Resource Efficiency. Pronaca tracks energy consumption across all of its operations through its EHS management system. Several operations also apply ISO 50001 standard for energy efficiency. The most significant sources of energy consumption include: (i) heating and cooling systems in pork and poultry processing (slaughterhouses) and in value-added food processing facilities; (ii) cooling systems in poultry and pork farms, (iii) lighting in its buildings. Pronaca’s slaughtering and food processing facilities are modern installations that have incorporated energy efficiency aspects in its design and operation (i.e. insulation of heating and cooling system elements, compartmentalization, etc). Most of the poultry and pork farms use water cooled tunnelling systems and variable speed extraction fans.
Air emissions, including Greenhouse Gases (GHG) Emissions. Air emission sources from Pronaca’s operations include diesel fueled boilers and generators which respectively provide steam or contingency power to Pronaca’s facilities. Pronaca’s boilers and diesel generators are all below 50MWth installed capacity and some are even below 3MWth. Pronaca conducts semi-annual/annual emissions tests which show that the facilities’ emissions are below applicable WBG EHS guidelines limits for particulate matter (PM), sulfur dioxide (SO2), and nitrogen oxides (NOx) and meet Ecuadorian regulatory limits. Sources of odorous emissions include the pork rearing facilities which make use of biodigesters and the rendering and wastewater treatment plants from poultry and pork processing. The rendering and wastewater treatment facilities have odor emissions controls, such as afterburners or flares. The deep bedding system is used in 5 of the 19 pork farms, which significantly reduces odorous emissions at the source. At the feed mills, Pronaca has put measures in place to control dust emissions from the silos consisting of good housekeeping, preventative maintenance, and closed conveyor belts for the grain transport. As part of the CAPEX 2020-2021 program, dust and fine particles control systems will be further enhanced with automated systems to control, collect and extract dust and fine particles from the processing line at the feed mills.
For calculation of its GHG emissions, Pronaca applies the emission factors published by international institutions such as the World Bank, the Intergovernmental Panel on Climate Change (IPCC) and the UK Department of the Environment (DEFRA2). Results are presented in its annual Sustainability Report. At the end of 2019, 0.1059 t CO2 eq was generated for each ton of production. The total amount of production was 998,593 tons with total emissions being 105,750 t CO2 eq (Scope 1,2 and 3) in 2019. In 2019, Pronaca reduced 5,232 t CO2 eq as a result of the Cleaner Production activities, carried out in the different operation centers.
Water use and effluent management. Pronaca sources water from groundwater (83%), surface water (12%) and municipal lines (5%). For the exstraction of groundwater, Pronaca holds the relevant permits and the water is treated prior to use in the operations. Pronaca has implemented initiatives of Cleaner Production and Good Environmental Practices, which have contributed to the reduction and optimization of water consumption, such as: (i) reuse of treated wastewater in auxiliary processes (which are not related to food production) and reuse of water in pork farms; (ii) good environmental practices for the responsible use of water; (iii) dry cleaning of excreta; (iv) technological innovation for the efficient use of water; and (v) frequent maintenance of water conduction systems, such as pipes and channels. In 2019, Pronaca reused 689,327 m3 of water (447,999 m3 more than in 2018). The water consumption in the pork slaughterhouse is 2.7 m3/ton production which is within in the range of the WBG EHS Guideline for Meat Processing, 1.6 – 8.3 m3/ton production. In the three poultry slaughterhouses, the water consumption ranges from 6.7 to 12.2 m3/ton production, which is within the range of the benchmark of 6 – 30 m3/ton production.
Pronaca’s poultry farms generate small quantities of wastewater primarily from housekeeping operations, pork farms however generate significant quantities of manure and associated effluent. Pronaca has 11 anaerobic digestors for treatment of manure (some locations serve more than one farm), and in some cases may receive effluents from poultry and pork farms combined. Except for the pork farm at Toachi, effluent from anaerobic digesters is pumped to agricultural fields owned by Pronaca for land application (‘fertigation’). At Toachi, effluent from the anaerobic digesters are treated in aerobic lagoons for polishing and has chemical treatment for nutrient removal prior to land application. Fertigation in Ecuador is permissible by consent obtained from the local regulatory body. Pronaca’s land application of (partially) treated effluent, based on a fertigation plan for each farm, is permitted and complies with local regulations. At the beginning of 2020, Pronaca commissioned a study to systematically assess the requirements at each of its farms and to prioritize implementation of effluent treatment systems where there is an impact to the receiving environment, with the objective that all farms will adopt effluent/manure management practices that are consistent with Good International Industry Practice (GIIP) and protective of human health and environment (2016 ESAP item). Pronaca has developed an action plan to update the existing fertigation plans to bring them in line with GIIP for each farm based on the outcome of the study. The plan describes the issues identified at each farm, corrective actions and a timeline. All corrective actions are expected to be completed by October 2022. Pronaca will report to IFC on its progress annually. The organic material from the animal rearing beds and effluent treatment are reused in the production of compost. In 2019, a production of 55,559 tons of organic waste was recorded that was used as input to produce the company’s own fertilizer.
Pronaca has 19 wastewater treatment plants and it monitors discharge water quality, as well as upstream and downstream water quality, in the receiving water body on a quarterly basis. In some cases, background water quality in the receiving water body is quite poor due to lack of effluent treatment of municipal sewage. In 2019, Pronaca, implemented three new high-efficiency wastewater treatment plants. These treatment plants have an efficiency greater than 90% to remove pollutants from wastewater. Review of the effluent monitoring results of the slaughtering houses and applicable processing plants showed that they are in compliance with regulatory requirements, and largely in compliance with applicable effluent discharge requirements described in the WBG EHS Guidelines for Meat Processing, Poultry Processing and Food and Beverage Processing, with deviations in discharge of nutrients (N and P) and coliform, and occasional exceedance in suspended solids and oil and grease at some of the slaughter houses/processing plants (2016 ESAP item). These exceedances are not considered to be materially significant by CEG Wastewater Specialist.
Hazardous Materials Management. Pronaca has refrigeration systems using ammonia, R404a and R22. The ammonia tanks are generally identified with yellow color and have warning signs, automatized refrigeration control and solenoid valves to control lines and avoid over-pressurizing the system. The associated pressure vessels are deployed with relieve pressure valves and leak detectors are strategically positioned in the operational area as per the 2016 ESAP item requiring an inventory of pressure vessels. As part of the 2016 ESAP, Pronaca was required to hire a consultant to conduct a safety assessment of all industrial facilities using ammonia refrigeration and identify opportunities to improve the safety of ammonia refrigeration (deploying safety systems, such as emergency ventilation systems in machine rooms, emergency shut down, relieve valves, compressors with low and high pressure cut out switches and so forth) consistent with the ASHRAE (American society of heating, refrigerating and air-conditioning engineers) standard number 15. In 2018, the first of five audits was completed at the cold cuts plant in Guayaquil as a pilot. The analysis included the physical inspection, state of the welded joints and thickness gauge by non-destructive testing of 100% of the pipes, pressure vessels, receiver and ammonia accumulator. In 2019, the poultry processing plants in Bucay, Yaruqui and Valle Hermoso were audited. For these operation centers safety corrective and preventive are being implemented with the operations maintenance budget. In 2019, the environmental licenses were granted due to the implementation of the ammonia-glycol refrigeration system with combi chiller combined poultry carcass cooling systems at the poultry plants in Bucay and Valle Hermoso. At the pork processing plant in Valle Hermoso a complete overhaul of the refrigeration system, including changing to an ammonia-glycol refrigeration system will be completed in December 2020 (delayed due to COVID-19). In 2020, the last audit was planned at Pifo, the frozen foods and distribution operation center, but it had to be postponed due to COVID-19. As set forth in ESAP #1, the last ammonia refrigeration audit is now planned and budgeted for Q2 2021 resulting in a corrective action plan.
In 2019, Pronaca completed a freon inventory. The company is working on a phased replacement program with the Ministry of Production, Foreign Trade, Investments and Fisheries as part of a joint national program. This national program follows the schedule established on the condition of Ecuador as a country included in article 5 of the Montreal Protocol. The replacement program needs to be completed for 97,5% by 2030 and completed before 2040. Pronaca will annually report to IFC on the progress made.
Pesticide Use and Management. Pronaca uses pesticides to control pests around its operation centers. Part of the pest control is outsourced to a third-party service. Reviewing the pesticides applied, during appraisal, showed that both Pronaca and the external service use one WHO Class Ia rodenticide and one WHO Class Ia insecticide, for which alternatives are available and these were immediately replaced. The company has appropriate controls in place for the storage, handling and use of pesticides (WHO Class II and III). Personnel has been sufficiently trained in the storage, handling and usage of pesticide and are provided with PPE. All workers involved in pesticide handling and use undergo periodical medica surveillance.
