractors such as to construct the slaughter house and the cattle farm, the company ensures they are committed to the labor laws and regulations and have management systems in place with respect to occupational health and safety and environmental protection. Apetit will establish policies and procedures for managing and monitoring the performance of such third-party employers in relation to the requirements the Performance Standards as stated in ESAP (action # 14).

  Three World Bank Group (WBG) guidelines are referenced in relation to this investment: Mammalian Livestock Production (farms); Meat Processing (processing plant); Annual Crop Production (farms) and the General EHS guideline (all operations). The operations of Apetit that have a risk of polluting the environment are related to the discharge of untreated liquid waste from the processing plant, the slaughter house and the new cattle farm, as well as solid waste from all three facilities including animal waste and diseased animals. These impacts can be mitigated through effective implementation of management programs. With regards to consumption of natural resources, the company does not yet measure its efficiency in the use of energy or water but plans to do so in the future and to benchmark itself against the performance of other similar companies in the sector.

Resource Efficiency: Apetit maintains records of energy, water and other resource use for the facility as a whole and is not broken down per production unit. The main energy source is electricity from the grid which amounts to 60,000 MWh per year for all facilities. Solar energy currently provides 50 kw with an expected increase to 400 kw when solar panels are installed on the cattle farm roof.  The main electrical energy consumers in Apetit’s operations include lighting, machinery and refrigeration at the plant and will include lighting and heat at the new cattle farm and lighting, machinery and refrigeration at the slaughterhouse. The annual greenhouse gas emissions associated with Apetit’s operations are estimated 67,426-ton CO2eq/yr. This is mainly due to the use of electricity from the grid which is produced by burning lignite. As the client plans to install solar panels, this will reduce the amount of GHG’s emitted each year.  As for all IFC investments if emissions exceed 25,000 tonnes of CO2-equivalents, the client will quantify GHG emissions on an annual basis and in accordance with an internationally recognized methodology and good practices. The data will be submitted as part of the annual monitoring report. Raw water for the plant is sourced from five wells around the site, and no abstraction permit is required by law. There are no other known users of the source aquifers and no restriction on Apetit’s use of the aquifers has occurred to date (i.e. no periods of water stress). In 2018, the wells provided 4,500 m3. The plant can also use city water if necessary. As stated in the ESAP (item #6), Apetit will implement a monitoring system and monitor its water extraction and usage at all operations including the new feed lot and make efforts to reduce if necessary. The water is tested periodically, and test results show that it meets potable water requirements.

Pollution Prevention: Key point sources for air emissions are currently the traditional sausage smoking facility which will be upgraded to ensure it is compliant with the Performance Standards and EHS Guidelines as per ESAP (item #16). As currently, no air emissions monitoring takes place, this will be included as part of the environmental monitoring system as stated in ESAP item #6.   In order to update the sausage smoking facility, filters and chimneys will be installed. Once the feed lot and slaughter house are constructed, air emissions coming from boilers and slurry tanks will be monitored.

At the farm level, the bulk storage of slurry is the most significant risk to local rivers. Drinking water aquifers are typically more than 150m below the surface and therefore pollution of such an aquifer from a breach is not considered likely. Once the tanks are full, slurry is stored in a pile on the farm land before being applied as organic fertilizer to the land. The storage of slurry will be improved to avoid any risk of contamination to rivers.

The current processing plants liquid waste is released into septic tanks. As per the ESAP (item #17) a waste water treatment plant will be constructed for the slaughter house to ensure compliance with national requirements and WBG industry specific EHS guideline levels. A monitoring program will be developed to ensure the waste water meets appropriate standards. 

At the cattle farm, slurry will be scraped into storage tanks at the end of each stall. The tanks will have concrete bases to reduce seepage risk to soil. In the application season (mid-March to the end of October), tankers will transport the slurry for spreading on farmland as soil fertilizer. If slurry needs to be stored in piles on farm land, it will be stored in an appropriate manner so run off does not seep into water courses or aquifers. For slurry application, Apetit contracts local agricultural institutes to undertake soil analysis to ensure maximum application limit (170kg N/hectare) is not exceeded. Groundwater monitoring is also undertaken every six months to monitor for elevated nitrate concentrations. 

Soil conservation and management:  Soil erosion related to agriculture and livestock activities should be kept to a minimum as the land is flat; however, efforts such as permanent ground cover and cultivating at appropriate times will be adopted.  Soil testing will be carried out to monitor structure and properties.  A nutrient management plan will be developed in consultation with suppliers to ensure fertilizer applications are minimized as per ESAP (item #20). 

Liquid and solid waste management:  Proper waste management plans are being developed and implemented for the project as per ESAP (item #18).  Waste management plans will also address run-off, crop residue, waste feed, animal waste, and carcasses. Very little solid waste is generated at the plant currently, except for packaging from the imported frozen meat, paper, plastic, glass and bones from the meat processing. This is collected by a licensed waste disposal company. At the new slaughter house, animal waste, including blood and bones, will be collected by a certified disposal company. A new rendering facility will be opened in the coming months and all diseased animals will be disposed of there under the control of the relevant government agency. 

Hazardous wastes: A hazardous waste management plan is being developed and implemented for the project as per ESAP item #18. Hazardous wastes will be primarily associated with the farms and will include veterinary waste (catheters, spent or out-of-date medicines, needles, etc.) and pesticides and fertilizers, including empty containers which will be used during crop production. Veterinary waste will be incinerated by a licensed contractor. Pesticides and fertilizers will be used on demand and not stored on the farm. They will not use any banned products. Cleaning fluids at the slaughter house include Xyloquat LE, Tabs Chlorine and S.F. 210. The main refrigeration system at the plant uses 404A gas which is stored securely. This gas will be phased out and replaced with zero global warming potential gases as per ESAP (item # 19).

Integrated pest management: The project will develop an integrated pest management program per ESAP (item #20), committing to exclude using World Health Organization (WHO) Class Ia and Ib chemicals.  The use of integrated pest management, crop rotation systems and the use of pest-resistant crop varieties (as allowed under Kosovan law) should reduce the need to use excessive amounts of agrochemicals and hence reduce the risk of potential pollution. The integrated program should lean heavily on prevention, use of non-chemical control means and scouting to provide early identification of issues before they become serious. Storage facilities for animal feed and supplements will be protected by pest traps as needed. Pest control of the processing plant and farm buildings is contracted to an external company and no pesticides are held on site. This will continue to be the case for the new facilities and the contracts for this service will be revised in line with PS 3.

Current operations use 144,000 liters of fuel per year. All vehicles are maintained off site.

 Community Health and Safety. As noted above, the Apetit facility is located in a mixed-use zone on a main road with a hotel (also belonging to the Apetit Group) on the opposite side.  A residential community is located approximately half a kilometer away. Apetit will ensure that infrastructure elements at the farm are designed, constructed, operated, and decommissioned in accordance with good international industry practice (GIIP), taking into consideration safety risks to third parties or affected communities

Apetit will develop a veterinary animal health and biosecurity plan to safeguard the public, employees and (in future) the cattle from disease as per ESAP (item # 21). Apetit has an on-site laboratory for undertaking microbial and chemical analyses of product samples at every stage of the production process. The company has procedures for product coding and traceability to quickly identify and recall a product in case it does not comply with the company’s standards. A code is assigned to each batch and displayed on the final product so that the origins of all ingredients can be traced, should there be a complaint or quality problem later on.

Transportation Safety

Vehicle traffic to and from the processing facility involves the daily movement of Apetit’s own trucks as well as those of contractors to transport live cattle, frozen meat and the finished product for distribution. Apetit currently owns 40 vehicles and plans to buy additional vehicles for agricultural operations.  Apetit has written contracts in place that include the requirement to have insurance, but the company does not verify the driver safety record. Trucks used by contractors are visually inspected for safety functions (condition of tires) and cleanliness (condition of truck bed) and if they are deemed unsuitable for transporting the product, the contractor is notified, and the trucks are turned away. Apetit currently does not have a specific policy or procedure in place for ensuring the safe operation of vehicles (for example, screening drivers and providing formal training on safe driving) nor for documenting incidents and accidents. Per ESAP (action #22), Apetit will develop a process for screening drivers prior to hiring including verification of valid driver license and past driving record; providing driver safety training to respect speed limits, not use a cell phone while driving, use of a fire extinguisher, and vehicle maneuvering skills; procedures for limiting trip duration, duty roster to avoid overtiredness, avoiding dangerous routes and times of day to reduce the risks of accidents, use of speed control devices on vehicles; inspection of vehicles at the processing facility after each delivery for any evidence of having been in an accident; and overall truck maintenance to ensure good working conditions. The same requirements will apply to contracted drivers.

Security

The Apetit facility is surrounded by a 2.5-meter high, concrete perimeter wall and Apetit contract security services, which are limited to uniformed guards sourced from licensed companies. Guards are not armed, and their security protocols are verified by both Apetit and the local police. Guards only operate during the night. A CCTV system is also installed on the exterior of the facility.

  Protection and Conservation of Biodiversity: Apetit operations have been established on modified (agricultural) land, with all greenfield sites subject to environmental impact assessment in accordance to Kosovo standards. No areas of natural habitat, critical habitat or those subject to international recognition or legal protection are known to be have been adversely affected by Apetit operations. Similarly, no adverse impacts to priority ecosystem services for affected communities have been identified.

Sustainable Management of Living Natural Resources: Regarding animal welfare, Apetit will be guided by EU principles and the new feed lot will be constructed in line with these principles. Apetit will operate 4 cattle stalls and cattle will be in group housing. The cattle farms are located close to the slaughter house, so animals will not need to be transported thus reducing stress.  Codes of conduct for good animal husbandry will be developed on EU principles as per ESAP (item # 23). Out grower farmers will also be expected to abide by the code of conduct to ensure consistent quality of cattle entering the feed lot.   It is anticipated that the cattle farm will have a documented veterinary animal health and biosecurity plan as per ESAP (item # 21). The project has hired qualified local veterinarians who work every day on the farm to ensure the health and safety of livestock. Only sick animals will be treated with antibiotics, and no antibiotics will be administered as standard practice.  Diseased animals will be incinerated.  Bio-safety of the herd will be maintained by ensuring separation of the herd from other cattle and controlling unauthorized access.

As stated in PS4, requirements mandate monthly inspections by the Food and Veterinary Agency for (1) vaccination; (2) animal health; (3) animal welfare and (4) traceability. This provides the independent verification process sought by this Performance Standard.

Supply Chain. Apetit will grow some of its own feed including corn and wheat. They will produce corn silage for feed. When necessary products will be purchased including corn, wheat and soy for the feed mills. These will be purchased locally and imported if necessary. A Supplier Code of Conduct as per ESAP (item # 24), will be developed as part of corporate and management policies and to ensure that Apetit supplier purchasing fully meets the expectations of PS6. Apetit will develop and implement a procedure to ensure its primary suppliers are (1) fully aware of and commit to the Supplier Code of Conduct and (2), provide satisfactory assurances soy is not sourced from regions where there is a risk of significant conversion of natural and/or critical habitats.

Apetit plans to invite local farmers to supply cattle to the enterprise if the cattle meet their standards. They will also import live cattle as necessary. As with its own farms, contract farmers within the EU will be subject to independent inspection by veterinarians and any cattle sourced from outside the EU will also be subject to similar inspection through importation regulations.

  As noted above, the Apetit facility is located in a mixed-use zone on a main road with a hotel (also belonging to the Apetit Group) on the opposite side.  A residential community is located approximately half a kilometer away. According to the company, communities were consulted during the impact assessment for the new slaughter house and no objections were raised. No further information was provided on regular community engagement activities reflecting dates of meetings, issues raised, and how these were addressed by the company. Apetit therefore will conduct a stakeholder mapping exercise, followed by the development of a stakeholder engagement plan as per ESAP (item #7). As part of the ESIA process for the cattle farm, community consultation will be conducted. Apetit does not have a written procedure reflecting the process for communicating with surrounding communities on E&S issues. To date, direct interactions between Apetit and the neighboring community have been undertaken on an informal basis in response to concerns as they came up. As per ESAP action #8, Apetit will develop and implement an external communication mechanism to: i) undertake and record stakeholder engagement activities; ii) receive and register external communications from the general public and potentially affected communities; iii) screen and assess the issues raised and determine how to address them; iv) provide, track, and document responses, if any; and v) adjust aspects, as appropriate, of company operations

    Apetit, Fshati Babi Most, Obiliq, Kosovo