SFR is wholly owned by Smithfield Foods, a global food company with operations in 13 countries through wholly-owned subsidiaries and joined ventures. Headquartered in Smithfield, Virginia, US, the company produces more than 50 brands of pork, beef and turkey products and more than 200 gourmet foods. Smithfield Foods is the world’s largest producer and processor of pork.. In 2013, Smithfield Foods was bought by Shuanghui (now named WH Group), a Chinese meat processing company.

IFC financing will be directed to support the Company’s long term investment needs and optimizing its capital structure. IFC is considering an investment of up to $60 million which will be structured as a corporate finance facility.

60.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	60.0
Equity

* These investment figures are indicative

Both Ferme and Prod are headquartered in the city of Timisoara, with facilities in various locations primarily in the Timis and Arad counties in Romania.

The proposed investment is expected to have the following developmental impacts: (1) Demonstration effect: IFC will support an efficient producer with solid track record to expand high international standards of livestock production and animal welfare practices to other pork producers; (2) Increased reach to farmers through the Company''s planned addition of contracted farms, critical in a country where the economy relies on agriculture; (3) Improved food safety through implementation of highest food safety and E&S standards; and (4) Job creation and increased tax income for the government as a result of growth of operations and enhanced profitability.

IFC''s role in this investment is expected to have a strong additionality through: (1) IFC will be supporting a competitive and standard-setting client by strengthening the Sponsor''s operations in Romania and helping the company achieve its future growth plan and further improve its cost competitiveness; (2) IFC will provide long term, local currency debt which is not readily available in the market; (3) IFC will help the Company to mobilize additional debt financing with local banks in a challenging financing environment; and (4) IFC will leverage its agribusiness and structuring experience in developing the Project with selected local banks.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Organizational capacity and Management Programs(%)	Organizational capacity and Management Programs(%)		Not Available	Not Available	Not Available
Occupational Health and Safety(%)	Occupational Health and Safety(%)		Not Available	Not Available	Not Available
Resource Efficiency: Water Consumption(%)	Resource Efficiency: Water Consumption(%)		Not Available	Not Available	Not Available

The proposed project is essentially supporting existing farming and processing facilities together with a significant increase in the number of contract/pre-financed growers. Existing SFR operations are regulated by national implementation of comprehensive European Union (EU) legislation, including E&S and animal welfare requirements. Likewise, all future contract growers are likely to be sourced from countries governed by EU law and internal policy requirements of Smithfield Foods: please see PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources for further details.



The key E&S risks considered were SFR’s corporate EHS management system and technical capacity for its effective implementation, monitoring and performance to date in terms of EHS and social management; raw material, water and energy use and efficiency (focus on feedmills and plant); solid waste management and disposal (slurry handling and disposal at farms), wastewater treatment (focus on processing plant); opportunities for energy recovery (heat exchangers, biogas recovery); labor and working conditions; animal husbandry, disease control and other aspects of animal welfare, biosecurity and assurance of food safety, certification to sustainable management practices and management of third-party contractors and primary suppliers.



The project has been classified as category B according to IFC’s 2012 Policy on Environmental and Social Sustainability. Such projects are defined as those which have business activities with potential limited adverse environmental or social risks and/or impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation measures.



The project was assessed against all Performance Standards and the following determined as non-applicable at this time: PS5 on Land Acquisition and Involuntary Resettlement as no land purchase is anticipated; PS7 on Indigenous Peoples as none were identified as being impacted by the project and PS8 on Cultural Property as none is known to be associated with existing operations. Through PS1 on Assessment and Management of Environmental and Social Risks and Impacts, SFR will map any future projects against the Performance Standards and where gaps are identified, implement mitigation and monitoring plans accordingly. PS3 on Resource Efficiency and Pollution Prevention lists applicable WBG guidelines for the project.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.