CAPA
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WORD OF THE
PRESIDENTS Renato Greidanus
PRESIDENT OF FRISA
Erik Bosch
PRESIDENT OF CAPAL
WITH THE STRENGTH OF UNIUM Frans Borg
PRESIDENT OF CASTROLANDA
When we started with Alegra, Brazil began to experience the worst economic crisis of the last decades. We enter with a new brand in a scenario of market retraction. With great effort we were able to introduce Alegra and open the market in several countries. We’re going up. The acceptance of our meat is very good. It fell in the taste of the people. Thanks to our quality we are entering many niche markets in large networks. The markets are accepting us for the quality and the sympathy that the public is having for the brand. Looking at these recent developments, we believe that the creation of Alegra was a wise decision that we made. Without industry, we are sure that many producers would have abandoned pig farming, with immense losses for the industry and for the entire structure of our cooperatives. So let’s continue with our actions at the Industrial Meat Unit, in search of continuous improvement, in a dynamic and innovative way under this umbrella of intercooperation that we call Unium.
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The commitment of cooperatives to their producers, employees and customers is to develop a differentiated, high-quality product with consistency, traceability, certification of origin and a high level of transparency that can add value to the raw material provided by the associate. It is our responsibility and purpose to work on social, economic and environmental factors in a balanced way, integrated and strengthened with the best management practices. We conduct corporate governance with
ethics and transparency, aiming at the sustained improvement of our results and meeting the expectations of the various audiences. As an organization of producers, cooperatives have a commitment that involves the families of associates, employees, community, customers and society in general in the regions where they operate and have roots, since the results of their businesses are applied in the region. This is the economic commitment. The social comes through the formation of people, development and well-being. And the environment is natural because it is part of the sustainability in production and industrialization in the region where they live, having how to track and certify all links in the production chain. In a scenario of crisis and difficulties we can not look at everything through the half empty glass. Let’s look through the glass half full. We are succeeding. We are working hard with the field, with the industry, to reverse and find what we can improve, because it is in the moment of crisis that we must be open to change. Our projects for the future may have a small delay and do not go as fast as planned. But they will continue. There is no way to stop. We are working to get as fast as 4,500 pigs/day, which is a number that the industry needs to work properly to their costs. Let us continue with faith, work, and the strength of the union of our cooperatives.
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WORD OF THE
SUPERINTENDENT Ivonei Durigon
“
HE REMARKS IS THAT 2017 WAS A YEAR OF GREAT ADVANCES.”
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With great gratitude to the Creator who granted us the end of another stage of work and allowed us to bring well-being to our stakeholders by creating solutions to their needs, we now deliver the 2017 Sustainability Report from Alegra. The mark that stands for 2017 is a year of great progress. In the face of its first major test, in a year of strong impacts with damaging consequences for the meat market and for large companies in the country with Operation Carne Fraca. Even though our brand Alegra has advanced and grown. Heirs of the values that the Frisia, Castrolanda and Capal cooperatives created, respect and follow, we knew how to face the crisis. With less than three years of market presence, we have demonstrated maturity and made it clear that Alegra is on the right track, complying with the values of cooperatives and the legislation to which food production is subject. Alegra’s plant was recognized and certified for animal welfare, won two more new qualifications for the international market, totaling 26 countries. In the domestic market we doubled the number of points of sale, growing our industrial volume and special cuts by 188% compared to 2016. Our list of achievements includes the launching of 21 new products, among them the line of thin slices of canopy, salami, hams; smoked ham, skin pack line innovating in gourmet cuts and differentiated packaging for presentation and preservation of products. We have created a Food Solution area to pay more attention to current
customers and expand our participation in this market that has been growing significantly in Brazil, especially in the country’s main Fast Food chains. Investments in the Industrial Unit in 2017 reached 23.39 million, aiming to increase production capacity by 29% and provide stability with innovation for sustainable growth. This year we generated 733 new direct jobs. By 2018 we have the challenge and the opportunity to grow even more, expanding our participation both in the international market and in the domestic market, especially in volume of our industrialized products for retail. It is important to note that 2018 already starts with a relevant fact for the pork trade, which was the closing in November 2017 of pork exports to Russia, responsible for the purchase of approximately 40% of the volume exported by Brazil. Independently of the conjuncture, guided by the principles of intercooperation that govern us, we reaffirm our conviction to continue with our activity, giving sustainability to the swine chain for the cooperative contributing to the promotion of work, economic growth, reduction of inequalities, regional and global development. [102-14]
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ABOUT THE
REPORT
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With this document, Alegra presents to its Brazilian and international society its Annual Sustainability Report. Aiming to share the impacts of its business model throughout 2017. Here are the highlights of Alegra’s work, focusing on the economic, social and environmental dimensions. The objective is to present to its stakeholders, with transparency and connectivity, how Alegra integrates these dimensions. This is, therefore, an annual document that presents the most relevant facts of the Alegra Industrial Meat Unit, also described throughout the text by the trading name “Alegra� during the year 2017 and is accountable for its performance, every year, addressed mainly to its stakeholders.
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Seeking greater interactivity, better disclosure and better understanding of the information by the reader, this report has undergone some changes in its structure and organization of topics when compared to the previous year. The report for the year 2017 was divided into eight main topics, namely: About the report, Alegra, Market and Products, People, Economic Results, Environmental Results, Animal Welfare and Quality and Summary, and these were subdivided into subtopics similar to those topics of the 2016 report. In addition, the following themes were included: Highlights 2017, Water Management and Materials and Waste Management. [102-49]
[102-45], [102-45]
Unlike the 2016 report, which followed the G-4 version of the Global Reporting Initiative (GRI), this report was prepared in accordance with the most recent version, GRI Standards, in its essential option, reporting the economic, environmental and social information of the organization. [102-54],[102-54]
The information and data presented here refers to the period from January 1 to December 31, 2017 and covers all industrial, administrative and business operations with partners. The information collected with the various areas was approved by the governance structure of the Meat Unit. Only the economic-financial data were verified by the independent auditors of PricewaterhouseCoopers (PWC), according to the Annual Report of Castrolanda Cooperativa Agroindustrial Ltda.
E- mail: comunicacaoalegra@castrolanda.coop.br Telefone: 42 3234 8215 Sac: 0800 646 1050 Site: www.alegrafoods.com.br Facebook: facebook.com/AlegraFoods/ Instagram: instagram.com/alegrafoods/ LinkedIn: linkedin.com/company/alegrafoods/ [102-53]
[102-32], [102-50], [102-56]
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REFORMULATION OF
INFORMATION - In energy-related disclosures [302-1, 302-3, 302-4, 302-5], LPG consumption data were entered by forklifts which were not considered in the report for the year 2016. - In the disclosure [102-5] that refers to the nature and legal form of the operation was inserted the trading name Unium that represents the union of businesses of the cooperatives Castrolanda, FĂsia and Capal in certain commercial branches. - In the disclosures [102-18] [202-2] and [4051], which refer to the governance structure, the methods of defining them have been changed. In 2016 it was defined as governance only Superintendent and Managers. For this report was defined as governance the Superintendent and all managers who respond directly to it.
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- In disclosure [201-1], the information related to intangible value suffered a change in its method of calculation, since in 2017 a classification and analysis was made in the account. Only what was really intangible remained in the account, what was not was transferred to result. Adjustment performed as requested by the board and audit of Castrolanda. - In disclosure [401-1], the calculation procedure for turnover was updated. In the 2016 report, the monthly turnover value was described considering the average frame of that year. For the 2017 report, in order to meet disclosure requirements, annual turnover was reported considering the total number of employees at the end of the period. [102-48]
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CONVERSATION ABOUT
OUR PUBLIC The quest for excellence is part of Alegra’s genetics. It is an inheritance of the Dutch cooperatives that give them cultural, technical and economic support through Unium, the great umbrella of intercooperation brands in the Campos Gerais region of Paranå, Brazil. Intercooperation is a business model that guarantees strategic alliances in investments that offer the cooperative a profitable and structured alternative in the market. It also promotes one of the principles of cooperativism (the union), because together the cooperatives gain scale of production and strength in the regional, national and international markets. Exceeding the expectations of customers, partners and investors is an integral part of your business strategy. The overhaul sought on a continuous basis, encompasses innovating in products, processes and relationships, and understanding consumer trends and demands. [102-42]
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That is why Alegra works to place in each home, market or restaurant in the countries where quality, innovative, reliable solutions with a high nutritional component are available. And it also works to be the preferred choice of customers and consumers, the best place to work for your employees, the ideal ally for growth and development of providers and communities. The company is aware that the natural resources of the planet are limited, that the pressures of population growth and economic development are increasing, and that industry decisions and operations have a positive and negative impact on society and the environment. As a result, it reaffirms its commitment to bring its wellbeing to its stakeholders, and to ensure that for the industry, what matters most is the well-being of people, but with responsible, innovative and sustainable use of resources natural energies.
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we want to reaffirm our commitment to bring wellbeing to our stakeholders, and to ensure that, for us, what matters most is the well-being of people!�
These topics are permanent guidelines for Alegra’s communication with its publics, when it is possible to clarify doubts, align strategies, when it acts as an agent in the disclosure of values, exposing the transparent nature of the actions of the industry. [102-42]
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APPROACHES WITH OUR
STAKEHOLDERS CUSTOMERS AND CONSUMERS Objective: To demonstrate the quality of products and operational processes. Approach: Constant relationship through weekly visits supported by informational, institutional and advertising materials, actions at the points of sale and daily with the services of customer service (SAC) and social media.
scheduled.
CONTRIBUTORS Objective: To retain and develop talents, share values and principles for human and professional development. Approach: Employees are daily impacted by internal communication materials and also receive training and awareness programs related to safety and health. There are weekly meetings between superintendent, management and employees.
COMMUNITIES In relation to communities the communication is established directly through visits previously scheduled with technical schools, universities and clients to the industrial complex. Actions and donation campaigns are eventually carried out. The objective here is to ensure the development and sustainability of the environment.
SUPPLIERS AND PARTNERS With suppliers and partners the communication aims to ensure strategic alignment, values and principles, through relationship through meetings and monthly meetings specific to each sector. COOPERATED With the cooperative seeks to develop based on internal quality standards the strategic alignment of values and principles. The channel of open and transparent communication with the members is through weekly meetings and visits previously
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ORGANIZED CIVIL SOCIETY For organized civil society, industry seeks to be a reference in the production of foods that benefit the community. The approach is through monthly dialogues with the unions on matters relating to labor relations.
FINANCING AND BANKING With lenders and banks, communication serves the goal of gaining public confidence through the transparency with which financial and operational results are communicated. This dialogue takes place through Cooperativa Castrolanda.
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For the year 2017, a well-structured stakeholder engagement plan was designed to better meet the demand of these stakeholders. However, due to some changes in the organizational structure of the parts that make Alegra, this plan of engagement had to be postponed, starting only in 2018.
LOCAL COMMUNITY
SUPPLIERS OF INPUTS
CONTRIBUTORS SWINE GROWERS
MANAGERS
INSTITUTIONAL PARTNERS
COOPERATED
LEADERS
CONSUMERS
[102-40] [102-43]
[102-40] CUSTUMERS
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MATERIALITY The materiality matrix for the 2017 report follows the same one reported in the previous year, after meetings with the superintendency to define the material themes, priorities and definitions that would have more relevance to the organization. However, for public disclosure and understanding, the materiality of 2016 is presented in five global themes: Markets and Products, People, Economic Results, Environmental Results and Animal Quality and Welfare. [102-46] [102-47]
MATERIAL TOPIC [GRI 102-47]
RELATED GRI TOPICS
BOUNDARIES WITHIN ALEGRA
BOUNDARIES OUTSIDE ALEGRA [GRI-103-1]
Purchase Practices
204-1
High Leadership / Managers / Cooperators
Input Suppliers / Swine Growers / Local Community
Customer Health and Safety
416-1
High Leadership / Managers
Consumers / Customers
Market Presence (Senior Managers Hired in the Local Community)
202-1
High Leadership / Managers
Local Community
401-1,401-2
High Leadership / Managers / Contributors
Local Community
405-1
High Leadership / Managers / Contributors
Consumers / Customers
404-1,404-3
High Leadership / Managers / Contributors
Local Community / Institutional Partners / Customers
403-1,403-2, 403-4
High Leadership / Managers / Contributors
Local Community / Institutional Partners / Customers
Economic Performance
201-1
High Leadership / Managers / Contributors / Cooperators
Suppliers of Inputs / Swine Farmers / Local Community / Institutional Partners
Indirect Economic Impacts
203-2
High Leadership
Suppliers of Inputs / Swine Farmers / Local Community / Institutional Partners
Energy
302-1, 302-3, 302-4
High Leadership / Managers
Input suppliers
Water
203-2
High Leadership / Managers
Local community / Customers
Emissions
305-7
High Leadership / Managers
Local Community / Customers / Institutional Partners
Waste and Effluent
306-1
High Leadership / Managers
Local Community / Customers / Institutional Partners
FP-9, FP-10, FP-11, FP-12, FP-13
High Leadership / Managers / Cooperators
Customers / Swine Farmers / Consumers
SUBTOPICS
MARKETS AND PRODUCTS
Employment
The main topics and concerns of the stakeholders, direct in the decision making and in the form of relationship with the public, as shown in the chart on the side.
PEOPLE
Training and Education Health and Safety at Work
ECONOMIC RESULTS
[102-44] [103-1] ENVIRONMENTAL RESULTS
QUALITY AND ANIMAL WELFARE
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Diversity and Equal Opportunities
Animal Welfare
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ABOUT
ALEGRA
The culture of cooperation also leads Alegra to maintain partnership with institutions such as: ABC FOUNDATION Created and maintained by the cooperatives Frísia, Castrolanda and Capal, and its cooperates, it conducts applied research to develop and adapt technologies for the reality of the Campos Gerais region, promoting technological solutions for agribusiness. The safety of the field analyzes carried out by FABC guarantees the quality of the traceability and credibility of the feed of the animals that go to the industry.
WHEAT BUSINESS UNIT
MILK BUSINESS UNIT
With activities starting on October 22, 2015, Alegra is a result of the culture of cooperation, rooted in the origins of the cooperatives Frisia (Carambeí), Castrolanda (Castro) and Capal (Arapoti) cooperatives, and the values of the cooperative families, descendants of Dutch immigrants. Thus, intercooperation was the natural way found by these cooperatives to act in the pork trade in the national and international markets. [102-5] Located on Highway PR 151, km 278 - Castro / PR, the Alegra Meat Industrial Unit (Alegra) is part of a
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MEAT BUSINESS UNIT
strategic alliance sheltered under the Unium brand that offers cooperatives a profitable alternative and market structure. The Unium brand is the symbol of intercooperation, bringing together industrial plants of pigs, dairy and wheat. Announced in November 2017 Unium includes, among others, the brands Alegra, Dutch Heritage (wheat flour), Colônia Holandesa, Colaso and Naturalle (dairy brands). The brands gathered by Unium are already recognized for their quality and excellence. [102-1], [102-3]
SESCOOP The industry benefits from the services of monitoring, professional training and social promotion offered by Sescoop / Paraná (National Service of Learning about Cooperativism), maintained by Ocepar (Organization of Cooperatives of the State of Paraná).
OCB Organization of Brazilian Cooperatives: represents the federal cooperative activity. COONAGRO National Agroindustrial cooperative, an initiative of intercooperation of several cooperatives of Paraná for disintermediation in the commercialization, besides stimulating acquisition and industrialization of raw materials and inputs for the development of its activities. ABPA Brazilian Association of Animal Protein, union of the entities UBABEF, Brazilian Union of Poultry, and ABIPECS, Brazilian Association of the Pork Producing and Exporting Industry. [ 102-13]
Alegra’s activities in the areas of health, safety and the environment are guided by a management policy aimed at providing products that meet aspects of food safety. For the industry it is fundamental to prevent environmental pollution, minimizing environmental impacts of processes, products and services, and to ensure safe and healthy working conditions, complying with all applicable legal and statutory requirements. [102-11] [102-12]
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ORGANIZATIONAL
GOVERNANCE STRUCTURE
Alegra’s governance is organized in the following administrative structure: superintendent, production manager, swine technical manager, internal market manager, administrative coordinator, R & D coordinator, PCP coordinator (production planning and control), quality coordinator, communication manager, external market manager and human resources manager. All respond to oversight.
INDUSTRY MAINTENANCE INDUSTRIAL MANAGEMENT
The Unit also has auxiliary governance structures, consisting of four committees: DIRECTORATE OF INDUSTRY Group composed of the presidents, vice presidents, secretaries of the three cooperatives of the intercooperation, industrial director and operations director of Cooperative Castrolanda and superintendencies of Cooperative Frísia and Cooperativa Capal. They meet quarterly.
SWINE SLAUGHTER TECHNICAL MANAGEMENT OF SWINES
SWINE TECHNICAL COMMITTEE Its function is to monitor production costs and technical decision-making in field actions. [102-18]
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MILK BUSINESS UNIT
FRISIA COOPERATIVE
COMMUNICATION
BONES
EHS
ENVIRONMENT, HEALTH, SAFETY
WAREHOUSE ACCESS CONTROL ADMNISTRATIVE
CASTROLANDA COOPERATIVE
JOINT INTER-COOPERATION COMMITTEE Its main objective is to monitor performance, make strategic decisions regarding the management of the unit, processes and market. FISCAL COMMITTEE ON INTERCOOPERATION Its main function is to monitor, guide and exercise assiduous and meticulous supervision over the operations, activities and services of the cooperatives, exclusively to the shared industrial activities.
FFO AND UTILITIES
OIL AND FLOUR FACTORY
QUALITY CONTROL UNIUM (INTERCOOPERATION)
ALEGRA MEAT UNIT
PEOPLE MANAGEMENT REVENUES AND CUSTOM SERVICE
LOGISTICS
LABORATORY
ALEGRA SUPERINTENDENCE R&D
RESEARCH AND DEVELOPMENT
CAPAL COOPERATIVE
LABORATORY LOGISTICS OF SALES
PPPC
PLANNING, PROGRAM, AND PRODUCTION CONTROL
EXPEDITION PCP
PLANNING AND PRODUCTION CONTROL
WHEAT BUSINESS UNIT
WAREHOUSE INTERNAL MARKET
EXTERNAL MARKET
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VALUES The values of the cooperatives FRísia, Castrolanda and Capal, and principles indicated in the vision and mission of Cooperativa Castrolanda, leader of this project within the intercooperation, govern the activities of Alegra. Alegra’s value proposition defines its purpose as the business unit of the cooperatives involved in the project. These are the foundations that, in line with the Code of Ethics, guide the behavior of its employees. [102-16]
MISSION
VALUES
Generate value to the cooperative, maintaining the cooperative’s sustainable development.
- Transparency; - Ethic; - Creativity; - Appreciation of people; - Commitment; - Leadership; - Union; - Socio-environmental responsibility; - Faithfulness; - Entrepreneurship; - Competence; - Generation of results.
VISION Being an innovative cooperative dedicated to agribusiness, solid, agile, applying the best management techniques, satisfying the expectations of its internal and external clients, seeking the continuous improvement of the quality of life of its members and collaborators and producing consistent, comparable results to market leaders.
VALUE OFFER Produce and deliver food with sustainability, high quality, innovation, convenience and reliability. 22
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CODE OF
ETHICS AND GOVERNANCE CODE OF ETHICS Alegra is an organization committed to ethical values and building a more egalitarian society. And it is fundamental that values such as honesty, integrity and transparency be present in the commercial and institutional relationships, activities and businesses that it maintains with every society at all levels.
Alegra’s code of ethics says:
“
We are committed to complying with applicable national and international anticorruption and bribery laws in all locations where we operate, as well as implementing monitoring and awareness programs to address the risk of bribery and corruption. Transparency at the corporate level is indispensable for achieving our goals. All the businesses, agreements, alliances and projects developed by the organization seek to guarantee the protection of the investment and the well-being of the impacted employees. In any situation Alegra does not give up the respect and promotion of human rights”. It records the company’s Code of Ethics. [102-16]
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CORPORATE GOVERNANCE - Relationship with members; - Relations with employees; - Relationship with service providers; - Relationship with customers and consumers; - Relationship with the environment; - Relationship with the community; - Relationship with society, government and state.
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ALEGRA IN NUMBERS [102-7]
total of 3 operations
• Alegra // Industrial //
• Curitiba store // Business // • Subsidiary SP // Warehousing //
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lines of products:
• Sliced salamis, • Smoked sausages, • Ingredients for feijoada, • Salted, • Smoked, • Flavored sausages, • Fresh sausages, • Easy cutting, • Premium cuts frozen / cooled, • Tempered, • Cuts in natura.
1.476 contributors
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net worth
272,95
R$ millions
exportation in
24 countries liquid sales
511,18
R$ millions
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HIGHLIGHTS
2017
[102-10]
[102-10]
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REDUCTION IN WATER CONSUMPTION BY TON BY TPA
ANIMAL WELFARE CERTIFICATION Alegra became the first swineslaughtering plant in Brazil to conquer the North American Meat Institute (NAMI) certification in animal welfare for pigs awarded by World Quality Services (WQS).
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ENERGY SUBSTATION Investment of R$ 10,78 million in the implementation of a substation improved energy stability and resulted in a monthly saving of R$ 0,074/KWh, or R$ 170.522,25/month.
In the year 2017 there was a saving of 27.7% in unit water consumption per tonne of finished product (TPA).
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EXPENSES WITH LOCAL SUPPLIERS
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INCREASE OF THE NUMBER OF CONTRIBUTORS
In 2017 about 40% of the value of Alegra’s procurement budget was allocated to local suppliers. With this the organization even acting in the national and international market seeks to value the economy and regional development.
EXPERIMENTAL KITCHEN Implementation of an experimental kitchen in 2017 allowed the industry to develop and elaborate products, train people and receive customers and cooperates in the demonstration of its portfolio.
DIVERSITY OF CONTRIBUTORS A distinguishing feature of Alegra is its diversity of its staff: 45% are female and 55% are male.
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Challenging the behavior of the country’s economic recession during 2017, Alegra registered a growth of 38.2% in its staff.
[102-10]
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MARKETS AND
PRODUCTS The conquest of markets and the development of products are important in any segment of economic activity. For Alegra, however, these issues are of even greater importance. Young in the market, in the process of conquering new consumers, Alegra has sales teams in several Brazilian states and the search for accreditations to export to international markets is part of its routine work. However, the expansion of the brand is only possible with the development of products that meet and satisfy an increasingly demanding consumer, within a highly competitive market. For this a team works daily in the research and development products that meet all the demands of the consumers. In addition, all processes and products undergo continuous monitoring to ensure their quality and customer safety. The results of these efforts are evident. In a little over three years of operation Alegra is already a brand present in the largest Brazilian markets, and exports to several countries around the globe.
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PRODUCT LINES: SALAMI AND CUP
PRODUCTS Alone or together with a partner, Alegra brand already stamps more than 50 different products present in markets throughout the country. The identity forged in Campos Gerais qualifies salami and canned, cooked and smoked hams, appetizers, sausages of various types, bacons, smoked rib and boneless, loin, shank, picanha, filet, file mignon, carré and other cuts. Thanks to partnerships built in recent years, today Alegra serves food giants such as McDonalds, Ceratti, BOUA, Madero and Outback Steakhouse.
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SLICED
PRESUNTARIA
FRESH SAUSAGES
MILANO TYPE HAMBURGUES TYPE ITALIAN TYPE SALAMI CUP SALAMIS SMOKED HAM BAKED HAM CUP LOIN BAKED HAM SMOKED HAM HAM LUNCHEON MEAT LOIN TOSCANA SAUSAGE SHANK SAUSAGE BARBECUE SAUSAGE
SMOKED SAUSAGES
PEPPERONI PORTUGUESE PAIO
INGREDIENTS FOR FEIJOADA
INGREDIENTS FOR FEIJOADA
SMOKED
SPECIAL BACON FOR SHANK SMOKED SWINE RIB SLICED BACON
FLAVORED SAUSAGES
CHEESE SPICE BACON PARSLEY
PREMIUM CUTS
T-BONE BONELESS RIB ENGLISH LOIN RIBEYE PRIME RIB
EASY CUT
SLICED PICANHA SLICED LOIN-CUP ENGLISH LOIN CUT FILET MIGNON RIPA RIB SLICED LOIN BARBECUE RIB
SEASONED
SHANK LOIN SWINE PICANHA SHOULDER PORK FILET MIGNON
IN NATURA CUTS
RIB ROAST PORK SHOULDER PORK SWINE LOIN FILET MIGNON CARRE
[102-2]
[103-2; 103-3]
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MARKETPLACE
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24 COUNTRIES OF EXTERNAL MARKET
Alegra operates with 24 countries in the foreign market and 17 states within the Brazilian territory, in the branches of retailers, wholesalers, food service and industries. They deserve registration: Angola, Argentina, Armenia, Azerbaijan, Bahamas, Bonaire, Cape Verde, Singapore, Congo, Côte d’Ivoire, United Arab Emirates, Georgia, Grenada, Haiti, Hong Kong, Kosovo, Maldives, Paraguay, Saint Martin, Seychelles and Uruguay. In the domestic market Alegra products are present in: Alagoas, Bahia, Ceará, Espírito Santo, Goiás, Maranhão, Mato Grosso do Sul, Minas Gerais, Pará, Paraná, Pernambuco, Piauí, Rio de Janeiro, Rio Grande do Sul, Santa Catarina , São Paulo, Sergipe. [102-4], [102-6]
17 STATES OF DOMESTIC MARKET
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GLOBAL PRESENCE 35
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SUPPLY
CHAIN FIELD Production consists of 130 producers of the cooperatives Frisia, Castrolanda and Capal. Pig farmers work on 160 properties. They produce in two distinct systems: full-cycle farms and UPLs (swine production units) and finishing farms. There are producers who produce 22 kg piglets and producers who receive these piglets and fatten up to 120kg for delivery in the industry.
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COOPERATIVE RATION
RAW MATERIAL PRODUCTION
PARTNERS
AGRICULTURAL RESEARCH
TRANSPORTATION
SWINE
FIELD
PRODUCTION RAW MATERIAL The raw material for feeding swines is produced by the cooperatives of the three cooperatives. Cooperative feed factories acquire this raw material and provide adequate balanced feed for swines.
HEADQUARTERS PARTNERS
INDUSTRY PROCESSING UPL
In 2017 approximately 40% of the purchase COOPERATIVE value of Alegra was destined to local suppliers, in this occasion we consider as local suppliers all those present in the area covered by DDD 42. [204-1]
SALES
DISTRIBUTION
MARKET
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[102-9]
CONSUMER
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AGRICULTURAL RESEARCH The ABC Foundation is a historical technological arm of the Frisia, Castrolanda and Capal cooperatives, which for more than 30 years has offered the support of applied research to cooperatives of ABC cooperatives. In relation to Alegra, the FABC research recommends grains of better quality and lower cost for use in rations destined to the swines. TECHNICAL ASSISTANCE The cooperatives maintain technical support staff for cooperative members, trained by veterinarians, zoo technicians and agricultural technicians, as well as environment professionals who take care of environmental legislation. The technicians seek to standardize the production according to the need of the industry and the requirements of the market.
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TRANSPORT The transport of the animals to the industry is carried out by third-party transporters, trained in animal welfare practices, observing strictly: recommended stocking for each type of vehicle, use of sombrite, wetting of animals in the heat season. Such care minimizes animal stress and ensures better meat quality to the consumer.
SALE Located between processing and distribution, the sales force promotes sales, takes care of the approach and development of the market, works the attributes and values of the brand and the product before the customers. Traditionally it is made up of vendors, supervisors, regional managers, sales promoters.
INDUSTRY It deals with the slaughtering and processing of live pigs into products to be made available to the consumer market. It works according to a monthly production plan, observing the quality of the products, requirements and needs of the market.
DISTRIBUTION It includes restaurants, distributors, wholesalers, supermarkets and Alegra stores, after processing the products. Logistics assumes the task of distribution and delivery to the market. It works with a fleet of refrigerated vehicles, exclusive, submitted to chek-list and cold camera evaluations. Alegra has a DC (distribution center) in São Paulo and operators in Rio de Janeiro, São Paulo, Fortaleza and Salvador. All production destined to the foreign market leaves Brazil through the Port of Itajaí.
PROCESSING Step that takes care of the manipulation, elaboration and transformation of the raw material in finished products. The processing of pork results in a wide range of nutritious and tasty food products.
66
68
MARKETPLACE This is a very broad concept. It could be a restaurant, supermarket, wholesale retail, and even a gourmet chain. The market can be serviced through pre-sales (vendors, supervisors, regional managers) and Food Solutions teams. CONSUMER Alegra’s market research has identified that its consumer has several profiles, distributed in several social layers, which are served according to the brand’s diversified portfolio. [102-9]
39
06
18
PEOPLE Alegra believes that people are its greatest asset, knowing that they are the biggest responsible for the growth of its business. For this, several training and engagement programs are developed for its employees, always seeking to break down barriers between employees and managers, seeking to listen to all without differentiating positions. The company works with a wide variety of types of people. And it is proud to say that it does not make choices about race, religion, color, ethnicity, creed, sexual choice, or social class.
32
40
42
“
56
66
68
The goal is for employees to be proud of working at Alegra.�
For the health and safety of its employees, the industry was designed with the intention of minimizing impacts to the maximum, preserving the physical and psychological integrity of all. For each equipment that presents some type of risk is drawn up a plan of adequacy with date to be executed until the problem is remedied. The industry has its own system to monitor and control all employees safety, so they can feel free to perform the best work possible. The goal is for employees to be proud of working at Alegra. [103-2; 103-3]
40
41
06
18
32
WOMEN
TOTAL
PERCENTAGE
MEN
DISMISSED TOTAL
PERCENTAGE
2016
2017
156 474 33%
132 664 20%
165 594 28%
165 812 20%
30%
ANNUAL ROTATION
2,5%
MONTHLY ROTATIVITY
42
56
68
MANAGEMENT Attracting, retaining and developing people are permanent challenges that Alegra faces on a daily basis within the scenario of social changes, obliging to identify and propose new strategies to fit the needs and expectations of the market and its employees.
20%
ANNUAL ROTATION
1,67%
MONTHLY ROTATIVITY
[401-1]
The development of its staff is essential to the success of Alegra’s business. Therefore, the industry invests continuously in training and qualification of personnel. In 2017 were 181,109 hours worked and 1481 hours of training resulting in a percentage of 0,82% hours of training/hours worked. With a workforce of 1476 employees at the end of 2017, a percentage of 0,99 hours of training per employee was recorded. [404-1] The hours of training per employee had a decrease compared to the year 2016. This is mainly due to the fact that 2016 was still a year of beginning operations, causing a large number of new employees to receive training. By 2017, since many of these employees had already received training, this workload per employee decreased because there was no need to retrain them. However, staff training has always been maintained to qualify
42
66
PEOPLE
STAFF TURNOVER DISMISSED
40
“
The development of its staff is essential to the success of Alegra’s business.”
staff for best performance. In 2017, about 720 people underwent performance appraisal during the year, of which 130 in a structured way and 590 by informal feedback. [404-3]
43
06
18
32
40
42
56
66
CONTRIBUTORS The governance structure of the Alegra Meat Unit has 11 employees who constitute the group of managers together with the superintendent. Three of them belong to the local community (Campos Gerais) and seven come from other regions. A profile examination shows that 82% are male and 18% female. Below 30 years, 9.1%, from 30 to 50 years, 63.7%, and above 50 years 27.2%.
44
PERMANENT CONTRACTS
[202-2], [405-1]
The number of employees in December 2017 totaled 1476, of which 45% belonged to the female group (664) and 55% belonged to the male group (812). Under the age of 30 there were 752 employees; from 30 to 50 years 685 employees, and with more than 50 years 39 employees. In relation to minorities, in 2017 we had 52 (3.53%) apprentices and 33 (2.23%) PCD s (Persons with Disabilities).
“
WORK CONTRACTS ADMINISTRATIVE
PRODUCTION
51
WOMEN
WOMEN
104
708
MEN
68
TOTAL
664 WOMEN 812 MEN
613
MEN
* In 2017 there were no new hires under temporary regime.
The sectors of work in Alegra are divided as follows:
Management, People Management, Logistics, Communication and Store.
ADMINISTRATIVE SECTORS Administrative, Concierge, Billing, Warehouse, Kitchen Cup, SSMA, IT, Commercial MI, Commercial ME, Swine Logistics, Technical
PRODUCTION SECTORS PCP, Laboratory, Slaughtering, Bones, Internal Innards, external innards, Secondary Packaging, Cutting Room, Loading, Fabric Flour, Maintenance, Steam Generation, Refrigeration, Tunnel,
The benefits granted to effective employees are life insurance, pharmacy, dental, health, optician, private pension, academy, school supplies, education grant, and variable compensation.” [102-8] [401-2]
Sanitation, Sewage Treatment Stations, Quality, Administrative, production, R&D, SIF, Shipping, Boiled sausages, Sliced, Condiment, Secondary industry packaging, Fresh sausages, Bacon, Salami and Cup, Ham, Marinated and seasoned. THIRD PARTY SECTOR It involves the hiring of outsourced companies for services such as restaurant, surveillance, tripod, dressing room and gardening. Collective bargaining covers 100% of Alegra’s permanent employees. The organization has as its policy the negotiation between the representative classes. All its employees have the freedom of association with the representative entities. [102-41]
45
06
18
32
40
42
56
66
68
HEALTH AND SAFETY AT WORK
The Industrial Unit meets all legal requirements of labor legislation. Collective agreement, and seeks continuous improvement in safety and health at work processes. In 2017, 40 legal trainings were carried out in compliance with NRs, (regulatory standards) traffic education (defensive direction), evacuation simulations of the Emergency Brigade, preventive alert (programs), handling with piercing materials. The company tracks its accident reduction performance with one of the HSE (Health, Safety and Environment) or SMI (Safety Maturity Index) indicators. It is an indicator of occurrences related to work accidents, with information on the level of health and safety care, number of employees in the current month, amount of man-hours worked, accidents with or without leave, frequency and severity. [403-4] Alegra started its activities three years ago and the comparison in the indicators of SMI can already be verified from its evolution, where it was able to reduce the number of ACA’s (Accident with Removal) and ASA’s (Accident Without leave), in
46
ACCIDENT FREQUENCY RATE 140 120,39
120 114,82
100 80 60 40
54,02
57,65
20 0
5,57
3,63
INTERNATIONAL FREQUENCY RATE (IFR)
ACCIDENT FREQUENCY RATE (AFR)
2016 2017
TOTAL (FREQUENCY RATE)
[403-2]
relation to the years above.
47
06
18
32
40
42
56
66
“
In this monitoring of the occurrence of accidents it can be observed that there was a reduction in the frequency rate. Careful with these cases the company has worked internal security campaigns, monitoring deviations with behavioral tools and retraining in training. The indicator of SMI had a small increase in 2017 due to the occurrence of some accidents with remoteness. However, the indicator still remained within the ceiling of the five index (5), forecast for 2016 and 2017. For 2018 a new value for the IMS ceiling has been defined, which will be reduced to four (4). Alegra seeks continuous improvement and is engaged in reducing occurrences with safety campaigns, behavioral approach, standardization and implementation of procedures and standards. [403-2]
The industry has continuous improvement programs that seek the development and excellence in the actions, that is, studies and data to implement new proposals of activities and execution of the projects that are in progress. Among these programs is the Farol - internal audit - formed by a group of specialists in Integrated Management Systems that carry out internal audits in the units, including Alegra. The Farol displays, among others, safety indicators that in 2017 obtained significant indexes, showing the great growth and development of Safe Culture. The vast majority of sectors closed the year with 80% of compliance with the norms and procedures evaluated by the Farol. These goals contemplate legal obligations and also good internal practices. For the missed items, action plans were created to meet 100% of the goals.
48
68
The industry has continuous improvement programs that seek the development and excellence in the actions.”
SMI - SAFETY MATURITY INDEX 5 4 3
3,52
2
1,62 1
2016 RESULTS
2017
CEILING LIMIT
This shows how important Alegra’s vision is to improve the well-being of its employees. So that everyone works in a safe, healthy, pleasant and also sustainable environment. Alegra’s entire workforce, at all levels, is represented in formal committees on health and safety at work, which assist in the monitoring and prevention of risks linked to health and safety at work. [403-1]
49
06
18
FOOD
32
SECURITY Alegra believes that before taking any product to the table of its customers is necessary to do the best in each stage of the production process. For this, it offers ideal working conditions and invests in state-of-the-art technology and equipment, aiming at guaranteeing the quality of the products, which are subjected to analysis by samplings, verifying aspects of quality and food safety.
40
42
“
56
66
68
Alegra believes that before taking any product to the table of its customers is necessary to do the best in each stage of the production process.�
Also in this sense the company counts on the qualification by the FIS (Federal Inspection Service) to export and commercialize in the domestic market. It also has self-control programs, specific standards, GMP (Good Manufacturing Practices), HACCP (Hazard Analysis and Critical Control Point) system, and meets the specific requirements of customers, all aiming to eliminate the risks of contamination and guarantee the quality of the product. Finally, it also has SAC (Customer Service/ Consumer Service), whose purpose is to treat the nonconformities identified by its customers/ consumers seeking the continuous improvement of its processes and products. [416-1]
50
51
06
18
32
40
42
56
66
68
ECONOMIC
RESULTS One of the main factors for a company to remain solid and with good market representativeness is to obtain economic results. The origin of Alegra is based on a large investment, subsidized in part by the cooperatives Frisia, Castrolanda and Capal, thinking both to meet their productive demands and also to make the business profitable and advantageous for its partners. Thus, financial control and support from cooperatives meant that in 2017, even though this was a period of financial crisis in the country, where several companies in the segment suffered from reports of corruption and manufacturing failures, Alegra remained stable, reliable and conquering new markets, both internal and external, increasing its production, developing and strengthening itself. [103-2; 103-3]
52
53
06
18
32
40
42
56
66
68
RESULTS OF 2017
“
Market opening for producers and the creation of new jobs have a positive influence on urban and rural development, making it possible to raise household incomes through the provision of work for women.�
The production of animal protein and its industrialization contribute decisively for the economic development of the Campos Gerais region. In the agricultural sector, farmers attracted by the increasing demand for pork from the industry, invest in the diversification of production including the production of swines in their
54
Direct economic value generated
business. Support sectors, such as transportation, logistics, feed production, maintenance of facilities and equipment, grow in the wake of swine farming. Market opening for producers and the creation of new jobs have a positive influence on urban and rural development, making it possible to raise household incomes through the provision of work for women. It also implies an increase in the collection of taxes and in the expansion of access to services such as medical, dental, pharmacy, transportation, sports and leisure, improving the quality of life of several families. When the Brazilian economy experienced difficulties during 2017, the direct and indirect impacts caused by Alegra’s emergence allowed the region to minimize its economic and social problems, and to start structuring a chain, which should amplify its effects to the extent that other businesses are being created. The demand for specialized labor means that the technical development of the region has a gradual increase. Employees who already work in the company see the opportunity of a career plan, and increasingly seek qualification, contributing to technical development of the entire region.
Total net sales: R$
511,18millions
Distributed economic value
Operational costs: R$
96,67millions
Total cost with people: R$
73,38 millions
Total payed value of:
Social charges under service providers, ICMS and ICMS Subst. Tax.
R$
27,61 millions
Retained economic value Direct economic value generated less distributed economic value.
R$
341,12 millions
[201-1]
[203-2]
55
06
18
32
40
42
56
66
68
ENVIRONMENTAL
RESULTS Since the development of its project the Alegra plant was designed so that the environmental impacts were the minimum possible. For the energy consumption, use and treatment of water, as well as for atmospheric emissions, the plant has several technologies that aim to reduce the impacts to the environment. The possible impacts are still controlled through environmental monitoring, in order to comply with all existing environmental legislation. In the area of materials and waste, practices range from the purchase of suppliers who work with reverse logistics or who supply materials made from recycled products, the reuse of materials in the industry itself, and the proper sorting and disposal of recyclable materials and hazardous waste. The result is that during the entire operation Alegra received no fines, penalties or even environmental claims. [103-2][103-3]
The environmental management practices in the Industrial Unit are in line with internal regulations and legislation, as well as having an important role to drive the search for technologies that allow mitigating the impacts on natural resources.
“
The result is that during the entire operation Alegra received no fines, penalties or even environmental claims.�
the Environmental Protection Area (APA) of the Devonian Escarpment, which has as its main feature the beauty of its landscapes composed of canyons, archaeological and rocky remains. Its vegetation is mainly composed of native fields, and the flora is rich because it owns specific animals of the region, threatened of extinction. Another Conservation Unit is the Caxambu State Park. Closer to the Unit it aims to protect part of the rich vegetation composed by mixed ombrophilous, as well as its fauna and water resources. It is important to remember that the Unit is not located within any of these areas, but in its vicinity. [304-1]
The Industrial Unit is located in the vicinity of two environmental protection areas. One of them is
56
57
The water usage in the production process is essential to produce with quality. Alegra continues to manage its water resources with a balance between environmental, social and economic initiatives for its operations. Regarding water withdrawal by source, in 2017 there was a reduction of 3.2% in the total volume of water collected from the Piraí River (506.72 thousand m3) and there was no abstraction of groundwater and supply by public or private services. According to local rainfall data, 35.92 thousand m3 of rainwater was collected in the roof areas of the industrial unit in 2017. Despite the increase in production of approximately 30%, it can be observed that the total water abstraction reduced by 6.5%, or 37.42 thousand m3 of water. This economy is equivalent to approximately one month of Alegra’s operational consumption and equates to the water volume of about 15 Olympic pools. In the year of 2017 were used 49,759m3 of water from source of reuse. This source of reuse is specifically the final effluent treated at the effluent treatment plant, this is used in the washing of trucks and sieves used in the primary treatment of effluents. [303-3]
58
REDUCTION IN WATER VOLUME CAPTURED IN 2017
-37,42
thousand m3 of utilized waterwater
42
56
CAPTATION IN THE PIRAI RIVER
captured water
(MIL M³/YEAR)
600
60
400
40
200
0
2017
20
0
of 22.6% (5.451m3 per TPA of 2017 / 7.047m3 per TPA of 2016). The analyzed parameters were evaluated as required in the Environmental Operation License, which used Conama Resolution 357/2005 as a basis.
2016
water usage per tonne of finished product
2017
There was a reduction in rainwater harvesting in relation to 2016, due to the lower rainfall in 2017.
-Total water abstracted = 542.648m³ (Capture of the Piraí river: 506.723m³, Rainwater: 35925 m³) -Total reuse water = 49.759m³ ie, 9,17% of the water abstracted is reused.
-22,6%
68
RAIN CAPTURE
(MIL M³/YEAR)
2016
-6,5%
66
*Values obtained through flow monitors.
[303-3]
The analyzes of the final effluent are carried out biweekly by a duly accredited laboratory at the environmental institute of Paraná. In 2017, the effluent treatment plant was in its final suitability process receiving investments to comply with current legislation. 430.151 m³ of effluent were treated. Even with the increase of production this volume was lower than the planned one that based on the year 2016 was of 493.056m3. Regarding the rate of effluent generation per tonne of meat produced, there was a decrease
As análises do efluente final são realizadas quinzenalmente por laboratório devidamente credenciado no instituto ambiental do Paraná. Em 2017 a estação de tratamento de efluentes esteve no seu processo final de adequação recebendo investimentos visando atender a legislação vigente. [306-1]
35,92
MANAGEMENT
40
56,68
WATER
32
506,72
18
523.38
06
TREATMENT PROCESS The effluent from the industrial facilities is sent to the equalization tank, previously passed through a static sieve for retention of coarse particulates. There follows a complex process which comprises, among other steps: dosing of chemicals, float 1, aerobic selector tank, anoxide reactor 1, aeration tank, anoxide reactor 2, post oxidation, decanter, float 2 and the final release. The excess of biological sludge generated in the system follows for dewatering in a sludge centrifuge. The sludge generated after centrifugal processing is sent to buckets, which are then transported by a duly licensed company and destined for a composting plant where it is transformed into an organic fertilizer. [306-1]
59
32
40
42
56
ENERGY
MANAGEMENT
66
68
ENERGY EFFICIENCY 400.000
300.000
Alegra believes that investments in renewable energy and energy efficiency are ways to contribute to the reduction of greenhouse gas emissions. As a result, it permanently allocates resources and efforts that enable the use of more efficient equipment and increase the use of renewable sources, in addition to having targets for reducing energy consumption in its operations.
The electric energy was considered as coming from 100% hydroelectric according to purchase in free market.
In 2017 the total consumption of energy within the Industrial Unit of Meats reached 353,647.24 GJ, originating from the following sources, as the following data reveals:
Types of energy included in the intensity rate: Hydropower, Diesel, LPG and Cavaco. [302-3]
The unit already realizes the purchase of energy of the free market of this 2016. What happened after the implantation of the substation 138 was a reduction in the costs of distribution. [302-1]
200.000
100.000
2016
284.507,55GJ
3,9103 GJ/TPA
18
4,0661 GJ/TPA
06
2017
The Alegra Meat Industrial Unit achieved a reduction in energy consumption of 0,1558 GJ/TPA in the year 2017 when compared to 2016. [302-4]
353.647,24 GJ
The metric used to calculate the energy intensity was expressed in tonnes produced per year (TPA), regardless of the production mix.
ELECTRICITY USAGE
ENERGY INTENSITY RATE 3,9103 GJ/TPA/YEAR
21.957.484 kWh = 79.046,94 GJ/year HEATING USAGE
NON RENEWABLE ENERGY
OIL DIESEL 136,01 GJ/year LPG
200,87 GJ/year GASOLINE
110,99 GJ/year
85.978,50 GJ/year
ETHANOL
7,05 GJ/year
RENEWABLE ENERGY
CAVACO (EUCALYPTUS) 85.978,50 GJ/year ELECTRICITY
21.957.484 kWh 79.046,94 GJ/year
REFRIGERATION USAGE 5.632.786,40 kcal = 23,60 GJ/year STEAM USAGE
67.768.000 kg = 45.011.505.600 kcal = 188.598,20 GJ/year
[302-1]
*Methodology: Heat power data taken from Aalborg tables, and unit conversions and fuel densities as reported by the manufacturer.
60
61
06
18
Alegra is a company that holds much by the quality of its suppliers. Faced with this, about 25.35% of all materials used in its production process are from waste already recycled.
32
40
42
56
66
68
MATERIALS
AND WASTE MANAGEMENT Alegra’s operations in relation to the management of materials and waste aim to comply with the National Solid Waste Policy (PNRS), which seeks to reduce waste generation, increase recycling and reuse of materials, and address environmentally appropriate disposal. This policy also establishes shared responsibility between post-industrial and post-consumer waste generators (packaging).
UTILIZED MATERIALS FROM NON RENEWABLE ORIGIN Plastics:
2551,50 ton
Plastic, fabric and aluminium: Labels:
6,02 ton
[301-2]
Beside is the description of the materials used by Alegra:
21,23 ton
UTILIZED MATERIALS FROM RENEWABLE ORIGIN Cardboard:
1582,10 ton
Gut and collagen:
440,08 ton
Condiments and ingredients: [301-1],[301-2]
62
1638,33 ton
63
06
18
32
40
42
56
66
68
EMISSIONS Alegra periodically monitors its atmospheric emissions in order to ensure that these gases are within the parameters of legislation, and thus prevent them from damaging the air we breathe. Below are the results of the annual average of monitoring: [305-7]
FLAMOTUBULAR BOILER H. BREMER HBFR-3
3
RESULTS
2017
1000mg/Nm
149,1
016/2014
mg/Nm3
mg/Nm3
500
SEMA LIMIT
400
NOx
695,52 016/2014
mg/Nm3
RESULTS
54,45
CO
SEMA LIMIT
SEMA LIMIT
016/2014
RESULTS
PARTICULATE MATERIAL (MP)
mg/Nm3
mg/Nm3
FLAMOTUBULAR BOILER H. BREMER HBFR-5
2017
1000
SEMA LIMIT
495,09
016/2014
RESULTS
CO
64
mg/Nm3
mg/Nm3
*Data obtained from the average of the monitoring carried out in the first and second half of 2017 analyzing the parameters determined in SEMA Resolution No. 016/2014 that establishes the maximum emission limits of atmospheric pollutants for fixed sources.
65
06
18
32
40
QUALITY AND ANIMAL WELFARE Animal welfare is one of the items to which Alegra maintains special attention. It is not only related to the care of animals within the industry, but throughout the production chain. In all, there are 132 cooperating suppliers of swines, receiving constant technical assistance from professionals in the most diverse areas, such as: veterinary medicine, zootecnia, engineering and agricultural technicians with knowledge in the areas of health, nutrition, animal welfare, and environment. Alegra integrates technical actions and technologies ranging from transportation, handling to slaughtering of animals. In this last item, the most prominent is the desensitization, made through carbon dioxide (CO2), a method that when compared to others causes less pain and suffering to the animals, besides providing a better quality meat. In the face of all the attention paid to animal welfare, in 2017, industry became the first Brazilian Pork Industrial Unit to win the North American Meat Institute (NAMI) certification in animal welfare. Contemplating receiving, transporting and slaughtering of swines granted by World Quality Services (WQS). [103-2] [103-3] Animal comfort Through its animal welfare self-control program, Alegra establishes the appropriate requirements for the management and control of all stages involving the management of swines within the industry, aiming at effective control over the legal requirements of animal welfare standards, reducing
66
the pain and suffering of animals, also contributing to improving the quality of meat for consumption purposes. The program reaches producers, farm workers, transporters and drivers, planning, production, technical assistance, quality assurance and all employees in the areas of reception, unloading, pens, stun and bleeding. [FP-13] During 2017, the Unit processed 751,393 swines, 99.8% of which came from the Frisia, Castrolanda and Capal cooperatives. There are 132 suppliers of pigs. The other pigs were purchased in the local market. [FP-11]
The slaughtered animals come from the breeding of genes from several breeds of the world’s leading genetics companies. Alegra has a Genetic Development Unit that has the best breeding stock guaranteed to distribute and disseminate the best genes to meet market demands. All insemination is performed artificially, with approximately 70% post-cervical insemination and 30% cervical insemination. [FP-9]
42
56 INDIVIDUAL GESTATION
66
68
COLLECTIVE GESTATION use of vaccines, cleaning and disinfection procedures, among others.
81%
19%
All piglets in the maternity and nursery stages are housed in temperature controlled environments, 65% of which are powered by electricity and 35% by biogas from the effluent produced by the pigs. In the termination phase the animals are raised collectively, out of bays, and the temperature is controlled by curtains. In the reproduction phase the matrices are housed in three temperature control systems, being: - Negative pressure with automatic control for 18% of the matrices -System of nebulizers, fans and curtains for 22% of the matrices - Curtain system for 60% of the matrices. The year of 2017 was closed with 19% of the swine matrices housed in a collective bays system according to European standards of animal welfare, 81% still follow in the individual gestation system. For the new projects we will follow the concept of animal welfare according to European legislation, since in Brazil there is still no legislation on the subject. [FP-11]
Alegra is aware of the opportunities to reduce the use of antibiotics according to technical guidelines for the preservation of human health. The use of these medicines is always carried out with the monitoring of specialized veterinary doctors, providing their proper guidelines. In fact, all the drugs used in the production of swines are duly registered in the Ministry of Agriculture, Livestock and Supply (MAPA). The production system is free of hormones and also ractopamine, food additive which is banned from several import markets. Alegra has also gradually banned the cutting and wearing procedure of the teeth of the newborn piglets. In 2017 were 41% of the animals without cut and wear of the teeth. [FP-12] In 2016 was used Immunocastration (chemical castration of males), which increased odor and characteristic taste in the meat. We continue in this way adopting the procedure used in Europe and in other countries. The pre-slaughtering and transport of the swines is carried out in a way to comply with Brazilian legislation, as well as animal welfare practices. [FP-10]
Regarding herd health, the program focuses on actions that reinforce the prevention of possible diseases. These are: acquisition of certified breeding stock, quality control of feed ingredients,
67
06
18
32
40
42
56
66
68
SUMĂ RIO GRI [102-55]
GROUPS OF INFORMATION
GRI STANDARDS
DEFINITION
PAGE
GROUPS OF INFORMATION
GRI STANDARDS
GRI TOPIC
DEFINITION
PAGE
102-1
Name of the organization
18
102-45
Entities included in the consolidated financial report
7
102-2
Activities, brand, products and services
32, 33
102-46
Defining report content and topic limitations
16
102-3
Location of the headquarters
18
102-47
List of material topics
16
102-4
Location of the operations
34, 35
102-48
Retention of information
8
102-5
Property and legal
18
102-49
Changes on the reports
7
102-6
Markets served
34
102-50
Report periods
7
102-7
Organizational scale
26, 27
102-51
Date of the most recent report
7
102-8
Information about employees and other workers
44, 45
102-52
Report cicle
7
102-9
Supply chain
36, 37, 38, 39
102-53
Contact for questions related to the report
7
102-10
Significantly changes on the organization and supply chain
28, 29, 30, 31
102-54
Statements that the report conforms to the GRI Standards
7
102-11
Principles and caution
19
102-55
Content index of GRI
102-12
External initiatives
19
68, 69, 70, 71, 72
102-13
Adoption of associations
19
102-56
External guarantees
7
STRATEGY
102-14
Declaration of the senior decision maker
4,5,6,7
ETHICS AND INTEGRITY
102-16
Values, principles, pattern, and comportamental rules
22, 23, 24, 25
103-1
Explanation of the material topic and its limits
16, 17
102-18
Governance structure
20, 21
102-32
Role of the highest governance body in reporting sustainability
7
102-40
Stakeholders group list
14, 15
102-41
Agreements of collective convention
45
419-1
Non-compliance with laws and regulations in the social and economic areas
102-42
Identification and selection of stakeholders
11, 12
102-43
Approach of stakeholders engagement
14
102-44
Topics and main concerns raised
16, 17
ORGANIZATIONAL PROFILE
GRI 102: General Declarations
GOVERNANCE
STAKEHOLDERS ENGAGEMENT
68
GRI TOPIC
REPORTING PRACTICES
MANAGEMENT APPROACH
GRI 103: Management Approach
OTHERS
GRI 419: Socioeconomic Observance
In the year 2017 there was no record of fine or socioeconomic and environmental sanction arising from non-compliance with legislation pertinent to Alegra.
69
06
18
GROUPS OF INFORMATION
MARKET AND PRODUCTS
GRI STANDARDS
GRI 103: Management Approach GRI 204: Purchase Practices GRI 103: Management Approach GRI 202: Presence in the Market GRI 401: Job
70
DEFINITION
42
PAGE
56
GROUPS OF INFORMATION
GRI STANDARDS
Management approach evaluation
56
301-1
Weight or volume used materials
62, 63
301-2
Recycled utilized inputs
62, 63
302-1
Energy use inside of the organization
61, 63
302-3
Energetical intensity
61
302-4
Reduction of energy consumption
61
303-1
Water removal per source
58, 59
303-3
Reused and recycled water
58, 59
GRI 304: Biodiversity
304-1
Operational sites owned, rented, managed in or adjacent to the area of environmental protection and high value diversity area
56
GRI 305: Emissions
305-7
Emission of Nox and Sox gas and other significant emissions
64
GRI 306: Effluents and Tailings
306-1
Discharge of water by quality and destination
59
103-2
General approach and its components
66
103-3
Management approach evaluation
66
Management approach evaluation
32
204-1
Services and supplies
36
GRI 301: Materials
103-2
General approach and its components
40
103-3
Management approach evaluation
40
202-2
Proportion of senior managers hired from the local community
44
401-1
New employees hired and turnover
42, 43
401-2
Benefits to full-time employees who are not offered to temporary or part-time employees
45
Absenteeism rate, occupational diseases, days lost and total number of work-related fatalities
46, 49
403-4
Health and safety topics covered in formal agreements with trade unions
49
404-1
Average hours of training per year per employee
43
404-3
Percentage of employees receiving regular performance reviews and career development
43
GRI 405: Diversity and Equal Opportunities
405-1
Diversity of the governance body and employees
44, 45
GRI 416: Customer Health and Safety
416-1
Assessment of health and safety impacts of categories of products and services
50
GRI 103: Management Approach
103-2
General approach and its components
52
103-3
Management approach evaluation
52
GRI 201: Economic Performance
201-1
Direct economic value generated / distributed / withheld
55
203-2
Significant indirect economic impacts
54
GRI 302: Energy
QUALITY AND ANIMAL WELFARE
PAGE
103-3
103-3
GRI 103: Management Approach
403-2
DEFINITION
56
32
49
GRI TOPIC
68
General approach and its components
General approach and its components
ENVIRONMENTAL RESULTS
66
103-2
103-2
Workforce represented on health and safety committees
GRI 404: Training and Education
ECONOMIC RESULTS
GRI TOPIC
40
403-1 GRI 403: Occupational Health and Safety
PEOPLE
32
GRI 303: Water
GRI 103: Management Approach
71
06
18
GROUPS OF INFORMATION
QUALITY AND ANIMAL WELFARE
72
GRI STANDARDS
Sectoral: Quality and Animal Welfare
32
GRI TOPIC
40
DEFINITION
42
56
66
68
PAGE
FP-09
Percentage and total of animals raised and / or processed, by species and type of breeding
66, 67
FP-10
Policies and practices, by species and type of procreation, related to physical changes and use of anesthetics
67
FP-11
Percentage and total of animals raised and / or processed, by species and type of procreation, by type of housing
66
FP-12
Policies and practices on antibiotics, antiinflammatories, hormones and / or growth promoting treatments, by species and type of procreation
67
FP-13
Total number of significant incidents of noncompliance with laws and regulations, adherence to standard and volatile transport, handling and slaughter practices for terrestrial and aquatic animals.
66
73
06
18
32
40
42
56
66
68
OFFICE HOUR Overall coordination: Amauri de Castro Oliveira Sérgio Pires Machado Torbim de Geus Third party consultants: Antonio Carlos De Francisco (LESP/UTFPR) Cassiano Moro Piekarski (LESP/UTFPR) Daniel Poletto Tesser (LESP/UTFPR) Guilherme Prado (LESP/UTFPR) Jovani Taveira De Souza (LESP/UTFPR) Photos: Nilson Filho Banco de imagens Comunicação e Marketing Alegra Editing and revision: Edison Lemos Graphic Design and Layout: Amauri Castro Luan Dione Rein
74
75
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