Environmental & Social Review Summary
Project Number
8450
Company Name
Sordale Pty Ltd
Date ESRS Disclosed
Feb 5, 2010
Country
South Africa
Region
Africa
Last Updated Date
Dec 31, 2016
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : May 20, 1998
Signed : Jun 25, 1998
Invested : Aug 7, 1998
Sector
Fruits and Vegetables
Industry
Agribusiness and Forestry
Department
Regional Industry - MAS Africa
Project Description
ENVIRONMENTAL REVIEW SUMMARY
Project Name South Africa-Shastean Investments T/A Hydrotec
Region Sub-Saharan Africa
Sector Agribusiness
Project No. 008450 October 6, 1997
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1. This project, which is to be financed through the Africa Enterprise Fund (AEF), involves the acquisition of a 50% stake in the common stock of Shastean Investments (Proprietary) Limited (trading as "Hydrotec") by Donmar (Proprietary) Ltd., ("Donmar") for a consideration of R5.5 million (US$1,221,000 equivalent). Hydrotec, which is located in Hartebeespoort, Gauteng province, produces value-added products including salad and pillow packs, primarily for Woolworths. In addition to its processing and packaging facilities, Hydrotec owns 50 hectares (ha) of land and leases an additional 75 ha for growing vegetables and lettuces used in its products.
2. This is a Category B project according to IFC''s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, or design criteria. The key environmental health and safety issues that were analyzed are as follows:
• source of water and power supply;
• handling, application and disposal of agrochemicals;
• integrated pest management (IPM);
• provision of personal protective equipment and employee training;
• regular medical check-ups for employees handling agrochemicals;
• disposal of liquid and solid wastes, including sewage;
• general hygiene and housekeeping in packhouse;
• CFC-free cold storage; and
• fire protection and safety.
IFC has reviewed information provided by Hydrotec on its environmental and health and safety practices. Relevant elements of this information as regard the key issues listed above are described below.
3. Source of water and power supply: All of Hydrotec''s activities -- including soil grown production, hydroponics production, and the packaging facility -- utilize borehole water. Total water consumption is between 415,000 and 555,000 liters per day. This volume is unlikely to change in future. If more water were to be needed, local regulations do not require that a permit be obtained in order to drill additional boreholes. In the event of an interruption in borehole water supplies, Hydrotec also is connected to the Rand Water Board system. According to the sponsor, however, it is rarely necessary to utilize the municipal supply. Power is obtained from the municipality. Hydrotec has a diesel standby generator, used to power cold rooms and other essential equipment in the event of a supply interruption.
4. Handling, application and disposal of agrochemicals: All pesticides are kept in a separate, locked storeroom. Chemicals are issued by the stores manager, and detailed records are maintained in a central registry which includes information on date received, volume, use and expiration date. Hydrotec utilizes two types of application methods: motorized wheelbarrow sprayer, and tractor and boom sprayer. Both types of equipment are capable of applying ultra low volume (ULV) doses, and Hydrotec endeavors to keep dosages to the minimum effective level. Empty agrochemical containers are washed three times, punctured, and collected for disposal in a landfill authorized to accept such wastes.
Hydrotec currently use benomyl and DDVP for use on some vegetables, both of which appear on the World Bank list of substances whose use is to be avoided if suitable alternatives are available. Both chemicals are used in relatively small doses: 10-20 kg of benomyl per annum and 30 liters of DDVP per annum. At present, Hydrotec is not aware of suitable alternatives for these two products. At IFC''s request, however, the company is investigating possible alternatives to these chemicals, including tebuconazole for benomyl and endosulfan for DDVP.
5. Integrated pest management (IPM): Hydrotec utilizes IPM principles and techniques in its operations wherever possible. IPM principles include giving priority to natural, cultural, biological, genetic and biotechnical methods of pest, disease and weed control; minimizing the use of agrochemicals to the extent practicable; and selecting agrochemicals so as to minimize the adverse effects on human health, the environment and beneficial organisms. Fields are scouted 3 times a week by employees who have been trained to identify specific pests, and this information is used to monitor pest populations in specific fields. Pesticides are only used when a pest population reaches the appropriate threshold level, and are always used in accordance with manufacturers'' recommendations as to dosage. Hydrotec is currently using certain species of bacteria to control infestations of moth species.
6. Provision of personal protective equipment and employee training: All workers involved in handling and applying pesticides are provided with overalls, gum boots, gloves and cartridge respirators. Hydrotec has developed a comprehensive training program for all its employees, with special emphasis on employees handling and applying agrochemicals. The Hydrotec manager in charge of agrochemical handling and application training holds a B.Sc. in Horticulture from the University of Natal. The training program complies with South African occupational health and safety regulations, and all training materials used are in accordance with guidelines established by the Crop Protection and Animal Health Association of South Africa.
7. Regular medical check-ups for employees handling agrochemicals: Workers involved in handling and applying agrochemicals are tested every six months by a professional analytical laboratory. To date, these tests have found no indication of chemical exposure in excess of safe levels in any of Hydrotec''s employees.
8. Disposal of solid and liquid wastes, including sewage: Process wastewater from the packhouse is allowed to settle. Solids are removed and used as compost and the liquid portion is used to irrigate fruit orchards. Office waste is collected on a weekly basis and disposed at a municipal landfill. All sewage is discharged to a septic tank/soakaway system.
9. General hygiene and housekeeping in packhouse: Monthly hygiene audits are conducted by an independent laboratory, in accordance with Hydrotec''s own monitoring program as well as the requirements of its main customer, Woolworths. The audit procedure monitors the packhouse premises to ensure that proper hygienic practices are being followed, and also requires that product samples be collected and tested for total level of microbiological contamination, as well as the presence of E. coli, Staphylococcus spp, and Pseudomonas spp. Hydrotec has established in-house guidelines to ensure high standards of hygiene both for its physical premises as well as among its employees. Walls, floors, drains, conveyor belts, packing tables and all other factory equipment is cleaned and sterilized daily. Machinery is dismantled, cleaned and sterilized daily. Overhead lights and electrical wiring are dusted daily. All raw materials (product) are inspected for infestation and overall quality before entering the packaging facility.
Employees are provided with wrap-around overalls, aprons, gum boots, disposable mop caps, smocks and sleeve protectors. Germicidal hand soaps are provided in all of the washrooms and germicidal hand dips are available on the factory floor. Employees are not permitted to wear nail polish, jewelry, or watches on the factory floor. Hair must be covered at all times and nails must be kept short and clean. No smoking is permitted in the food processing area. Compliance with all stated hygiene practices is strictly enforced.
10. CFC-free cold storage: All of the refrigeration equipment in the processing facility utilizes R-22, a hydrochlorofluorocarbon (HCFC) whose use is permitted under the terms of the Montreal Protocol on Substances that Deplete the Ozone Layer.
11. Fire protection and safety: Hydrotec''s processing facility is equipped with fire extinguishers, fire reels, and signage in accordance with South African fire safety regulations (SABS 0400). All extinguishers are inspected and maintained by the supplier once a month. Hydrotec trains all employees in the proper use of this equipment and conducts periodic fire drills to ensure that fire safety procedures are understood and adhered to.
12. Based on its review of Hydrotec''s environmental, health and safety practices, IFC concludes that the proposed project is being operated to meet Government of South Africa requirements, as well as all relevant World Bank policies and environmental, health and safety guidelines. IFC will monitor ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
