Environmental Management Systems
Our European facilities seek to reduce the environmental impacts identified by our environmental management systems (EMS) through innovative programs for energy- and water-use reduction. At our processing plants, managers track each project and provide regular status updates to management to maintain accountability. Some examples of the efforts include the following:
- Increasing use of heat-recovery systems in boiler rooms;
- Switching from fuel oil to cleaner burning natural gas;
- Replacing leaky steam supply lines, reducing fuel use and air emissions by 30 percent;
- Changing operations of a feed mill to reduce losses from an inefficient power supply line by 50 percent;
- Converting a large farm complex to use recycled water; and
- Using biogas produced on-site to power a pumping system.
As with our domestic operations, all our Polish and Romanian farming operations are ISO 14001 certified. By the end of 2012, all our processors and distribution facilities will achieve certification.
Auditing and Monitoring
Smithfield’s international operations manage risks and track their environmental performance through regular monitoring, internal audits, and, in some cases, third-party audits. These reviews assess compliance with all relevant environmental regulations, and verify that the facilities’ environmental management is effective. The types of audits include the following examples:
- Regulatory agencies regularly audit both farms and processing plants to assess compliance with facility permits, EU directives, and national regulations.
- Each company conducts internal audits to verify compliance with national regulations and company protocols at least annually.
The results of all audits are reported to facility management. Corrective actions are prioritized and addressed expeditiously.
Contract Growers
As in the United States, we use contract farms to help supply market hogs for our processing facilities. These contract and purchasing arrangements provide multiple economic benefits to rural communities, including employment, steady income, and modernized agriculture. Our contract growers must comply with all relevant environmental laws and permit requirements. Violations may result in contract terminations or the removal of livestock from a grower’s farm.
Our Polish farming operation works with roughly 600 contract farms. Our Polish processing operation purchases hogs and poultry from independent farmers, but does not purchase directly from contract farms.
Our Romanian farm group, Smithfield Ferme, began its first contract grower program in 2009, working with local farmers in the first phase of a wean-to-finish contract farm initiative. In 2010, Smithfield Ferme continued developing partnerships with local farmers to build new hog raising facilities. To date, these partnerships have built four operational contract farms with a production capacity of 8,000 hogs each.
We have been expanding this process over the last two years, and will continue doing so in the future. We have received approval to move forward with eight additional facilities. In July 2011, we started construction on three of these farms.
