Keskinoğlu Tavukculuk ve Damizlik Isletmeleri Sanayi ve Ticaret Anonim Sirketi, Turkey Egg-Laying Poultry Facility Project Non-Technical Summary Prepared for: Kesinoglu Akhisar, Turkey Prepared by: ENVIRON UK Limited Date: August 2012 Project or Issue Number: UK14-17009 Keskinoğlu Non Technical Summary Table of Contents 1 Introduction 1 2 Project Description 2 2.1 Overview 2 2.2 Environmental Setting 4 2.3 Socio-economic Setting 4 3 Summary of Overall Findings 6 3.1 Overview 6 3.2 Current Operations 6 3.3 Planned/Future Operations 8 3.4 Cogeneration Plant 8 3.5 Auto Warehouse for Cold Storage 9 3.6 Egg Production 9 3.7 Hatchery 11 3.8 Egg Breaking and Pasteurization 12 3.9 Logistics Centre 12 3.10 Manure Drying System 13 3.11 Live Bird Handling Modernization 13 3.12 Layer Rearing Facility at Kapakli 14 3.13 EIA Status, Impacts and Mitigation Measures 14 4 Summary of Actions 17 4.1 Environmental and Social Action Plan (ESAP) 17 4.2 Stakeholder Engagement Plan (SEP) 17 5 Summary 20 UK14-17009 Issue: 05 ENVIRON Keskinoğlu Non Technical Summary 1 Introduction Keskinoğlu Tavukculuk ve Damizlik Isletmeleri Sanayi ve Ticaret Anonim Sirketi (Keskinoğlu or “the Company”) has plans to expand its current production capacity including poultry breeding, egg production and slaughtering within the Akhisar area of Turkey. When the expansion programme is completed, it will increase Keskinoğlu’s egg production capacity from 2 to 5 million eggs per day. Keskinoğlu is seeking financing from the European Bank for Reconstruction and Development (EBRD) for its expansion programme. The loan from the EBRD will support the Company’s capacity expansion programme for 2011-2012 including: Cogeneration: New co-generation plant at the Organised Industrial Zone (OIZ) Akhisar and upgrade to the existing co-generation plant at the current processing site at Akhisar; Auto warehouse for cold storage adjacent to the current processing site at Akhisar; Egg Production: Increased egg production and egg packing plant at Rahmiye; Layer Rearing: Conversion of existing broiler breeding houses to layer rearing at Kapakli is planned, providing a total of 900,000 birds (rearing) in 10 houses; Hatchery: New hatchery (3rd phase) at Kayislar; Egg breaking and pasteurisation: New egg breaking and pasteurisation unit adjacent to the current processing site at Akhisar. Manure drying system: An overall environmental improvement (aimed at odour reduction) across all cage houses. Live bird handling modernization: An overall environmental improvement for the transfer of broilers from the rearing farms to the slaughterhouse. As a next step, Keskinoğlu has plans to continue with its investments in 2013 to further contribute to the industrialisation of its vertically integrated activities by construction of an industrial slaughterhouse, and further expansion of the Kayislar hatchery and Osmancali breeding facility. At this stage, Keskinoğlu is not seeking finance from the EBRD for these facilities. This document provides a Non-Technical Summary (NTS) for Keskinoğlu’s expansion programme ) as part of the Company’s environmental and social disclosure programme in line with international best practice requirements, and undertaken in addition to all necessary permits as required by Turkish legislative requirements. It has been prepared as part of a package of documents that have been released in the public domain, with the purpose of providing an overview of the Project and summarising the main potential environmental and social impacts and Keskinoğlu’s approach to the management of those impacts. UK14-17009 Issue: 05 1 ENVIRON Keskinoğlu Non Technical Summary 2 Project Description 2.1 Overview Keskinoğlu is the largest Turkish egg producer and exporter as well as a leading poultry meat producer in Turkey with estimated sales of ca. EUR 268m in 2010. Company activities are conducted at 16 different locations, all within a 10km radius of Akhisar, Turkey. Keskinoğlu’s current operational facilities include: Processing Site – approximately 8.3km to the south-west of Akhisar town centre, comprising the slaughterhouse, processing, rendering plant, wastewater treatment plant, further processing (cooked products), co-generation plant, packing and distribution of meat products; Main Campus – located approximately 5km to the south-west of Akhisar town centre, comprising a hatchery, egg laying houses, egg box production, egg packing, manure processing plant, feed production, wind turbine and general storage; Organised Industrial Zone (OIZ) – located to the west of the Processing Site on the north-eastern area of the OIZ, approximately 7.8km to the south-west of Akhisar town centre. Comprising feed production plant, new egg box production (due to open end 2012) and project construction areas (see below); A second manure processing plant and layer rearing house located near Kapakli, 12km south of the Processing Plant; Breeder farms (both layer and broiler) at Kuyucak, Kemiklidere, Mecidiye, Pember, Bordo and Sergirdim; A hatchery at Kayislar; Laying hen houses at Rahmiye and Kayalioglu; and Akhisar Gida broiler rearing farm. A map showing the location of the planned upgrades considered within the capacity expansion programme (listed in Section 1) are presented in Figure 1. UK14-17009 Issue: 05 2 ENVIRON Keskinoğlu Non Technical Summary Figure 1. Locations of facilities of Keskinoğlu including the Egg-Laying Poultry Facility Project Area UK14-17009 Issue: 05 3 ENVIRON Keskinoğlu Non Technical Summary 2.2 Environmental Setting Akhisar is located in the Manisa province in the Aegean region of western Turkey at 38°55′05″N 027°50′15″E. It has an elevation of approximately 93m (305ft) and has a population of around 100,900 (2009). The surrounding area is largely rural with some scattered villages. The district is located on the Akhisar plain. The fertile alluvial soil produces about 10% of total Turkish tobacco production, whilst olives are also an important crop grown in the area. The Demirci and Golcuk mountains are present in the north of the area and the Yunt mountains on the west. In the Aegean region, rainfall averages 645 mm (25 inches) per year and temperatures range from -8C (18F) to 43C (109F), with average humidity of 69%. Turkey is in a seismically active region and Akhisar experiences periodic small earthquake activity. On the 4th August 2011 a 3.5 magnitude earthquake was recorded at Akhisar by Bogazici University Kandilli Observatory and Earthquake Research Institute. Gordϋk Creek flows from north to south in the area and joins the Gediz River approximately 40km to the south-west of Akhisar at Yenimahmudiye. From maps viewed and discussions with site personnel, Gordϋk Creek is the main watercourse in the area of Akhisar and passes directly to the east of the Keskinoğlu Processing Site. According to site personnel, industrial sites in Akhisar (including the Keskinoğlu Processing Site) and the Akhisar municipal waste water treatment plant discharge into Gordϋk Creek; it is occasionally used for abstraction by local farmers for irrigation purposes. The Hydrogeology Map of Turkey developed by the General Directorate of Mineral Research and Exploration classifies the region as having rich aquifer (groundwater resources). Groundwater is the main source of water supply in the area. The Keskinoğlu facilities get their water supply from groundwater wells, which are all permitted by the State Hydraulic Works. The facilities in the three main campuses (and these campuses themselves) are all sites designated for industrial activities in the development plans of the municipality. The OIZ has its own site selection process and infrastructure establishment. In this regard the Sanitary Protection Zones for all the facilities were defined together with the commission established by the competent authorities including the municipality, the governorship and related provincial directorates of the Ministries. The width of the zones show differences from facility to facility (based on the activity conducted), but these sanitary protection zones are included in the fence area for each facility, which is the general requirement so that no other activities are allowed in these zones. All the facilities in operation have establishment and operation licenses/permits. The Project areas are not known to be located within any sensitive, protected and/or conservation areas including national parks, natural parks, wetlands, nature conservation areas, wildlife conservation areas, biogenetic reserve areas, biosphere areas and tourism areas. There are also no known monuments or cultural artefacts within the Project areas. 2.3 Socio-economic Setting Manisa Province of Turkey is located within the Aegean Region, which is home to 15% of the industrial production in the country. Manisa is the second largest trade centre in the Aegean Region after Izmir. The Province has always been an attraction for trade of various UK14-17009 Issue: 05 4 ENVIRON Keskinoğlu Non Technical Summary products, textile industry, food items, leathering and production of agricultural equipment. In the last years, the Province has also been open to foreign investments, with its growing industrial potential. There are highways passing through Manisa, which connect İzmir to İstanbul and Ankara, which are the three largest cities in Turkey. These roads are within the main transportation networks of Turkey considering the traffic load. In addition being on the major highways, Manisa is directly connected to the railway system, which extends