Operational efficiency

GRI 102-11, GRI 103-2, GRI 103-3

In order to control the socio environmental impact of its operations, the Company take steps to ensure pollution control and develop productive eco-efficient programs. Highlighting such programs, the Company maintains a procedure of preventative and routine maintenance of all its equipment. It strictly follows the legal requirements that demand regular monitoring of emissions for air quality, as well as the proper management, treatment, and proper disposal of liquid and solid waste generated from industrial operations in according to the regulated restrictions.

Periodically, the environmental performance indicators of the Company’s procedures and operations are assessed by a team of trained professionals and specialized consultants, in order to identify the relevant environmental aspects and impact. In 2014, the Integrated Management System (SGI) was implemented, which promotes the management of the environmental and occupational health and safety indicators, seeking to comply with all standards and limits specified in current legislation.
In addition, the program has helped to develop efficiency in production processes and avoid or mitigate potential aspects and impacts on the environment due to operational activities in local communities. The Company also maintains, in all its industrial units, the corporate program Gerenciamento de Aspectos e Impactos Ambientais, having an online system for monitoring the action plans dedicated to minimizing significant environmental interferences.

With regards to the local communities, the Company has a good system in place for the management, treatment, control and monitoring of socio environmental indicators, in order to avoid and/or diminish potential risks and impacts. This system includes an emergency action plan that outlines the response to emergencies such as fire, chemical leaks, medical emergencies, as well as a list of emergency contacts, communication procedures, protective equipment, and emergency response procedures. Moreover, it constantly invests in safety for the ammonia storage areas and refrigeration systems, using leak detectors (inside areas of operation and equipment rooms), secondary containment, ventilation systems, proper warning signs, and equipment for emergency response.

In 2018, the Company invested in extensive work to standardize operations at its different units and offices, standardizing commercial, corporate and operational processes. Through manuals, procedures and other tools, it was possible to align the management processes for the benefit of operational efficiency and quality. Another significant investment over the last year was in regards to the SAP system, with improvements in management tools.

All inputs used in the factories undergo an approval process that includes a document analysis, product/input migration reports, pilot testing and final approval. In addition, the Company maintains a management system for packaging consumption that is based on the amount of animals to be slaughtered at the unit, which then generates the ideal consumption for each sector. Monitoring of the correlation between the planned use and actual use, along with reporting of the waste and scrap produced in the sector is done at the end of each day, and the managers are held responsible accordingly.

For 2019, the Company has planned to increase investments in improvement projects to increase efficiency, optimize production and improve pricing. The program Atitude Campeã will be expanded to Paraguay, which will help to improve the efficiency of the operation. Opportunity mapping and expansion of the program to all countries has been scheduled to take place in the upcoming years.

Animal welfare

frame-23As one of the major players of beef production in the world, the Company recognizes the importance of integrating animal welfare along with its practices as a necessity for sustainability and increased competitiveness in a market that is increasingly demanding.

As evidence to commitment to this topic, the Company has received the certification of the Professional Animal Auditor Certification Organization (PAACO), an internationally recognized organization in the area of animal welfare. Its industrial units go through annual auditing aimed at verifying compliance.

Europe’s most demanding food production standard is prepared by the British Retail Consortium (BRC) and establishes quality and safety standards for food production. Minerva has accreditation for the units in Araguaína (TO), Barretos and José Bonifácio (SP), Janaúba (MG), Mirassol d’Oeste (MT), Palmeiras de Goiás (GO), Rolim de Moura (RO); Frigomerc, Mussa, San Antonio, IPFSA and Belen (Paraguay); Carrasco, Pul and Canelones (Uruguay); Pilar and Rosário (Argentina).

Cattle purchasing
Brazilian agriculture is a field under continuous improvement and an increase in the addition of the use of technology has allowed for a significant increase in productivity and animal quality. An ongoing challenge for the industry is to advance the production of younger animals, with a better finishing weight and fat content at slaughter.

For an exporting company, the search for the best animal requirements to meet their client portfolios is growing. In 2018, as market demand increased, the Company was committed to procure the best raw-material, obtaining positive results, allowing for a greater efficiency in plant operations.

Relationship with the suppliers is an essential element for the Company’s operations, which strives to understand the supply chain and to support the development of its partners.

The Company strongly values the relationship with its suppliers, maintaining relationship structures of commitment and various opportunities for interaction. Participation in technical events is frequent and the presence of the Cattle Purchase team favors a closer interaction with the producer.

The portfolio of suppliers is made according to the portfolio of each unit. The profile mapping of each cattle rancher is done by the Market Intelligence team and sent to the field technicians to have a closer relationship with the ranchers. At the end of 2018 the Programa de Eficiência de Carcaça was launched, in partnership with the animal nutrition company Phibro. Through this program, which recognizes better carcasses through quality grids, it will facilitate a better engagement with ranchers and a closer alignment to their expectations, in a way that will add value to all parts of the production chain.

For 2019, the focus is to find the best result. To achieve the best results, there will be changes in the pricing model of the Company, with the objective of setting the right price for the cattle according to the carcass profile, thereby adding value to cattle with the best quality and capable of generating better results for the industry and penalizing those with low results. The Programa de Eficiência de Carcaça will help to identify the best animals to meet all portfolios in the market.

Talking about livestock
The program Falando de Pecuária (Talking about Livestock) offers gatherings, lectures and field visits to cattle breeders. The work is carried out with the help of technicians, veterinarians, zootechnists, and agronomists, with the objective of engaging and discussing the regional peculiarities.

In 2018, the main topic was animal health, specifically the question on vaccination, suppliers were urged to use the vaccines correctly to prevent loss. Cattle breeders were able to learn the best techniques for a safe and proper management in order to meet health requirements, as well as learn about animal nutrition, opportunities for greater profitability, sustainability and the market for cattle. Within the last year, the initiative was carried out in 8 states of Brazil, with the participation of approximately 400 cattle breeders.

Efficiency programs
The following efficiency programs, were essential for the Company’s good performance in 2018: Bíblia, Osso Branco e Atitude Campeã. Its objectives include process standardization, increase in yield and productivity, and a reduction in volatility in the operating results. They also provide greater employee engagement and ensure better conditions to consistently and quickly turn challenges into achievements. These programs provide greater employee engagement and guarantee better conditions to consistently and quickly turn challenges into achievements.

Established in Brazil, the Company’s efficiency programs may be expanded to the units of Athena Foods.

Bíblia
The project Biblia is dedicated to standardizing the procedures throughout the different production sites and in obtaining operational synergies. Through this program, the Company identifies and registers the best practices of its units, subsequently making them standard for all other units. By identifying and creating universa best practices, the project is able to achieve productivity and efficiency gains, as well as economic and financial benefits.

The Bíblia is a requisite for and is measured by the program Atitude Campeã.

Osso Branco
Through the Osso Branco project, the Company aims maximizing its deboning capacity, ensuring that the least amount of product as possible remains on the bone, thereby increasing the profitability of the units by better usage of each carcasse.

Initiated in 2015 and solidified in 2016, the application of the program is widespread, being a requisite for and is measured by the program Atitude Campeã.

Atitude Campeã
The efficiency program Atitude Campeã focuses on the application of initiatives and operational procedures described in the project Bíblia, as well as fostering innovation and the dissemination of best practices. Encouraging healthy competition between the units, offering a financial bonuses for those who best apply the practices. In this way, the Company extends to each employee the culture and the spirit of ownership.

Based on the best practices observed in the different units, the program aims to set an ambitious operating goal for the entire processing unit, leading each unit to seek out the best standard for the performance indicators. In the form of an annual competition, it awards monthly top performers with a special lunch, trophy and a drawing for prizes (such as computers and televisions). At the end of the year, employees from the unit and departments with the most points receive additional bonuses.

The program Atitude Campeã has potential for exponential gain, allowing the Company to uphold certain values, such as discipline, focus and determination.

Its objectives include process standardization, increase in yield and productivity, and a reduction in volatility in the operating results.