Sub-sectoral Environmental and Social  Guideline: Poultry Farming

Introduction

This guideline is designed to be used by EBRD Financial Intermediaries (FIs) to understand the nature of environmental and social (E&S) risks associated with existing operations in this sector and suggested actions for businesses to manage these E&S risks. It also provides guidance for FIs on potential due diligence questions to raise with management to understand how their business is managing these E&S risks. This guideline focuses on material E&S risks; it is not an exhaustive list. In managing E&S risks, all businesses should be compliant with relevant E&S laws and regulations.1 Where applicable, this includes European Union legislation, which may also be taken as a benchmark for good practice. This guideline focuses on Poultry Farming including chicken (laying hens and broilers), turkeys, ducks and guinea fowls.

Reference NACE codes:

. 1.47 Raising of Poultry

Material risks

Below is an overview of the material risks present in poultry farming:

1 This guideline outlines some relevant legislation but does not provide an exhaustive list of applicable laws and regulations.

EBRD Sub Sector Environmental & Social Guideline 2016 Page 1 Poultry Farming

Sub-sectoral Environmental and Social  Guideline: Poultry Farming

E&S Risk Category Environment Health and Labour Community Page Safety no.

Affect the natural Affect Affect the health and environment Affect the workplace safety, livelihoods, Key E&S Risks2 health or conditions and environment of safety of and the the community and employees treatment of wider public employees Water Use √ √ 5  Wastewater √ √ 6  Contamination of Soil, √ √ 6 Surface Water & Groundwater  Waste √ √ 7  Storage & Spreading of √ √ 8 Farm Waste  Air Emissions √ √ 9  Odour √ √ 10  Pesticide Resistance and √ √ 10 Bioaccumulation  Spread of Disease and √ √ √ 11 Biosecurity Antibiotic Resistance √ √ 12 Animal Welfare √ 12 Product Hygiene √ 13 Working at Height √ 14 Noise √ √ √ 12 Slips, Trips & Falls √ 14 Manual Handling √ 14 Asbestos √ √ √ 14 Labour and Working √ 15 Conditions

Child Labour √ √ 15

2 Note: this table provides an indicative list of the EHS risks associated with the sub-sector; it is not meant to be an exhaustive list and EHS risks will depend on the specific setting and scale of the operation or facility.

EBRD Sub Sector Environmental & Social Guideline 2016 Page 2 Poultry Farming Sub-sectoral Environmental and Social  Guideline: Poultry Farming

Worker Accommodation √ 16

Community Relations √ 16

Contents

Section Page No.

1. Process description 4

2. Key E&S Risks 5

3. Financial implications 16

4. Suggested due diligence questions 17

5. References and additional sources 21

EBRD Sub Sector Environmental & Social Guideline 2016 Page 3 Poultry Farming Sub-sectoral Environmental and Social  Guideline: Poultry Farming

1. Process description prevent the spread of disease. Farms often include the grading and packing of eggs and delivery directly to market (retail and Poultry farming is the raising of or wholesale). domesticated birds such as chickens, turkeys, ducks, and geese, for the purpose The majority of laying hens are kept in of farming meat or eggs for food. cages; in 1999, EU Directive 99/74/EC banned the use of conventional battery The majority of poultry farms form part of cages and replaced them with enriched the production chain for chicken eggs or battery cages. Due to the cost relating to for chicken broiler meat. Other species, the upgrade, the EU gave member states e.g. duck, goose and quail only form a very until January 2012 to implement the small proportion of activities in change, which is now in force across the comparison. EU. Egg Production Non-cage production is gaining in popularity with systems such as barn, semi-intensive, free range and deep litter. The number of laying hens per farm varies between a few thousand to several hundred thousand.

Broiler Production

Fig 1: Egg Production

The production chain involves a sequence Fig 2: Broiler Production of activities (Fig 1), each taking place at different sites and on different farms to EBRD Sub Sector Environmental & Social Guideline 2016 Page 4 Poultry Farming Sub-sectoral Environmental and Social  Guideline: Poultry Farming

Broilers are those birds reared for their meat rather than their eggs. The different steps in the How can a business manage this risk? production are shown in Fig 2. Broilers are  Obtain abstraction or water use permits which generally not housed in cages. It is common for detail the allowable volumes of water farms to have over 40,000 birds at any one time. abstraction/use. Where changes take place in volumes, this should be reflected in the permit; The production cycle takes between 5 and 8 weeks depending on the species, slaughter  Evaluate water supply and water efficiency weight, feeding and condition of the birds. The measures (e.g. recycling, reuse, run-off reduction, storage etc. ) to reduce impacts on production system is normally operated on an surrounding resources and community supplies; all-in all-out system to minimise the spread of disease. After every cycle the houses are fully  Minimise water use in cleaning so as to keep cleaned and disinfected which can take from 1 to waste as dry as possible; 3 weeks depending on national legislation.  Reduce cleaning water needs by ensuring that solid waste is removed before rinsing and 2. Key E&S Risks washing, e.g. using scrapers, brooms and vacuum cleaners; Below are the material E&S risks associated with this sector and key  Use taps with automatic shutoff valves; measures to manage them. Where gaps are found in the management of key E&S  Use high pressure hoses and optimised nozzles risks, the E&S risk management measures to minimise water usage; may form part of a corrective E&S action plan agreed with your customer.  Use hot water or steam as this can reduce water requirements; Water Use  Reduce water use by preventing overflow of animal watering devices and using self-watering devices

An adequate supply of water is required for watering poultry, washing down and cleaning. Water may be taken from surface or ground water resources. Permits and charges may be required for abstraction and discharges to water resources.

EBRD Sub Sector Environmental & Social Guideline 2016 Page 5 Poultry Farming Sub-sectoral Environmental and Social  Guideline: Poultry Farming

Wastewater How can a business manage this risk?

 Comply with BREF for ‘intensive’ facilities failing under the IED (i.e. places with more than 40,000 poultry). Facilities that do not fall under Process wastewater is generated as runoff the ‘intensive’ definition in the IED guidance do not have to comply with BREF but should from poultry housing, feeding and follow this guideline and the BREF watering, and from waste storage and requirements. management facilities. This effluent has the potential to contaminate surface and  Comply with national regulations for poultry groundwater. farming. Other smaller facilities within the EU and operations outside the EU will still be subject to local regulation but this will generally Wastewater treatment will be required set less stringent requirements on the techniques either with an on-site wastewater treatment to be adopted; plant or discharging to a municipal wastewater treatment plant. In either case  Install filters to collect sediment/debris before a permit is likely to be required. wastewater discharge;

Some poultry farming operations may  Install diversion drains to direct surface water require environmental permits under runoff away from waste areas. national regulatory requirements. Certain large-scale intensive operations, such as the intensive rearing of poultry, operating in the EU may be required to hold an Contamination of Soil, Surface Water & environmental permit under the Industrial Groundwater Emissions Directive (IED) (2010/75/EU). The IED regulates the standards that apply to airborne emissions as well as discharges to land and water resulting from industrial operations. The poultry farming process produces a large volume of waste, including animal Best Available Techniques Reference wastes (e.g. slurry and manures), poultry Documents (BREFs) are the supporting carcasses, agricultural fuels and oils, and documents for the IED containing the best agrochemical wastes. There is a risk of available techniques and technologies chemical and organic wastes entering and (BAT) for different sectors, including polluting soil and water resources poultry farming. including from:

 Direct run-off;

 Insufficient treatment of waste before discharge / spreading on land; EBRD Sub Sector Environmental & Social Guideline 2016 Page 6 Poultry Farming Sub-sectoral Environmental and Social  Guideline: Poultry Farming

 Infiltration from unlined slurry/waste  Maintain storage, transport and feeding systems storage areas; in good condition;

 Spillages and accidental releases.  Protect feed from rain and wind to prevent contaminated run-off and to minimise wastage; Disposal of empty drums and packaging of agrochemicals may also pose a  Provide secondary containment for bulk contamination risk. chemical storage areas to contain spills;

 Conduct regular inspections of storage areas. Accidental releases and spillages of agrochemicals and agricultural fuel oils may also pose a contamination risk to soil and water resources. Waste

Hazardous materials are used throughout the production cycle, e.g. pesticides, cleaning products, antibiotics and hormones. Solid wastes generated from poultry farming include: Operations where pollution has occurred or there is a threat of it occurring to water  Waste feed: this may contain a range of resources, land and protected species and additives such as amino acids, enzymes, habitats may be liable under national vitamins, mineral supplements, legislation and EU legislation for hormones, antibiotics and heavy metals; preventing and remedying environmental damage. In the EU the Environmental  Animal Waste: mainly manure but also Liability Directive (ELD) (2004/35/EC) includes other materials such as bedding established a framework of environmental and broken eggs. Waste management liability, based on the "polluter-pays" options depend largely on the housing principle, to prevent and remedy system and type of litter used. Manure environmental damage. from poultry farming is often composted and is commonly used as a fertilizer on agricultural land (see How can a business manage this risk? Storage and Spreading of Farm Waste);

 Comply with BREF for ‘intensive’ facilities  Poultry Carcasses: animals that die failing under the IED (i.e. places with more than 40,000 poultry). Facilities that do not fall under prematurely of disease or other factors the ‘intensive’ definition in the IED guidance do can be a significant source of disease not have to comply with BREF but should and odours and can attract pests and follow this guideline and the BREF vermin. requirements.

EBRD Sub Sector Environmental & Social Guideline 2016 Page 7 Poultry Farming Sub-sectoral Environmental and Social  Guideline: Poultry Farming

 Packaging Waste: eggs are typically  For wastes that cannot be recycled due to packaged in shaped cardboard, plastic biosecurity issues, undertake disposal or a combination of both. Solid waste according to the requirements of local health will arise from the packaging process authorities; primarily in the form of improperly packaged and broken eggs. Companies  Maintaining records of poultry feed use – to prevent surplus feed entering the waste stream, operating within the European Union matching feed content to the life stage (either as a manufacturer or as a requirements of the birds; supplier into European Union countries) will be subject to the European Union  Dispose of poultry carcasses in accordance with Packaging and Packaging Waste regulations: there are strict requirements for the Directive (94/62/EC), which aims to storage, removal and disposal of poultry carcasses within the EU and generally within reduce the amount of packaging that is national regulations to limit such risks; being introduced into the waste streams.  Institute a management programme to ensure Animal wastes/manure etc. contain that diseased carcasses are properly and quickly nitrogen, phosphorous and other managed; substances which may result in emissions of ammonia and other gases and may pose  Companies operating in EU who fall under the a potential risk of contamination to surface Packaging and Packaging Waste Directive may implement a packaging waste management and ground water through leaching and system. run-off.

Animal waste also contains bacteria, pathogens, viruses, parasites etc. which Storage and Spreading of Farm Waste may potentially affect soil, water and plant resources for human, livestock or wildlife consumption.

Hazardous farm waste can cause serious The use of chicken manure as a fertiliser in harm to people’s health and to the agriculture is common and gives rise to environment. several risks.

How can a business manage this risk? Spreading manure at the right time helps to maximise the efficient use of the valuable  Comply with national and EU regulations (as nutrients. However spreading may present applicable) for the safe disposal of waste; pollution and health risks if not done correctly.  Where possible and safe to do so, recycle benign waste products; maintain an inventory of wastes generated and minimise where possible;

EBRD Sub Sector Environmental & Social Guideline 2016 Page 8 Poultry Farming Sub-sectoral Environmental and Social  Guideline: Poultry Farming

Manure may contain micro-organisms management activities contributes to odour which cause food-borne illness, such as and potentially to the transport of diseases Salmonella, Listeria, E. coli etc. and respiratory problems, and may cause nuisance to neighbours during dry and windy weather. How can a business manage this risk? Dust can affect both the respiration of the  Comply with legal requirements and voluntary codes of good agricultural practice for the animals and the workers, such as in broiler spreading and storage of manure; houses with high litter contents. Some dusts may contain antigens which cause  Implement careful application, timing and irritation to the respiratory tract. storage of slurry and manure to avoid contamination of food crops, particularly for ready-to-eat crops; How can a business manage this risk?

 Prevent manure contamination of surface water  Install dust collection systems and employ dust by improving construction of production, waste control measures such as good housekeeping, management and manure storage facilities (e.g. regular sweeping/cleaning of walkways, concrete floors, gutters, covered storage); reducing feed drop heights, covering of conveyors etc.;  Increase manure storage facilities to a capacity of 9-12 months so that the manure can be  Install dust extractors (e.g. cyclones and fabric applied to agricultural land at the correct time of filters); year;  Improve ventilation within buildings;  Relocate manure storage away from water bodies, floodplains, wellheads etc.;  Provide personal protective equipment (PPE) that is fit for the task to prevent poultry dust  Reduce the moisture content of dry poultry exposure/risk and maintain hygiene standards. excreta. Place dry manure in a covered area; Provide respiratory protective equipment (RPE) as a last resort after other abatement options are  Regularly check manure storage tanks for considered; leakage and fit double valves on outlets to prevent accidental release.  Regular checks and maintenance on PPE;

 Train staff in the correct selection, use and maintenance of PPE. Air Emissions

Dust emitted during feed storage, loading and unloading, and from waste

EBRD Sub Sector Environmental & Social Guideline 2016 Page 9 Poultry Farming Sub-sectoral Environmental and Social  Guideline: Poultry Farming

Odour Pesticides Resistance and Bioaccumulation

Odour can be emitted from storage areas and during land spreading, depending on Chemicals including pesticides and the spreading technique applied. The insecticides may be applied to birds and impact increases with farm size and can physical structures to control pests and cause a nuisance to neighbouring predators. Pesticides are potential residential properties. pollutants which may cause environmental and health impacts. Ammonia gas (NH3) generated from animal waste can cause acidification of Over-application of pesticides, herbicides soils and water. Ammonia has a sharp and and insecticides may lead to a build-up of pungent odour and in higher pest resistance. This can lead to a greater concentrations can irritate the eyes, throat reliance on pesticides. and mucous membranes in humans and farm animals. Factors such as the Toxic pesticides which biodegrade slowly temperature, ventilation rate, humidity, can accumulate in body tissues and be stocking rate, litter quality and feed harmful to ecosystems and human health. composition (crude protein) can all affect the ammonia levels; Pesticides may enter agricultural products, including fodder crops, ground and surface High ammonia levels also affect working water and the human body via the food conditions for workers and workplace chain; regulations may set upper limits for the acceptable ammonia concentration in Pesticides may enter water supplies working environments. causing chronic or acute health hazards.

Accidental exposure to hazardous How can a business manage this risk? substances (e.g. pesticides) can result in dermal contact and inhalation. Contact can  Measure ammonia levels in the workplace; ensure compliance with regulations; lead to burns or inflammation of skin or allergy. Inhalation can lead to respiratory  Adopt odour management measures to prevent difficulties. and minimise odour nuisance to communities;

 Control temperature and humidity to reduce odour emissions.

EBRD Sub Sector Environmental & Social Guideline 2016 Page 10 Poultry Farming Sub-sectoral Environmental and Social  Guideline: Poultry Farming

control measures, diseases such as H5N1 How can a business manage this risk? can result in a health epidemic.  Provide personal protective equipment (PPE) that is fit for the task to prevent exposure/risk and maintain hygiene standards, e.g. gloves How can a business manage this risk? overalls, respirators, aprons etc.; Measures to control the spread of disease vary between countries but generally involve the  Train staff in the correct selection, use and segregation and slaughter of infected birds where maintenance of PPE; this cannot be controlled through medicines or vaccination.  Provide training in pesticide application and storage and also training on the risks associated Additional measures are as follows: with exposure to potential viruses, bacteria and pathogens;  Provide training on correct bird handling techniques to prevent disease;  Implement worker management plans to ensure workers with allergic reactions are not working  Look for signs of any diseased animals and with substances that cause a reaction; immediately remove and isolate sick animals or animal carcasses;  Conduct health screening of new staff and regular health monitoring of existing staff  Inform the animal health authorities as soon as there is a concern;  Maintain Material Safety Data Sheets (MSDSs) for any hazardous materials held on site.  Improve the maintenance of structures to ensure that pests are excluded from housing and other facilities;

Spread of Disease and Biosecurity  Conduct health screening of new staff and regular health monitoring of existing staff;

 Maintain emergency response and preparedness plans for outbreaks of diseases and community H&S safety incidents; Animal diseases can spread quickly in poultry farming operations. They can be  Implement sound biosecurity protocols such as transmitted from new animals, equipment controlled access, quarantine periods, washing and via people. and disinfecting equipment, showering, clothing, footwear, exclusion of animal vectors, tyre and footwear disinfection; Poultry manure and carcasses contain pathogens that can infect humans, such as  Install appropriate signage warning users of Avian Influenza (H5N1 virus), fungi, public rights of way through areas where bacteria, parasites and mites. These can be poultry are housed and/or graze; transmitted via live birds, excreta, carcasses and parasites. Without adequate  Prepare a contingency plan for the use of

EBRD Sub Sector Environmental & Social Guideline 2016 Page 11 Poultry Farming Sub-sectoral Environmental and Social  Guideline: Poultry Farming

antibiotics or mass cull in the event of a disease responsible for ensuring that the welfare outbreak. needs of their animals are met. There are EU legal requirements and minimum welfare standards in place for poultry together with national requirements and Antibiotic Resistance codes of practice within many jurisdictions.

Regulations may include:

Antibiotics are routinely used to prevent  Housing capacity and hygiene and treat bacterial disease within poultry standards; populations. Bacteria gradually develop resistance to antibiotics to which they were  Diet of poultry, particularly where previously susceptible, making these medicines or hormones are used; antibiotics ineffective in treating bacterial infection in humans over time.  Method of transport;

Additionally, direct consumption of  Behavioural requirements of poultry; antibiotics by humans as residue in poultry meat can lead to anaemia and other  Protection from pain, injury, suffering illnesses. and disease.

Animals that are treated well and protected How can a business manage this risk? from stress grow in better physical and mental condition and will tend to provide a  Follow EU guidelines (1831/2003/EC) which prohibit the use of antibiotics as a growth better quality product. promoter within EU member states, (although they are still permitted for the control of In many countries, animal welfare has an disease). important cultural component as well and these requirements may need to be accommodated. Cultural requirements (social expectations and beliefs in relation Animal Welfare to animal welfare and treatment) will need to be balanced with market requirements.

In some instances EU Member States implement stricter animal controls than Welfare issues associated with poultry stipulated in EU legislation. For example farming are becoming of increasing legal, the EU broiler chickens Directive financial and reputational risk relevance. (2007/43/CE) aims to reduce overcrowding Owners and keepers of poultry are of chicken holdings by setting a maximum EBRD Sub Sector Environmental & Social Guideline 2016 Page 12 Poultry Farming Sub-sectoral Environmental and Social  Guideline: Poultry Farming

stocking density. UK legislation, in  Conduct regular and rigorous hygiene existence prior to the EU directive, sets out monitoring; all surfaces and equipment should stricter limits on stocking density and is be cleaned regularly to prevent the build-up of not superseded by the EU legislation. contaminates and to reduce risk of health hazards;

How can a business manage this risk?  Separate any sick animals or animals that die to external facilities in containers for treatment and disposal;  Establish an animal health programme including veterinary and laboratory capability and procedures for the management of sick and dead  Consider implementing product traceability birds; systems that facilitate tracing of products once released for sale;  Conduct improvements in the housing of poultry to meet animal welfare legal and  Put in place procedures to prevent the industry standards. processing of waste materials for same species feeding.

Noise Product Hygiene

Some farming activities (e.g. feeding, Poor hygiene can result in food safety and housing or slaughtering poultry) and animal welfare issues. machinery (e.g. tractors, slaughtering equipment) generate noise and can result in Micro-organisms can be present in manure hearing impacts on workers and nuisance which can be harmful to health (e.g. to local residents. Salmonella, E. Coli; etc.). One route of potential infection of humans may be the How can a business manage this risk? consumption of meat, water or food contaminated by such animal waste.  Locate and design facilities to avoid sensitive receptors to noise;

How can a business manage this risk?  Isolate noisy equipment to reduce the risk of noise exposure;  Identify any sick or diseased animals through routine veterinary inspection;  Provide personal protective equipment (PPE) where workers and visitors have to enter noisy  Maintain high standards of food hygiene to areas. reduce the risk of microbiological contamination;

EBRD Sub Sector Environmental & Social Guideline 2016 Page 13 Poultry Farming Sub-sectoral Environmental and Social  Guideline: Poultry Farming

Working at Height not in progress or has finished for the day and floors have dried as much as possible.

 Install covers, fences and fall prevention methods to prevent falls into tanks and other confined spaces. Poultry operations may involve working at height to access roofing or lighting areas and/or equipment. Manual Handling How can a business manage this risk?

 Conduct a job risk assessment;

 Restrict access to working at height; Many injuries from farming are associated with handling, lifting and carrying of  Install correct fall arrest systems where heavy or unconventional shaped objects. necessary (guarding and harnesses etc.).

How can a business manage this risk?

Slips, Trips and Falls  Redesign manual processes to avoid heavy lifting/repetitive activities;

 Install mechanical lifting aids where possible

and rotate work tasks to reduce repetitive Slips trips and falls are regular occurrences activities; in farming environments and result in many injuries. Typically these are because  Redesign of manual processes to avoid heavy of uneven ground and poor housekeeping. lifting/repetitive activities.

How can a business manage this risk? Asbestos  Install escape routes in poultry handling areas;

 Keep walking and working surfaces clean and dry and provide workers with anti-slip footwear;

 Restrict access to areas being cleaned or where Asbestos has been used on a large scale for spillages have occurred; many years as fire proofing and insulation material and may be encountered in a wide  Schedule floor cleaning for a time when work is range of forms including asbestos cement boards, as fire retardant gaskets in pipe EBRD Sub Sector Environmental & Social Guideline 2016 Page 14 Poultry Farming Sub-sectoral Environmental and Social  Guideline: Poultry Farming

work and as fire retardant insulation Child Labour around boilers and furnaces.

How can a business manage this risk? Child labour is a prevalent risk particularly  Particular attention should be paid to farm buildings constructed prior to the 1990s. in relation to smaller-scale family run operations. Sometimes family related  Conduct/commission an asbestos survey (by domestic chores are carried out by qualified personnel); children, which may not necessarily be classed as Child Labour on the smaller  If asbestos exists, establish an asbestos family run operations. management plan. Children are particularly vulnerable to on- farm hazards due to lack of experience and knowledge, especially in relation to farm Labour and Working Conditions vehicles and machinery.

How can a business manage this risk?

 Undertake checks on worker’s age and prohibit Poultry farming operations may use casual any employment under the minimum age as and contract labour. Poor working stipulated by the International Labour conditions for casual labourers in the organization (ILO) or national legislation agribusiness sector is a key labour risk. (whichever is more stringent);

How can a business manage this risk?  Adopt clear policies for recruitment consistent with international good practice for the  Ensure that labour standards, contracting and prevention of child labour in agricultural (e.g. remuneration are in line with national law and from the ILO); are consistent with the average for the sector and apply to permanent employees and casual and contract labour;  Where children are on-farm health and safety provisions need particular attention to protect  Undertake checks on workers right to work them from hazards. (including work permits, age etc.);

 Undertake checks on treatment of subcontractor labour.

EBRD Sub Sector Environmental & Social Guideline 2016 Page 15 Poultry Farming Sub-sectoral Environmental and Social  Guideline: Poultry Farming

Worker Accommodation assess any impacts on these;

 Assessing opportunities for the involvement of the local community in direct employment or in the provision of goods and services; Worker accommodation standards, particularly for temporary/casual labourers  Engage with the local community and other may not reach the standard required for interested and/or affected stakeholders to permanent employees. maintain good social relations. For large-scale intensive poultry operations or in areas of high How can a business manage this risk? population density or high community interest, it is recommended that a Stakeholder  Provide worker accommodation which meets, at Engagement Plan (SEP) be prepared and a minimum, basic needs of workers, national implemented by the company. legislation and industry good practice (e.g. see guidance note from IFC & EBRD3).

3. Financial Implications

Community Relations Outlined below are key financial implications of ineffective management of E&S risks related to poultry farming.

 The health and well-being of farm Having good relationships with animals can have a direct impact on neighbouring communities reduces the risk growth, reproduction or meat quality. of local opposition to the poultry farming Adherence to animal welfare guidelines activities. and standards can increase business profitability by improving productivity How can a business manage this risk? and efficiency;

 Review socio-economic baseline conditions to  Animal diseases are frequently identify local, community-based agricultural controlled by killing all infected enterprises and/or use of water resources and to animals and their cohorts within a specified area. In some countries, the farmers are compensated to some extent for the value of the birds, but this does 3 not normally cover any consequent http://www.ebrd.com/downloads/about/history/w losses such as lost contracts, reputation orkers.pdf etc.;

EBRD Sub Sector Environmental & Social Guideline 2016 Page 16 Poultry Farming Sub-sectoral Environmental and Social  Guideline: Poultry Farming

 Public reaction to the news of animal restrictions on price and demand, and diseases can temporarily lead to a export markets (e.g. EU); reduction in the consumption of that food type. This may result in  Inadequate health and safety provisions unaffected businesses being unable to (including risk assessments, training, sell their poultry products; infection control and provision of Personal Protective Equipment (PPE)  Significant capital expenditure might be etc.) for workers (permanent, temporary required to maintain animal welfare, and/or casual) may lead to absenteeism, biosecurity, health, safety and hygiene health care costs or health and safety standards; incidents and claims;

 Capital and operational investments to  Nuisances from poultry farming obtain and maintain industrial emissions operations, including from the permits and, where applicable, achieve spreading of organic manure, may lead compliance with Best Available to compensation claims from Techniques (BAT); neighbouring properties;

 Capital and operational investments to Community health and safety impacts from prevent and minimise the risk of poultry farming (e.g. exposure to contamination of soil, surface water and contaminated drinking water and/or living groundwater resources from poultry in proximity to infectious diseases) may farming waste; lead to reputation damage, legal challenges/prosecutions and/or  Injuries may lead to increased payroll compensation claims. costs to replaced workers; 4. Suggested Due Diligence  Fines, penalties and third party claims may be incurred for non-compliance Questions with environment, health and safety regulations; Perform a complete tour of the facility, accompanied by someone knowledgeable  Capital expenditure for installing or about all the activities at the site. upgrading wastewater and waste treatment facilities; When assessing E&S risks, it is important to engage the customer on how these risks  Capital expenditure for installing or are managed. upgrading storage facilities for chemicals, fuels and oils; Confirm organisational responsibilities and systems for environment, health, safety  Animal feed and/or poultry farming and social matters and that these systems products contamination may result in EBRD Sub Sector Environmental & Social Guideline 2016 Page 17 Poultry Farming Sub-sectoral Environmental and Social  Guideline: Poultry Farming

cover both employees employed directly Health and Safety and sub-contractors.  Check signage around the site: During the initial site visit, the issues will vary according to the type of poultry o Does it convey the health and safety farming and the level of environment, risks? health and safety and hygiene management already introduced. While visiting the site o Are fire exits clearly marked? it is important to discuss and review the following:  Is fire-fighting and first aid equipment available? General Housekeeping  Are workers provided with adequate  Check the condition and containment Personal Protective Equipment? Is it arrangements of manure storage being worn? facilities;  Have the premises been inspected  Condition of poultry housing; is it recently (within the past 2 years) by the secure from pests? Is there adequate regulatory authorities for health, ventilation? What is the stocking hygiene and environment? What were density (i.e. how many birds are there their findings? per square metre) and mortality rates? How do they compare to the average for Poultry Farm Management Practices the industry sector?  Check the source of feed materials. Are  What is the standard of general house- the levels of pesticides and other keeping on site? Do areas look clean contaminants quantified and within and tidy? Look for localised spills, guidelines? leaking pipes etc.;  Are there management control plans for  Check storage facilities for feed animal health, feeding, nutrients, materials, caustics, chemical solvents, pesticides? antibiotics etc.;  Does the organisation have insurance in  Check the age and condition of place to cover the outbreak of disease? buildings and equipment. Have there been any recent incidents? Has the company any other insurances and have there been any claims against these policies?

EBRD Sub Sector Environmental & Social Guideline 2016 Page 18 Poultry Farming Sub-sectoral Environmental and Social  Guideline: Poultry Farming

 Is the facility subject to any audits by  Does the organisation have a grievance customers? What was the outcome of mechanism which allows employees to these audits? raise workplace concerns?

Waste Management  Are employees free to form, or join, a workers’ organisation of their  Check that waste disposal takes place choosing? on a regular basis;  Check worker accommodation;  Check that waste storage areas are clear of debris and that skips are covered to  Has the company undertaken a prevent waste escaping; for example, systematic, documented review of check that waste containers have lids or operations against national legal are stored in an area with a roof. requirements relevant to Environmental, Health, Safety and Social performance Pollution Control and the extent of compliance with that legislation?  Is the facility next to any vulnerable water bodies, sited in a floodplain, or Incident Management close to groundwater sources which may be contaminated by activities?  Have there been any recent (within last three years) incidents on site such as Labour Management fatalities, fires/explosions, spills?

 Check that labour standards, contracting Community Complaints/Grievances and remuneration are in line with national law and are consistent with the  Is a grievance mechanism in place to average for the sector. allow the community to raise concerns regarding farming operations?  Check that hours worked, including overtime, are recorded and staff should  Note any history of public complaints receive written details of hours worked relating to the facilities operation. and payment received. Investment  Has the Company received inspections from the local labour inspectorate in the  Does the business plan have budgeted previous three years? Have these line items for Environment, Health and resulted in any penalties, fines, major Safety, labour and hygiene recommendations or corrective action improvements? plans?

EBRD Sub Sector Environmental & Social Guideline 2016 Page 19 Poultry Farming Sub-sectoral Environmental and Social  Guideline: Poultry Farming

Management Plans  Food safety management plans;

Review the operational procedures and  Demonstrable involvement of senior management plans available regarding the management in environment, health & control of risks. safety, animal welfare and hygiene management and leadership. As a minimum any business should be required to have the following in place:

 Environmental, Health & Safety management systems which include operational procedures that are communicated, implemented and regularly reviewed (i.e. “live” systems that are used in practice, not just kept as an office manual);

 Monitoring programmes to monitor environmental, health & safety, animal welfare and hygiene risks (and where necessary, testing of water, air, noise, waste emissions etc.);

 Improvement objectives, targets and project plans;

 A training plan for personnel to include environmental and health and safety issues;

 Regular inspections, checks and audits against records to demonstrate achievement of the required level of performance against legal requirements and improvement action;

 Emergency plans for environment, occupation & community health & safety, and food safety incidents and site security;

 Animal welfare management plans; EBRD Sub Sector Environmental & Social Guideline 2016 Page 20 Poultry Farming Sub-sectoral Environmental and Social  Guideline: Poultry Farming

5. References and additional sources

European Bank for Reconstruction and Development (EBRD). Environmental and Social Policy May 2008. http://www.ebrd.com/enviro/tools/index.htm

International Finance Corporation, 2007. Environmental, Health, and Safety Guidelines, Poultry Production; http://www.ifc.org/wps/wcm/connect/26baaf004886581fb43ef66a6515bb18/Final%2B- %2BPoultry%2BProduction.pdf?MOD=AJPERES

Industrial Emissions Directive: Council Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control); http://eur-lex.europa.eu/legal- content/EN/TXT/?uri=CELEX:32010L0075

Environmental Liability Directive: Council Directive 2004/35/CE of the European Parliament and of the Council of 21 April 2004 on environmental liability with regard to the prevention and remedying of environmental damage.

European IPPC Bureau: Best Available Techniques (BAT) Reference Document (BREF) for the Intensive Rearing of Poultry and Pigs: IED 2010/75/EU (IPPC) (Draft 2- Aug 2013); http://eippcb.jrc.ec.europa.eu/reference/BREF/IRPP_D2_082013online.pdf

Waste Framework Directive: Council Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste and repealing certain Directives,.

Nitrates Directive: Council Directive 91/676/EEC of 12 December 1991 concerning the protection of waters against pollution caused by nitrates from agricultural sources.

Protecting our Water, Soil and Air: A Code of Good Agricultural Practice for farmers, growers and land managers; Department for Environment, Food and Rural Affairs (DEFRA)

Guidance on Hazardous Farm Waste: How to identify hazardous farm waste and comply with legal obligations; Department from Environment, Food and Rural Affairs (DEFRA)

European Union Directive (99/74/EC) 1999, laying down the minimum standards for the protection of laying hens.

EU Council Directive 2007/43/CE of 28 June 2007 laying down minimum rules for the protection of chickens kept for meat production.

EBRD Sub Sector Environmental & Social Guideline 2016 Page 21 Poultry Farming Sub-sectoral Environmental and Social  Guideline: Poultry Farming

European Union (1994), European Parliament and Council Directive 94/62/EC of 20 December 1994 on packaging and packaging waste.

European Union (2003), Regulation (EC) No 1831/2003 of the European Parliament and of the Council of 22 September 2003 on additives for use in animal nutrition.

International Labour Organization (ILO): Child Labour in Agriculture, http://www.ilo.org/ipec/areas/Agriculture/lang--en/index.htm

Workers’ accommodation: processes and standards (IFC & EBRD): http://www.ifc.org/wps/wcm/connect/9839db00488557d1bdfcff6a6515bb18/workers_accomo dation.pdf?MOD=AJPERES

EBRD Sub Sector Environmental & Social Guideline 2016 Page 22 Poultry Farming