161 Points of SALE

Corporate Social Responsibility
Annual Report 2014-2015
CONTENTS
Board of Directors
Corporate Social Responsibility Committee
Agripac Group
Message from the President
Message from the General Manager
Agripac in numbers
Economic report 2014
We keep growing
Financial results
Strategic areas
Occupational and professional framework
The priority: The Human side
Social Responsibility with our workers
Professional development
Training programs
Savings and Value Program
The visit to Points of Sale
Awards and Recognitions
Environmental Sustainability
Ecological balance
Wastewater and hazardous waste treatment
Paper and Plastic Recycling
Certifications
Business
New Projects
High Performance Seed Plan
Maize Plan
Suppliers
Field days
Increase of branches
Occupational Safety and Health
The company in the community
The Little School
Support to social causes
Donation of pet food to animal
welfare foundations
Our rankings
06
07
08
10
11
12
13
13
15
16
18
18
19
20
21
22
23
25
26
26
28
30
32
35
35
38
38
39
40
41
42
44
44
46
48
49
Corporate Social Responsibility Annual Report
5
BOARD OF DIRECTORS
From left to right: Matthew Haynes - Purchasing and Imports Director, Nicholas Armstrong - Vice-president, Almudena Cardenal Human Resources Director, Colin Armstrong - President, Gustavo Wray - General Manager, Francisco Luna - Finance Director, Pedro
Kam Paw - Operations Director, Alfredo Ledesma C. - Legal Director.
CORPORATE SOCIAL RESPONSIBILITY COMMITTEE
To ensure compliance and progress of the social responsibility
actions carried out by Agripac, it
was established several years ago
the Committee of Corporate Social Responsibility (CSR). This human group is in charge of identifying, coordinating, supervising and
spreading the activities proposed
and developed by the different areas of the company, on behalf of
the community, corporate ethics
and the environment.
The work of the Committee also
tends to internalize in the people
who are part of Agripac the values
and importance of a responsible,
committed and supportive stewardship, consistent with the principles of the company.
The Committee is comprised by: Dennys González - Corporate Coordinator IMS (Integrated Management System), Karen Osorio - Assistant to the General Manager, Alfredo Noboa - SHEQ Manager, Nataly Ramirez - Technical Assistant, Marcia Romero
Each area contributes to the company plans in this regard; while internally spread the progress of the
CSR program.
- Marketing Coordinator, Maria del Mar Bermeo - Junior Buyer, Lourdes Navarro - Social
Welfare Coordinator, Almudena Cardenal - Human Resources Director, Gustavo Wray
- General Manager, María Fernanda Méndez - Assistant to the Points of Sale Manager.
Corporate Social Responsibility Annual Report
7
AGRIPAC Group
OBJECTIVES
Since 1972, Agripac Group complies with the mission
of providing comprehensive solutions for agricultural
production, offering high quality inputs with the most
advanced technology.
POLICY
Agripac is committed to produce, distribute and market agricultural and industrial supplies of excellent
quality to meet the requirements and expectations of
the market at national and international levels; preserving the environment as well as the health, integrity and
safety of its staff.
• Satisfy our customers, fulfilling the specifications
of our products and services.
• Conduct our productive activities considering
sustainable development.
• Maintain safe and healthy places for our employees, suppliers and visitors.
CORPORATE VALUES
•
•
•
•
Ethical and moral integrity
Responsibility
Innovation and technology
Loyalty
INDUSTRIAL PLANTS
CELTEC
• Fractionation of products.
• Location: Guayaquil.
• Storage capacity: 1,500,000
kilo/liters per month.
• Warehouses with capacity of
1,200 tons.
AGRIGRAIN
• Storage center for corn and soy
bean, and processing plant for
rice seeds and soy beans.
• Location: Quevedo.
• Capacity: 1,150 tons of seeds
per month.
BALANFARINA
• Processing of feed for shrimp,
chicken, cattle, pigs and pets.
• Location: Durán.
• Production capacity: 10,800
metric tons of feed per month.
LAQUINSA
• Agrochemicals formulation.
• Location: Durán.
• Production capacity: 2,800,000
liters per month.
PRODUCTION LINES
•
•
•
•
•
•
•
•
•
Agrochemicals Division
Fertilizers Division
Seeds Division
Animal Health Division
Aquaculture Division
Consumer Division
Industrial Chemicals Division
Fertilizers Terminal
AeroAgripac
Corporate Social Responsibility Annual Report
9
MESSAGE FROM THE PRESIDENT
Colin
Armstrong
The last five years have meant big
changes for Agripac. We have
managed to improve and optimize
operations in our four industrial
plants: Celtec, Laquinsa, Agrigrain
and Balanfarina; while successfully built the basis for new complementary businesses as AeroAgripac, Industrial Chemicals Division,
and the inclusion of meristematic
plants in the bananas division,
among others.
Since 2010 we count with the triple certification of the Integrated
Management System, which is
constantly being reinforced and
reflects our commitment to the
quality of our products, safety and
health of our employees, support
to our community and environmental protection.
In Agripac
we
are
C
O
convinced that Corporate
LI
N
A
Social Responsibility must
RM
ST
be a cross-cutting pillar for all
RO
N
G
activities, so we are proud to share
with you the second edition of our
Social Responsibility Report.
We welcome the opportunities
and challenges that will come with
this new period.
In Agripac we are
convinced that
Corporate Social
Responsibility must
be a cross-cutting
pillar for all our
activities”.
MESSAGE FROM THE GENERAL MANAGER
GUSTAVO
WRAY
GUST
AVO
W
RAY
In 2012 we started a plan to optimize Efficiency, Productivity
and Costs in our operations; this
involves teamwork between the
areas of Operations, Logistics, Finance and Systems, in which we
count with the support of our data
processing platform, SAP.
The hard work paid off in
the following years. In
2013 and 2014 we had
sales growth of 19% and
22%, respectively. Agripac has complemented its
business operations with
a Social Responsibility Program, the Integrated Management System and other activities in order to ensure excellent
relationships with all the stake-
holders, from employees, customers, business partners, consumers,
government to the environment.
We have had two great years working with the Ministry of Agriculture,
Livestock and Fisheries (MAGAP)
in its program to sell maize and rice
kits. In 2013 we sold 17.000 kits
and in 2014, 64 000 kits, becoming
the biggest contributor to this governmental program, which seeks to
improve the productivity of small
farmers, generating employment
and better quality crops.
Our brands of pet food: NutraPro,
Buen Can and Michu have also had a
significant growth, allowing Agripac
to contribute to the national industry with excellent quality products in
support of the initiative to displace
imports by local production.
The hard work and commitment of
our workers have been an essential
part of the results achieved during
these years. We are confident that
the coming years will also be full of
successes for the Agripac family.
We were the company
that contributed the
most to the MAGAP’s
Seed Plan".
Corporate Social Responsibility Annual Report
11
Agripac In NUMBERS
24 Classes
500 products
Over 3.3 million
and 460 graduates
of “The Little School”.
are marketed today.
At the beginning we had 2.
banana meristems
sold.
4 Production Plants
10,000 hectares
$ 277 million
and 8 Agricultural
Divisions.
of banana plantations protected
against Black Sigatoka.
in sales
during 2014.
15.6 million
17,000 farmers
5 spray planes
liters of Gramoxone
sold from 1996
to present.
have benefited through our training program Transfer of Technology, since 2007.
with capacity to fumigate over
400,000 hectares of banana plantations per year.
Over 1100 workers
51,000 tons
are part of the company today;
when we started we were 5.
of maize received
during 2014.
161 points
of sale
Employment
3000 maize farmers
13 distribution points
We generate indirect
employment to over 350
companies across the country.
benefited per year through the
inclusive business Maize Plan.
to supply our
stores network.
around the country.
We figured among the top 60 companies*
of Ecuador and are leaders in the agribusiness sector.
*Data obtained from the magazine Vistazo edition 1130, September 25, 2014.
ECONOMIC
REPORT 2014
Millions of dollars
300
We keep
growing
250
200
150
100
50
2013
2007
2002
1997
1992
1987
1982
1977
1972
On the financial side, 2014 was a very productive year
for Agripac Group. Sales increased by 22.4%, while bank
loans to finance the operations and development of the
company fell by 22% over the previous year. This was possible due to optimization of resources and commercial
management that allowed us to grow more efficiently.
2014
Years
0
In addition, Agripac was part of two important programs: the first between the Ministry of Agriculture,
Livestock, Aquaculture and Fisheries (MAGAP) and
private companies for agricultural development; and
the second one is our Maize Plan. In the past year both
programs contributed to a better quality in the produc-
Corporate Social Responsibility Annual Report
13
ECONOMIC REPORT 2014
tion of different crops, further information about this programs will
be find in this document.
In 2014, we obtained a net profit of $
19 million, or 7% of sales; 26% more
than projected. The sales goal for
2014 was 260 million dollars, at the
end of the year we sold 276.9 million.
Always looking ahead, the company introduced a business management software provided by the
German company SAP, which con-
sists of a set of applications whose
purpose is to integrate all business
functions: finance, planning, costs,
marketing, merchandising, manufacturing, logistics, quality control
and human talent.
Among the advantages of this integrated system is the facility to incorporate more efficient processes
into the business, control of costs
and inventory and management of
our stores network.
All the progress has been
the result of teamwork.
The collections were another successful aspect for Agripac in 2014
with an increase of 20% compared
to the previous period.
All the progress has been the result
of teamwork and the responsible
contribution of each one of our employees in different departments,
units and areas that make the Agripac Group bigger every day.
STATEMENT OF COMPREHENSIVE INCOME (IN THOUSANDS OF DOLLARS)
Financial
results
2013-2014
2013
226.225
58.820
26,0%
(36.137)
(4.307)
688
19.064
(7.105)
11.959
2014
276.975
73.114
26,4%
(38.328)
(3.638)
-662
30.485
(11.771)
18.715
5.275
1.067
53.893
12.138
59.781
4.102
136.256
4.958
1.067
64.889
12.160
68.775
9.296
161.146
58.364
68.437
Total Assets
194.619
229.583
Current Bank Obligations
Other Current Financial Liabilities
CxP Providers
Others CxP
Total Current Liabilities
27.248
10.744
58.720
6.906
103.618
20.819
9.050
71.485
16.039
117.392
Non Current Bank Obligations
Other Non Current Financial Liabilities
Other Non Current Financial Liabilities
6.087
11.200
6.069
5.026
6.150
8.968
Total Non-Current Liabilities
23.356
20.144
126.974
137.536
67.646
92.047
Net Sales
Gross Margin
Percentage
Operational Expenses
Financial Expenses
Other Income
Income Before Taxes
Taxes and Labor Participation
Net Profit
BALANCE SHEET (IN THOUSANDS OF DOLLARS)
Cash and Banks
Current Investors
Clients
Other Receivables
Inventories
Other Current Assets
Total Current Assets
Total Non Current Assets
Total Liabilities
Total Equity
Corporate Social Responsibility Annual Report
15
ECONOMIC REPORT 2014
Strategic areas
Some of the factors that contributed to this growth
were: the strengthening of relations with the public sector through the Seed Plan,
launched by the Ministry of Agriculture, Livestock, Aquaculture and Fisheries (MAGAP,
www.agricultura.gob.ec);
the increased use of fertilizers nationwide and the
possibility to offer them at
low cost, because now we
are direct importers.
Seed Plan
Import of
Fertilizers
The shrimp industry invested in food with higher protein
content, that is because, in general terms it has realized
the advisability of investing in better quality food, which
provides a faster and greater growth to the shrimp.
Another strategic line in 2014 was the pet food sector.
It is worth noting that Agripac is the only company in the country that produces Premium pet
food, under the brand NutraPro.
Shrimp
Industry
Pet
Food
16
Another sector of significant growth was the shrimp
industry, which in 2014 covered a high international
demand that required larger amounts of feed for the
crustacean. Agripac counts with its feed processing
plant Balanfarina, where we did heavy investments to
improve the quality and increase production.
Agripac is the only
company in the country
that produces Premium
pet food locally, under
the brand NutraPro.
GROWING
EVERY
STEP
WITH YOU
Corporate Social Responsibility Annual Report
17
OCCUPATIONAL AND
PROFESSIONAL
FRAMEWORK
The priority:
the human side
In Agripac we are proud of the expansion of our professional family.
By doing a retrospective through
the years, we can only feel satisfied of building a solid work-group,
which today counts with over
1,100 valued employees, whom
through their own professional
growth contribute to the strengthening of the company.
For the vast machinery that is Agripac, each one of them is a unique
and invaluable gear from their respective areas, such as our headquarters in Guayaquil, branches in
Quito, Machala, Quevedo, Santo
Domingo, among others; our industrial plants Celtec, Agrigrain,
Laquinsa, Balanfarina, and 161
points of sale around the country.
1.100
Employees
161
Points of Sale
4
Industrial plants
Social responsibility
with our workers
An employee who develops in a harmonious and safe
working environment turns out much more productive,
creative and proactive. We have implemented several
programs in benefit of our staff, serving beyond the
legal framework of benefits, with the firm intention of
collaborating to the improvement of their quality of life
and socio-economic situation.
Some of the projects that Agripac performs in benefit
of its staff:
•
•
•
•
•
•
•
•
•
•
•
•
•
Trainings,
Social Insurance,
Food subsidy at lunch,
Prepaid medical insurance subsidy,
Holiday celebrations,
Regular recreational activities,
Talks on personal safety,
Vaccination campaigns,
Medical dispensaries in plants,
Savings and Credit Plan,
Training courses for the wives of our workers, to conduct their own enterprises,
Newborn Plan, which gives diaper bags for
our workers’ infants, and,
Permanent plans for Occupational Safety
and Health.
Corporate Social Responsibility Annual Report
19
OCCUPATIONAL AND PROFESSIONAL FRAMEWORK
Professional
development
One of our goals is to reward the
effort, experience and responsibility of the members of our team with
ongoing training and promotions in
line with the preparation and commitment to their roles.
During 2014 about a hundred of our
workers achieved promotions, some
of them went from working in points
of sale or plants to become part of
the administrative group, always
aimed towards professional growth.
20
Training programs
According to the regulations, both
internally and externally, health and
safety have taken a central role in industrial activities. Because of this, we
have focused our efforts on training
our staff in this regard.
During 2014, about twenty five
workers or “agripitos” obtained their
certifications as Occupational Se-
Investing in staff training, is to
invest in a successful future
for them and the company.
curity Integrated Internal Auditor
ISO 9001: 2008, ISO 14001: 2004 &
OHSAS 18001: 2007.
Furthermore the company supported
the engineers Luis Mera Mora, from
Celtec, and Dennys González, from
the headquarters, to pursue the Master Degree of Management in Safety
and Health at Workplace offered by
the Escuela Superior Politécnica del
Litoral (ESPOL).
This is in addition to numerous courses and workshops offered to the staff
with the purpose of strengthen their
knowledge at various levels of learning and continue to expand their professional horizons.
Corporate Social Responsibility Annual Report
21
OCCUPATIONAL AND PROFESSIONAL FRAMEWORK
SAVINGS and VALUE
program
As a project to encourage and involve our staff in the
achievement of goals, and to promote the generation
of ideas, it emerged in 2006 the Savings and Value Program (PAV), which is a contest of individual or team
proposals in order to create alternatives to optimize
resources in multiple operation areas of the company.
The reception of the Proposals Form takes place twice
a year through an e-mail to the person designated by
the General Manager.
The entire process is in charge
of the Evaluation and Monitoring
Committee. The savings generated by each idea is measured over
a period of 12 months from its
implementation. Each proposal is
evaluated and quantified by the
Committee, which assigns a leader for its realization. To analyze
the savings generated by each project a predetermined
format is used.
With
PAV
we all
win
Every six months, Agripac gives cash prizes to
employees or working groups that have
presented the two proposals that generated more savings; and even, depending on the amount of savings
achieved, bonuses and other awards are granted; in
addition to surprise prizes for the employees whom
generated ideas for the PAV.
The program aims to expand the
vision of our staff in finding creative and effective solutions in
favor of the company.
The visit to
POINTS
of SALE
One of the most satisfying activities
for our president, Colin Armstrong, is the visit to Points of
Sale with the Manager of the
area, Geronimo Alcívar. During the tour, they visit each
one of the 161 points of
sale that are part of Agripac
around the country.
161
Points
of
SALE
around the
country
In the Coast the tour takes
place between December
and March, while in the
Highland and the Amazon region,
between August and October.
The experience is unforgettable.
This is the moment when top executives make direct contact with the
people in charge of approaching
customers, connecting with farmers
and animals breeders, and meeting
their needs every day.
The tour, beyond business meet-
ings, offers moments of fellowship,
evaluation and search of joint solutions and growth opportunities for
the company’s staff.
Our President has the opportunity
to see first-hand the concerns of
employees and customers in each
area, how the company can meet
the needs of its buyers, considering
that Agripac has several production
plants and a nationwide logistics
network to carry products to the
whole country.
Corporate Social Responsibility Annual Report
23
OCCUPATIONAL AND PROFESSIONAL FRAMEWORK
6
CA
RC
HI
ESMERALDAS
4
3
IMBABURA
9
2
1
4
MANABÍ
2
40
TUNGURAHUA
BOLÍVAR
LOS RÍOS
3
GUAYAS
2
4
12
ORELLANA
4
CHIMBORAZO
25
CAÑAR
9
1
PASTAZA
2
MORONA
SANTIAGO
AZUAY
1
EL ORO
4
NAPO
COTOPAXI
SANTA
ELENA
SUCUMBÍOS
SANTO
DOMINGO
21
1
1
PICHINCHA
ZAMORA
CHINCHIPE
161 POINTS OF SALE
IN 23 PROVINCES
LOJA
Costa
Sierra
Oriente
= NUMBER OF SHOPS PER PROVINCE
Awards and
recognitions
The Municipality of Guayaquil presented a plaque to Agripac in recognition to
its active involvement in Corporate Social Responsibility programs. This recognition was received by Lourdes Navarro,
Social Welfare Coordinator.
On the 6th of June of 2014, Dr. Alfredo
Noboa and Engr. Gustavo Wray received
on behalf of Agripac the recognition
granted by the Ecuadorian Institute of
Social Ensure (IESS) for the fulfillment
of the Occupational Health and Safety
management.
Corporate Social Responsibility Annual Report
25
ENVIRONMENTAL
SUSTAINABILITY
Ecological balance
We are committed to responsible stewardship through
the use of materials and methods in line with the global
tendency to produce generating as little environmental
impact as possible.
We encourage farmers to maintain the balance between
productivity and welfare of consumers and the environment, providing technical advice on the appropriate use
of chemical and organic inputs, and spreading safety
regulations for their handling.
We offer certified organic products to our customers so
they have at their disposal the necessary tools to provide
healthy food to the market, whose cultivation does not
harm the environment. Among our options are: organic
fungicides, foliar nutrition, bio-stimulants, soil conditioners, fertilizers and multi-nutrient complex.
26
In the distribution of our products we have implemented
for several years the use of biodegradable bags, made
on the basis of TDPA technology that allows certain
components to remain inactive during his lifetime, but
when being discarded and exposed to extreme conditions, the additives destroy the plastic up to three years,
a significant contribution to environmental preservation.
Currently the headquarters and the industrial plants
Celtec, Laquinsa, Balanfarina and Agrigrain have three
certifications: ISO 9001: 2008, ISO 14001: 2004 and
OHSAS 18001: 2007.
Our facilities are endorsed by environmental licenses,
environmental specifications sheets, sewage treatment
plant, Waste Generator certificate, foam fire fighting
system in chemical plants to optimize water consumption in case of accidents, spill containment boxesor
wastewater for emergencies.
Sustainability
is the balance between
our species
and the environmental
resources.
ENVIRONMENTAL SUSTAINABILITY
Wastewater and
hazardous waste
TREATMENT
Aware that the development of responsible and efficient stewardship
is always the result of institutional
commitment guided by the current
regulations, Agripac saw the need
to build in CELTEC, a wastewater
treatment plant to allow correct
processing of the liquid used in our
operations.
Wastewater treatment consists of a
series of physical, chemical and biological processes that are designed
to remove the maximum amount of
contaminants in the water resulting from human use. The aim is to
reuse water, after going through
strict controls and measurements
performed by external specialists in
certified laboratories.
The whole process is supervised
by the Environment Directorate
of the Municipality of Guayaquil to whom the study results are
reported quarterly, although for
internal control reports are made
monthly. Environmental auditors
of the Council verify that the treatment outcome meets the standards
triple wash
Add water to 1/4 of the
empty container
What does it consist of?
Shake well for
30 seconds
Pour into a container
to be used
Repeat this process 3 times
After the process pierce or cut the container and take it to a collection center .
and authorize its deposit in
freshwater sources; however in
Agripac we use the treated water
for watering gardens.
The use of this treatment system
applies to water containing mixtures
of different chemicals used in the
production; but, when we refer to
the resulting water of washing containers of specific products or Triple
wash - which consists in strongly
shaking the containers containing
water corresponding to a quarter of
their capacity, three times - a different process is carried out.
turn the containers to Agripac as a
guarantee to perform the proper disposal thereof at the end of the chain.
In that case the resulting liquid,
properly classified according to its
origin, for example pesticide, is donated to neighborhoods or farmers
who acquired the obligation to re-
According to law, industrial plants
need to have an environmental license granted in accordance with
the categorization made by the
Ministry of Environment, after an
Corporate Social Responsibility Annual Report
29
ENVIRONMENTAL SUSTAINABILITY
environmental study to determine
whether a company is generating
hazardous waste, as in the case of
Agripac; therefore, the Ministry
extends a certificate with this category. Using this certificate, the
company performs a safe processing of the waste and delivers it to a
licensed incinerator.
The points of sale play an important
role to ensure the return of contain-
Paper and plastic
RECYCLING
Paper, cardboard and plastics from
packaging, containers and uncontaminated raw materials are recycled through agents authorized
by the Ministry of Environment.
If these contain some degree of
30
contamination, they are processed
as hazardous waste, which means
they must be stored and incinerated following the due protocols, also
under the responsibility of duly authorized agents.
ers around the country to our collection centers in Pascuales, Agrigrain
and branches in Amaguaña (Pichincha), Machala (El Oro) and Buenos
Aires (Manabí).
When things
are made
from the heart
the earth can
feel it
Organic solutions to take
care of your crops.
www.agripac.com.ec
CERTIFICATIONS
Obtained during 2014
In 2014 our plant Balanfarina
achieved the GLOBALG.A.P certification through its Aquaculture
production line. We set this institutional challenge as a way to help improve the quality of national shrimp,
an export product that has had remarkable growth in recent years.
The GLOBALG.A.P standard involves food safety and traceability,
care for the environment, health,
safety and welfare of workers and
animal welfare; it also includes the
Integrated Crop Management, Integrated Pest Management, Quality
Management Systems (QMS) and
Hazard Analysis and Critical Control Points (HACCP).
GLOBALG.A.P. is an internationally
recognized standard for agricultural
production and has been the result
of years of extensive research and
collaboration with industry experts,
producers and retailers worldwide.
Its goal is a safe and sustainable production in order to benefit producers, retailers and consumers around
the globe.
The certification demands greater
efficiency in production,
improvement in business performance and
reduction in wastage of
resources, among other
requirements.
Our
aquaculture
line
with
GLOBALG.AP certification has reduced the risks related to food safety, since it encourages the assessment based on the Hazard Analysis
and Critical Control Point (HACCP)
throughout the production process,
ensuring the animal welfare.
THE GLOBAL
PARTNERSHIP FOR
GOOD AGRICULTURAL
PRACTICE
Quality
Management
Occupational Safety and Health
Management
As a company, we are committed to continuous improvement and greater transparency in regards to
quality management and the adoption of technical
communication platforms across the entire food chain,
ensuring traceability of our products.
OHSAS 18001
Besides improving globally the integrity of the Animal
Feed Assurance Program, we achieved further harmonization in the field of Health, Safety and Welfare of
workers, considering that human capital is the key to efficient and safe management of any production center.
Environment
Management
Corporate Social Responsibility Annual Report
33
CERTIFICATIONS
CERTIFICATE HACCP
CERTIFICATE ISO - GLOBALG.A.P.
BUSINESS
New
ProJects
During 2014 and so far in 2015
significant investments have been
made in different areas of our
operations in order to increase
production levels, efficiency and
further improve the work environment of our employees:
BALANFARINA
Paving the operations yard with a
total investment of
$300,000
Increase in capacity of the Aquaculture Division, Line 8:
$1´024.000
New production line for shrimp:
$5´100.000
Corporate Social Responsibility Annual Report
35
BUSINESS
BALANFARINA
Change of the Preconditioning
system, line 1:
$12,000
Installation of sprayers,
line 3 and 8:
$600,000
Automatic dispensing equipment
of liquid lecithin in Balanfarina:
$3,800
CERTIFICATION
Balanfarina
In Balanfarina:
$100,000
Celtec
CELTEC
Renewal of encoders:
$16,500
LAQUINSA
Application of epoxy paint
on the warehouses’ floor:
PEDERNALES
Construction of
new branch:
$610,860
$53,000
OTHERS
Adjustments in the Distribution
Center in Palenque:
$15,000
Corporate Social Responsibility Annual Report
37
64.485
BUSINESS
High performance
SeED Plan
To build bridges with the public sector, Agripac signed an agreement
with the Ministry of Agriculture,
Livestock, Aquaculture and Fisheries (MAGAP), which aims to raise
the productivity of smallholders of
yellow corn and rice with the implementation of the High Performance
Seed Plan; through this plan, Agripac delivers a kit including certified
seed, soil fertilizers and appropriate pesticides; this was expected
to improve the efficiency of corn
production from an average of 3.5
to more than 6 MT / ha.
Hard corn and rice producers who
own less than 10 hectares of arable
land have access to this benefit.
The government focused its growth
efforts on these two cereals, especially due to their importance in the
national food chain.
KITS OF SEED PLAN
were delivered in 2014
The Government support consists
in covering $214 per hectare; in
return the farmer acquires a high
performance technology kit with a
cost that fluctuates between$400
and $600 instead of the traditional package. Agripac provides the
inputs needed for farming, and
additionally offers a credit for the
amount that is not covered by the
MAGAP, a boon to farmers.
The first stage of the program, initiated in the winter of 2013, benefited about 23 000 farmers, with
a cultivation area near to 70,000
hectares. And in 2014, 64,485 kits
were delivered to 19,690 beneficiaries. The Plan is directed to the
maize and rice producer’s regions
because there is a large concentration of small producers with limited
access to high-performance technology kits in the provinces of Los
Rios, Manabí, Guayas and Loja.
MAIZE
Plan
In 1997 the Maize Plan was
created as an initiative of Agripac to improve agricultural production, the program is a credit
system that allows us to provide
farmers with a complete portfolio of products for growing
the gramineae, that is, the seed
and inputs such as fungicides,
insecticides, pesticides and herbicides, but above all, a close
technical assistance for advice
on each one of the stages.
So far, thanks to the Maize Plan,
7,082 customers have been benefited with kits, achieving to cultivate 105 630 hectares.
Suppliers
One of the greatest benefits of the plan is that
producers don't need
to give money or sell the
product to return the investment
to Agripac; instead they pay after 150 days with a percentage of
their harvest equal to the value of
the delivered kits. At the end of
the process each farmer will have
only invested in manpower and
required equipment, and then obtains a net profit of marketing the
product surplus.
The grain delivered to our company
through the collection centers and
the plant Agrigrain is used to constitute the raw material to produce
top quality food for birds, pigs,
shrimp, livestock and pets, through
our plant Balanfarina.
Due to the Seed
Plan and Maize
Plan, farmers who
previously did not
fertilize, managed
to triple their
productivity, and now
they know first hand
the benefit obtained
by using the best
inputs in the market.
Every growing company requires having the best possible partners to provide the
raw material in accordance
with the expectations of its
production process. Therefore Agripac counts with
an extensive list of certified
suppliers, some of whom
have been with us since the
beginning of our operations,
and we have built relationships characterized by trust
and responsibility.
With the Maize Plan everyone
wins: the national production obtains premium maize, cultivated
with the best inputs in the market;
farmers do not require large investments; and at the end of the chain
it guarantees optimal food for farm
animals that will be consumed by
the population.
Corporate Social Responsibility Annual Report
39
BUSINESS
Field
DAYS
Aiming to train our clients on how
to increase the benefits of Agripac’s products, in 2014 approximately 160 field days and technical
presentations were conducted in
the three continental regions of Ecuador in Los Rios, Guayas, Manabí,
El Oro, Napo, Chimborazo and Cotopaxi provinces.
In the last year, safety took a special
priority. We try to raise awareness
among farmers on the use of new
agricultural technologies where
risks can always be minimized by
implementing safe habits and the
importance of clothing and special
equipment when it comes to mixing and applying chemicals.
These events aim to educate farmers groups on issues related to pest
control, fertilization, and optimization of our products, safe handling
of chemicals, among others.
We have also given prominence to
training related to the proper way
of managing waste produced by
agricultural activity, so they do not
harm the environment.
Field Days are a moment of encounter in which our specialized
technicians can dispel the doubts
of consumers, and at the same
time give them the added value of
knowledge on current issues related to agricultural activity.
Increase of
BRANCHES
Our permanent aspiration is to get
closer to our customers every day,
opening stores in different corners of the country to provide the
products of all our lines timely and
quickly, always with the best service and technical advice offered
by specialists in Agripac’s stores.
In 2014, we added five new agencies to the family. As a result of
strategic analysis, our agencies began operations in: Loreto (Orellana
province), Pindal (Loja), Lorenzo de Garaicoa (Guayas), Cascol
(Manabí) and Matilde Esther (Los
Ríos). In total, we closed the period
with 161 points of sale, where clients can purchase supplies of the
highest quality.
The shops are complemented with
our 13 distribution centers, lo-
cated in the cities of Esmeraldas,
Santo Domingo de los Tsáchilas,
Amaguaña, Riobamba, Tosagua, Babahoyo, San Juan, Quevedo, El Triunfo, Pascuales, Machala, Loja and
Buenos Aires, forming a large network of services to fill the requirements of the Ecuadorian farmer.
Every day we reach more corners of the
country, with our 161 shops and 13
distribution centers in 23 provinces.
Corporate Social Responsibility Annual Report
41
OCCUPATIONAL
SAFETY AND HEALTH
Protecting the
human element
The Constitution of the International Labour Organisation (ILO), to which Ecuador joined in 1946, establishes the principle of protection of workers with
respect to diseases and accidents incurred in the discharge of their productive activities.
In this sense, it is appropriate the prevention through
the implementation of an Occupational Health and
Safety Management System, which uses all relevant
information applying permanent inspection practices
and the implementation of legal regulations in force in
the country.
Following this principle, in 2010 Agripac obtained the
OHSAS 18001 certification, which establishes the
minimum requirements for best practices in Health
and Safety management at work. In the same year the
verification and evaluation of the Occupational Risks
INITIAL DIAGNOSIS
2008
POLITICS
PLANNING
IMPLEMENTATION
AND OPERATION
VERIFICATION
MANAGEMENT REVIEW
2010
EVALUATION AND
VERIFICATION
OF SGRT - IESS
• Continuous Improvement
• Internal Audits
• External audits
Training in first aid.
Management System took place by
the Ecuadorian Institute of Social
Insurance (IESS).
In 2013, with the permanent monitoring of the accomplishment of
procedures and continuous improvement, we got the recertification OHSAS 18001: 2007.
In 2014, in the self-audit of occupa-
tional risks for the National System
for the Prevention of Occupational
Risks we obtained an honorable
score of 90.16%, and continue optimizing processes in order to constantly improve ourselves.
As part of the preventive measures
we adopted in our industrial plants
we may mention the conduction
of emergency drills, structuring
OFFICIAL REGISTRATION
RESOLUTION
C.D. 390
Ensuring the welfare of our staff is a
primary duty for Agripac.
OHSAS 18001
71,82%
2011
brigades for emergency services;
appropriate internal signaling; strict
enforcement of traffic rules and
clothing for workers, visitors and
suppliers within our facilities; and
informative talks on matters related
to safety, always emphasizing first
aid actions.
2012
2013
Audit of Legal Technical Compliance
on Safety and Health Sart.
RECERTIFICATION
OHSAS 18001:2007
90,16%
2014
Auto Audit
Occupational risk.
National System of
Prevention in
Occupational Hazards.
• Administrative Management
• Technical Management
• Human Resource Management
• Basic Operational Programmes
Corporate Social Responsibility Annual Report
43
THE COMPANY
IN THE COMMUNITY
The little school
In 1994 germinated the idea of
offering a training program that
would allow professionals, in the
diverse areas of agronomy, immerse
in the philosophy and work culture
of Agripac with two main purposes:
to offer our customers a first class
attention, focused on their needs
and complemented with technical
knowledge to contribute to the optimization of our products; as well
as provide new job opportunities
for young people that would have
been specialized in the areas of Agriculture, Zootechnics, Veterinary
Medicine, among others related.
It was at this point that the Little School emerged, a program
which in 2014 completed its twenty-fourth Class, and that has bene-
fited more than five hundred people since its beginning.
The call for those interested takes
place once or twice a year, depending
on the requirement to fill the new job
vacancies at points of sale; the demand has increased in recent years
due to the rapidly increasing number
of Agripac stores nationwide.
The Human Resources Department
is in charge of selecting about thirty
people among approximately one
thousand applications received to
join this program. The task is arduous. The goal is to find candidates
with professional and personal profiles that ensure adaptation to the
philosophy of the company and the
business in which it operates.
With the program new
sources of employment
are created.
The
Little School’s
24
Edition
th
First the people selected perform
internships at points of sale, where
they acquire experience and receive valuable knowledge about
customer service, business performance, agricultural issues and
related areas such as aquaculture,
animal health, consumption and
seeds; then move to Guayaquil,
where they get theoretical training
in areas related to management,
human resources, information systems, use of company products,
Integrated Management System,
among others, completely free of
charge and with the corresponding
expenses coverage from Agripac.
These two decades of activity have
served to consolidate the reputation of the program, since it has
not only benefited our company,
but others in the industry who have
been enriched by the knowledge
and experience of hundreds of specialists trained in The Little School.
This process takes place throughout
a month, and those who approve are
employed as assistants or heads of
POS, or become part of the talent
pool for future job opportunities.
In this way Agripac not only trains
quality professionals for the agricultural sector, but also contributes
to the development of the country.
Corporate Social Responsibility Annual Report
45
THE COMPANY IN THE COMMUNITY
Support to
SOCIAL CAUSES
Agripac has always been characterized for opening its doors to institutions that have embraced social
causes, especially those focused on
the protection of vulnerable groups.
16 years ago we started a close
cooperation with the Foundation
Junto con los niños (JUCONI). By
the end of each year, the company
offers a celebration for the nearly 200 children of the institution.
The event takes place at the ranch
Rodeo Grande and includes the
transportation of children, recreational activities, competitions, food
46
and gift-giving. Agripac also contributes to specific requests of the
Foundation throughout the year.
It is also an honor for us to support
the Casa del Hombre Doliente
Foundation, which seeks asylum
for the incurably and terminally
ill; Fe y Alegría Foundation, which
has provided education to over
28,000 children and young people
throughout its history; Casa de la
Vida, providing support and care
to pregnant women; Niños con
Futuro, benefiting about
1,500 children at risk; Encuentro
por el Futuro Foundation; Institute
Santa María Mazzarello (Group of
Missionary Childhood and Adolescence); Children's Center for Good
Living “Ángeles de la Luz”; Public
School Guayas y Quil; Junta de Beneficencia de Guayaquil (Charity
Board of Guayaquil); Fundación
Clemencia, for the care of elders
in abandonment conditions; Tú me
haces feliz Foundation, Ecuadisrael
Foundation, among others.
In these 43 years
our best harvest
IS THE ONE
REFLECTED
IN THE FACES
OF EVERY
SATISFIED
CUSTOMER
Corporate Social Responsibility Annual Report
47
THE COMPANY IN THE COMMUNITY
DONATION OF PET FOOD
to animal welfare foundations
Our work on behalf of pets and farm
animals goes far beyond providing
quality food. Ten years ago we heard
the call to action to protect our
four-legged friends from the hand
of the Fundación Amigos de los Animales (FADA), under the direction
of volunteer Mariquita Arosemena.
Ecuador (Pichincha and Santa Elena) have joined the institutions with
whom we collaborate. All serious
and accountable institutions that
have established solid ties with the
company, donating between two
and three tons of products Buen
Can and Michu each month.
Given the need to ensure the endowment of quality food for the
dogs and cats that due to her supportive spirit she had taken under
her shelter, she requested our collaboration with the delivery of nutritional products for pets. Since
then, Agripac contributions have
not stopped, but rather, has become an institutional commitment
to help every year thousands of animals that have been abandoned.
Furthermore, as an extra contribution to the community, our company donates food to the Canine Unit
of the Rescue Division of the Fire
Department of Guayaquil.
Agripac also supports and promotes numerous events each year
in favor of the adoption of animals
and the promotion of intercommunication, coordination and collaboration of animal defenders in the country.
Others foundations as El Refugio
(Cayambe) and Protección Animal
OUR
RankingS
Constantly growing,
rankings demonstrate it
The soundness of the Agripac brand
in the market has turned our company into a permanent participant of
the most prestigious business rankings that are built nationwide.
One of the publications whose reliability and history have made it
obligatory reference point for evaluating the business development in
our country is Vistazo Magazine. In
2014, we were included in the ranking of the 500 largest companies of
Ecuador in the position 57, representing a climb of eleven positions
from the previous year.
"The 500 biggest companies reported revenues of over 78 billion
dollars, that is an increase of about
seven percent compared to 2012".
Subsequently, in November, Vistazo magazine released the ranking
"The 100 companies with the highest corporate reputation", in which
we appear for the first time and as
the only participants representing
the Agricultural sector in the position 88.
Among the highlighted data in
this prestigious publication were
included revenues and profits in
2012 and 2013, profitability / sales,
income tax and number of employees in the companies.
Corporate Social Responsibility Annual Report
49
OUR RANKINGS
The study is based on data provided by Research and Analysis
(Spain) and Advance Consulting
(Ecuador).
On the other hand, the business
publication Ekos placed as us in the
position 38 corresponding to the
list "Top 100: The larger suppliers."
The ranking was based on data obtained from the Internal Revenue
Service (Servicio de Rentas Internas - SRI), according to the fiscal
year 2012, and taking as the closing
date May 28 of 2013.
"Providers are at the beginning of
the entire production chain of a
company, established as the source
of supplies for the production and
marketing of goods arriving to the
consumers; they strongly affect its
offer because the proper management of a supplier allows the development of competitive advantages
that influence the price and quality
of the final product. They are, in
short, the bone with which companies meet the needs of its customers. Supplier and company create
an alliance with one goal: win-win. "
In August 2014, the same source of
strategic information management,
Ekos Magazine, placed us in 56th
position in the ranking "The 1,000
largest companies in the Ecuador".
The source was the SRI 2013, with
cut-off dated June 30, 2014; the information corresponded to the Superintendence of Banks and Insurance (SBS) and Superintendence
of Popular and Solidarity Economy
(SEPS).
"Ekos Magazine presents one of the
most anticipated special editions of
the year, with quality information
of vital use to analyse the Ecuadorian business performance. The
year 2013 was favorable for the
income of the 1,000 largest companies in the country: they went
from 68545.26 million in 2012, to
76459.93 million in 2013. In nominal terms, revenue increased by
11.55% between these two years.
In this edition you will know what
companies are the protagonists
who drive the economy of Ecuador".
Corporate Social Responsibility Annual Report
51
Contents, photos and coordination
Corporate Social Responsibility Committee
Text editing
María Fernanda Martínez
Design and layout
Publidesigners
Year of release
2015
Agripac Head Office:
General Córdova No. 623 y Padre Solano
Phones: (593-4) 2560400 - 3703870
P.O.Box: 09-01-8598
Guayaquil - Ecuador
www.agripac.com.ec