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Sub-sectoral Environmental and Social
Guideline: Poultry Farming
EBRD Sub Sector Environmental & Social Guideline 2016 Page 1
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.
Sub-sectoral Environmental and Social
Guideline: Poultry Farming
EBRD Sub Sector Environmental & Social Guideline 2016 Page 2
Poultry Farming
E&S Risk Category Environment
Health and
Safety
Labour
Community
Page
no.
Key E&S Risks2
Affect the natural
environment
Affect the
health or
safety of
employees
Affect
workplace
conditions
and the
treatment of
employees
Affect the health and
safety, livelihoods,
and environment of
the community and
wider public
Water Use √ √ 5
Wastewater √ √ 6
Contamination of Soil,
Surface Water &
Groundwater
√ √ 6
Waste √ √ 7
Storage & Spreading of
Farm Waste
√ √ 8
Air Emissions √ √ 9
Odour √ √ 10
Pesticide Resistance and
Bioaccumulation
√ √ 10
Spread of Disease and
Biosecurity
√ √ √ 11
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
Conditions
√ 15
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.
Sub-sectoral Environmental and Social
Guideline: Poultry Farming
EBRD Sub Sector Environmental & Social Guideline 2016 Page 3
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
Sub-sectoral Environmental and Social
Guideline: Poultry Farming
EBRD Sub Sector Environmental & Social Guideline 2016 Page 4
Poultry Farming
1. Process description
Poultry farming is the raising of
domesticated birds such as chickens,
turkeys, ducks, and geese, for the purpose
of farming meat or eggs for food.
The majority of poultry farms form part of
the production chain for chicken eggs or
for chicken broiler meat. Other species,
e.g. duck, goose and quail only form a very
small proportion of activities in
comparison.
Egg Production
Fig 1: Egg Production
The production chain involves a sequence
of activities (Fig 1), each taking place at
different sites and on different farms to
prevent the spread of disease. Farms often
include the grading and packing of eggs
and delivery directly to market (retail and
or wholesale).
The majority of laying hens are kept in
cages; in 1999, EU Directive 99/74/EC
banned the use of conventional battery
cages and replaced them with enriched
battery cages. Due to the cost relating to
the upgrade, the EU gave member states
until January 2012 to implement the
change, which is now in force across the
EU.
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 2: Broiler Production
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Guideline: Poultry Farming
EBRD Sub Sector Environmental & Social Guideline 2016 Page 5
Poultry Farming
Broilers are those birds reared for their meat
rather than their eggs. The different steps in the
production are shown in Fig 2. Broilers are
generally not housed in cages. It is common for
farms to have over 40,000 birds at any one time.
The production cycle takes between 5 and 8
weeks depending on the species, slaughter
weight, feeding and condition of the birds. The
production system is normally operated on an
all-in all-out system to minimise the spread of
disease. After every cycle the houses are fully
cleaned and disinfected which can take from 1 to
3 weeks depending on national legislation.
2. Key E&S Risks
Below are the material E&S risks
associated with this sector and key
measures to manage them. Where gaps are
found in the management of key E&S
risks, the E&S risk management measures
may form part of a corrective E&S action
plan agreed with your customer.
Water Use
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.
How can a business manage this risk?
Obtain abstraction or water use permits which
detail the allowable volumes of water
abstraction/use. Where changes take place in
volumes, this should be reflected in the permit;
Evaluate water supply and water efficiency
measures (e.g. recycling, reuse, run-off
reduction, storage etc. ) to reduce impacts on
surrounding resources and community supplies;
Minimise water use in cleaning so as to keep
waste as dry as possible;
Reduce cleaning water needs by ensuring that
solid waste is removed before rinsing and
washing, e.g. using scrapers, brooms and
vacuum cleaners;
Use taps with automatic shutoff valves;
Use high pressure hoses and optimised nozzles
to minimise water usage;
Use hot water or steam as this can reduce water
requirements;
Reduce water use by preventing overflow of
animal watering devices and using self-watering
devices
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Poultry Farming
Wastewater
Process wastewater is generated as runoff
from poultry housing, feeding and
watering, and from waste storage and
management facilities. This effluent has
the potential to contaminate surface and
groundwater.
Wastewater treatment will be required
either with an on-site wastewater treatment
plant or discharging to a municipal
wastewater treatment plant. In either case
a permit is likely to be required.
Some poultry farming operations may
require environmental permits under
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
environmental permit under the Industrial
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.
Best Available Techniques Reference
Documents (BREFs) are the supporting
documents for the IED containing the best
available techniques and technologies
(BAT) for different sectors, including
poultry farming.
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
the ‘intensive’ definition in the IED guidance do
not have to comply with BREF but should
follow this guideline and the BREF
requirements.
Comply with national regulations for poultry
farming. Other smaller facilities within the EU
and operations outside the EU will still be
subject to local regulation but this will generally
set less stringent requirements on the techniques
to be adopted;
Install filters to collect sediment/debris before
wastewater discharge;
Install diversion drains to direct surface water
runoff away from waste areas.
Contamination of Soil, Surface Water &
Groundwater
The poultry farming process produces a
large volume of waste, including animal
wastes (e.g. slurry and manures), poultry
carcasses, agricultural fuels and oils, and
agrochemical wastes. There is a risk of
chemical and organic wastes entering and
polluting soil and water resources
including from:
Direct run-off;
Insufficient treatment of waste before
discharge / spreading on land;
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Infiltration from unlined slurry/waste
storage areas;
Spillages and accidental releases.
Disposal of empty drums and packaging of
agrochemicals may also pose a
contamination risk.
Accidental releases and spillages of
agrochemicals and agricultural fuel oils
may also pose a contamination risk to soil
and water resources.
Hazardous materials are used throughout
the production cycle, e.g. pesticides,
cleaning products, antibiotics and
hormones.
Operations where pollution has occurred or
there is a threat of it occurring to water
resources, land and protected species and
habitats may be liable under national
legislation and EU legislation for
preventing and remedying environmental
damage. In the EU the Environmental
Liability Directive (ELD) (2004/35/EC)
established a framework of environmental
liability, based on the "polluter-pays"
principle, to prevent and remedy
environmental damage.
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
the ‘intensive’ definition in the IED guidance do
not have to comply with BREF but should
follow this guideline and the BREF
requirements.
Maintain storage, transport and feeding systems
in good condition;
Protect feed from rain and wind to prevent
contaminated run-off and to minimise wastage;
Provide secondary containment for bulk
chemical storage areas to contain spills;
Conduct regular inspections of storage areas.
Waste
Solid wastes generated from poultry
farming include:
Waste feed: this may contain a range of
additives such as amino acids, enzymes,
vitamins, mineral supplements,
hormones, antibiotics and heavy metals;
Animal Waste: mainly manure but also
includes other materials such as bedding
and broken eggs. Waste management
options depend largely on the housing
system and type of litter used. Manure
from poultry farming is often
composted and is commonly used as a
fertilizer on agricultural land (see
Storage and Spreading of Farm Waste);
Poultry Carcasses: animals that die
prematurely of disease or other factors
can be a significant source of disease
and odours and can attract pests and
vermin.
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Packaging Waste: eggs are typically
packaged in shaped cardboard, plastic
or a combination of both. Solid waste
will arise from the packaging process
primarily in the form of improperly
packaged and broken eggs. Companies
operating within the European Union
(either as a manufacturer or as a
supplier into European Union countries)
will be subject to the European Union
Packaging and Packaging Waste
Directive (94/62/EC), which aims to
reduce the amount of packaging that is
being introduced into the waste streams.
Animal wastes/manure etc. contain
nitrogen, phosphorous and other
substances which may result in emissions
of ammonia and other gases and may pose
a potential risk of contamination to surface
and ground water through leaching and
run-off.
Animal waste also contains bacteria,
pathogens, viruses, parasites etc. which
may potentially affect soil, water and plant
resources for human, livestock or wildlife
consumption.
Hazardous farm waste can cause serious
harm to people’s health and to the
environment.
How can a business manage this risk?
Comply with national and EU regulations (as
applicable) for the safe disposal of waste;
Where possible and safe to do so, recycle
benign waste products; maintain an inventory of
wastes generated and minimise where possible;
For wastes that cannot be recycled due to
biosecurity issues, undertake disposal
according to the requirements of local health
authorities;
Maintaining records of poultry feed use – to
prevent surplus feed entering the waste stream,
matching feed content to the life stage
requirements of the birds;
Dispose of poultry carcasses in accordance with
regulations: there are strict requirements for the
storage, removal and disposal of poultry
carcasses within the EU and generally within
national regulations to limit such risks;
Institute a management programme to ensure
that diseased carcasses are properly and quickly
managed;
Companies operating in EU who fall under the
Packaging and Packaging Waste Directive may
implement a packaging waste management
system.
Storage and Spreading of Farm Waste
The use of chicken manure as a fertiliser in
agriculture is common and gives rise to
several risks.
Spreading manure at the right time helps to
maximise the efficient use of the valuable
nutrients. However spreading may present
pollution and health risks if not done
correctly.
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Poultry Farming
Manure may contain micro-organisms
which cause food-borne illness, such as
Salmonella, Listeria, E. coli etc.
How can a business manage this risk?
Comply with legal requirements and voluntary
codes of good agricultural practice for the
spreading and storage of manure;
Implement careful application, timing and
storage of slurry and manure to avoid
contamination of food crops, particularly for
ready-to-eat crops;
Prevent manure contamination of surface water
by improving construction of production, waste
management and manure storage facilities (e.g.
concrete floors, gutters, covered storage);
Increase manure storage facilities to a capacity
of 9-12 months so that the manure can be
applied to agricultural land at the correct time of
year;
Relocate manure storage away from water
bodies, floodplains, wellheads etc.;
Reduce the moisture content of dry poultry
excreta. Place dry manure in a covered area;
Regularly check manure storage tanks for
leakage and fit double valves on outlets to
prevent accidental release.
Air Emissions
Dust emitted during feed storage, loading
and unloading, and from waste
management activities contributes to odour
and potentially to the transport of diseases
and respiratory problems, and may cause
nuisance to neighbours during dry and
windy weather.
Dust can affect both the respiration of the
animals and the workers, such as in broiler
houses with high litter contents. Some
dusts may contain antigens which cause
irritation to the respiratory tract.
How can a business manage this risk?
Install dust collection systems and employ dust
control measures such as good housekeeping,
regular sweeping/cleaning of walkways,
reducing feed drop heights, covering of
conveyors etc.;
Install dust extractors (e.g. cyclones and fabric
filters);
Improve ventilation within buildings;
Provide personal protective equipment (PPE)
that is fit for the task to prevent poultry dust
exposure/risk and maintain hygiene standards.
Provide respiratory protective equipment (RPE)
as a last resort after other abatement options are
considered;
Regular checks and maintenance on PPE;
Train staff in the correct selection, use and
maintenance of PPE.
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Poultry Farming
Odour
Odour can be emitted from storage areas
and during land spreading, depending on
the spreading technique applied. The
impact increases with farm size and can
cause a nuisance to neighbouring
residential properties.
Ammonia gas (NH3) generated from
animal waste can cause acidification of
soils and water. Ammonia has a sharp and
pungent odour and in higher
concentrations can irritate the eyes, throat
and mucous membranes in humans and
farm animals. Factors such as the
temperature, ventilation rate, humidity,
stocking rate, litter quality and feed
composition (crude protein) can all affect
the ammonia levels;
High ammonia levels also affect working
conditions for workers and workplace
regulations may set upper limits for the
acceptable ammonia concentration in
working environments.
How can a business manage this risk?
Measure ammonia levels in the workplace;
ensure compliance with regulations;
Adopt odour management measures to prevent
and minimise odour nuisance to communities;
Control temperature and humidity to reduce
odour emissions.
Pesticides Resistance and
Bioaccumulation
Chemicals including pesticides and
insecticides may be applied to birds and
physical structures to control pests and
predators. Pesticides are potential
pollutants which may cause environmental
and health impacts.
Over-application of pesticides, herbicides
and insecticides may lead to a build-up of
pest resistance. This can lead to a greater
reliance on pesticides.
Toxic pesticides which biodegrade slowly
can accumulate in body tissues and be
harmful to ecosystems and human health.
Pesticides may enter agricultural products,
including fodder crops, ground and surface
water and the human body via the food
chain;
Pesticides may enter water supplies
causing chronic or acute health hazards.
Accidental exposure to hazardous
substances (e.g. pesticides) can result in
dermal contact and inhalation. Contact can
lead to burns or inflammation of skin or
allergy. Inhalation can lead to respiratory
difficulties.
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How can a business manage this risk?
Provide personal protective equipment (PPE)
that is fit for the task to prevent exposure/risk
and maintain hygiene standards, e.g. gloves
overalls, respirators, aprons etc.;
Train staff in the correct selection, use and
maintenance of PPE;
Provide training in pesticide application and
storage and also training on the risks associated
with exposure to potential viruses, bacteria and
pathogens;
Implement worker management plans to ensure
workers with allergic reactions are not working
with substances that cause a reaction;
Conduct health screening of new staff and
regular health monitoring of existing staff
Maintain Material Safety Data Sheets (MSDSs)
for any hazardous materials held on site.
Spread of Disease and Biosecurity
Animal diseases can spread quickly in
poultry farming operations. They can be
transmitted from new animals, equipment
and via people.
Poultry manure and carcasses contain
pathogens that can infect humans, such as
Avian Influenza (H5N1 virus), fungi,
bacteria, parasites and mites. These can be
transmitted via live birds, excreta,
carcasses and parasites. Without adequate
control measures, diseases such as H5N1
can result in a health epidemic.
How can a business manage this risk?
Measures to control the spread of disease vary
between countries but generally involve the
segregation and slaughter of infected birds where
this cannot be controlled through medicines or
vaccination.
Additional measures are as follows:
Provide training on correct bird handling
techniques to prevent disease;
Look for signs of any diseased animals and
immediately remove and isolate sick animals or
animal carcasses;
Inform the animal health authorities as soon as
there is a concern;
Improve the maintenance of structures to ensure
that pests are excluded from housing and other
facilities;
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;
Implement sound biosecurity protocols such as
controlled access, quarantine periods, washing
and disinfecting equipment, showering,
clothing, footwear, exclusion of animal vectors,
tyre and footwear disinfection;
Install appropriate signage warning users of
public rights of way through areas where
poultry are housed and/or graze;
Prepare a contingency plan for the use of
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EBRD Sub Sector Environmental & Social Guideline 2016 Page 12
Poultry Farming
antibiotics or mass cull in the event of a disease
outbreak.
Antibiotic Resistance
Antibiotics are routinely used to prevent
and treat bacterial disease within poultry
populations. Bacteria gradually develop
resistance to antibiotics to which they were
previously susceptible, making these
antibiotics ineffective in treating bacterial
infection in humans over time.
Additionally, direct consumption of
antibiotics by humans as residue in poultry
meat can lead to anaemia and other
illnesses.
How can a business manage this risk?
Follow EU guidelines (1831/2003/EC) which
prohibit the use of antibiotics as a growth
promoter within EU member states, (although
they are still permitted for the control of
disease).
Animal Welfare
Welfare issues associated with poultry
farming are becoming of increasing legal,
financial and reputational risk relevance.
Owners and keepers of poultry are
responsible for ensuring that the welfare
needs of their animals are met. There are
EU legal requirements and minimum
welfare standards in place for poultry
together with national requirements and
codes of practice within many
jurisdictions.
Regulations may include:
Housing capacity and hygiene
standards;
Diet of poultry, particularly where
medicines or hormones are used;
Method of transport;
Behavioural requirements of poultry;
Protection from pain, injury, suffering
and disease.
Animals that are treated well and protected
from stress grow in better physical and
mental condition and will tend to provide a
better quality product.
In many countries, animal welfare has an
important cultural component as well and
these requirements may need to be
accommodated. Cultural requirements
(social expectations and beliefs in relation
to animal welfare and treatment) will need
to be balanced with market requirements.
In some instances EU Member States
implement stricter animal controls than
stipulated in EU legislation. For example
the EU broiler chickens Directive
(2007/43/CE) aims to reduce overcrowding
of chicken holdings by setting a maximum
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EBRD Sub Sector Environmental & Social Guideline 2016 Page 13
Poultry Farming
stocking density. UK legislation, in
existence prior to the EU directive, sets out
stricter limits on stocking density and is
not superseded by the EU legislation.
How can a business manage this risk?
Establish an animal health programme including
veterinary and laboratory capability and
procedures for the management of sick and dead
birds;
Conduct improvements in the housing of
poultry to meet animal welfare legal and
industry standards.
Product Hygiene
Poor hygiene can result in food safety and
animal welfare issues.
Micro-organisms can be present in manure
which can be harmful to health (e.g.
Salmonella, E. Coli; etc.). One route of
potential infection of humans may be the
consumption of meat, water or food
contaminated by such animal waste.
How can a business manage this risk?
Identify any sick or diseased animals through
routine veterinary inspection;
Maintain high standards of food hygiene to
reduce the risk of microbiological
contamination;
Conduct regular and rigorous hygiene
monitoring; all surfaces and equipment should
be cleaned regularly to prevent the build-up of
contaminates and to reduce risk of health
hazards;
Separate any sick animals or animals that die to
external facilities in containers for treatment and
disposal;
Consider implementing product traceability
systems that facilitate tracing of products once
released for sale;
Put in place procedures to prevent the
processing of waste materials for same species
feeding.
Noise
Some farming activities (e.g. feeding,
housing or slaughtering poultry) and
machinery (e.g. tractors, slaughtering
equipment) generate noise and can result in
hearing impacts on workers and nuisance
to local residents.
How can a business manage this risk?
Locate and design facilities to avoid sensitive
receptors to noise;
Isolate noisy equipment to reduce the risk of
noise exposure;
Provide personal protective equipment (PPE)
where workers and visitors have to enter noisy
areas.
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Poultry Farming
Working at Height
Poultry operations may involve working at
height to access roofing or lighting areas
and/or equipment.
How can a business manage this risk?
Conduct a job risk assessment;
Restrict access to working at height;
Install correct fall arrest systems where
necessary (guarding and harnesses etc.).
Slips, Trips and Falls
Slips trips and falls are regular occurrences
in farming environments and result in
many injuries. Typically these are because
of uneven ground and poor housekeeping.
How can a business manage this risk?
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
spillages have occurred;
Schedule floor cleaning for a time when work is
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.
Manual Handling
Many injuries from farming are associated
with handling, lifting and carrying of
heavy or unconventional shaped objects.
How can a business manage this risk?
Redesign manual processes to avoid heavy
lifting/repetitive activities;
Install mechanical lifting aids where possible
and rotate work tasks to reduce repetitive
activities;
Redesign of manual processes to avoid heavy
lifting/repetitive activities.
Asbestos
Asbestos has been used on a large scale for
many years as fire proofing and insulation
material and may be encountered in a wide
range of forms including asbestos cement
boards, as fire retardant gaskets in pipe
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EBRD Sub Sector Environmental & Social Guideline 2016 Page 15
Poultry Farming
work and as fire retardant insulation
around boilers and furnaces.
How can a business manage this risk?
Particular attention should be paid to farm
buildings constructed prior to the 1990s.
Conduct/commission an asbestos survey (by
qualified personnel);
If asbestos exists, establish an asbestos
management plan.
Labour and Working Conditions
Poultry farming operations may use casual
and contract labour. Poor working
conditions for casual labourers in the
agribusiness sector is a key labour risk.
How can a business manage this risk?
Ensure that labour standards, contracting and
remuneration are in line with national law and
are consistent with the average for the sector
and apply to permanent employees and casual
and contract labour;
Undertake checks on workers right to work
(including work permits, age etc.);
Undertake checks on treatment of
subcontractor labour.
Child Labour
Child labour is a prevalent risk particularly
in relation to smaller-scale family run
operations. Sometimes family related
domestic chores are carried out by
children, which may not necessarily be
classed as Child Labour on the smaller
family run operations.
Children are particularly vulnerable to on-
farm hazards due to lack of experience and
knowledge, especially in relation to farm
vehicles and machinery.
How can a business manage this risk?
Undertake checks on worker’s age and prohibit
any employment under the minimum age as
stipulated by the International Labour
organization (ILO) or national legislation
(whichever is more stringent);
Adopt clear policies for recruitment consistent
with international good practice for the
prevention of child labour in agricultural (e.g.
from the ILO);
Where children are on-farm health and safety
provisions need particular attention to protect
them from hazards.
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Worker Accommodation
Worker accommodation standards,
particularly for temporary/casual labourers
may not reach the standard required for
permanent employees.
How can a business manage this risk?
Provide worker accommodation which meets, at
a minimum, basic needs of workers, national
legislation and industry good practice (e.g. see
guidance note from IFC & EBRD3).
Community Relations
Having good relationships with
neighbouring communities reduces the risk
of local opposition to the poultry farming
activities.
How can a business manage this risk?
Review socio-economic baseline conditions to
identify local, community-based agricultural
enterprises and/or use of water resources and to
3
http://www.ebrd.com/downloads/about/history/w
orkers.pdf
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;
Engage with the local community and other
interested and/or affected stakeholders to
maintain good social relations. For large-scale
intensive poultry operations or in areas of high
population density or high community interest,
it is recommended that a Stakeholder
Engagement Plan (SEP) be prepared and
implemented by the company.
3. Financial Implications
Outlined below are key financial
implications of ineffective management of
E&S risks related to poultry farming.
The health and well-being of farm
animals can have a direct impact on
growth, reproduction or meat quality.
Adherence to animal welfare guidelines
and standards can increase business
profitability by improving productivity
and efficiency;
Animal diseases are frequently
controlled by killing all infected
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
not normally cover any consequent
losses such as lost contracts, reputation
etc.;
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Public reaction to the news of animal
diseases can temporarily lead to a
reduction in the consumption of that
food type. This may result in
unaffected businesses being unable to
sell their poultry products;
Significant capital expenditure might be
required to maintain animal welfare,
biosecurity, health, safety and hygiene
standards;
Capital and operational investments to
obtain and maintain industrial emissions
permits and, where applicable, achieve
compliance with Best Available
Techniques (BAT);
Capital and operational investments to
prevent and minimise the risk of
contamination of soil, surface water and
groundwater resources from poultry
farming waste;
Injuries may lead to increased payroll
costs to replaced workers;
Fines, penalties and third party claims
may be incurred for non-compliance
with environment, health and safety
regulations;
Capital expenditure for installing or
upgrading wastewater and waste
treatment facilities;
Capital expenditure for installing or
upgrading storage facilities for
chemicals, fuels and oils;
Animal feed and/or poultry farming
products contamination may result in
restrictions on price and demand, and
export markets (e.g. EU);
Inadequate health and safety provisions
(including risk assessments, training,
infection control and provision of
Personal Protective Equipment (PPE)
etc.) for workers (permanent, temporary
and/or casual) may lead to absenteeism,
health care costs or health and safety
incidents and claims;
Nuisances from poultry farming
operations, including from the
spreading of organic manure, may lead
to compensation claims from
neighbouring properties;
Community health and safety impacts from
poultry farming (e.g. exposure to
contaminated drinking water and/or living
in proximity to infectious diseases) may
lead to reputation damage, legal
challenges/prosecutions and/or
compensation claims.
4. Suggested Due Diligence
Questions
Perform a complete tour of the facility,
accompanied by someone knowledgeable
about all the activities at the site.
When assessing E&S risks, it is important
to engage the customer on how these risks
are managed.
Confirm organisational responsibilities and
systems for environment, health, safety
and social matters and that these systems
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cover both employees employed directly
and sub-contractors.
During the initial site visit, the issues will
vary according to the type of poultry
farming and the level of environment,
health and safety and hygiene management
already introduced. While visiting the site
it is important to discuss and review the
following:
General Housekeeping
Check the condition and containment
arrangements of manure storage
facilities;
Condition of poultry housing; is it
secure from pests? Is there adequate
ventilation? What is the stocking
density (i.e. how many birds are there
per square metre) and mortality rates?
How do they compare to the average for
the industry sector?
What is the standard of general house-
keeping on site? Do areas look clean
and tidy? Look for localised spills,
leaking pipes etc.;
Check storage facilities for feed
materials, caustics, chemical solvents,
antibiotics etc.;
Check the age and condition of
buildings and equipment.
Health and Safety
Check signage around the site:
o Does it convey the health and safety
risks?
o Are fire exits clearly marked?
Is fire-fighting and first aid equipment
available?
Are workers provided with adequate
Personal Protective Equipment? Is it
being worn?
Have the premises been inspected
recently (within the past 2 years) by the
regulatory authorities for health,
hygiene and environment? What were
their findings?
Poultry Farm Management Practices
Check the source of feed materials. Are
the levels of pesticides and other
contaminants quantified and within
guidelines?
Are there management control plans for
animal health, feeding, nutrients,
pesticides?
Does the organisation have insurance in
place to cover the outbreak of disease?
Have there been any recent incidents?
Has the company any other insurances
and have there been any claims against
these policies?
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Poultry Farming
Is the facility subject to any audits by
customers? What was the outcome of
these audits?
Waste Management
Check that waste disposal takes place
on a regular basis;
Check that waste storage areas are clear
of debris and that skips are covered to
prevent waste escaping; for example,
check that waste containers have lids or
are stored in an area with a roof.
Pollution Control
Is the facility next to any vulnerable
water bodies, sited in a floodplain, or
close to groundwater sources which
may be contaminated by activities?
Labour Management
Check that labour standards, contracting
and remuneration are in line with
national law and are consistent with the
average for the sector.
Check that hours worked, including
overtime, are recorded and staff should
receive written details of hours worked
and payment received.
Has the Company received inspections
from the local labour inspectorate in the
previous three years? Have these
resulted in any penalties, fines, major
recommendations or corrective action
plans?
Does the organisation have a grievance
mechanism which allows employees to
raise workplace concerns?
Are employees free to form, or join, a
workers’ organisation of their
choosing?
Check worker accommodation;
Has the company undertaken a
systematic, documented review of
operations against national legal
requirements relevant to Environmental,
Health, Safety and Social performance
and the extent of compliance with that
legislation?
Incident Management
Have there been any recent (within last
three years) incidents on site such as
fatalities, fires/explosions, spills?
Community Complaints/Grievances
Is a grievance mechanism in place to
allow the community to raise concerns
regarding farming operations?
Note any history of public complaints
relating to the facilities operation.
Investment
Does the business plan have budgeted
line items for Environment, Health and
Safety, labour and hygiene
improvements?
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Management Plans
Review the operational procedures and
management plans available regarding the
control of risks.
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;
Food safety management plans;
Demonstrable involvement of senior
management in environment, health &
safety, animal welfare and hygiene
management and leadership.
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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.
Sub-sectoral Environmental and Social
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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