the unima groupV ForeWorD: the uniMa grouP A mere look around the world from north to south is enough to notice that we live on a planet in state of emer-gency. We must go on acting

SuStainable development in madagaScar : a caSe Studythe unima group Sandy rajaosafara & thomas du payrat

an independant assessment made within the WWF & unima group partnership

�

ACKNOWLEDGEMENTSThis study is the result of an assessment commissioned by the World Wildlife Fund (WWF) and UNIMA Group,

and undertaken by two independent consultants : Sandy Rajaosafara, Manager with the Fiduciaire Luxembourg Paris Genève (LPG Paris France)

and Thomas du Payrat, Economist with the Odyssée Développement (La Rochelle – France).

The work was coordinated by Mark Eckstein (Managing Director - WWF US) and Bertrand Coûteaux (UNIMA Secretary General, in charge of Sustainable Development).

[email protected] • [email protected] • [email protected]

www.wwf.org • www.unima.com • www.nossibe.fr

�� www.wwf.org | www.unima.com | www.nossibe.fr

UNIMA & SUSTAINABLE DEVELOPMENT

Contents1.0 INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.1 Presentation of UNIMA Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.2 Firms and sustainable development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71.3 UNIMA commitments in sustainable development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81.4 UNIMA / WWF partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81.5 Objectives of the economic assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91.6 Methodology and context. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

2.0 SOCIAL IMPACTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122.1 Employment in Madagascar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122.2 Employment in UNIMA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132.3 Wage Bill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152.4 Commitments to International Labour and Human Rights Norms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162.5 Social Policy.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162.6 Social Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182.7 Broader Community Development Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222.8 Conclusion on the Social Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

3.0 POLICIES, PROCEDURES, AND PRACTICES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273.1 Industry Leadership. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273.2 Public/ Private Partnership. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

4.0 ENVIRONMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304.1 Aquaculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304.2 Environmental Impact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324.3 Carbon policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324.4 Protection of Biodiversity and the Wider Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 334.5 Shrimp Trawling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 364.6 VERAMA – Cashew Plantation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

5.0 ECONOMY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395.1 Costs of UNIMA Sustainable Development Actions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 405.2 Detail of Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

6.0 UNIMA & MILLENNIUM DEVELOPMENT GOALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

7.0 UNIMA & THE MADAGASCAR ACTION PLAN (MAP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

8.0 BALANCE SHEET. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

9.0 CONCLUSION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

APPENDIx 1 Terms of Reference for the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60APPENDIx 2 List of individuals interviewed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62APPENDIx 3 Summary of the impacts of UNIMA’s sustainable development activities . . . . . . . . . . . . . . . . . . . . 64APPENDIx 4 Notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

��

FiguresFigure n°1 Locations of UNIMA facilities in Madagascar and La Réunion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Figure n°2 Activity scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-5Figure n°3 Vertical organization of UNIMA Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Figure n°4 Sustainable Development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Figure n°5 UNIMA Group’s values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Figure n°6 Interviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Figure n°7 New entrants to the labour market. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Figure n°8 Evolution in direct employments among UNIMA Group in Madagascar. . . . . . . . . . . . . . . . . . . . . . . 13Figure n°9 Direct employments per SPC and gender among UNIMA Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Figure n°10 Employments per SPC and gender among shrimp fishing firms in fishery. . . . . . . . . . . . . . . . . . . . 14Figure n°11 Evolution in direct employments per entity of UNIMA Group in Madagascar . . . . . . . . . . . . . . . . . . 14Figure n°12 Wages and social contribution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Figure n°13 Minimum salaries at PNB versus Madagascar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Figure n°14 Union contract. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Figure n°15 HIV & AIDS program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Figure n°16 Turnover rate per entity UNIMA Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Figure n°17 Evolution in absenteeism rate per activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Figure n°18 Evolution in occupational injury . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Figure n°19 Number of occupational injuries in the fishing activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Figure n°20 Beneficiaries of external training per SPC at AQUALMA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Figure n°21 Beneficiaries of external training per SPC as % of numbers at AQUALMA . . . . . . . . . . . . . . . . . . . 21Figure n°22 Taxes and duties paid by UNIMA Group in MGA Millions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Figure n°23 Water, schools and dispensaries built by UNIMA around Majunga . . . . . . . . . . . . . . . . . . . . . . . . . . 22Figure n°24 The village of Besakoa. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24Figure n°25 Health indicators for Besalampy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Figure n°26 Pioneer actions by UNIMA within the GAPCM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27Figure n°27 Summary of UNIMA’s aquaculture model. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30Figure n°28 Summary of GAA assessment of Aqualma . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31Figure n°29 Detailed of GAA assesment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31Figure n°30 UNIMA & INRA research program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32Figure n°31 Monitoring of endemic species . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Figure n°32 « Cookie » . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Figure n°33 Tahina Spectabilis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Figure n°34 An over production problem. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39Figure n°35 Sustainable Development Action costs (%) in relation to turnover for shrimp exports . . . . . . . . . . . 42Figure n°36 Costs of SDAs as % of shrimp export turnover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42Figure n°37 Chronological evolution of costs of SDAs per component . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43Figure n°38 Potential key performance indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

�V www.wwf.org | www.unima.com | www.nossibe.fr

PhotosPhoto n°1 Product of UNIMA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Photo n°2 AQUALMA grow out ponds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Photo n°3 Pêcheries de Nossi-Bé site . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Photo n°4 Partnership signing ceremony . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Photo n°5 Dispensary of Besakoa. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Photo n°6 Internal training session . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Photo n°7 Satellite view of the village of Besakoa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24Photo n°8 Public Primary School . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28Photo n°9 A well constructed by AQUALMA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29Photo n°10 Besakoa police force office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29Photo n°11 Plantation along the grow-out pounds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33Photo n°12 Rhizophora nursery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33Photo n°13 The tagged fish Eagle (Ankoay) of Moramba. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Photo n°14 Cookie and her baby in November 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Photo n°15 Tahina Spectabilis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Photo n°16 Shrimp trawler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Photo n°17 TED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Photo n°18 Artificial reef . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37Photo n°19 Dialog with traditional fishermen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37Photo n°20 VERAMA orchads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38Photo n°21 Cashewnut trees of VERAMA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

tablesTable 1 The Millennium Development Goals of the Government of Madagascar . . . . . . . . . . . . . . . . . . . . . . 11Table 2 Costs per component of Sustainable Development Actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40Table 3 Evolution of turnover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41Table 4 Evolution of costs for SDAs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41Table 5 Direct costs of the social component for SDA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44Table 6 Indirect costs of the social component for SDAs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45Table 7 Directs costs of the environment component for SDA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46Table 8 Indirect costs of the environmental component of SDAs from 1992 to 2007 . . . . . . . . . . . . . . . . . . . 47Table 9 Direct costs of the economic component of SDAs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48Table 10 Indirect costs of the economic component of SDAs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49Table 11 Direct costs of the institutional component of SDAs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50Table 12 Indirect costs of the institutional component of SDAs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51Table 13 List of UNIMA Sustainable Development Actions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52Table 14 UNIMA impact on MAP targets and challenges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55Table 15 Indirect costs of the institutional component of SDAs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55Table 16 Direct costs incurred by UNIMA in relation to MAP priorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56


V

inDeX oF aCronYMsADF AndrafimadioAM SupervisorBEPC Brevet d’Etudes du Premier Cycle (Qualification awarded at end of Junior Secondary School Studies)BRD Bycatch Reduction Device BSK BesakoaBSP BesalampyCA TurnoverCEPE Certificat d’Etudes Primaires Elémentaires (Qualification awarded at end of Primary School Studies)CSB Basic Health Facility ESCA Ecole Sacré Cœur Aqualma (private School)FAO Food and Agriculture OrganizationGAPCM Malagasy Shrimp Farming and Fishing AssociationGTZ German Development Cooperation Agency HACCP Hazard Analysis Critical Control PointIFS International Food StandardINRA Institut National de Recherche Agronomique (France) (National Institute for Agronomic Research)INSTAT Institut National de la Statistique Malgache (Malagasy National Institute of Statistic)IRD Institut de Recherche pour le Développement (France) (Institute of Research for Development)ISO International Organization for StandardizationIST Sexually Transmissible InfectionsKT In Thousands of EurosMAP Madagascar Action Plan MDG Millennium Development Goals MECIE Malagasy Decree on Compatibility of Investments with the Environment MFK Mifoko (Ambatomifoko)MGA Malagasy Ariary (1 US $ = 1 300 MGA)MJB MahajambaMJN MajungaMRB MorambaMSC Marine Stewardship CouncilNBE Nosy BeOMEF Malagasy Observatory of Employment and Ongoing and Entrepreneurial Vocational Training ONE (France) Environment National OfficeONF Office National des Forêts (France) (National Office for Forests)PNB Pêcheries de Nossi-BePPN Basic CommoditiesROR Network of Rural ObservatoriesRSE Corporate Liability SA8000 Social Accountability (international social standard)SDA Sustainable Development ActionsSMIG Guaranteed Index linked Minimum WagesSPC Socioprofessional Category TED Turtle Excluder Device WWF World Wildlife FundZAC Agreed Management Zone

ForeWorD bY WWF

WWF1 has set itself a series of challenging conservation goals that aim to protect global biodiversity and increase the sustainability of natural resource consumption. We know that these challenges cannot be met

through our efforts alone, and that new forms of partnership will be essential so that we can collectively leverage our efforts towards a more sustainable future.

Working with the private sector is a critical part of this agenda since it is clear that their engagement will be central to any long-term and significant improvement in resource use and habitat conservation. WWF is therefore deve-loping a series of partnerships with leading companies who have demonstrated both commitment and capacity to incorporate sustainability in their core business. UNIMA Group is one such company and we have been impressed by the evidence of a deep and significant commitment to sustainability that is evident in their business model. This is all the more impressive given the complex and demanding business challenges that the Company has experien-ced in Madagascar.

UNIMA has developed and implemented a range of Better Management Practices (BMPs) across its trawling, aquaculture and cashew operations that have delivered real business benefits – both financial and less tangible (but nonetheless important) benefits relating to its social license to operate and reputational and value chain bene-fits that are increasingly important for companies exporting to Europe and other OECD locations. These BMP’s can be replicated and scaled up across industry sectors (and it is evident that many of UNIMAs trawling BMPs have been adopted and implemented more broadly in Madagascar). The partnership aims to learn from UNIMAs efforts and accelerate adoption of practices that have business and sustainability benefits. The partnership also aims to make the case with UNIMAs business partners that the costs and benefits of sustainability need to be equitably shared - and that there will be mutual benefits in such an approach, particularly in a world where environmental and social sustainability will be significant value drivers to many companies.

This study is the first independent assessment of a Malagasy company’s commitment to, and delivery of real sus-tainable business benefits. Demonstration of these impacts via this assessment provides credible independent confirmation of our belief that the Company is delivering important and leading edge sustainability impacts on the ground, in one of the regions that we see as being critical in our efforts to conserve biodiversity and promote more sustainable resource use. As such it holds the potential to be a model for other Malagasy companies and wider shrimp aquaculture, trawling and cashew producing companies.

There will always be room for improvement and indeed continuous improvement is central to a truly sustainable company. The study identifies what UNIMA Group has done, and what impacts it has had. These are important messages to the business and NGO communities. In addition the assessment provide a route map for further work within the partnership – including demonstration of the financial benefits of trawling BMPs, the further develop-ment of Biodiversity Action Plans and other activities that we will be jointly developing over the coming year.

We are grateful for the opportunity to work with UNIMA Group – to share their experiences and to learn from them, and we look forward to continuing and deepening the partnership in the years to come.

Jason ClaySenior Vice President

WWF-US

Jean-Paul PaddackDirector, Network Initiatives

WWF International

V� www.wwf.org | www.unima.com | www.nossibe.fr


V��

ForeWorD: the uniMa grouP

A mere look around the world from north to south is enough to notice that we live on a planet in state of emer-gency. We must go on acting on the world for ourselves but also for the future generations.

We must believe in the positive properties of crisis as well as in change that creates life.

The UNIMA Group is at the turn of 40 years of experience and commitment. Our visitors, customers and sponsors often asked why we barely talk about our action in the social, environmental and entrepreneurial field for the eco-nomic development of Madagascar, and especially to reduce poverty. In fact, we have carried out since ever, what is today formalized under the name of Sustainable Development which is the expression of our family and entre-preneurial values. This is an essential basis of our company.

Our discussions with WWF about natural aquaculture and responsible fishing, as well as sustainable development, naturally led to the first partnership ever, between UNIMA Group and WWF.

Our Partnership is based upon the shared conviction that private companies are able to carry out economic, social and environmental progress thanks to their capacity of innovation, and create sustainable production models. We are convinced that the companies’ efforts must express themselves through values that give sense to their actions. We believe that the producers committed in social and environmental actions must be recognized and supported by financial backers and also identified and enhanced on more and more challenged markets.

Our Partnership with WWF is based on solid foundations. It aims at showing UNIMA Group’s achievements and actions in the field of Sustainable Development detailed in this case study carried out by independent consultants.

We wish this study to be of some help to understand the impact of our action. May it inspire and be an example for those who attempt to give value to their action and adopt similar strategies.

We hope to give our customers a clear perception of the signification and contributions of our action in the strug-gle against poverty, the promotion of the human rights and the responsible control of employment. It is important to make them understand our commitment to preserve the environment and enhance the unique biodiversity of Madagascar.

Already, the 21st Century calls us upon new challenges. People’s conscience is stricken by the actual economic crisis, its effects on globalization and development of southern countries.

We believe that our entrepreneurial action and its impacts can be an example for the goodwill entrepreneurs and that the markets we supply can bring help.

Responsible and regular commitment, collective actions at the heart of the sustainable development, give fair and durable answers to the questions about the southern countries development. These actions crystallize an essential issue for the development and the economic growth all along the century.

A major message of this case study: Everywhere in the world, arises the urgent need to find the way to a fair share of the costs and benefits of the sustainable development.

Through this partnership, WWF trusted UNIMA Group. We are heading towards the future, carrying on our entre-preneurial action with the permanent and durable will to adapt and to progress.

Amyne H. ISMAILChief Executive Officer

Photo n°1 : product of UNIMA

�

�.0 introDuCtionThis assessment is the first independent economic evaluation of the sustainable development impacts of a private sector company in Madagascar.

The study describes the UNIMA Group’s (UNIMA) business model and operations, the context of sustainable deve-lopment and the structure of the UNIMA-WWF Partnership

1.1 PRESENTATION OF UNIMA GROUPShrimp exports accounted for 67% of the value of Madagascar’s seafood industries in 20062 and UNIMA is the lar-gest shrimp producer in the country. The company markets its products under distributor brands and its own brand NOSSI-Bé (photo 1) primarily to Europe, Asia and the USA. Production in 2007 was from two sources :

> Shrimp trawling : 18 trawlers fishing 1,923 tons of wild shrimp3 ;

> Shrimp aquaculture : 2 farms producing over 5,500 tons per year from 1,120 hectares of ponds4.

French Quality Certification, granted by the French Ministry of Agriculture and Fisheries. It certifies the superior taste and flavour of the shrimp, validated by a panel of experts and consumers.

UNIMA Group’s brand.

� www.wwf.org | www.unima.com | www.nossibe.fr

Figure n°1 : Locations of UNIMA facilities in Madagascar and La Réunion


�

Additionally, the Group is diversifying its business through the development of a cashew nut plantation at Masiloka in the North West of Madagascar (“les Vergers d’Anarcarde de Masiloka - VERAMA”).

UNIMA operates in Madagascar through :

> The Pêcheries de Nossi-Bé (PNB), Aquamen-Pêche SA, Société Kaleta Export – trawling and fishery operations;

> Aquaculture of Mahajamba [AQUALMA] – aquaculture operations ;

> Gnosys, UNIMA Madagascar – computer and administrative services.

And internationally through :

> Boulogne sur Mer/ France – shrimp processing and value adding ;

> Le Port, La Réunion – shrimp feed production (Figure 1).

Photo n°2 : AQUALMA grow out ponds

Photo n°3 : Pêcheries de Nossi-Bé site



Figure n°2 : Activity scheme

�



AquAculture fishing

Figure n°3 : Vertical organization of UNIMA Group

�

1.2 FIRMS AND SUSTAINABLE DEVELOPMENTA widely used definition of sustainable development is that it « meets the needs of current generations without compromising the ability of future generations to meet theirs5» and requires equal consideration of three pillars that cover the environmental, social, and economic dimensions of development. The institutional component faci-litates and includes the pillars (Figure 4).

In a famous article, Milton Friedman stated « there is only one single social responsibility of firms : […] to increase its profits6». The risk of such a statement is that it raises the prime necessity for profitability for any firm, in other words, its economic sustainability.

More recently many firms have begun to look at the broader impacts of their operations that incorporate social (labour, social development and human rights) as well as environmental (resource scarcity, biodiversity and eco-system services etc) components. The issue of social responsibility of firms is raised in a particularly acute man-ner in the economies in the South where many governments are struggling to deliver public goods and services (education, health care and infrastructure) despite commitments from the international community (Millennium Development Goals etc) and national plans (in Madagascar this would be the Madagascar Action Plan – MAP).

Figure n°4 : Sustainable Development



1.3 UNIMA COMMITMENTS IN SUSTAINABLE DEVELOPMENT

Right from its foundation, UNIMA has wished to integrate man, environment and economy into its business model : its motto is «Antsika jiaby miara-mandroso (let’s all progress together)».

The values of the Group that were defined in 2005 are widely understood within the company and are included below.

1.4 UNIMA / WWF PARTNERSHIPIn 2007, UNIMA and WWF formed a partnership to demonstrate and scale up the impact of UNIMA’s sustainability commitments (see photo 4), and are working together to :

> demonstrate the role that private companies can play in protecting the natural environment and in enabling social and economic development ;

> encourage wider adoption of sustainability in the business models and financing of private sector activities ;

> demonstrate that partnerships can achieve faster, more credible and more substantive progress towards sus-tainable business.

This is an innovative partnership model for WWF since it is their first partnership with a Southern agribusiness producer and is unique worldwide, being the first partnership with a shrimp producer.

The partnership aims to promote production models – of shrimp trawling and aquaculture, and cashew plantations – that are responsible from the environmental, economic, and social viewpoint. Joint activities will aim to reduce the ecological impact, to conserve biodiversity, and to promote socioeconomic development. Such ‘win/ win’ par-tnerships aim to show that responsible environmental and social practices can deliver financial and economic benefits over the long term. Importantly the partnership is not based on funding or financial support from UNIMA to WWF – it is a joint endeavour to demonstrate that sustainable development generates long term value for pro-ducers and their value chains.

Importantly the partnership is not based on funding or financial support from UNIMA to WWF – it is a joint endeavour to demonstrate that sustainable development generates long term value for producers and their value chains.

Figure n°5 : UNIMA Group’s values

TO AIM AT ExCELLENCE : excellence is expressed through concern for total quality while exercising the employment and orienting it to customers. this includes product quality, process observance, and permanent quest for progress, competency, motivation, and performance of human beings, management effectiveness.

TO SEE TO RESPECTING THE OTHER : respecting the other is a requirement that applies both inside and outside the firm. inside, it is expressed through the concern to see to personal development of each one, materially and psychologically, through tolerance and openness to the others’ ideas. outside, it is expressed through promoting the image of the firm through the respect of and the sense of the responsibility of the firm and its people toward the environment, the culture, and the laws of the country.

TO WORK IN TEAM : teamwork requires ability for mutual listening, communication, conveying passion that has to enliven each one, convincing, as well as delegating, power, accountability and solidarity. according to our motto : « Progress all together – antsika jiaby miara mandroso »

TO ALLOW BOLDNESS : boldness is one of the expressions of the collective corporate ambition. boldness implies the ability of projecting towards the future to measure the scope of the ensuing decision making. it requires quest for innovation, a concern for creativity and management of responsibility for what is under-taken and also the right to error.

TO KEEP THE BALANCE : the balance is expressed through safeguarding the sense of measure in the various commitments that each one is led to make in their function. the point is to promote actions that are collectively ambitious but realistic.

TO DEFEND ETHICS : ethics means honesty, loyalty towards both : the firm and its natural, social, political, and economic environment

�

1.5 OBJECTIVES OF THE ECONOMIC ASSESSMENT The objective of the present study, is to assess the impact of the sustainable development actions conducted by UNIMA (TORs are included in annex 1) to better understand the costs and benefits of company operations - particularly in relation to the environment, society, the economy, or the governance /institutional framework for delivering sustainable development. Such costs and benefits include both tangible elements that are more easily measurable, (such as the employment provided, the salaries distributed or the taxes and duties paid), and ele-ments that are more difficult to quantify such as improvements in health or employee skills, or the efforts aimed at improving environmental quality, which are often referred to as externalities – and therefore fall outside of the traditional economic assessment of impact.

The assessment will provide a benchmark (based on 2007 data/ information) for the Partnership and will help define future areas of joint activity. It will also serve as a reference for other similar studies conducted by other private sector companies which wish to assess the impact of their actions.

As the present assessment is the first of its kind, indicators were identified in order to set objectives for future improvements. UNIMA aims to report periodically on progress towards sustainable development practices iden-tified here.

Photo n°4 : Partnership signing ceremonyJean Paul PADDACK WWF International, Amyne ISMAIL, Chief Executive Officer of the UNIMA Group and Nanie RATSIFANDRIHAMANANA from WWF Madagascar

�0 www.wwf.org | www.unima.com | www.nossibe.fr


CHRONOLOGYThe assessment took place via site visits between May 19 and June 15, 2008, with subsequent meetings and dis-cussions on the conclusions through December 2008.

1.6 METHODOLOGY AND CONTExTThe methodology consisted of :

> An independent review of UNIMA data and information ;

> Interviews with a range of stakeholders : officers and employees of UNIMA, teachers and health staff in villa-ges/ towns that are close to the group production site, government representatives etc.(a list of interlocutors is provided in annex 2) ;

Figure n°6 : Interviews

> Developing a matrix for impact evaluation, which was discussed with the Company and third parties,

> Reconciling the divergent perceptions and views regarding the Group role and impact ;

> Establishing a time line of costs and benefits of sustainable development activities conducted by the Company ;

> Defining a list of key performance indicators for use in future reports.

Last, the survey assessed how UNIMA participates in the achievement of the Millennium Development Goals (MDG) and of the Madagascar Action Plan (MAP).

��

ERADICATE ExTREME POVERTY AND FAMINE > Halve the percentage of the world population living on less than $1 a day by 2015 ; halve the percentage of the

world population suffering from famine.

ACHIEVE UNIVERSAL PRIMARY EDUCATION> All children will complete primary school by 2015.

PROMOTE GENDER EQUALITY AND ACHIEVE WOMAN ACCOUNTABILITY > Eliminate inequality between boys and girls at all education levels by 2015.

REDUCE INFANTILE MORTALITY > Reduce infantile mortality by two thirds by 2015.

IMPROVE MATERNAL HEALTH > Halve maternal mortality by 2015

COMBAT HIV/AIDS, MALARIA, AND OTHER DISEASES > Curb and revert trends by 2015.

ENSURE ENVIRONMENTAL SUSTAINABILITY > Adopt strategies for sustainable development and natural resource protection, > Halve the number of population having no access to drinking water and to sanitation by 2015.

DEVELOP OVERALL PARTNERSHIP FOR DEVELOPMENT > Liberalize trade and the funding system, facilitate access to markets, accentuate the debt cancellation

process, create employment for youth, promote access to affordable price drugs and promote access to new technologies.

Table 1 : The Millennium Development Goals

As a response to the MDGs and also the World Bank Poverty Reduction Strategy Paper, the Malagasy Government designed a new development strategy, known as Madagascar Action Plan (MAP)

The Madagascar Action Plan divides the Millennium Development Goals into 54 challenges to be met ; they are grouped together within the following 8 commitments :

> Responsible Governance

> Related Infrastructures

> Transformational Education

> Rural Development

> Health, Family Planning, and Anti-HIV/AIDS

> High Growth Economy

> Protect the Environment

> National Solidarity

In the section 7 (pages 55 and 56), we analyze to what extent UNIMA participates in the achievement of the objec-tives of MAP, namely with the :

> Number of MAP targets/ activities where UNIMA is active ;

> Direct costs related to the various commitments and challenges met by UNIMA ;

> Nature of the various sustainable development actions undertaken by UNIMA, which relate to the commitments and challenges defined in MAP.

The 8 Millennium Development Goals are reproduced in Table 1 below.



RESULTS

�.0 soCial iMPaCts

2.1 EMPLOYMENT IN MADAGASCARAccording to the Malagasy Observatory of Employment and in service and Entrepreneurship Vocational Training [Observatoire Malgache de l’Emploi et de la Formation Professionnelle Continue et Entrepreneuriale (OMEF)], the unemployment rate in Madagascar in 2005 amounted to 2.8%7 with the unemployment rate among women (3.5%) significantly exceeding that of men (2%).

Compared with that of other developing countries8, these unemployment rates are relatively low. This may be explained by the fact that, in order to survive, the working age population is active in a range of formal, infor-mal and subsistence activities, hence the abundance of sub employment accounting for 3 million active people in Madagascar : they are mainly farmers who practice subsistence single cropping in rural areas, and small vendors, owners of restaurants and self employed workers in urban areas, who work only part time and receive monthly wages below the minimum salary level (SMIG).

The formal sector (including private firms, the free trade zones, and the public administration), creates only 13.5% employment in Madagascar, i.e., 840,000 wage earners, whereas the number of potential new employees is increasing at a rate of 4% per year, i.e., an annual average of an additional 382,000 working age people per annum.

UNIMA’s main production sites in Madagascar are located in the Boeny in the north west of the country where the unemployment rate exceeds the national unemployment rates : 5.3% in total with 3.8% for men and 6.9% for women. In this region, UNIMA is the main (and sometimes the only) source of formal employment.

Figure n°7 : New entrants to the labour market

��

2.2 EMPLOYMENT IN UNIMA Between 1992 and 2007 the number of employees in UNIMA more than doubled from 1,560 in 1992 to 3,415 in 2007, with the large majority of employees (80%) on permanent contract (Figure 8).

The gender based analysis of direct employment indicates that overall 86% of UNIMA employees are men, given the nature of some activities of the group, (such as shrimp trawling and shrimp aquaculture in isolated areas) (Figure 9)

Figure n°8 : Evolution in direct employments among UNIMA Group in Madagascar

Figure n°9 : Direct employments per SPC and gender among UNIMA Group



An analysis of direct employment indicates that 30% of total employment in UNIMA’s shrimp fishing operations are occupied by women who are mainly assigned to shrimp processing in onshore operations (Figure 10).

Over time there has clearly been a transition in employment from shrimp trawling to aquaculture as the Company’s business model has evolved (Figure 11).

Figure n°10 : Employments per SPC and gender among shrimp fishing firms in fishery

Figure n°11 : Evolution in direct employments per entity of Unima Group in Madagascar

In the current context of major crisis in the Malagasy shrimp industry the cumulative deficit of the Malagasy shrimp industry over the past three years is Ariary 120 Billion9 ( i.e., Euro 48 million or USD 63 millions), the reduction in the number of UNIMA employees (especially in the trawling sector), mainly results from the decreasing fishing efforts that the company has been forced to implement – a trend initiated in 2001 and which, except for reversal of the economic conditions, will continue.

��

Over the 2003-2007 period, the inflation rate reached two digits from the year 2004 especially following the depre-ciation of the Malagasy currency against the Euro (between 2003 and 2004 the Ariary lost half of its value against the Euro) and inflation reached its highest level in 2005 (18.3%). Consequently, the real inflation amount (2007 base) of UNIMA’s wage bill, after adjustment, demonstrates a decrease from 2005 onwards, such that over the 2002 -2007 period in total the real inflation adjusted wage bill grew by about 5%.

Regarding remuneration policy (Figure 13) over 2002-2007 :

> the minimum monthly salary level at PNB on average is 1.8 times higher than the Malagasy SMIG ;

> the average monthly salary of non executives at PNB (the major shrimp trawling operation in UNIMA) was on average 2.2 times higher than the Malagasy SMIG10.

2.3 WAGE BILL Between 2002 and 2007, the annual nominal wage bill (wages and social contribution) increased by 75% (Figure 12).

Figure n°12 : Wages and social contribution in Million of MGA

Figure n°13 : Minimum salaries at PNB versus Madagascar



Photo n°5 : Dispensary of Besakoa

2.4 COMMITMENTS TO INTERNATIONAL LABOUR AND HUMAN RIGHTS NORMSThe Company has been a longstanding advocate of good labour practices and has commitments to core ILO labour conventions including :

> Commitments to avoid the use of child labour or forced labour in company operations ;

> Commitments to avoid discrimination and for the fair and equitable treatment of all employees

> Commitments to freedom of association and rights of assembly.

Delivering these commitments in particular is unusual in Madagascar, and the signing in 2007 of a collective convention (Figure 14) that harmonizes the contract based work relationships within UNIMA’s shrimp fishery ope-rations was an important step for the company and Madagascar and these requirements are now being adopted at the Aqualma operations.

Observance of these commitments is subject to rigorous and continuous monitoring within the Company’s envi-ronmental and social management system. Additionally performance is tracked following the principles of the Social Accountability Standard SA 8000.

2.5 SOCIAL POLICYAs a supplement to the quantitative analysis of direct employment benefits provided by UNIMA in Madagascar, an assessment of the impacts of social policy was also undertaken which included :

> A rapid description of the good corporate and ethical practices which appear to the consultants to be the most significant ;

> The monitoring of the evolution in a number of corporate indicators11 of the corporate and employment benefits within the group.

EMPLOYEE BENEFITS

With regard to the significant employee benefits that UNIMA provides, the following are of note :

> Free of charge monthly distribution of rice in the order of 9 kg of rice per family member for each wage earner. In 2000, annual rice consumption per inhabitant in Madagascar was estimated at 140 kilo12, the provision of rice by UNIMA covers a minimum 75% of needs among wage earners. Importantly this benefit provides regular food to UNIMA employees and their families in a context of price instability and sometimes of shortage ;

��

> Facilitation of access to medical care to wage earners and to their assignees through the medical centers and dispensaries that are financed and set up by UNIMA close to its production sites in rural areas (especially the dispensary of Besakoa – Photo 5) as well as in urban areas (e.g., the medical center in Nosy Be) ;

> The existence of a mutual health society inside each entity of the Group. These society’s provide medical health insurance, which provides the wage earner with a significant benefits since public health care outside of urban areas is very limited in Madagascar. According to a recent study13, the coverage rate in mutual health societies ranges from 5 - 20% of the population ;

> UNIMA was one of the first Malagasy Companies to implement a cooperative program with the National Anti-AIDS Committee (CNLS) and the German Cooperation Agency GTZ, («Support to the implementation of the Anti-HIV/AIDS Multi sector Strategy in Madagascar» in December 2005) in an effort to control and manage HIV risks in its staff and local communities ;

> The existence of a staff « corporate » mutual within each entity of the group that is in charge of solidarity actions. Against payment of an annual contribution, each wage earner benefits from participation of the staff corporate mutual during significant events such as birth, marriage, hospitalization, circumcision, death, departure of the wage earner, etc. UNIMA Group each year contributes additional payment.

AIDS PREVENTION

ETHICAL PRACTICES

With regard to good ethical practices, the consultants also note that UNIMA is one of the founding members of the National Observatory of Integrity in Madagascar and commits, to act within the Malagasy society to promote for :

> The observance of fundamental human rights ;

> The suppression of corruption ;

> The promotion of a Rule of Law ;

> And good governance.

Figure n°15 : HIV & AIDS program

uniMa was one of the first Malagasy firms which implemented on December �st, �00� a cooperation convention with the national anti-aiDs Committee (Cnls) and the german Cooperation gtZ, entitled «support to the implementation of the anti-hiV/aiDs Multi sector strategy in Madagascar». such convention relates to uniMa staff as a whole, the families and the implantation sites.

Figure n° 14 : Union contract

the signing in �00� of a collective convention that harmonizes the contract based work relationships within unima group shrimp fishing firms another union contract is currently being adopted within aQualMa. naturally such union contracts integrate the basic requirements in international labor legislation, namely :> absence of child labor : the file for each wage earner includes a copy of his identity card (and in Mada-

gascar, only of age people have a national identity card)> absence of forced labor : any employment is materialized through a work contract > union rights : within each entity of the group, there are staff delegates Furthermore, the observance of such basic requirements is subject to a rigorous and permanent monitoring within the environment, social security performance chart of each entity of the unima group, in accordance with unima group social procedures that are compatible with the social accountabiliy standards sa �000.



Between 2001 and 2007 the turnover rate within UNIMA was stable overall (7% of permanent employees) des-pite significant variations in the business performance and company operations (trawling and aquaculture). This suggests high levels of job satisfaction. The increase in turnover for UNIMA Madagascar (back office functions) identified in Figure 16 reflects the relatively smaller numbers of employees in this business and a recent internal re-organization.

ABSENTEEISM AND OCCUPATIONAL INJURY

Absenteeism and work place injuries can be an important indicator of a company’s commitment to it employees. Low occupational injury and absenteeism are usually related to good morale among wage earners, adequate trai-ning and procedures, and to good productivity. Figures 17 and 18 summarize absenteeism and accident statistics over time. There are no benchmark data to compare this performance from Malagasy companies, but the consul-tants believe this to be extremely low for Madagascar (and can be benchmarked with absenteeism figures from France which average 10%).

2.6 SOCIAL INDICATORS

STAFF TURNOVER

Staff turnover rate can provide a measure of dissatisfaction rate among the wage earners of an organization, since they are in principle, voluntary departures (Figure 16).

Figure n°16 : Turnover rate per entity UNIMA Group

Figure n°17 : Evolution in absenteeism rate per activity from 2002 to 2007

��

Between 2002 and 2007 the rate of absenteeism and occupational injury within UNIMA is stable overall (around 3% of permanent employments) despite :

> Significant variations through the years ;

> Differentiated evolutions through the different business lines - the absenteeism rate is particularly low at VERAMA and is decreasing at Aqualma.

Figure n°18 : Evolution in occupational injury

Between 2002 and 2007 the occupational injury rate was stable overall (figure 18 for 1000 direct employees). Shrimp trawling is the most dangerous activity within UNIMA. Notwithstanding this, during the period 2004-2007, the num-ber of occupational injuries recorded within UNIMA’s trawling operations is consistently lower than the overall occupational injury indices in the fishing sector in France14 (Figure 19).

This shows the effectiveness of occupational health/safety actions within UNIMA.

Figure n°19 : Number of occupational injuries in the fishing activity



TRAINING

Maintaining and improving human capital, especially through training provides a key element for the development of an organization. Figure 20 provides an overview of the Company’s investment in training and of the way in which such investment affects wage earners as a whole. Access to training may contribute to improvements in other aspects of corporate performance, for example, by ensuring equality of opportunities at work.

Interviewees indicated the importance of training provided within UNIMA. The ISO 9001 standard (which the Company is certified against) requires constant capacity building / training for all staff whatever their level in the managerial structure. Unfortunately, until recently there has been no quantitative monitoring of in-house training but a software package to assist in quantitative monitoring has recently been developed : « Fianatsa » (in English : « learning »).

Our assessment is therefore restricted to analyzing the external training hours which have been subject to longer term and more advanced quantitative monitoring (particularly in relation to AQUALMA - Figures 20 and 21 and photo 6).

Photo n°6 : Internal training session

Figure n°20 : Beneficiaries of external training per SPC at AQUALMA

��

It clearly appears that the executives are the ones who are the main beneficiaries of external training within AQUALMA in both number and percentage of numbers per socio professional category (SPC).

PAYMENTS TO THE STATE

In addition to salaries and employment benefits, UNIMA is a major contributor to the Government of Madagascar’s tax and revenue budgets (Figure 22).

Figure n°21 : Beneficiaries of external training per SPC as % of numbers at AQUALMA

Figure n°22 : Taxes and duties paid by UNIMA Group in MGA Millions



2.7 BROADER COMMUNITY DEVELOPMENT ACTIVITIESBeyond the social development activities that UNIMA delivers via employees and their families, UNIMA has developed infrastructure (Figure 23) , partly financing and planning development of Mahajamba and Besa-lampy towns and entirely planning and developing villages near Moramba, Mifoko, Besakoa, Besalampy and Andrafimadio. The Company has also supported the construction and running costs of primary schools in the communities neighboring AQUALMA production premises. Such schools – whether public or private– there-fore benefit from significant means in terms of financial and logistic support to the teaching staff (Photo 8). Libraries have also been built with help from UNIMA near the schools. That of Besakoa has even become a real public library (Figure 23). Some help is provided to young and less young people when sport or cultural events are held.

But further these actions, the Group established plants in remote and enclosed regions, thus creating Com-munity Development. Therefore, the sites offered real development opportunities for the local populations. The impetus given by the Company enabled the poplutaion to take over their lives.

Outreach (Ankilimonga) or permanent (Besakoa) ‘gendarmerie’ (police stations) have also been built by UNIMA, who also subsidize operating costs associated with the remote locations of these facilities.

Figure n°23 : Water, schools and dispensaries built by UNIMA around Majunga

��

Regarding water infrastructure, UNIMA systematically established water distribution systems, including the setting up and running the potable water supply system in the communes of Ambatoloka and Hell Ville, the setting up of public drinking fountains in the villages surrounding AQUALMA and VERAMA, and even the sup-ply of running water to individual homes in the village of Besakoa – which is exceptional for a village of such size. At several of these locations, the company has supported the design and construction of other commu-nity facilities (e.g. renovating community abattoirs) so as to improve health and hygiene for employees and local communities.

Health centers – with (CSB II) or without (CSB I) permanent doctor – were systematically created and are operating thanks to UNIMA support. In addition to health care and maternity support, the health staff conduct preventive care support against Sexually Transmissible Diseases (STDs), Anti-HIV/AIDS campaigns, systema-tic immunizations, and also provide medical support for circumcisions.

UNIMA was the first private Company in Madagascar to launch an AIDS prevention program in association with the German development agency, GTZ.

As has been noted previously, UNIMA employees benefit from health care via a mutual society and the zana-tany (local communities) also benefit from free health care. UNIMA has also provided health evacuations (by air or by sea according to emergency) to zanatany individuals on occasion.

In case of emergencies and natural disasters (flooding, cyclones, and epidemics), UNIMA has frequently provi-ded infrastructure and logistics to support local communities and the Company supports traditional activities (joro…) which account for a significant part of social life, particularly in rural areas.

UNIMA’s social actions help enhance the status of women in neighboring communities through the promo-tion of complementary activities (farming, household production), support to female villager associations or female employee associations or employees’ wives associations.

The company has also helped many individuals and communities become “regularized” in Malagasy society through its efforts to transport administrators to remote locations to record births and land titles. As a result over 900 children have been able to have their civil status documents confirmed15 and UNIMA helped in draf-ting and applying dina (local conventions) in isolated communities.

A summary of the collective development activities that UNIMA has implemented at the village of Besakoa is provided in Figure 24. Importantly, there was active management of significant in-migration at this village, a consequence of the economic opportunities that the adjacent AQUALMA site generated. The Company, local authorities and community members have all been active in managing this in-migration, but UNIMA has in most instances led and facilitated efforts.



Figure n°24 : The village of Besakoa16

before the development of the nearby aQualMa site, the village of besakoa-Fenoarivo was made up of �-�0 households with about thirty inhabitants. there was no infrastructure in the village and the economy was based essentially on small scale fishing. the population had to go to Mahajamba (the main town of the commune �0 km away) for education, health and administrative formalities. in ��, uniMa started operating the aQualMa site - creating employment opportunities and generating in-migration which has resulted in over ��0 houses within a period of �0 years. Currently (�00�) the village accounts for about �,000 inhabitants (�0% employed directly or indirectly in aqualma operations). to support this scale of development, an ambitious

socio environmental program was implemented with significant involvement of uniMa such that the village now has :> a dispensary with a maternity ward, which is open to the whole neighboring population ; providing �,�00

consultations per month , and � to � deliveries per month. it is operated by � doctors, one midwife and � nurses. such dispensary is reputed as the best sanitary infrastructure of the region.

> an urban development plan completed by qualified architects and designers ;> a private school (ecole sacré-Coeur) which has over �00 pupils, i.e., over �0% children in the village,

from kindergarten to “classe de �ème”, with examination success rate that is close to �0% ;> a public primary school and a commune library open to the whole population ;> a commodity procurement system, the objective of which is to limit inflation and to supply the population

with basic commodities and other stuff at equitable price (the monitoring of basic commodities prices by the service of Community based Development over the year �00� shows a -�% overall price variation) ;

> a covered market that enables local stock breeders and producers to sell their respective products ; > a gendarmerie (police) post which provides police services to besakoa and peripheral villages (and

whose duties include monitoring of fuel wood collection form native forests) ;> Farming skills and capacity building enabling farmers in such communities to improve their livelihood

and nutrition for local communities ;> a drinking water supply system made up of �� drinking fountains ;> an electric grid that has been functional since July �00� : to date over �00 houses are connected ;> a program for annual maintenance of roads linking the village to national road n°�, a program mana-

ged by the association Fanavotana ;> a small runway.

Photo n°7 : Satellite view of the village of Besakoa

��

The impact of UNIMA actions was measured based on the success rate in national examinations (CEPE and BEPC) and the public or private schools supported by UNIMA. In Besalampy and Besakoa, it demonstrated a significantly higher quality of education than the national average :

> Success rate in CEPE among private and public schools in Besalampy was 100 % in 2006 (showing a consistent increase over time from 2002 (65 % success rate) and significantly higher than the national average (48 % in 2007) ;

> Success rate in BEPC for the public school of Besalampy increased from 31 % in 2002 to 49 % in 2006, (i.e., a 60% increase within 4 years). The success rate for UNIMA supported schools is significantly higher than the national average (30 % in 2007) ;

> Regarding the end of secondary school studies (baccalauréat), success rate for the public lycee Besalampy showed a similar consistent improvement over the period 2002 - 2006 (0% to 26 %) ;

> Over the same period (2002 – 06), within public education in Besalampy, the number of pupils in primary schools increased by 12 %, that of pupils in secondary school increased by 23 %, and that of lycée increased by 188 %. Figures in private education show a less strong increase because the success rates were initially higher (92 % success rate in CEPE in 2002) and the number of pupils grew more slowly (+ 6 %).

> At the Besakoa village, close to the first aquaculture farm of UNIMA, success rate for official examinations is 70%. Being stated that ESCA is a private school, AQUALMA, together with Besakoa Fokontany financed building of a new public school. Such school started during the year 2007-2008. fees and equipments of local students registerd in the two school are paid by AQUALMA.

> Success rate in CEPE for ESCA in 2007 is 94,20 % in comparison with national average which is 48 %. Success rate in BEPC for ESCA in 2007 is 44,44 % in comparison with national average which is 30 %.

The health conditions of the populations who live next to UNIMA facilities in rural areas are also better than the national average.

One indicator for Ankilimonga (a village close to the farm of Besalampy) indicates a reduced number of consulta-tions between 2002 and 2007, which may be the sign of a better health status among the neighboring populations. Over the same period, the percentage of consultations related to diarrhea symptoms and sexually transmissible infections decreased, indicating better health conditions, on the one hand, and the impact of IST prevention cam-paigns, on the other.

Figure n°25 : Health indicators for Besalampy (Ankilimonga)



2.8 CONCLUSION ON THE SOCIAL POLICY In the social and economic context of Madagascar, UNIMA’s social policy appears to be exemplary in several respects :

> UNIMA is an important formal employment provider, mainly in the region of Boeny, a region with a high unem-ployment rate (5.3% versus 2.8% at national level).

> UNIMA has invested heavily in the development of neighboring villages and communities with a preferential employment policy for the « zanatany » (indigenous) populations and community development actions that pro-vide significant public good services in relation to education, public health care, potable water supply, security and planning.

> UNIMA provides its employees with social benefits that are higher than those required by law and, according to our experience, are higher than those provided by most private firms in Madagascar :

> minimum salaries that are about twice the legal minimum ;

> a free of charge monthly distribution of rice providing food security among wage earners and their family ;

> the establishment of a complementary social protection system - including access to medical care, and health and social mutual benefit societies ;

> the observance of ILO core labour conventions (child and forced labour, discrimination and freedom of asso-ciation) and Human Rights at work. Of particular note, PNB is the first and only company in Madagascar which has negotiated and signed contracts with unions.

> The effectiveness of health/safety actions implemented within UNIMA has been compared with similar statistics in France and appears to surpass the accident safety record for trawling activities between 2004-2007.

According to expertise, even though their presence on farms has to be assessed with care, a path for future social improvement would consist in increasing the number of jobs for female employees within UNIMA (particularly positions with responsibility).

��

�.0 PoliCies, ProCeDures, anD PraCtiCesSocial and environmental responsibility are fundamental to Company practices and have been consis-tent commitments from the outset. An important element of these commitments has been the consul-tation and stakeholder engagement that is evident at many of the company’s sites. The company has developed a series of policies procedures and practices which support its commitments to sustainable development.

At a corporate level, UNIMA has certified its operations according to mandatory (HACCP analysis, « MECIE » Decree - Office National de l’Environnement) and voluntary (Red Label, ISO 9001) standards. UNIMA has also been a strong proponent for the Malagasy shrimp trawling industry to become certified under the Marine Stewardship Council (MSC) program, and is also an active participant in the ongoing development of internationally credible shrimp aquaculture standards.

3.1 INDUSTRY LEADERSHIPUNIMA was a founding member of the Association of Shrimp Farmers and Fishers in Madagascar (GAPCM) and has argued consistently for that agency to incorporate sustainability and resource efficiency within its mandate. This has included successful efforts to increase the mesh size for trawl nets, the introduction of Turtle Excluder Devices (TEDs) on trawlers, as well as the consultation among industrial, small scale and artisanal fishermen on sustainable fishing practices (Figure 26).

From �000, uniMa imposed restrictions on shrimp fishing gear (increasing mesh size from �0 to �0 mm) which were adopted more broadly within the Malagasy shrimp trawling industry (via gaPCM) in �00�.in relation to coastal management, uniMa promoted and led the ZaC (Zones d’aménagement Concerté) project which seeks to develop collaborative coastal management systems that address the needs of industrial, small scale and artisanal fishing activities in nW Madagascar with a view to preventing conflicts, defining management objectives, and to promoting local development. in the context of shrimp fishing in Madagascar, the main issues raised were, at the start (in the ��0s), space occu-pation conflicts (risks of gear destruction or of injuries to traditional fishermen using the same zones as the trawlers) and rational resource management (and particularly better controls on the capture of larvae and small shrimp and fish species) and fishing season controls. the ZaC process aims to address all of these issues.

Figure n°26 : Pioneer actions by UNIMA within the GAPCM



3.2 PUBLIC/ PRIVATE PARTNERSHIPUNIMA has also been instrumental in developing a range of innovative and important development partnerships in Madagascar which have sought to promote sustainable development principles and practices in coordination with local bodies : communes, grassroots communities (COBA), fokontany, gendarmerie, village based associations, public and private schools. UNIMA formalized these efforts by establishing a « community based development » service that is specifically in charge of implementing its corporate and environmental procedures and practices. The Company has leveraged its community development work via partnerships and development activities with a range of agencies :

> Development bodies including UNICEF, GTZ, Alliance Française ;

> Environmental NGOs including WWF, GREEN NGO.

UNIMA is also a partner of UNICEF and brings financial contribution to its Malagasy schools program whose objective is to improve the health and sanitation conditions of pupils in 120 primary schools, to improve access to drinking water and sanitation facilities, and to build capacity among teachers (WASH program).

Photo n°8 : Public primary school

In their publication « Corporate Solutions to Poverty : Examples of Success in Mada-gascar »17, the United Nations Development Program recognizes the pioneer role of Unima. The chapter « Being involved and investing financially in human develop-ment over exploitation sites » analyzes Unima experience and examines its viability and its sustainability.

��

Photo n°9 : A well constructed by AQUALMA

Photo n°10 : Besakoa police force office



�.0 enVironMentUNIMA has received formal approval for each of its operating units18 under Malagasy Decree n° 99-954 (MECIE) issued by the Ministry of Environment, Water and Forests of Madagascar after favorable evaluation of the file on Environmental Impact Study (EIS) for each site.

This in and of itself is a notable commitment to environmental performance in Madagascar. Every year, each UNIMA unit produces an environmental report for the attention of the National Office for the Environment (ONE) in accordance with the Environmental Specifications (CCE) provided for by the Decree MECIE.

There is also an extensive training and awareness program that is directed at employees and local populations that aims to reduce risks of pollution and damage to the natural environment and UNIMA is committed to participatory approaches for managing the forest (AQUALMA, VERAMA) and the sea (PNB).

4.1 AQUACULTURE

Finally in 2005, the aquaculture units of UNIMA (Mahajamba and Besalampy) and the center for larva breeding of Ambatomifoko were audited by the international organization

« Aquaculture Certification Council » which granted to each site very high scores in technical, environmental, and social performances : 100 % in vital criteria, and scores between 93 and 96% for the other criteria (especially in traceability of finished products to spawners)21

Figure n°27 : A Summary of UNIMA’s aquaculture model

uniMa has developed a semi-intensive production model characterized by :> an annual production of �.�t/ha/year> a low breeding density (�-�� juveniles per square meter)> Production ponds from � to �0 ha in size > Mixed feed (natural productivity of ponds and composed feed)

the production species are tiger prawn (Penaeus monodon) which are native to Malagasy waters (i.e. this is not an introduced species) and uniMa has developed a breeding and stock improvement program that means they do not harvest wild larvae or broodstock for their operations (i.e. they have domesticated broodstock) .the shrimp breeding activity is done on salt flats (flat, clayish areas without vegetation) and uses unused and infertile land.uniMa is the only Malagasy operator which has a fully integrated production model. it produces its own feed, via the feed mill in reunion (nutriMa) which has allowed significant cost efficiencies of production and the lowest food conversion ratio�� in Madagascar (between �% and ��% lower than the average conver-sion rate in the sector over the �00�-�00� period�0, reducing waste and pollution from waste effluents.addtionally, uniMa has entered a partnership with inra (France) on further reducing fish protein compo-nents in its feed and substituting these with plant proteins. there is significant urgency to reduce the over-exploitation of pelagic fish stocks for use in fish meal /animal feed and, particularly in aquaculture. regarding Penaeus monodon, aQualMa is the first firm in the world that has controlled the breeding of captive broodstock. the benefits of this include a removal of impacts to the marine environment from the capture of wild post larvae (resulting in significant environmental benefits) and also high levels of control in relation to bio-security.one of the key issue of this know-how comes from the rearing of numerous ans specific families, enough to maintain genetic diversity.

��

UNIMA’s aquaculture operations achieved very high scores during the first certification by the Global Aquaculture Alliance in November 2005. According to the certifier such scores «reflect the high standards that the firm set in environmental protection and social responsibility.» (See Figure 28)

A more in depth examination (Figure 29) of the scores obtained explains such excellent result. UNIMA obtained 100 % in primary criteria and over 90 % for secondary criteria, whereas only 70 % were required to obtain the certification.

The company will move to certification under the Global Shrimp Standard that is being developed currently within the Shrimp Aquaculture Dialogue together with GAPCM and WWF.

Nosy Be Mifoko Besalampy Mahajamba

P S P S P S P S

Property and Regulation �00% �00% �00% �00%

Community Relation �00% �00% �00% �00% �00% �00%

Employee Security and Relations �00% ��% �00% ��% �00% ��% �00% ��%

Mangrove Conservation �00% �00% �00% �00% �00% �00% �00% �00%

Effluent Management ��% ��% �00% �00% �00%

Sediment Management �00% �00% �00% �00%

Soil/ water preservation �00% �00% �00% �00%

Veterinary health �00% �00% �00% �00%

Post larva Sources �00% �00%

Input Storage and disposal ��% �00% �00% ��% �00% ��%

Chemical pharmaceutical Management �00% �00% �00% �00% �00% �00%

Microbe Desinfection �00% ��% �00% �00% �00% �00%

Harvest and transportation �00% �00% �00% �0%

Traceability �00% �00% �00% �00% �00% �00%

Overall Score �00% ��% �00% ��% �00% ��% �00% ��%

Figure n°29 : Detailed of GAA assesment

Figure n°28 : Summary of GAA assessment of AQUALMA farm practices



4.2 ENVIRONMENTAL IMPACT In its selection of production sites, UNIMA was guided by comprehensive environmental and social assessments which included assessment of biodiversity and ecosystem impacts. All production ponds are located on extensive areas of intertidal mud/ sand flats that are recognised as being biologically inert and with very low biodiversity. The company undertakes regular biological and environmental monitoring of its production facilities including :

> Control of waste discharge − especially control of waste water effluents from processing plants ;

> Water quality monitoring – namely of physical and chemical22 parameters of pond effluents ;

> Processing of waste including namely the recycling of shrimp residues into fertilizers for the cashew plantation, the compost of recyclable organic waste, and the burying of non recyclable metal waste ;

> Use of CFC free refrigerants.

4.3 CARBON POLICY UNIMA with the support of GAPCM and French Fund of the Environment has undertaken an assessment of its green house gas (GHG’s) emissions from each of its business lines. The study was undertaken by the C4 Com-pany (www.carbone4.com) in late 2008 and will help to set a carbon policy to reduce GHG’s responsible of global warming. The policy will adress energy consumption accross UNIMA operations. This will, for example, reduce the pumping needs and consequently the fuel cost and gas emission.

REDUCTION OF FISH PROTEINS CONSUMPTION

Figure n°30 : UNIMA & INRA research program

unima is financing a research program with inra (France) on substituting fish proteins by plant proteins in shrimp feed. this currently is a major global stake to reduce the overexploitation of pelagic fish stocks following the use of fish meal in animal feed and, particularly, in aquaculture. this will bring a tangible reply to the concerns raised by environmental ngos about the use of fish meal for aquaculture feed and, at the same time, an economic alternative to price rising in fish meal as a result of increasing scarcity.

��

Photo n°12 : Rhizophora nursery

4.4 PROTECTION OF BIODIVERSITY AND THE WIDER ENVIRONMENT UNIMA has also had a longstanding commitment to the conservation and management of biodiversity at its sites. This includes the protection of habitats and species and is particularly relevant given Madagascar’s high levels of endemism and significance in terms of global biodiversity. These efforts are frequently undertaken with the sup-port and involvement of local communities. Key initiatives are summarized below..

MANGROVE AND FOREST CONSERVATION AND MANAGEMENT

Aquaculture production for shrimp has had a significant impact on mangroves in many parts of the world. UNIMA has sought to avoid negative impacts to this type of habitat in its selection of ponds and infrastructure and also extensive mangrove replanting re-afforestation work that it has undertaken around many of its facili-ties in partnership with the GREEN NGO23 (850,000 plants - 85 ha at AQUALMA and 70 000 plants - 7ha at PNB operations at Nosy Be), plus an additional 95 ha of other (non mangrove) replanting around other sites.

The two mangrove species used are the Avicenia marina and Rhizophora mucronata, which are selected for their natural presence in the mangroves bordering UNIMAs sites. The seeds for the two species are harvested in the neighboring natural environ-ment and two mangrove planting campaigns were completed in 2002 and in 2004.

Regarding reforestation, work more broadly five rapid growth species (Acacia auri-culiformis, Acasia nilotica, Cassia siamea, Casuarina equisetifolia (Filao), Leucaena lemacephala) have been selected and are being planted around Besakoa and other sites to provide fuel wood and building materials to local communities (reducing pressure on natural forest), and protect the land from erosion.

GAS STOVES UTILISATION

In 2003, a campaign to replace wood burning stoves with gas was started by the Besakoa Community Development team (to reduce threats to native forest). AQUALMA employees and the local population were sensitized about the use of gas stoves. 120 hou-seholds (out of the 500 in Besakoa) have been able to purchase such stoves and, according to a survey conducted in 2005 among users, 100 use the gas stove on a permanent basis. Furthermore, a local retailer is currently supplying refills for gas bottles in Besakoa, and AQUALMA provides logistics/ delivery for bottles free of charge. During the campaign, the equipment acquisition (i.e., the money back system for bottles and stove buying) was subsidized by AQUALMA. Such operation experienced success only in part and this shows the difficulty of convincing populations to modify their habits.

The potential use of Jatropha oil as a fuel source is also now being examined with a view to feeding the electrical power plant of the village of Besakoa and to reduce the cost of energy for users.

MANAGEMENT OF IMPORTANT TERRESTRIAL HABITATS

During the assessment of the Besalampy site the ecological value of adjacent sand dunes was noted and in 2004 a collaborative project (with GREEN NGO) was initiated with local communities. A management plan was developed and controls developed on the use of natural resources, hunting, fire, reforestation and the relocation of local people who were living in the dunes to a more appropriate and habitable area.

PROTECTION OF ENDANGERED SPECIES

Monitoring of endangered species has also been undertaken at all UNIMA sites (Figure 31) and the Company has a long history of protecting and conserving biodiversity (Figure 32 and Figure 33).

Photo n°11 : Avicenia plantation along the grow-out ponds



Figure n°31 : Monitoring of endemic species

BESALAMPY �� bird species were inventoried in �00�. the three keystone species which are seen as indicators of eco-system health are increasingly present on the site and two of them are breeding on the site : > BERNIER TEAL (Anas Bernieri) an endangered endemic species increasing in number since �00�, nes-

ting on the site. over �00 individuals on site ;> HUMBOLT HERON (Ardea Humbloti) a vulnerable endemic species increasing in number since �00�,

nesting on the site.> LESSER FLAMINGO (Phoeniconais Minor) a nearly endangered migratory species over one thousand

individuals observed. not breedingit is possible that besalampy will be considered as a Zone of importance for Conserving birds [Zone d’im-portance pour la Conservation des oiseaux (ZiCo)].

MAHAJAMBA �� bird species were inventoried in �00�. two keystone species which are seen as indicators of ecosystem health are increasingly present on the site > BERNIER TEAL (Anas Bernieri) : from 0 to � individuals identified between �00� and �00�,> HUMBOLT HERON (Ardea Humbloti) from � individual to �� individuals identified between �00� and

�00�,> LESSER FLAMINGO (Phoeniconaias Minor) : a nearly endangered species was newly inventoried in �00�

when �� individuals were identified.

MORAMBAsince monitoring began at moramba in �00�, the number of species recorded has increased consistently : �� species in �00�, �� in �00�, �� in �00�, and �� in �00�. of particular note

the madagascar fish eagle (haliacetus Vociferoides) a species with a critical status has been regularly recorded at the site and is known to breed on unima property.

Photo n°13 : The tagged fish Eagle (Ankoay) of Moramba

��

Figure n°32 : « Cookie »

a female baby lemur, belonging to the species Propithecus ver-reauxi was recovered in a poacher boat by the security team of the site of Moramba, in winter �000. its physical status was dramatic ; it was thin and diarrheic. the veterinary doctor of the group, Marc le groumellec managed to save the little female by using anti choleric salts and, with an adapted feed, enriched in water, fiber and vitamins. «Cookie», affectionately called this way because of its coat that is dotted with brown spots then lived several months within the life camp. the staff had the interdiction to feed it, in order to avoid that she becomes domesticated, and she could be found on various trees, so that she chooses the buds that suited her. once she has been able to recover, Cookie has left and went to the forest of the bay of Moramba, and the staff never thought

of seeing it again. What was their surprise when they saw her come back the following winter (June-July), accompanied by her family. the new guests settled then in the trees of the life camp and are still there. the mother, who is the family head, disappeared following the cyclone gafilo. Cookie has now the one that became the clan chief (in such species, the societal rule is matriarchy), and every year, she makes a bay, which on a regular basis increases the small colony which has now � or � members.

Photo n°14 : Cookie and her baby in November 2005

Figure n°33 : Tahina Spectabilis

at the north east of Verama, the cashew nuts plantation, the limes-tone outcrops (tsingy) offer a luxurious landscape where the excep-tional flora and fauna display a tremendous biodiversity.a tree grows in the canopy of one of the huge palm trees, as if it had taken root at the very heart of the palm tree. in fact, this is the stipe of the palm tree which is a kind of inflorescence that may resemble a huge sisal flower spike. this flower spike is twice as high as that of the palm tree. Doctor John Dransfield, a world specialist in palm trees, sent a young student to observe the population and take sam-ples to Kew botanical gardens in london and to Fairchild botanical gardens in Florida. the results announce that the palm tree is not only an unknown species worldwide but, in addition, of a new bota-nical genus. the tree was formally named tahina spectabilis, and described for the first time in �00� in the botanical Journal of the linnean society. in Malagasy, the name of the genus tahina means “blessed” or “protected”. in addition, the word spectabilis recalls the spectacular and gigantic aspect of the tree.in order to protect the species and the genus, uniMa immediately constituted a « Committee for Managing the tahina’s » with indige-nous farmers ; then undertook collaboration with the royal botani-

cal garden of Kew and the Millennium seed bank ; and formulated for the Ministry of environment, Water, and Forests an official application for classification as a Protected area for the site of tahina’s.

Photo n°15 : Tahina Spectabilis



4.5 SHRIMP TRAWLINGUNIMA has developed and implemented a range of « responsible fishing » practices based on the European code for best practices for responsible fishing and integrating the principles of the FAO code of conduct for Responsible Fishing24 with a view to ensuring the sustainable management of shrimp resources.

As a result, UNIMA has led the development of more sustainable fishing practices in Madagascar and the following actions are of note :

> Turtle protection : UNIMA was the first Company in Madagascar to introduce the use of Turtle Excluder Devi-ces (TED) over all shrimp fishing gear (using a generalized Australian system). This gave tangible results with regard to protection of turtles and cetaceans (such as dolphins)- between February and June 2003 (before using TEDs) 136 turtles (of which 133 were returned to the sea alive) were caught, since February 2003 through May 200825 none were captured.

> Fishing operations : UNIMA has introduced changes to the timing and duration of fishing activities during the first days of the fishing season as well as fishing with a simple net in the place of the twin net for one part of the fishing season and reducing the number of boats at work. As part of a unilateral effort to reduce fishing pressure on natural stocks

> By-catch Reduction : UNIMA has implemented the use of By-catch Reduction Devices (BRD) over its whole fleet. Reduction in by-catch results in better quality shrimp and, beyond that reduces impacts on marine eco-systems and biodiversity. By-catch from UNIMA gear now accounts for only 7% of total catch versus rates quoted by environmental NGOs, of between 5 to 25 kg of fish 1 kg of shrimps (1,500 %)26 ;

> Reduced impacts on sea floor27: UNIMA is the only shrimp fishing industry operator to remove the “drag” chain that disturbs the seafloor and encourages shrimp to swim into the water where they are captured in the net, but which significantly damages the seafloor. Removal reduces benthic damage by at least 50% : an environmental impact study of such measurement by the way remains to be conducted ;

Photo n°16 : shrimp trawler Photo n°17 : TED

��

Photo n°19 : Dialog with traditional fishermen

> Increase in net mesh size : UNIMA was a pioneer in increasing the mesh of nets (from 40 to 60 mm increase) an action that was subsequently implemented across the industry in 2003 with a view to improving the size of shrimp taken and to preserve smaller size shrimp28 ;

> Buyback and destruction of fishing gears in 2003 and 2004, the Pêcheries de Nossi-Bé firm participated in the “retirement” of fishing gear used by small scale coastal fishermen (this gear comprised mosquito nets which catch virtually all marine species and larvae and have a very severe impact on coastal fisheries) to avoid the destruction of shrimp resources among mangroves and estuaries ;

> Creation of artificial reefs : In consul-tation with the authorities, the associa-tion of traditional fishermen and diving clubs : in 2007, rather than selling two laid up fishing trawlers, the Pêcheries de Nossi-Bé created an artificial reef by scuttling both trawlers ;

> Fuel efficiency : the monitoring of fuel consumption as well as the better mana-gement practices identified above has resulted in a 31% reduction in fuel use between 2003 and 2006 with obvious CO2 emission reductions ;

> Dialog with traditional fishermen : UNIMA has also taken a leading role in the dialogue between industrial and traditional fisher-men in Zone A ( a precursor to the ZAC coastal management plan) and worked in sensitizing the latter on the importance of respecting the closure period of shrimp fishing. These activities included informa-tion campaigns, production of a local infor-mation magazine in Sakalava dialect that explains the life cycle of shrimps, by exten-ding crab farming techniques (a poten-tial substitute activity during the shrimp fishing close season).

Photo n°18 : Artificial reef (wreck of Nosy be 4,one year after submersion)



4.6 VERAMA – CASHEW PLANTATION VERAMA or « VERgers d’Anacardes de MAsiloka » is a project of high grade and high quality cashew kernel pro-duction in Madagascar. UNIMA Group initiated this project in 1999. It aims at medium term at the plantation of 6.500 Ha and a consecutive production of 3 200 metric tons of high quality kernels which would be labelled in fine as organic products. The orchards, situated on the North-West coast of Madagascar, in the vicinities of the great lake Masiloka, on the peninsula of the Narinda Bay, are based on the rehabilitation and enhancement of highly degraded grass lands, renown as infertile and even sterile, within an estate of approximately 16.000 Ha, which includes larges primary dry forest blocks (3.000 Ha) typical from this area and a high biodiversity panel (location of the Tahina Spectabilis see Figure 33).

The project has an holistic development scheme (creation of an employment sink, social development, pro-envi-ronment new dynamic on the area). The main goal is to create a cost efficient activity, fully integrated in its physical and social surroundings, respectful of the overall environment and giving, on a semi-extensive lay-out, a sustaina-ble yield of very high quality products which could be labelled Organic and sold on niche markets where the prices are less sensitive to fluctuation than on the bulk market.

VERAMA AND CARBON MARKETS

The first scientific assessments made by IRD (Professor Albrecht) showed a sequestration potential in the order of 800,000 tons equi-valent CO2 for the 6,500 ha of plantation of cashew nut trees coming to maturity.

The Company is currently negociating car-bon credit for VERAMA financing under Clean Development Mechanism.

Photo n°20 : VERAMA orchads

Photo n°21 : Cashewnut trees of VERAMA

��

�.0 eConoMYIn addition to its direct impact in terms of employment, UNIMA creates direct and indirect economic opportunities for local people and businesses.

A key impact identified by the consultants included infrastructure development. Over many of the locations from which UNIMA operates, the State is unable to meet local development needs in the provision of infrastructure (or health, education or security).

UNIMA’s logistics and infrastructure needs have improved road, river and maritime links (and access to markets) and significantly reduced the isolation of many rural communities. Depending on the location, inhabitants may use AQUALMA boats to go to Majunga (to sell goods) and traders can move their products and commodities to rural locations. Some river/ sea lines for the exclusive use of local populations have even been set up.

Public market places were also set up as a complement to this scheme and support of farming activity and impro-ved infrastructure has enabled the local population to supply Company operations with fresh products. A preferen-tial purchasing policy among local people for locally available goods and services has been developed to support and strengthen rural enterprise.

Few quantified impact assessments of the social, environmental, economic, and institutional impacts of a private sector company have been developed prior to this study and thus there is no agreed template or format for our research. While impact is difficult to quantify, impact in terms of removing areas from physical isolation (links by river or sea or road), social impact (schools, dispensaries…) in the areas involved is obvious.

In terms of economic impacts, the increased opportunities evident in the villages close to UNIMAs operations seem to be more important than in equivalent villages remote from UNIMA. The support provided in the form of advice to farming activities (including enhanced rice cultivation) provides evidence of the impact on food security and self sufficiency (see Figure 34).

Figure n°34 : An over production problem

at the end of the meeting at the village antanabo, Mr. lazarivo, an elder in the village, dropped a discrete hint about his problem. he practiced the enhanced rice cultivation system and counted on a � ton harvest, may be �.� tons if conditions were favorable. now, he does not know how to transport his � tons harvest up to the village located �0 km away from his place…



5.1 COSTS OF UNIMA SUSTAINABLE DEVELOPMENT ACTIONS According to our calculations, the total costs of the sustainable development actions achieved by UNIMA in Mada-gascar between 1992 and 2007 amount in minimum to Ariary 29 billion

In Millions of Ariary Social Environ-

mentale Economic Institutional TOTAL

DIRECT COSTS �� 0 � �� 0�

INDIRECT COSTS � �� 0 � ��

TOTAL COSTS �� 0 � �� 0

Table 2 : Costs per component of Sustainable Development Actions

In thousands of Euro Social Environ-


DIRECT COSTS � �� 0 � �0�

INDIRECT COSTS ��0 � ��0 � �� 0�

TOTAL COSTS � �� 0�

In thousands of US $ Social Environ-


DIRECT COSTS � �� 0 �� 0�

INDIRECT COSTS � 0�� 0�0 � �� 0� � ��

TOTAL COSTS � ��0 � �0� � �� 0 ��

Direct costs are made up of costs that may directly be attached to sustainable development actions/ activities, and that were subject to specific disbursements (e.g., expenses related the distribution of rice to wage earners).

Indirect costs are made up of costs shared with other activities of the company or costs that are «opportunity costs». In that respect, they have not necessarily given rise to specific financial disbursements (e.g., provision of market opportunities and infrastructure use by local communities from neighboring villages).

��

The costs for Sustainable Development Actions (SDA) of the Group evolve as follows :

The turnover for shrimp shows the following pattern :

Table 3 : Evolution of turnover

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

MGA 44 704 38 512 89 952 67 145 111 904 148 027 93 462 100 839 110 277 110 277 135 179 127 880

€ 17 882 15 405 35 981 26 858 44 761 59 211 37 385 40 335 44 244 44 111 54 071 51 152

$ US 26 822 23 107 53 971 40 287 67 142 88 816 56 077 60 503 66 366 66 166 81 107 76 728

2004 2005 2006 2007 TOTAL

MGA 161 388 159 917 157 426 130 625 1 787 846

€ 64 555 63 967 62 971 52 250 715 138

$ US 96 833 95 950 94 456 78 375 1 072 707

UNIMA Group / Turnover Shrimp Export (in million of MGA - real amount basis 2007)

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

MGA 13 12 9 6 476 407 2 199 1 736 1 417 1 587 2 259 3 366

€ 5 5 4 3 190 163 880 694 567 635 904 1 346

$ US 8 7 6 4 286 244 1 320 1 042 850 952 1 355 2 020

2004 2005 2006 2007 TOTAL

MGA 3 676 4 340 4 050 3 707 29 270

€ 1 470 1 736 1 624 1 483 11 708

$ US 2 205 2 604 2 435 2 224 17 562

Table 4 : Evolution of costs for SDA

UNIMA Group / (in millions of MGA - real amount basis 2007)



Thus the total costs of the sustainable development actions implemented by UNIMA in Madagascar account on average for 1.85% pa (close to 2%) of total shrimp export turnover, but 2.84 % (close to 3 %) at the time of our assignment (Figure 35).

It is evident that SDA expenditure has been fairly constant since 1995. The 1998 peak corresponds to the commis-sioning of the Moramba domestication center. A difference is noted between fishing >2% and aquaculture <2%, which is undoubtedly due to the respective importance of aquaculture in the company’s operations.

From a strictly financial viewpoint, the sustainable development actions delivering strong social impacts are the ones that cost most to UNIMA, followed by sustainable development actions with an economic focus, then the ones with environmental focus and, last, with institutional focus, as indicated in the Figure 36.

Figure n°35 : Sustainable Development Action costs (%) in relation to turnover for shrimp exports

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Moyenne

SDA COSTS % TO

0,02 %

0,02 %

0,01 %

0,01 %

0,43 %

0,28 %

2,35 %

1,72 %

1,28 %

1,44 %

1,67 %

2,63 %

2,28 %

2,71 %

2,58 %

2,84 %

1,85 %

Figure n°36 : Costs of SDAs as % of shrimp export turnover

��

These figures however need to be interpreted with care since environmental actions are crosscutting in nature and are shared with the local populations ; and though they account for smaller cost, they are not less important.

Last, the chronological evolution in the costs of sustainable development actions per component is presented in Figure 37.

The impact of the implementation of the domestication center of Moramba with environmental focus can be seen clearly in 1998.

The fact that the expenses for sustainable development in real terms begin to decline from 2005/2006 is also per-ceptible across all business lines. This is a consequence of the economic crisis experienced by the whole Malagasy shrimp industry and poses the fundamental question of the inadequate integration of sustainability costs in the value chain.

Figure n°37 : Chronological evolution of costs of SDAs per component in baseline 2007 Real value



Table 5 : Direct costs of the social component for SDA

SOCIAL COMPONENT – Detail of direct costs

Natures of Main Cost Items

Costs of Unima Sustainable Development Actions

In Millions of Ariary

In Thousands of Euro

In Thousands of US$

Free of charge distribution of rice to wage earners � �0� � ��

Promoting unima staff health � ��0 ��0 ��0

Contribution to removing from isolation � ��

Direct cost of the pole ”Community based development” ��

health expenses in rural areas ��

Consultation with traditional fishermen �� 0

Promoting education in rural areas ��0 ��

Public service actions in rural areas (off health) ��

Promoting access to drinking water in rural areas ��

Participation in social life ��

assistance to local governments in distress �� 0 �0�

Miscellaneous ��

GRAND TOTAL 13 141 5 256 7 885

5.2 DETAIL OF COSTS In a more detailed way, the costs of sustainable development actions by UNIMA are as follows :

SOCIAL COMPONENT – DIRECT COSTS

In a decreasing order, the main three social direct costs comprise :

> the cost of the distribution of rice to wage earners (Ariary 6 billion – euro 2.5 million/ 3.0 million USD ) covering 75% to 100% of needs in rice among UNIMA employees and their families ;

> the expenses for promoting UNIMA staff health (Ariary 1.4 billion – Euro 0.6 million/ 0.7 million USD) made up in insurance and mutual health society costs, as well as the establishment of medical facilities for UNIMA staff and local communities ;

> the costs related to infrastructure improvements and services (Ariary 1.2 billion – euro 0.5 million/ 0.6 million USD) which include expenses for road maintenance and/or rehabilitation, as well as the costs for river and sea logistic provided by the Company

The direct costs as a whole for the social component are detailed in the following table.

Furthermore the item :

> «Direct cost of Community Development » is mainly made up of staff wages and expenses directly dedicated to the sustainable development actions of the Group ;

> « Health Expenses in Rural Areas» includes the expenses for the establishment of dispensaries and infirmaries in rural areas and the related financial support ;

��

Table 6 : Indirect costs of the social component for SDAs

SOCIAL COMPONENT – Detail of indirect costs





In Thousands of US$

share of staff wage bill earmarked to aDDs � ��

Free of charge transportation service for staff children �0� ��

Free of charge Fish Distribution to boatmen ��

Free of charge transportation Provision in rural areas �0 ��


Participation in social life �� 0

Miscellaneous � � �

GRAND TOTAL 1 826 730 1 096

> « Promotion of education in rural areas» includes the set of expenses for construction and/or support to schools in the rural communities neighboring UNIMA production sites ;

> «Public Service Actions in Rural Areas » groups together the payment in part by UNIMA of the expenses for local governments (e.g., support to communes in electrification, rehabilitation and construction of public market places, gendarmerie posts, etc…).

SOCIAL COMPONENT – INDIRECT COSTS

80% of social indirect costs are made up of the share of staff wage bill (of staff for « Community development ») which was earmarked to SDA (Ariary 1.4 billion – Euro 0.6 million/ USD 0.7 million) and which comes from the num-ber of working hours of the wage earners as a whole of the group associated with the SDA (social component).

The indirect costs as a whole for the social component are detailed in Table 6.



ENVIRONMENTAL COMPONENT – DIRECT COSTS

In a decreasing order, the three main direct environmental costs comprise :

> The environmental component of Community Development (Ariary 0.9 billion - euro 0.4 million/ 0.5 million USD) made up mainly of the staff wage bill and expenses directly dedicated to environmental project undertaken by the Group ;

> The environmental part (Ariary 0.4 billion – euro 0.2 million/ 0.3 million USD) of expenses related to the cashew nut plantation development made up of the fees for the feasibility study of VERAMA Project and the costs plan-tation development (development of workers village, road infrastructures, dispensaries, etc…) ;

> Expenses for forest protection (Ariary 0.4 billion – Euro 0.2 million/ 0.3 million USD) made up mainly of expenses related to the various reforestation campaigns led in partnership with GREEN NGO.

The direct costs as a whole of the environmental component are detailed in the Table 7.

ENVIRONMENTAL COMPONENT – Detail of direct costs





In Thousands of US$

Direct Costs of the pole “Community based Development” ��

Plantation of cashew nut trees, constitution of Co� wells (environmental part) ��

Protection of forest (reforestation campaign, agreed upon management of forest… �� 0�

Protection of environment perimeter through land repurchase ��

establishment of teDs ��

Costs of international Certification ��

Costs of environmental permit (MeCie DeCree) ��

Promoting access to drinking water in rural areas �0 �0 �0

repurchases of destructive fishing gear (Poto) among traditional fishermen ��

support to truck farming activity � � �

Jatropha Cultivation � � �

Miscellaneous � 0 0

GRAND TOTAL 1 890 756 1 134

Table 7 : Directs costs of the environment component for SDA

the item « Promotion of access to drinking water in rural areas» is made up mainly of costs related to construc-tion of wells in rural areas (besakoa, soanenga, ankilimonga, beloba, Manjarisoa…)

��

Table 8 : Indirect costs of the environmental component of SDAs from 1992 to 2007

ENVIRONMENTAL COMPONENT – Detail of indirect costs





In Thousands of US$

Control of biological security in breeding operations (Domestication Center) �,�� ,��

share of staff charges earmarked to aDDs �,��

Creation of artificial reefs ��

reforestation operation ��


GRAND TOTAL 3,450 1,380 2,070

ENVIRONMENTAL COMPONENT – INDIRECT COSTS

> 57% of indirect environmental costs (Ariary 2 billion – Euro 0.8 million / 0.95 million USD) are made up of the costs for «control of biological security of breeding operations » made up mainly of the commissioning of the Moramba shrimp domestication center ;

> 42% of indirect environmental costs (Ariary 1.4 billion – Euro 0,6 million / 0.75 million USD) are made up of the share of wage bill («Commmunity development staff »).

The indirect costs as a whole of the environmental component are detailed in Table 8.



ECONOMIC COMPONENT – DIRECT COSTS

In a decreasing order, the main economic direct costs comprise :

> UNIMA infrastructure costs in rural areas (Ariary 0.8 billion – Euro 0.3 million/ 0.4 million USD) in the region of Besalampy (the rehabilitation of roads, establishment of a regular maritime linkage between Mahajanga and Besalampy from which the local population benefits subject to available seats, free of charge rice transportation air transportation in case of emergency, etc…) ;

> The costs of international certification (Ariary 0.7 billion – Euro 0.26 million/ 0.35 million USD) made up mainly of the costs of certification ISO (ISO 9001 and Label Rouge) ;

> The costs related to the actions conducted by UNIMA in stakeholder engagement and consultation with traditio-nal fishermen (Ariary 0.6 billion – Euro 0.22 million/ 0.3 million USD) in Zone A/ ZAC ;

> The economic part (Ariary 0.4 billion – Euro 0.15 million/ 0.2 million USD) of the expenses related to the VERAMA plantation project made up of the feasibility study and costs of the main sustainable development actions (deve-lopment of the village of workers, road infrastructures, dispensaries, etc…).

The direct costs as a whole for the economic component are detailed in Table 9.

Table 9 : Direct costs of the economic component of SDAs

ECONOMIC COMPONENT – Detail of direct costs


Costs of UNIMA Sustainable Development Actions



In Thousands of US$

Contribution to removing from isolation �� 0� ��

Costs of international Certification ��


Plantation of cashew nut trees, constitution of Co� wells –environmental part) ��

Promoting unima staff health ��

Protection of environmental Perimeter through land repurchase �0� ��

Public service actions (off medical service) �0 ��

health expenses in rural areas (Dispensary, Csb….) ��

Promoting and sustaining truck farming ��

repurchase of destructive fishing gear (Poto) from traditional fishermen ��

Miscellaneous ��

GRAND TOTAL 2 827 1 131 1 696

��

ECONOMIC COMPONENT – INDIRECT COSTS

> 51% of economic indirect costs (Ariary 2 billion – Euro 0.8 million/ 1.0 million USD) are made up of the costs of «control of biological security of breeding operations» made up mainly of the commissioning of the domestica-tion center of Moramba.

> 47% of economic indirect costs (Ariary 1.8 billion – Euro 0.7 million/ 0.85 million USD) are made up of the share of staff wage bill («Community development ») which was earmarked to the sustainable development actions.

The indirect costs as a whole of the economic component are detailed in Table 10

ECONOMIC COMPONENT – Detail of indirect costs





In Thousands of US$

Control of biological security in breeding operations (Domestication Center) � ��

share of staff charges earmarked to sDas � �� 0��


Free of charge transportation provision in rural areas ��

Contribution to removing from isolation �0 � �

sanitation at port � � �

GRAND TOTAL 3 818 1 527 2 291

Table 10 : Indirect costs of the economic component of SDAs



INSTITUTIONAL COMPONENT – DIRECT COSTS

In a decreasing order, the main three institutional direct costs comprise :

> The institutional component of the «direct cost of the Community development» (Ariary 0.88 billion – Euro 0.35 million/ 0.4 million USD) made up mainly of the staff wage bill and expenses directly dedicated to the sus-tainable development actions of the Group ;

> The expenses of UNIMA in the area of infrastructure improvements (management / design etc) (Ariary 0.32 billion – Euro 0.12 million/ 0.2 million USD) ;

> The costs related to the actions conducted by UNIMA in consulting with traditional fishermen (Ariary 0.28 billion – Euro 0.11 million/ 0.17 million USD).

The direct costs as a whole for the institutional component are detailed in Table 11.

Table 11 : Direct costs of the institutional component of SDAs

INSTITUTIONAL COMPONENT – Detail of direct costs





In Thousands of US$

F Direct costs of the pole “Community based development” ��

b Contribution to removing from isolation ��

a Consultation with traditional Fishermen �� 0

D actions for off medical service Public service ��

C Participation in social life ��

i Planting cashew nut trees (institutional part) ��

g Protection of forest (Contract based Forest Management) � � �

e Miscellaneous � � �

GRAND TOTAL 1 649 660 989

��

INSTITUTIONAL COMPONENT – INDIRECT COSTS

> 97% of economic indirect costs (Ariary 0.65 billion – Euro 0.26 million/ 0.35 million USD) are made up of the share of staff wage bill (« Community development»)

The indirect costs as a whole of the institutional component are detailed in Table 12.

Table 12 : Indirect costs of the institutional component of SDAs

INSTITUTIONAL COMPONENT – Detail of indirect costs





In Thousands of US$

share of staff charges earmarked to sDas ��

Consultation with traditional Fishermen �� 0


GRAND TOTAL 668 267 401



�.0 uniMa & MillenniuM DeVeloPMent goals

Table 13 compares our assessment of UNIMAs sustainability impacts and initiatives in relation to the Millennium Development Goals (MDGs).

Action Site

Millenium development goals

PNB AQUALMA VERAMA

nbe MJn Mrb MFK MJb bsK bsP aDF other

SO

CIA

L

school • • • • •

library •

Police force •

Water • • ´ • • •

Dispensary • • •

sanitary evacuations • • • • • • •Prevention Vih aiDs / tsi •

Vaccination • • • • • •

Mutual health society • • • • • • •

slaughter-house • • • •

Cartography • • • •

urban development • •natural disaster emmergency • • • •

sea rescue •

leisures/culture • •

television •

rice Distribution • • • • • • •

Collective agreement •

traditional activities • • • • • • •

Condition of women • • • • •

Table 13 : List of UNIMA Sustainable Development Actions

��

Action Site MDG

PNB AQUALMA VERAMA


EN

VIR

ON

ME

NT

Mangrove planting • • • • •

reforestation • • • • • • •

gas

Jatropha •

Fire fighting • • • •recycling/ management of waste • • • •natural genetic improvement • •

Co� sink ´Concerted manage-ment forest/sea • • • • • •

studies r and D • •

economy of energy •

brD •

teD •suppression chains scraping •

increased mesh •Fishing effort reduction •environmental Permits (MeCie) • • • • • •

artificial reefs •buyback of destroying fishing gears •

bicycle supply

ecological habitat •



Action Site MDG

PNB AQUALMA VERAMA


EC

ON

OM

IC

Vegetable farming • • • •intensive rice culture system • •

logistic supply ship • • • • •

logistic air plane • • • • •

road • • • • •

basic commodities • • •

Public Market • • • • •goods and services supplies to the zanatany • • • • • •

rural electrification ´

Quality initiatives ´ • • • • • •

INS

TIT

UT

ION

AL offices fokontany /

city / district / … • • • • •

auxiliary judgment • •

Dina • • •

election support • • •

land property right • • •

Légend

sustainable development action, e.g., outreach gendarmerie post, Center for Permanent Care (CsP) i

• important action of sustainable develop-ment, e.g., permanent gendarmerie post, CsP ii, drinking fountain

´ exceptional action of sustainable develop-ment, e.g., current water in private house-holds

NBE nosy beMJN MajungaMRB MorambaMFK MifokoMJB MahajambaBSK besakoaBSP bessalampyADF andrafimadio

Relatively low impacts regarding extreme poverty reduction may be explained as most people in relationship with UNIMA over its various operating places cannot be found among the poorest of the population. Such appreciation, which is by nature subjective29, of impacts will have to be refined in the future with the objective quantitative indi-cators which are proposed in the conclusion of the present study.

��

�.0 uniMa & the MaDagasCar aCtion Plan (MaP)

The Malagasy Government divided the Millennium Development Goals into 54 “challenges”, which are grouped together within 8 commitments.

According to our analysis, UNIMA significantly participates in the achievement of the objectives of MAP by meeting 35 challenges, as shown in Table 14 :

Table 14 : UNIMA impact on MAP targets and challenges

In view of the number of challenges met, there is noted a predominance of actions in favor of : > health (100% of MAP challenges met by UNIMA) ;> rural development (83% of MAP challenges met by UNIMA) ;> the environment (75% of MAP challenges met by UNIMA) ;> related infrastructures (71% of MAP challenges met by UNIMA).As attested by the following table.

Commit-ment

MAP

N°1 N° 2 N° 3 N° 4 N° 5 N° 6 N° 7 N° 8

Total Number of Chal-lenges

res

pons

ible

g

over

nanc

e

rel

ated

i nf

rast

ruct

ures

Tran

sfor

m

Edu

cati

on

Rur

al

Dev

elop

men

t

Hea

lth

Fam

ily

Pla

nnin

g an

d A

nti H

IV/A

IDS

Hig

h G

row

th

Eco

nom

y

Che

rish

the

Env

iron

men

t

Nat

iona

l S

olid

arit

y

num

ber o

f M

aP

chal

leng

es d

efin

ed

by th

e M

alag

asy

gove

rnm

ent

� � � � � �0 � � 54

num

ber o

f MaP

ch

alle

nges

met

by

uni

ma

grou

p

� � � � � � � � 35

Table 15 : Indirect costs of the institutional component of SDAs



From the financial viewpoint, the direct costs incurred by UNIMA under the 8 commitments are presented in Table 16.

Table 16 : Direct costs incurred by UNIMA in relation to MAP priorities

78% of direct costs of UNIMA’s sustainable development actions relate directly to the 8 commitments of the MAP.

In view of the sums deployed to meet MAP targets, there is a fairly logical a predominance of costs :

> health (36% of total of direct costs of UNIMA SDAs) ;

> related infrastructures and of high growth economy (14% of total direct costs of UNIMA SDAs) ;

> expenses for the environment (7% of total direct costs of UNIMA SDAs).

UNIMA sustainable development actions are therefore overall in good concordance with the themes of the MAP. It has to be noted that the low costs associated with particular commitments do not mean the Company is not involved in such themes, but specific challenges appearing within the commitments of the MAP are different, e.g., in Rural Development, and they involve the private sector less directly.

Commit-ment

MAP

N°1 N° 2 N° 3 N° 4 N° 5 N° 6 N° 7 N° 8

Total Number of Chal-lenges

Res

pons

ible

G

over

nanc

e

Rel

ated

In

fras

truc

ture

s

Tran

sfor

m

Edu

cati

on

Rur

al

Dev

elop

men

t

Hea

lth

Fam

ily

Pla

nnin

g an

d A

nti H

IV/A

IDS

Hig

h G

row

th

Eco

nom

y

Che

rish

the

Env

iron

men

t

Nat

iona

l S

olid

arit

y

Dir

ect c

osts

en

gage

d by

uni

ma

gro

up (i

n M

illio

ns

of a

riar

y)

�� ,�� ,0�� ,�� ,�� ,��

Dir

ect C

osts

en

gage

d by

u

nim

a g

roup

(in

thou

sand

s of

eur

o)

�� 00 �� 0 �,0�� 0�

Dir

ect C

osts

en

gage

d by

u

nim

a g

roup

(in

thou

sand

s of

us$

)

�� ,��

% o

f tot

al D

irec

t C

osts

of u

nim

a sD

as

�% ��% �% �% ��% ��% �% �% ��%

��

�.0 balanCe sheetOverall, the consultants deem that UNIMA has implemented a range of important sustainability actions, including :

> Implementation of an overall remuneration and social protection policy that exceeds the legal minimum (par-ticularly in terms of compliance with ILO core labour conventions and provision of above average wages and extensive social / employment benefits) ;

> Cooperation with traditional fishing that promoted sustainable natural resource use and helped to protect the marine and coastal environment in NW Madagascar ;

> Leadership in the development and implementation of responsible fishing practices in Madagascar through :

> reduction of by catch ;

> reduction of fishing effort and fuel consumption ;

> waste management ;

> Leadership in the development of the original and responsible aquaculture model of Madagascar ;

> An innovative program on organic cashewnut plantation combined with carbon sink ;

> A strong commitment in protecting biodiversity ;

> Involvement in community development activities in villages neighboring UNIMA production sites (in coordina-tion with local development agencies, communities and NGOs) that resulted in significant development impacts (including particularly better access to markets, capacity building in relation to framing and business skills, health and education and water supply).

Positive social impacts are extremely evident within the communities where UNIMA works. The negative environ-mental impacts (fuel wood, water pollution etc) seem to be well controlled. Actions aiming to improve the envi-ronmental quality in the location are real and effective. The economic impact is resolutely positive for the hosting populations.

In the delicate context which the Malagasy shrimp industry30 faces, the sustainable development actions underta-ken have to be perceived as a factor for economic and social performance for UNIMA. The consultants express the wish that the Group, in a crisis period of the Malagasy shrimp industry but also of global economic crisis, will have the capacity to harvest the fruits of its long term sustainability actions.



�.0 ConClusionOverall, the economic assessment :

> Provided a framework for evaluating UNIMA’s sustainable development actions ;

> Highlight UNIMA’s pioneering role in terms of sustainable development Madagascar, with significant achieve-ments from the outset (1998) ;

> Measured and validated the scope and significance of these efforts :

> Both from the financial perspective with sustainable development costs in the order 2% of the export turnover over the analysis period, but close to 3 % currently ;

> The qualitative perspective - the actions achieved cover the environmental, social and economic, as well as institutional dimensions of sustainable development and demonstrate significant positive impacts against both the Millennium Development Goals and Madagascar Action Plan.

UNIMA’s pioneering role in promoting sustainable development in Madagascar (and on its employees), has so far never been valued, on the one hand through modesty, on the other hand, because no significant inventory of such actions had never been made before, and no measure of impact of such actions existed.

The consultants suggest the company continues to monitor key performance indicators in relation to sustainable development actions and develops set of indicators (based on those presented in Figure 38 beside) to track and demonstrate sustainability impacts.

��

Component Proposed Indicator

ECONOMIC

�. shrimp export turnover �. numbers of employees�. salaries paid in Madagascar�. Value of local purchases for supplies / supply purchase budget �. Value of local purchases for services / service purchase budget �. Value of exports / value of imported input �. basic starting wage / minimum wage

SOCIAL

�. share of locally recruited employees �. share of employees benefiting from a union contract�. occupational injury rates �. turnover rates�. training hours (in house and external) per professional category �. number of enrolled children for whom unima pays �. number of medical consultations for the benfit of neighboring populations

ENVIRONMENTAL

�. energy (fuel) consumption/ kg of product�. achieved energy saving �. habitats protected or reestablished (reforestation, rehabilitation of mangrove) to

preserve the biodiversity �. Quality of rejected water (composite index to be built)�. share of waste reprocessed according to expected reprocessing �. number of consumed paper reams �. by catch percentage

INSTITUTIONAL�. amount of fines inflicted for non observance of regulation �. Percentage of wage earners trained in anti-corruption practices

Figure n°38 : Potential key performance indicators

On a longer term, the consultants advocate the publication of a sustainable development report which would be publicly disclosed and would provide details of UNIMA’s continuing impact on sustainable development.

In the delicate context that the Malagasy shrimp industry is currently experiencing, differentiation of UNIMA pro-ducts on the markets – especially compared with products from South East Asia or Latin America – on the basis of its sustainability impact is a potentially important feature of the Company’s business model.



APPENDIX 1 TERMS OF REFERENCE FOR THE STUDY

1 INTRODUCTION

1.1 WWF and UNIMA have developed a partnership program that aims to demonstrate how sustainability can leverage business performance. The sustainability drivers that will bring business benefits will vary across UNIMA’s operations but are expected to include :

> increased and better access to discriminating European markets − and potentially price premiums for shrimp and cashew ;

> faster and easier access to finance ;

> stronger links to local communities and out-grower programs with attendant reputational benefits and messages to the market ;

> enhanced production efficiencies (particularly in relation to energy and water use) with cost savings ;

> green house gas/climate change management initiatives linked to cashew production that create oppor-tunities for closer and stronger links to retailers and wholesalers, and which might generate additional revenue streams ;

> improved staff retention, capacity and health which underpin production efficiencies.

1.2 WWF and UNIMA will undertake a series of research projects as well as dissemination and focused market-ing to establish and demonstrate the business benefits that sustainability can bring to a company such as UNIMA. In particular, the Partnership will focus attention on the impact and benefits of Better Management Practices (BMP) as a vehicle for achieving and demonstrating sustainability costs and benefits. The Company has already implemented a range of BMPs and other BMPs could be developed.

1.3 As part of the initial research activities both partners wish to understand more clearly the broad economic costs and benefits of UNIMA’s operations in Madagascar over the past 30 years, including both traditional measures of economic activity (e.g. jobs and tax revenues) as well other impacts that are often left as exter-nalities and which might include :

> Community development (including Company commitments to health, education, infrastructure and asso-ciated multipliers) ;

> Labour and working practices (training, capacity building) ;

> Supply chains (commitments to source services and goods locally, evidence of increased capacity and skills available in the marketplace) ;

> Environmental services and goods (such as habitat protection and management).

1.4 These terms of reference (ToR) define the scope, focus and structure of the economic assessment. It is rec-ognized that there may be limited quantitative data upon which to make economic assessments and in such situations the consultant will be expected to use prior experience to make educated qualitative estimates of economic impact.

1.5 The consultant should provide a brief proposal of how s/he will undertake the work described in section 2 below, along with any key concerns or uncertainties that they have about the scope and assumptions under-pinning the work.

1.6 While this work will be less comprehensive, consultants are directed to the recent Unilever – Oxfam review of the economic impact of Unilever’s business in Indonesia as an example of substantive economic assessment that seeks to understand the role and impact of private sector activity in relation to development .

1 see http://www.unima.com/page_pionnier.php?lg=en2 http://www.unilever.com/ourcompany/newsandmedia/unileverindonesia.asp

��

2 TERMS OF REFERENCE

2.1 The assessment should include an analysis of the economic costs and benefits of the aspects of UNIMAs operations that are outlined in sections 2.2 – 2.7 below). In undertaking the assessment, the consultant should comment on the extent to which the Company has taken on the management and protection of public goods (which would generally be a responsibility of government or other public agencies).

2.2 Impacts of UNIMA at the macro economic level in Madagascar. Intended as a context setting piece that establishes the extent to which UNIMAs operations have been beneficial to the economy generally and have broadly supported human development in Madagascar (for example through the provision of jobs and employ-ment, taxes and revenues) and to what extent poor people share in these benefits. The Millennium Develop-ment Goals (MDG) might serve as the framework for reporting the impact of Company activities.

2.3 Review of UNIMAs policies procedures and practices. This component aims to establish (a) whether UNIMAs policies procedures and practices are effective in maintaining and raising the production standards of UNIMA, its suppliers and other customer companies, and (b) whether these standards have positive benefits for soci-ety in general and the poor in particular. Production standards include cost and process efficiency measures as well as environmental, social and employment aspects.

2.4 Analysis of the Company’s impact on employment. Including training, recruitment to management posi-tions, employment of women, occupational health and safety, and in promoting safe and productive labour practices in its value chain and more broadly within Madagascar. This aspect should include an assessment of the Company’s commitments and achievements benchmarked against other agribusiness companies in Madagascar, other industry sectors in the country and internationally recognized good practices (for example those advocated by groups such as Business for Social Responsibility, International Labour Organisation and Ethical Trading Initiative).

2.5 Leading by example. Analysis of the role that the Company has played in shaping and encouraging BMPs across the shrimp trawling, aquaculture and cashew sectors in Madagascar. For example through the Com-pany’s work with the GAPCM and through its activities with artisanal fisheries in NW Madagascar.

2.6 Analysis of the Company’s impact on local communities and supply chains. This component will consider how people in Madagascar (especially those close to Company operations in N and W Madagascar) have benefited from the Company’s activities directly through employment and indirectly (through health care, edu-cation, natural resource management activities and other opportunities that the company has generated or lead). This analysis should be extended also to the Company’s use of local suppliers and supply chains. Much of the analysis may be anecdotal and the consultant will be expected to compare the company’s approaches and impacts in these areas with other Malagasy companies, and a selection of international companies (to be agreed with project partners). The costs (to the company) and benefits of these efforts should be described and quantified to the extent possible.

2.7 UNIMAs impacts on environmental and natural resources. The Company’s impacts (including through habi-tat protection and management, through its relationship and support to WWF Madagascar, its commitments to reduce by-catch and the environmental impacts of trawling, and opportunities to capture and manage carbon as part of its cashew operations) all have actual or potential economic benefits. The consultant should work with UNIMA and WWF staff to define the realistic scope of the component and make an assessment of the economic costs and benefits of environmental management, and the impact of the Company’s operations on the protection and conservation of biodiversity (including ecosystem services). It is recognized that this work may be largely qualitative in nature.

2.8 Where there are significant gaps in data and or information the consultant will be expected to make recommen-dations for further work. Additionally, the Consultant is asked to provide input and suggestions for a range of draft Key Performance Indicators (KPIs) that have been developed (annex 3) and which would provide the basis for on going monitoring of the economic, social and environmental impact of the Company’s activities.



APPENDIX 2 LIST OF INDIVIDUALS INTERVIEWED

• Bertrand Couteaux - Secrétaire Général du Groupe UNIMA

• Anitry Ny Aina Ratsifandriamanana - Directeur de conservation de WWF Madagascar

• Erik Reed – Environnemental Economics Officer WWF Madagascar

• Agnès Lenoir - Directrice Qualité du Groupe UNIMA

• Hanta Razafimbelo - Responsable juridique et fiscal du Groupe UNIMA à Madagascar

• Rakotobe Andrianabelina - Responsable formation et communication

• Jeannot Razafindrakoto - chef comptable du Groupe UNIMA à Madagascar

• Toky, Président en exercice de la mutuelle sociale du personnel d’UNIMA Madagascar.

• Yves Bourdais - Directeur Général Adjoint des Pêcheries de Nossi-Bé

• Francine Yoland - Chef de Département des Ressources Humaines des Pêcheries de Nossi-Bé

• Moana - Responsable du Système de Management Intégré et Responsable du Développement Durable des Pêcheries de Nossi-Bé

• Germain Taibaly - Chef du Département Finances des Pêcheries de Nossi-Bé

• Amady - Chef du Département Armement des Pêcheries de Nossi-Bé et Responsable des relations des Pêcheries de Nossi-Bé avec les pêcheurs traditionnels

• Saidaly - Responsable des Services Généraux des Pêcheries de Nossi-Bé

• Un délégué du personnel des Pêcheries de Nossi-Bé.

• Moyse Hassanaly - Chef du Département Développement Communautaire et des Relations Publiques d’AQUALMA

• Jérôme Poutot - Directeur d’exploitation du site de Besakoa d’AQUALMA

• Frédéric Jozwiak - Chef du département Qualité et Environnement du pôle Mahajamba d’AQUALMA

• Yolande Rakotondramanana - Responsable formation du pôle Mahajamba d’AQUALMA (au sein de la Direction des Ressources Humaines).

• Gaston Rakotomisetra - Responsable Administration Générale du pôle Mahajamba d’AQUALMA (au sein de la Direction des Ressources Humaines).

• Dr Clément Ramarosandratana - médecin chef du dispensaire de Besakoa

• Dr Misa Randriambaovonjy - médecin du dispensaire du pôle Mahajamba d’AQUALMA

• Donah Raphael - Directeur de l’école ESCA (Ecole Sacré Cœur AQUALMA)

• Deux bibliothécaires de de l’école ESCA (Ecole Sacré Cœur AQUALMA) dans le village de Besakoa

• Monsieur Charles - vice président du Fonkontany de Besakoa

• L’adjudant chef du poste avancé de la Gendarmerie Nationale

• André Siaviri - Adjoint Responsable de la production de la ferme de Mahajamba

• William Rasojavola - Responsable Sécurité de la ferme de Mahajamba

• Setra Andriamanantsoa - Assistant vétérinaire du responsable Qualité Environnement

• Guy Randimbiarison - Responsable social et développement communautaire de Besakoa

• Justa Rakotondravatsy - Responsable social et développement communautaire ; Responsable du centre de domestication de Moramba (pôle Ecloserie)

• Bastien Finet - Chef du Département Ecloserie (site de Moramba)

• L’infirmier du village d’Antanibaribe.

• La maitresse et l’instituteur de l’école Publique Primaire d’Antaibaribe

• Jacky Bodo - Responsable du site Mifoko (centre d’élevage larvaire d’AQUALMA)

��

• Habitants du village d’Ambatomifoko : instituteur, pêcheur propriétaire de boutres, les personnes qui sont en liaison avec le service de développement communautaire d’AQUALMA, les premiers habitants du village de pêcheur d’Ambatomifoko…

• xavier Metz- Directeur d’Exploitation de VERAMA

• Alain Andrianandraina, Responsable technique de VERAMA

• Harimbola - Responsable administratif de VERAMA

• Antoine Leveau- Responsable du département R&D de VERAMA

• Faly Razafindrabe – Responsable du service développement communautaire de VERAMA

• Monsieur Ibrahim et autres notables du village d’Andrafimadio (village des travailleurs de VERAMA)

• Monsieur Merlin - Membre du comité de gestion du village d’Andrafimadio

• Olivier - Instituteur de l’école du village d’Andrafimadio

• Roger - Membre du comité de santé du village d’Andrafimadio

• Désiré et Jaona - Responsables du reboisement au sein du village d’Andrafimadio

• Le chef du secteur 2 du village d’Andrafimadio.

• Au sein du village d’Antanabo (premier village zanatany à proximité du site de Masiloka) réunion avec

> Monsieur Lazarivo : notable

> 4 autres notables

> 3 femmes

• Romain Berthe - Chef du Département Qualité et Environnement d’AQUALMA

• Pascal Bertherat - Directeur des Services Financiers du Groupe à Madagascar

• Holisoa Rasoaveloson - Chef du Département Contrôle de gestion d’AQUALMA

• Harivony Rambolajaona - Responsable de contrôle de Gestion Industrielle Groupe

• Vanina Ranaivoarisona - Directrice Ressources Humaines et responsable de Développement communautaire d’AQUALMA

• Ndriana Raveloson - Directeur d’exploitation du pôle Besalampy d’AQUALMA

• Jean Fidèle Rafanomezantsoa - Responsable de Développement Communautaire du pôle Besalampy d’AQUALMA

• Dr Ledy

• Arsène Randrianantenaina - délégué Collège 2 cadres et AM (service logistique)

• Nlatamou Djouman - Agent de maitrise Base vie

• Le Cardinal de Besalampy

• Le Député de Besalampy

• L’infirmier d’Ankilimonga

• Madame Mezeline - habitante d’Ankilimonga- maraîchère

• Madame Mariette – présidente, Madame Hadjidy - secrétaire de l’association des femmes travailleurs de Besalampy.

• Conducteur de vedettes entre Mahajamba, Mifoko et Moramba

• Ouvriers sur différents sites



Sustainable Development Impacts

ObservationsInside Unima Outside Unima

ORGANIZATIONAL DIMENSION (QUALITY MANAGEMENT)

Fish

ing

Indu

stry

establishment of a quality approach based

«organization of the Firm»

Certification iso �00� v �000 on Plants and boats

(which is a first one in Madagascar) in �00�

observance of client satisfaction standards

in �00� : «collegial» quality approach through the creation of a steering

Committee with staff delegation and involvement

and according to a participatory proceeding

Development in �00� of a «responsible fishing» specifications document based on the european

Code of best fishing practices

rigorous monitoring of the resource and

privileged linkages with traditional fishery

Complying with iFs (international Food

standard)

observance of Food security standards

Aqu

acul

ture

indu

stry


«organization of the Firm»

iso certification �00� v �000 for aquaculture farms and Moramba

breeding center in �00�

Complying with norm for buyer and customer

satisfaction


«Products»

obtention of red label on products from the pole of

Mahajamba in �00�

guarantee of high product quality perceived by clients (obligation of

result beyond obligation of means)

First red label specifications document defined outside

europe

establishment of a responsible activity aCC/gaa Certification

observance of an environmental and social specifications Document

restricted interest in usa market

UN

IMA

Gro

up

establishment of an integrated Management

system

Formalization of the environmental, social, and responsible fishing approaches as a whole

a strong component in control/monitoring, an operating report, and a

reactivity procedure (Plan-Do-Check-act)

the overall cost of quality is estimated on an in house

basis by unima group at about �.��% of turnover

Voluntary Complying with quality standards

depending on objectives

Complying with the sa �000 standards

observance of social standards

observance especially of absence of child labor, forced labor, and existence of union

rights

Complying with iso ��00� v �00� standards (under

way)

observance of environmental standards

Complying with osh/�00� standards

observance of hygien standards

APPENDIX 3 SUMMARY OF THE IMPACTS OF UNIMA’S SUSTAINABLE DEVELOPMENT ACTIVITIES

��

Sustainable Development Actions

ImpactsObservations

Inside UNIMA Outside UNIMA

SOCIAL DIMENSION

Res

ourc

e

unima group activities generate

in Madagascar �,�00 direct employments in �00� of which �0% are

permanent

staff involvement and building staff loyalty

unima : main provider of formal employments mainly in the region of

boeny, a region with high unemployment rate (�.�%

versus �.�% at national level)

in the context of the crisis experienced by the Malagasy

shrimp industry, drop of employment since �00�

Free of charge monthly distribution of rice to

wage earners

good social climate inside unima group

Food security for the wage earner family members

as a whole

� kg of rice distributed per femily member of each wage earner, corresponding to ��% of average rice consumption per inhabitant in Madagascar

existence of a health mutual benefit society

and a social mutual benefit society within

each entity of the group

good social climate and promoting staff health

inside unima group

the rate of coverage of health Mutual benefit societies in

Madagascar varies from � to �0% of population

First and only company in Madagascar which negotiated and signed

a Collective Convention with unions and which

established a corporate committee

harmonization of contractual relations

within the group

Model to be followed for the other companies in

the industry

significant investment by the group in staff

training (external and in house training)

extension of staff knowledge : key element for unima development

observance of permanent update of knowledge provided for iso �00�

standard

Follow up of number of in house training is to be

strengthened

Com

mun

ity

base

d D

evel

opm

ent

Promotion of basic education in rural

areas : participation in expenses for working,

construction and/or rehabilitation of rural

school buildings

school enrollment of children of staff of unima

group in rural areas

support to primary public and private schools and

improved enrollment rate in rural areas

in Madagascar, enrollment rate in rural areas is ��.�% (source : bulletin unesco

sept �00�) whereas for the u village of besakoa it is ��%

in �00�

establishment of an outreach post of gendarmerie

(ankilimonga) or a permanent one

(besakoa)

Keeping some level of security for staff and

goods or unima in rural areas

intervention of gendarmerie in all

peripheral villages at production sites of unima

Payment by unima of part of working expenses for such

posts.

establishment of, and financial support to,

dispensaries and basic health centers

Keeping a good level of health among unima staff

in rural areas

access of neighboring population to medical

services in rural areas

in Madagascar the number of physicians per �0,000

inhabitants in �000 was � (source : Who bulletin

June �00�)

air transport in case of emergency

in besakoa : � physicians for a population

of �,000 inhabitants




ImpactsObservations

Inside Unima Outside Unima

ENVIRONMENTAL DIMENSION

Fish

ing

Policy for reducing by catch

generalisation of brDs and teDs

in �00� : by catch = �% of total catch

shared ratios of waste worldwide : � to �� kg of fish versus � kg of shrimps, i.e.,

�,�00%

suppression of scraping chain

slight reduction of catch (compared to a

«standard» trawl with scraping chain)

Preservation of marine beds : halving, at least, of pressure exerced by trawls on marine beds

unima : the only operator in Madagascar who suppressed

the scraping chain

an environmental impact study of such action remains

to be undertaken

Politicy for reducing energy expenses

�� % reduction of fuel consumption between

�00� and �00�

lesser Co� consumption

this is the result of a permanent and rigorous

monitoring of fuel consumption

increased net meshes from �0 to �0 mm

improvement in size of catch

unima was a leader in establishing such action

(in �000) which will be generalized among the

industry in �00�

other consequence of such action : la preservation of

lesser size shrimps

Dialog with traditional fishermen

Manage potential conflicts between traditional

fishermen and industrial fishermen

unima : engine role in consultation between

industrial and traditional fishermen quite before

the agreed upon Management Zone

took over

repurchase of destructive fishing gear (Poto) from

traditional fishermen

Within the village of fishermen extension campaigns on shrimp life cycles and on crab

breeding techniques were conducted

extension campaigns under the promotion of potential substitution activities for

traditional fishermen during the fiching closure period

repurchase of destructive fishing gear (Poto) from

traditional fishermen

saving the underwater resource

Protection of mangrove

Campaign for planting mangroves

in �00� : �0,000 mangrove plants planted in

collaboration with green ngo (i.e., a surface area

of � ha)

Aqu

acul

ture

Adoption of a semi intensive shrimp bredding system

reduction of risks of viral problem

appearance

low density breeding, without aeration, in large natural

ponds

Genitor Domestication Preservation of wild genitor stocks

Control of genitor feeding

low rate of feed conversion

lesser quantity of waste, of breeding effluents research program under way

with inra on substituting fish flour by plant proteins lesser consumption of

uinderwater origin protein

��


ImpactsObservations


Aqu

acul

ture

implementation of mangrove enrichment

program

Mangrove : important biological filter for water coming out of breeding

ponds

��0 000 mangroves plants replanted (i.e., a �� ha

surface area)

unima : the only operator in Madagascar who conducts a mangrove replantation program to reduce the

environmental impact of its aquaculture activity

reforestation campaigns (aqualma)

total replanted surface area : �� ha

reforestations a the level of village, breeding sites, and

plantations close to effluents in order to stabilize the land

Creation or carbon wells (Verama Project)

Verama project for planting cashew nut trees is in keeping with unima diversification strategy

reforestation over �,�00 ha in cashew nut

trees and over about �00 ha in service wood

and biomass production

Verama span = � 000 ha

buffer Zone (or forest reserve) = �,000 ha (of which

�,000 ha of forest)

Zone under project influence = ��,000 ha

Cas

hew

Contract based Forest Management (GCF)

transfer of management of �,�00 ha of forest to

� grassroots communities (Coba)

Phase � : validation of development plan,

of specifications document, and of « Dina » with

participation of Water and Forests, of Commune, of Coba, and of unima

Phase � : officialization of transfer of management

of forest in legal form of Contract based Forest

Management

Actions for preserving the biodiversity

Monitoring and protection of endemic species in the regions of implantation of

production units

Presence of endangered species (of which the

Fishing eagle) over the various controlled, and discovery of a new palm

tree genus (t spectabilis)

Constant increase in aquatic bird number identified

shows improvement in the ecological soundness of

wetlands of each site under consideration (extracted from

one report)

Fish

ing

and

Aqua

cultu

re

environmental Permit (MeCie Decree)

obtained by each production site

implementation and ongoing observance of the environmental specifications (CCe)

provided for by MeCie Decree

the national office for the environment

(one) has on an annual basis an evaluation of

environmental impact of activities by each entity of

unima




ImpactsObservations


ECONOMIC DIMENSION

Con

trib

utio

n to

r

emov

ing

rur

al a

reas

fr

om is

olat

ion

Provide regular maritime linkage

between Mahajanga and besalampy (isolated area)

For its staff taking their rest in besalampy, unima provides the

transportation to the Commune per light boat

or per boat

the local population benefits from the regular return voyages depending

on the available seats.

in �00�, �,�00 people (off unima staff) benefited from such free of charge

transportation service in �00�

road rehabilitation important action, given

the bad condition of roads in rural areas

establishment of a system of supply in basic commodities

(PPn)

unima provides the free of charge transportation

of basic commodities

restrict inflation and supply the population with

basic commodities and other stuff at equitable

price.

e.g., in besakoa in �00� : evolution of basic

commodity prices : -�% ; presence of basic

commodities on the market (�� items) : �0% (source tbess besakoa �00�)

Construction and/or rehabilitation of public

market places in rural areas

less inflation at local level (favorable to

purchase power of staff recruited at local level)

stimulate local supply by enabling a larger number

of farmers and cattle breeders selling

their products

in �00� : general inflation rate in M/car : + �0.�%

Promotion of truck farming activities close to unima

production sites

source of supply in fresh products and at lesser costs for life camps of

unima production sites

improved woman condition among

neighboring communities through the promotion of complementary activities

Policy for reducing fishing effort

improved economic return per fishing unit

Provide sustainability of operating

actions : alternating day and night fishing for one part of the season, fishing with a

simple net in the place of a twin net, reduced number of

boats

rural electrification in besakoa

better welfare of unima staff living in besakoa

Payment of total public lighting

at the end of �00�, ��0 subscribers were connected to the grid

INSTITUTIONAL DIMENSION

Contribution to holding the operation « birth

Compensative Judgements»

in besalampy �00 children had had their civil status

document

in Madagascar, ��% of children aged 0 toà � are not

registered at birth

support to the various representative grades

Construction of the office for the Fokontany in

besakoa

logistic support during election processes

unima : founding member of the national observatory of

integrity in Madagascarethical commitments within the Malagasy society

especially commitment in favor of suppressing

corruption

��

1 1 WWF is also known as the World Wide Fund for Nature.

2 That is 67% of the Malagasy total export value of sea food products followed by tinned tuna (25%) - according to Instat (source : synthesis card of the economic mission of the Embassy of France in Madagascar - May 2008)

3 Accounting for about 39% of total wild shrimp industrial catches in Madagascar.

4 Accounting for about 75% of the total production of the shrimp aquaculture value chain in Madagascar.

5 World Commission on the Environment and Development. Our Common Future 1987.

6 Milton Friedman The New York Times Magazine, September 13, 1970.

7 This rate remains stable in front of a population growth rate in the order of 2.5% per year.

8 Compared with the unemployment rate in developed countries, in the light of France, whose unemployment rate is close to 7% of working age population.

9 Source : Economic Observatory of the shrimp industry in Madagascar.

10 Source : Inspection of labor in Antananarivo (November 2008)

11 Such as the turnover rate, the absenteeism rate, the number of occupational injuries and the importance of training hours from which the group wage earners benefit.

12 A Study by FAO in 2004.

13 Joint Study by the Economic Mission of the Embassy of France in Madagascar and the Malagasy Ministry of Health, Family Planning and Social Protection in July 2007.

14 Statistics from the Direction Générale de la Mer et des Transports in France.

15 This is particularly important in terms of promoting the democratic process – since a record of birth is required to issue nationality and voting papers. According to statistics in Madagascar 25% of 0 to 5 years old children are not registered at birth.

16 Source : Operating report on Social security environment (TBESS) 2007 of Besakoa.

17 Document available at http://www.snu.mg/new/sites/pnud/article.php?article_id=661&lang=fr

18 The breeding farm of Besalampy in 2000, PNB shrimp fishing fleet, and VERAMA project for planting cashew nut trees 2002, the breeding farm of Mahajamba/Besakoa, the center for genitor breeding and domestication of

Moramba and the larva breeding center of Ambatomifoko in 2003.

19 Quantity of feed required to obtain 1 kilo of shrimps.

20 Source : Economic Observatory of the shrimp industry.

21 Source : « Aquaculture Facilty Certification » of Mahajamba, Besalampy, Nosy Be and Mifoko of 2005 issued by the Aquaculture Certification Council.

22 Dissolved Oxygen (DO), temperature and pH, Suspended matters (MES), Organic matter, Nitrite (NO2), Nitrate (NO3), total ammonia nitrogen (NH3).

23 GREEN NGO (Grouping for National Economic and Environmental Recovery) is an organization working for the preservation of the environment.

24 http://www.fao.org/fi/oldsite/AGREEM/codecond/ficonde.asp

25 Setting up BRDs and TEDs by modifying fishing nets engenders additional trawl processing time in the order of 15 to 20% compared to setting up trawls without BRD or TED.

26 Fish and other marine life caught in the nets in addition to shrimp, and which are not provided as food to local people.

27 Even if this entails slight reduction in the volume of catch compared to the one achieved by a trawler equipped with a scraping chain.

28 Because the least presence of by catch at the bottom of trawlers entails a least pressure on caught shrimps, so the shrimps that are fished are better quality.

29 The experts attributed a score comprised between 1 and 3 depending on their perception of UNIMA’s involvement degree in achieving each of the 8 Millennium Goals.

30 Including a decrease in output following increase of performance among fishing fleets and development of traditional fishery and collection. Increased competition on the international market with significant development of aquaculture shrimp production by countries which are already producers or new entrants – South America, Asia – which have less strict environmental practices.

APPENDIX 4 NOTES

www.wwf.orgwww.nossibe.frwww.unima.com

January 2009

This document was printed on some certified paper FSCCertified printer Imprim’ vert

Documents

the unima groupV ForeWorD: the uniMa grouP A mere look around the world from north to south is enough to notice that we live on a planet in state of emer-gency. We must go on acting