Adria

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Project Number: 
RG1085A-01
Expected Consideration Date by the Board: 
11/20/2003
Date Posted: 
10/17/2003
Company: 
Adria Investment Corporation and Greentrading Corp
Financing Requested: 
Sector: 
Agricultural Products
Location: 
Panama, Costa Rica, Guatemala and Honduras
Scope Objective: 
Adria is the holding company of a group of producers and exporters of ornamental plants in Central America. Adria is the largest producer and exporter of tropical ornamental plants in Central America. Adria has operations in Panama, Costa Rica, Honduras and Guatemala.

The project calls for expanding and diversifying Adria's production and sales by planting, growing, and marketing new ornamental plant varieties. The project fulfills the Group's strategy, which is: i) to expand and diversify its production and sales at four separate sites; ii) to shift production and sales to plants that have more value added; iii) to lower the cost of goods sold in certain plant varieties, heretofore purchased from third parties, by producing them in-house; and iv) for each country operation to specialize in particular products for which it is more suited or has developed experience. IIC's financing will enable the company to expand and upgrade its activities to maintain its leading position.
Environmental Review: 
Environmental Classification:

This is a category III project according to the IIC's environmental and labor review policy because there are identifiable potential risks for which there are known technical solutions. The main considerations related to the project are: (i) use, handling and application of pesticides and agrochemicals; (ii) waste disposal; and (iii) occupational safety and health and labor issues.

Main environmental and labor issues

Use of Pesticides and Agrochemicals. The use of pesticides is very limited in the farm in Honduras. In this particular operation only fungicides, bactericides, fertilizers and plant hormones are used. The fungicide is applied by immersing the product in the fungicide. Workers who do this wear protective gear such as clothes, gloves and shoes that are suited for this activity. In the farm in Costa Rica, pesticides and fertilizers are stored in well-ventilated warehouses and products are labeled properly. In the farm in Guatemala, substantial improvements have been made to the ventilation of the warehouses. Workers are provided with protective clothing and equipment for pesticide application and are rotated every three months to avoid extended exposure to pesticides.

Use of water. Water use in the farms is not known to have a negative effect on the water supply of neighboring towns.

Solid Waste: Solid waste that is produced in the farms is recycled on site where possible. Plastic is recycled at POLYMER, a company that reuses plastic materials. As for organic waste, the company currently uses flower waste as mulch for their fields.

MPS Certification. The company is currently working on obtaining certification for its farms in all three countries. The highlights of this certification process are: MPS stands for Milieu Programma Sierteelt in Dutch, which is an internationally accredited environmental standard. MPS seeks to minimize the environmental impact of participating companies. In 1995 the floriculture sector in the Netherlands established MPS, which promotes ecological growing of flowers, plants, bulbs and shrubs among thousands of participants throughout the world. MPS is not only focused on the environment but also on health and safety. The use of environmentally friendly products and pesticides, efficient use of fertilizers, efficient use of energy, use of renewable energy, and natural fermentation to produce mulch are encouraged.

Every four weeks, participant companies record the following data:
  1. Crop protection agents
    • Mandatory record of all crop protection agents
    • Limited list of permitted products
    • Control of crop protection agents, and
    • Amount used and waste generated
  2. Fertilizers
    • Mandatory record of all fertilizers
    • Control of fertilizers and amount used
  3. Energy
    • Mandatory record of all energy sources
    • Energy use
  4. Water
    • MPS participant companies in countries where water is scarce are rated according to proper water management
  5. Social Aspects
    • Requirements for use of crop protection agents
    • Employment contracts
    • Work schedule
    • Compensation
    • Medical check-up and wellbeing
    • Requirements as to work, production and inventory methods, and risk analysis.

The farm in Costa Rica will be the first one to obtain certification, followed by Guatemala and Honduras, in that order. MPS complies with the accreditation standards set for certification organizations pursuant to EN 45011 and ISO/IEC book 65, which can be found at www.my-mps.com.



Occupational health and safety. The following is a summary of the improvements that have been made at the company's farms regarding occupational health, hygiene and safety, thanks to the MPS certification process:
  • Regular testing of water
  • Training in:
    • First aid
    • Handling of pesticides
    • Risk analysis and prevention
  • Workers involved in spraying undergo regular cholinesterase testing
  • Sprayed areas are marked with yellow tape; workers are not allowed in the area for the next 24 hours
  • Analysis of occupational accidents
  • Regular workplace visits by an Occupational Health Committee to analyze potential risks and take corrective measures
  • All workers have been provided with safety gear (gloves, masks, goggles and waterproof clothing)
  • The company also rotates workers every three months or so to avoid extended exposure to chemicals


Labor issues. The company does not employ minors under the age of 18. Farm workers do not belong to any union, but are free to do so if they wish. Employees receive medical insurance and first aid equipment if required.

Control and Monitoring: The company's monitoring procedures will be set out in the environmental management plan. The company will present an annual report summarizing all monitoring data on handling and application of chemicals, solid waste disposal, use of water, occupational health and safety, reports on occupational accidents, and labor issues. Moreover, the company will inform the IIC on progress being made in obtaining MPS certification of all of its farms.