Bertin is 100%-owned by Heber Participações Ltda. (Heber), the Bertin family’s holding company. Heber is equally owned by the Bertin five brothers who also manage the company. Heber holds 50% interest in Bermas (a JV created between Heber and Rino Mastrotto, an Italian company that operates in the leather market), and 50% ownership in NovaProm (an animal protein producer). Heber owns a toll road concession (through a 50% ownership in Colinas), and a logistics and food distribution business with a 27% equity stake in a company named Fast Food.

IFC would be providing a corporate loan of up to $90 million in the form of and A loan and a C income participating loan to finance on-going investment programs.

90.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	90.0
Equity

* These investment figures are indicative

Planned investments in the food division include:

- modernization and expansion of existing slaughterhouses in Itapetinga, Bahia, and Ituiutaba, Minas Gerais;
- construction of a greenfield integrated facility (slaughterhouse, meat processing, leather tanning, and pet food plant) in Campo Grande, Mato Grosso do Sul; and
- expansion of the Lins, Sao Paulo plastic waste recycling operation.

Bertin’s investments in the leather division (Bracol) include:

- construction of a tanning operation in the vicinity of a slaughterhouse in Maraba, Para; and
- completion of a new tannery in Navirai, Mato Grosso do Sul. Additional investments include expansion of dog toy production in Guaicara, São Paulo, the construction of a new cosmetic plant in São Paulo, as well as the expansion and modernization of its existing soap plant and personal protection equipment manufacturing operations located in Lins, São Paulo.

IFC will help modernize and expand the beef processing industry in Brazil which represented nearly $2.5 billion in exports sales last year. Together with other agricultural commodities exports, the industry contributes to Brazil’s economic growth. With the implementation of IFC/World Bank environmental and social guidelines, within a reasonable period, Bertin will be able to trace 100% of the animals and hides it processes, ensuring strict sanitary controls while avoiding procurement of cattle from protected areas, all as required by markets such as the EU. Bertin will utilize some of IFC’s funds to comply with IFC/World Bank effluent standards in all its facilities. The investment program will also add 7,700 direct jobs in new and existing plants, located mostly in semi-rural areas in the Central South region. IFC will also work with Bertin’s management to improve corporate governance and overall sustainability of Bertin’s operations, thus becoming a role model of corporate social responsibility.

The proposed investment would support the on-going increased competitiveness and growth of the meat processing and tanning industries in Brazil, contributing to the country’s exports in a sector where Brazil has competitive advantage without subsidies or other Government support. IFC will provide much needed long-term funds at reasonable rates to support Bertin’s plans instead of relying on pre-export financing, thereby shifting more of its short-term debt to long term. IFC would also help the company pioneer environmental and social standards and a traceability system for cattle procurement that will ensure sustainability and safeguard of sensitive areas. IFC will also address corporate governance issues as Bertin prepares to become more transparent, establish a succession program and prepare for public listing.

This is a Category A project according to IFC’s Procedure for Environmental and Social Review of Projects because significant impacts that are diverse, irreversible, or unprecedented may result. Potential impacts can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Supplemental, broader issues will be addressed through innovative utilization of animal management systems and relationships with third party vendors and slaughterhouses. The review of this project consisted of appraising extensive technical and environmental /social information submitted to IFC by the project sponsor; extensive discussions with the sponsor’s environmental management staff; visits to integrated operations; standalone tanneries; feed lots; and associated operations. The following potential environment, health and safety and social impacts of the projects were analyzed, according to IFC’s Performance Standards (PSs):

- PS1. Social and Environmental Assessment and Management Systems:

Bertin’s capacity to undertake adequate environmental and social management of its operations throughout Brazil was reviewed. The company undertook an Environmental and Social Impact Assessment (ESIA) of its Marabá slaughterhouse and the corresponding supply chain.

- PS2. Labor and Working Conditions:

Occupational health and safety and labor are an important consideration in Bertin’s industrial plants. In certain areas of Brazil where Bertin operates, such as the state of Pará, these issues may include slave labor in the supply chain.

- PS3. Pollution Prevention and Abatement:

Slaughterhouses and tanneries may air emissions and odors, as well as wastewater discharges that may contain high concentrations of organic material.

- PS4. Community Health, Safety and Security:

Community health issues involve biohazards and other emergencies, which are handled adequately by Bertin. Security is a matter of concern as Bertin and suppliers’ farms are at the risk of occupations and invasions by landless peasant’s movements.

- PS5. Land Acquisition and Involuntary Resettlement:

Illegal land acquisition and land holding issues are endemic in various areas of Brazil, particularly in the state of Pará. Numerous farmers in Bertin’s supply chain have no legal title to land or have fraudulent documentation.

- PS6. Biodiversity Conservation:

The state of Pará, where Bertin has a slaughterhouse and two tanneries, is in the Amazon area, where protection of biodiversity is a priority.

- PS7. Indigenous Peoples:

The ESIA mapped out a number of indigenous peoples’ reserves in the area of influence of their Marabá plant. Also, in the area of influence of a small hydroelectric unit owned by Bertin, Sacre 2, there is an indigenous reserve.

- PS8. Cultural Heritage:

Near Sacre 2 PCH a number of archaeological artifacts were found.