Corporate Responsibility 2011

SustainabilityReport

For more information: www.PRONACA.com

Comments: [email protected]

Agricultural Research and Development Center at La Josefina, Province of Guayas. 2

Table of Contents

Introduction

About this report

Message from the Board

Our Company

Philosophy

Organizational Structure and Corporate

Governance

5

6

7

8

9

Environmental Balance

Environmental Management

Clean development mechanisms

Environmental management indicators

High-impact environmental initiatives

Recycling

Achievements and commitments

25

25

26

27

27

29

GRI Indicators

Verification Letter

Indicators

62

65

Economic Balance

Financial Management

INAEXPO

Rural Area Fields


11

15

19

23

Social Balance

Product Responsibility

PRONACA’s commitment

A company that listens

Contact, complaint, and claims center

Quality and Food Safety

Control systems

Food safety control

31

33

34

35

36

Operational Center Certifications


Biosafety

Animal welfare

Organizational Development

Human rights enforcement oversight

PRONACA co-workers

Continuing education

Fringe benefits

“Golden Roosters”


Occupational Health and Safety

Aculture of risk prevention

Health promotion

Generating dialogue and relationships with stakeholder groups

Positive relationships with communities

Well-being and health with neighboring communities

San Luis Foundation

PRONACA committed to education

“It’s Never Too Late to Learn” Program

Food Bank

Volunteering


37

39

40

40

41

42

43

45

47

49

50

52

53

55

56

57

58

59

59

60

61

44 Farmers in rice plantation, Guayas Province

ABOUT THIS REPORT

Introduction

In terms of coverage, this document contains complete

information on the performance and results of 2011.

This edition has relevant indicators about the business

of PRONACA and INAEXPO in Ecuador.

INAEXPO is PRONACA’s company in charge ofits export

business, with PRONACA being its sole shareholder.

This report is the product of a sustained collection and

structuring of information, as well as of direct dialogue

with stakeholder groups of the Company.

The financial information reported is based on

International Financial Reporting Standards (IFRS)

required by the Superintendency of Companies of

Ecuador.

The financial statements for this report have been

verified by the independent auditing firm of Deloitte &

Touche for the reported period.

According to the principles of completeness and

materiality defined by the Global Reporting Initiative

(GRI), this report does not report 20 performance

indicators. The reason for this exclusion is that they are

not applicable to our activity or to certain processes.

The contents and information on this report may also be

accessed on our website.

www.pronaca.com

This is the fifth Sustainability Report presented by Procesadora Nacional de Alimentos, PRONACA. It contains relevant

information on the economic, social, and environmental impacts of our business during the year 2011. This report

has been prepared in accordance with the recommendations and parameters of the Global Reporting Initiative (GRI)

and Global Pact, fulfilling the principles required by the GRI, performing an A+ GRI CHECKED, and with a third-party

verification performed by Deloitte & Touche.

6

MESSAGE FROM THE CHAIRMAN OF THE BOARD AND FROM THE CHIEF EXECUTIVE OFFICER

We are pleased to deliver the fifth Sustainability Report from PRONACA. This document covers an integral vision of the activities we conduct in our organization.

The report deals with the economic, environmental, and social aspects of our business. Each one of the chapters presents information related to our co-workers and other stakeholder groups with which PRONACA has on-going relationships.

The most noteworthy fact in this report is PRONACA’s role in promoting development in agriculture and as a supplier of quality food for all members of Ecuadorian society.

A very important aspect of PRONACA’s business model is its development of integrated farmers that work with us not only with corn and ricebut also with broiler chickens, artichoke, and heart-of palm.

In essence, this integration system consists of helping the farmer obtain the necessary credit and ensuring a market for his products. In addition, we establish a cooperation triangle betweenthe credit, the farmer, and the delivery of his crop at agreed-upon prices, while some funds are retained in order to pay back his loans.

This integration system produces a win-win situation for the farmer, for agriculture and for agroindustry, whereby all parties obtain a reliable market based on a reliable vendor. In this manner we can build lasting, long-term relationships where everyone wins.

Dear Friends

Sincerely,

Luis Bakker Jr.

CHAIRMAN OF THE

BOARD

Juan Ribadeneira E.

CHIEF EXECUTIVE

OFFICER

Introduction

For over 25 years PRONACA has been a company that exemplifies its commitment with the goals of food safety and food sovereignty. It is very important for Ecuador to know how to feed itself. There are farmers in the fields to whom we can teach new technologies through agricultural extension programs that should be carried out by both the public and the private sectors. There are fertile lands and there is a climate that allows many products to be harvested, such as corn and rice, among others. We should highlight the support we provide to corn farmers through the incorporation of new technologies, with quality seeds and technical processes so that, through our joint efforts we may all achieve the goal of turning Ecuador into a country that is self-supplying in corn by the year 2015. All of this while simultaneously taking care of nature for future generations and meeting all the environmental regulations adopted by the government.

The work performed by our co-workers and with communities in the areas near our operations, also deserves a special mention. We are convinced that the only path towards mutual growth and success is one in which the Company, with its entire staff, together with its suppliers and clients, is the only way to ensure a future for all us.

We trust that by reading these pages you will obtain a perspective of the work performed by a company that prides itself in being Ecuadorian and that strives to play a positive role in Ecuador’s present and future.

OUR COMPANY

In 1957, the INDIA Company was founded, a pioneering company in the Group, dedicated to importing agricultural products. It grew in the poultry industry with incubation, and commercial egg trade, and later through seed research and production.

PRONACA was founded in 1979 as Procesadora Nacional de Aves, whichin 1999 became Procesadora Nacional de Alimento.

During the 90’s, it diversified its production in meats and other foods, and began exporting canned heart-of-palm.

During the new century, PRONACA has taken its production and marketing model for heart-of-palm to Brazil, and its processed products to Colombia.

Presently, PRONACA is a proudly Ecuadorian company that nourishes people well and generates development in the agricultural and livestock sector, with social and environmental responsibility at heart.

PRONACA Co-workers, Inverna Building, Quito.

8

Principles

SuppliersPRONACA believes in and practices respect for its suppliers, to whom it offers a fair profit in every negotiation within a framework of ethical behavior. It fosters compliance with the law along with socially responsible behavior.

Co-workersPRONACA leads its co-workers through example, which is to be competent, fair, and ethical. It has a commitment with solidarity and is respectful with the well-being of each and every one of them, and it does not tolerate dishonesty. It recognizes talent and offers fair remuneration. It fosters teamwork and delegation with responsibility in working conditions of cleanliness, order, and safety.

It offers equal employment opportunities, career advancement, and promotion to all co-workers who are qualified for it. It motivates and accepts suggestions and recommendations from its co-workers for the good of the Company.

ClientsPRONACA works together with its clients in order to always offer quality products. It is innovative with its processes and products in order to lead in the markets in which it is present. It answers its clients’ requests in a quick and through manner.

ConsumersPRONACA, as its main responsibility, provides innovative, healthy, and quality products that nourishes its consumers well, and which contribute to the well-being and satisfaction of their families.

SocietyPRONACA, in agreement with its corporate social responsibility outlook, conducts itself as a good citizen, always seeking to form the best relationship with various stakeholders in an atmosphere of harmony and collaboration. It shares its experience and know-how in order to contribute to the development and quality of life within the area of influence of its operations. It encourages civic commitment and pays all of its taxes. It is respectful and practices solidarity with all persons and with care for environmental balance.

AssociatesPRONACA acts responsibly with producers and entrepreneurs. It invests in research and development and creates innovative products. It shares its philosophy and creates business opportunities for its associates with whom it maintains a close, fair, and mutually beneficial relationship.

PRONACA’S PHILOSOPHY

PurposePRONACA exists to nourish people welland generate development in the agricultural and livestock sector.

Values

Integrity, Solidarity, and Responsibility.

Introduction

PRONACA in Ecuador

ORGANIZATIONAL STRUCTURE AND CORPORATE GOVERNANCE

At PRONACA, the supreme governing authority is the

General Stockholders Board, which meets in Ordinary and

Extraordinary General Board Meetings comprised by legally

summoned stockholders. The General Stockholders Board

meets at least once a year to address matters pertaining to

the management of the Company.

The Board is elected by the General Stockholders Board

and comprises the highest administrative authority, and

has three external Directors. Among its responsibilities is to

make decisions concerning financial, economic, and policy

approval issues that govern the organization.

The operation and structure of these two government bodies

are depicted in the Incorporation Charter of the Company,

and fulfill all mandates of the control agency known as the

Company Superintendency of Ecuador. There are in addition,

internal regulations that govern the operations of the Board.

PRONACA has several executive committees that execute

and provide follow-up to the various business strategies within

their competencies. This corresponds to an organizational

structure designed to adequately manage the risks and

opportunities associated with the business.

SUCUMBIOS

ORELLANA

PASTAZA

MORONA SANTIAGO

ZAMORA CHINCHIPE

LOJA

AZUAY

CAÑAR

CHIMBORAZO

BOLIVAR

LOSRIOS

COTOPAXI

PICHINCHA

SANTO DOMINGO DE LOS TSÁCHILAS

NAPO

IMBABURA

CARCHI

TUNGURAHIUA

MANABÍ

ESMERALDAS

GUAYASSANTAELENA

EL ORO

NUEVA LOJA

QUITO

TENA

PUYO

FCO. DE ORELLANA

TULCÁN

IBARRA

ESMERALDAS

SANTO DOMINGO

LATACUNGA

AMBATO

RIOBAMBA

MACAS

CUENCA

MACHALA

LOJAZAMORA

GUAYAQUIL

SANTA ELENA

PORTOVIEJO

BABAHOYO GUARANDA

AZOGUES

PRODUCTION ACTIVITITES

INTEGRATED

DISTRIBUTION NETWORK

REGIONAL OFFICES

EDUCATIONAL CENTER

1010 Transparency is one of the main pillars at PRONACA.

SOLID AND TRANSPARENT FINANCIAL MANAGEMENT

Economic Balance

PRONACA maintains a strong commitment to localand national development.

Clear and reliable balances are the calling card of PRONACA in Ecuador. The committed work of thousands of co-workers, along with the trust expressed by its stockholders, forms the basis for its sustainable development.

These economic figures correspond to the general financial statements of our company as of December 31, 2011, respectively.

Balance Sheet at December 31, 2011(Expressed in thousands of US Dollars)

Current Assets

(+) Net Properties, plant, and equipment

(+) Other assets

= Total assets

Current liabilities

(+) Liabilities and long/term provisions

(+) stockholder equity

= Total liability and equity

264,019

179,768

105,057

548,844

130,365

127,346

29,.133

548,844

Comprehensive results for years endingDecember 31, 2011 (Expressed in thousands of US Dollars)

Net Sales

(-) Costs and expenses

= Profit before co-worker profit sharing and income tax

(-) Co-worker profit sharing and income tax

= Net Profit

* For the purpose of this Sustainability Report, we are presenting co-worker profit sharing in detail as well as individually.

728,863

681,072

47,791

14,426

33,365

suppliers

nationwide.3,026 suppliers

in the InclusiveIntegrated Program.

196suppliers are

domestic.

of all 94%

121212

Taxes paid in 2011(In thousands of US Dollars)

Employer contributions(In thousands of US Dollars)

Year 2011

Production employer contributions

Administrative employer contributions

Commercial employer contributions

Total

4,139

1,360

1,761

7,260

Economic Balance

12

Added Value Tax –VAT Expense

Custom Duties - Imports

Income tax expense

Tax on outward foreign exchange

Tax on rural land

Municipal tax

Total

7.166

1,834

8.244

2.945

29

917

21,135

Agricultural Corn Integration and Extension Program, Province of Los Ríos.

Suppliers are an essential part of PRONACA’s production

chain. The provision of quality raw materials and inputs

represents a process that generates sustainable business

opportunities, which is concentrated at the local and national

levels. The adequate mechanism of vendor selection,

qualification, and registration, results in the development of

those who provide services, inputs, and raw materials.

PRONACA’s growth goes hand-in-hand with its suppliers’ development.

During 2011, PRONACA consolidated a work process focused

on formalizing smaller suppliers. The Company achieved

more secure and consistent business deals by eliminating

only occasional deals. This initiative concentrated such

efforts in Bucay (Coastal Regional Office) and in Santo

Domingo de los Tsáchilas. Practices considered comprise

mainly labor, environmental, and health and safety norms.

Number of Suppliers per Region (in thousands of US Dollars)

Year

Guayaquil - Bucay

Santo Domingo

Quito

Others

Total

2011832

756

1,272

166

3,026

2010844

778

1,285

182

3,089

Amount of purchasesper Region (in thousands of US Dollars)

Year

Guayaquil - Bucay

Santo Domingo

Quito

Others

Total

2011118,000

96,000

119,000

9,000

342,000

Purchase amount per Supplier per Origin

YearAbroad

National

Integrated

Total

2011172,000

233,000

109,000

514,000

2010136,000

191,000

90,000

417,000

(in thousands of US Dollars)

Number of Suppliersper Origen(in thousands of US Dollars)

2011284

2,830

196

3,310

2010208

2,872

217

3,297

201085,000

98,000

93,000

6,000

282,000

Year

Abroad

National

Integrated

Total

1414 Heart-of-palm plantation, INAEXPO, Santo Domingo de los Tsáchilas.

INAEXPO

INAEXPO, Industria Agrícola Exportadora, was founded in

1992 with the mission of exporting quality heart-of-palm. A

decade later, it began the project for the export of artichoke.

By early 2001, it expanded its production and marketing

model for heart-of-palm grown in Brazil. Presently, Ecuador is

the largest exporter of cultivated heart-of-palm in the world.

This achievement, supported by INAEXPO, has required

investment, research, agricultural development, and

knowledge of international markets. INAEXPO’s heart-of-

palm is produced in the subtropical areas of the country,

and reaches 78 clients worldwide distributed in 27 countries

spanning Asia, Africa, Europe, and the USA.

destination countries for

our products.27 clients

internationally.78containers ofheart-of- palm and artichoke

produced.

1,429

An example of success for the agro-export sector of the country that typifies the commitment with Ecuador and with the world by facing the challenges of quality Ecuadorian exports.

Economic Balance

Offices andRepresentatives Destination countries for our products Commercial / Production Operations

France, Spain, United States, Canada, Venezuela, Argentina, Chile, Mexico, and Israel.

Argentina, France, United States, Chile, Canada,Spain, Israel, Belgium, Uruguay, Ecuador, Italy,Lebanon, Colombia, Germany, England, Morocco,Australia, Mexico, Jordan, Singapore, Switzerland, Saudi Arabia, The Netherlands, Luxemburg, Paraguay, Venezuela, and Brazil.

Ecuador, Brazil, and Costa Rica.

16

Main export products

A model that ensures quality

INAEXPO’s main export products are cultivated heart-of-palm

and artichoke, both in preserves, which are sought after by the

most demanding consumers in the world due to their delicacy

and quality.

The production process begins where INAEXPO has

implemented an integration model with small and medium-

sized producers from whom, through a long-term agreement,

it purchases all of its production directly.

Farmers who are integrated are given, in addition, quality

agricultural inputs, technical assistance, training, and

technological transfer.

The business model is focused in processes that

guarantee a high-quality product, ready to comply with

international market parameters.

In 2011, INAEXPO maintained its quality control systems

based on the standards followed by IFS (International

Food Standards), ISO 22000, and HACCP (Analysis and

Control of Critical Points), and BASC (Business Alliance

for Secure Commerce). The products and processes

comply with the FDA (Food and Drug Administration),

and with the Codex Alimentarius Commission.

Economic balance

Indicators 2011

Participating farmers

Hectares planted by integrated farmers

Monthly income / farmer

Technical Assistance (training hours per farmer)

Employment generation (workdaysapproximately)

Families involved

Transport – annual investment (thousands of US$)

Improvement in farmers’ formality

Average productivity vs. Marketing

Incorporation of Environmental GMP (Good Manufacturing Practices)

Investment in Ecuador (thousands of US$)

Large Farmers

Medium-sized farmers

Small farmers

Sales (thousands of US$)

202

7,226

USD 4,968

54

385,000

1,010

657

Ruc y RIse

6.5 vs. 4.5

Manejo dedesechos

7,625

23%

51%

26%

37,924

Indicators 2011

Participating farmers

Hectares planted by integrated farmers

Monthly income / farmer

Technical assistance (training hours per farmer)

Employment generation (workdays approx.)

Families involved

Average productivity

Sales (thousands of US$)

150

811

USD 3,645

60

221,760

776

18.28 tn/Ha

11,159

Heart-of-palm Artichoke

INAEXPO worker harvesting heart-of-palm, Santo Domingo de los Tsáchilas.

18

Gonzalo Moya Vice Presidentof International Business

In 2008, the world market underwent a series of

impacts that caused a significant drop in certain

products. Until 2011, these variations were overcome

by INAEXPO, which has consolidated its adaptation

process to the crises as of lately. In order to do so,

the production processes for heart-of-palm and for

artichoke have been consolidated in order to make

them more efficient through improvement of our

production plants.

INAEXPO is the only company in the world, in the heart-

of-palm business, which has a plant with the correct

levels of water reprocessing, residual water treatment,

and treatment of waste and debris.

COMMITMENTS FOR 2012

In the artichoke business, INAEXPO will invest in a residual water treatment plant, which will allow a reduction in the environmental impact that the business has through the use of a cleaner and friendlier technology with the environment.

Maintain certifications and markets.

Implement improvements in agricultural, industrial, and commercial areas in order to achieve a sustained profit.

In the artichoke business, INAEXPO will institute new proposals in order to strengthen the strategy of raw material provisioning, and implement improvements in the productive process.

ACHIEVEMENTS IN 2011

Heart-of-palm and Artichoke

1,429 containers produced.

929 direct co-workers.

25,126 tons of heart-of-palm fiber were sold to 16 cattle ranchers in the area.

“INAEXPO continuesto overcome obstacles”.

Artichoke plantation, Highlands Area, Latacunga.

THE FIELDS ARE THE BEGINNING OF THE VALUE CHAIN

Agricultural and livestock integration and extension programs generate development in the productive chain of our Company.

Integrated poultry farming

The poultry farming integration program is an initiative by

PRONACA to establish a direct relationship with individual

poultry farmers. The Company provides quality raw materials

for the raising of poultry (bb chicken, bird feed, vaccines,

technical assistance, and training) while those integrated

implement poultry equipment and a biosafety system.

The zoo-technical yield is assessed through the European

Efficiency Factor, which measures the percentages of viability,

daily weight gain, and feed conversion.

Economic balance

PRONACA provides technical assistance to farmers. Agricultural Corn Integration and Extension Program, Provinces of Guayas, Los Ríos, and Manabí.

20

2011 was a very good year for poultry farming integration. The production

results attained have surpassed those of previous years, and the profits

obtained have fulfilled the expectations of over 80% of those integrated

ones. Poultry farmers have been made aware of the importance of

improving biosafety practices, conditions of infrastructure, and equipping

of their sheds. Training workshops have been organized in order to share

corporate responsibility practices with them.

*The data of the economic exercise of integrated poultry farming belong to each one of their financial exercises.

Integrated poultry farms

Indicator / year 2011 2010

Participating producers

Families involved

Employment generation

Technical assistance (training hours per producer)

Average productivityvs. Marketing

Incorporation of Environmental GMP

Investment in Ecuador(thousands of US$)

96

576

480

212

278/300vs. 254/300

Provision of vaccines,loans, and training in

operational norms

23,054

91

546

455

220

297/300 vs. 260/300

Provision of vaccines,loans, and training in

operational norms

24,549

20 Poultry farming center, Tropicales Farm,

Santo Domingo de los Tsáchilas

Integrated corn farming

The integrated corn program (large, medium, and small) is focused on

training corn farmers in order to achieve a more efficient and quality-

oriented production following the standards that the company maintains.

PRONACA has liaised with government agencies in order to generate

long-term development in the fields, which has motivated trust and new

opportunities for growth, especially for farmers with less than 10 hectares.

Among the most noteworthy results, there are the leveraging of small farmers

in knowledge and techniques on corn farming with adequate technologies,

and in corn, bean, sorghum, and sunflower cultivation in order to determine

the feasibility of planting during the summer through irrigation systems.

Integrated PPC (More than 10 hectares)


Total investment amount (thousands of US$)

Total number of participating farmers

Products associated to the project

Results achieved

Area cultivated with farmers (ha)

Loan recovery portfolio (thousands of US$)

Average productivity (Tm/Ha)

Amount of corn delivered to PRONACA (MT)

Technical visits

5,256

300

Corn

18,086

4,987

5

75,323

1,380

2,567

293

Corn

17,007

2,511

4.5

62,498

986

PRONACA ensures the quality of one of its

main raw materials: corn.

Integrated PII (Less than 10 hectares)


Total investment amount (thousands of US$)

Total number of participating farmers

Total number of benefitted farmers

Products associated to the project

Cooperating institutions IDB, SNV, Municipality of El Empalme

Results achieved

Area cultivated with farmers (ha)

Loan portfolio recovery (thousands of US$)

Average productivity (Tm/Ha)

Amount of corn delivered to PRONACA (MT)

Farmers trained

633

159

533

Corn

1,386

558

5.8

3,979

533

218

58

469

Corn

415

202

4.5

1,243

469

2222Farmers touring the Agricultural Research and Developmet Center at La Josefina, during the “Golden Corn on the Cob 2011” Event.

ACHIEVEMENTS 2011

We achieved record results in certain lots of poultry

farming when we reached feed conversions of 1.67*.

Integrated farmers have strengthened their businesses

and project growth for 2012 based on state-of-the-art

technology for poultry production.

We generated a change in the production scheme

of the integrated farmer that allows ordering of their

procedures through GMP (Good Manufacturing Practices)

and support of Integrated technicians.

We generated a sense of belonging in the integrated farmer

that yielded further trust in dealings with the company. This

was achieved through assistance, training, motivation, and

recognition.

* Feed conversion is the relationships of weight versus feed consumed in kilos.

Jorge ZambranoCorn farmer – Canton of Mocache

“The secret to becoming Number One is to work as instructed by INDIA-PRONACA technicians and follow their recommendations step by step. They visit us twice a month, but if we see unconformities in certain areas of production, we call the technicians so that they may guide us.

Another important aspect is that we set up a simple goal: to have good production. I have always grown corn, but about 6 years ago, I started to put more heart in growing corn. I was about 28 years-old when this happened. I put more dedication into this process by trying not to depend too mucho on the workers.

That’s when I realized the importance of my spending more time at the plant, of understanding how it works, and of constantly verifying whether the products applied are producing good yields”.

First place in Mazorca de Oro(Golden Corn on the Cob) for 2011


Support self-storage of hard yellow

corn through the association of small

farmers so that they may have their

own drying and storage infrastructure.

Foster summer corn growing through

an irrigation system in order to

increase their annual production and

therefore increase revenues for the

farmers.

Develop the implementation of family

gardens (corn receiving and drying

facilities).

Integration Programs

Economic balance

2424PRONACA co-workers in Santo Domingo de los Tsáchilas.

ENVIRONMENTAL MANAGEMENT IS ASTRATEGIC COMMITMENT FOR PRONACA


Sustainability of our operations depends on good practices and responsible management of resources.

Clean Development Mechanisms (CDM).

For PRONACA, 2011 was a year of consolidation in the

application of environmental policies that are cross-cutting

to the organization. Responsible management of natural

resources is a daily practice that has become an essential

part of PRONACA’s work culture at its operational centers.

As signatories of the Global Pact, and in agreement with

Principles 7, 8, and 9, which contemplate development of

a preventive focus in light of environmental challenges,

fostering greater environmental responsibility, and

encouraging development and diffusion of respectful

technologies mindful of the environment, PRONACA

continued the development of the gas emissions reduction

project that cause the greenhouse effect.

Technological changes were performed at 6 operational

centers, which are framed around a comprehensive

environmental management that is based on cleaner

production concepts. As of 2011, PRONACA stopped

releasing 202,617 tons of CO2 into the atmosphere. This is a

process subject to yearly verifications and approvals by the

United Nations Organization (UNO).

Between the years 2010 and 2011, PRONACA invested

1,643 (thousands of US$) in this process. It carries an

environmental policy based on compliance with current

legislation. Our company has made an effort to follow

national and international standards concerning the

environment and in order to institute procedures to develop

new alternatives of environmental care.

We are continuing with the application of the indicator model

that reports the consumption of energy, fuels, and packaging,

the generation of non-toxic waste, and residual waters.

These comprise the five indicators that are showcased every

year in order to verify advancement and compliance with the

environmental policy.

The procurement of 70 environmental permits has comprised

a significant advance in our administration. These permits

are obtained at the Ministry of the Environment and at

Environmental Secretariats at local municipalities. This

information is included in environmental studies performed

and presented periodically, in agreement with the stipulations

of the Law on Environmental Management and the Unified

Text of Secondary Environmental Legislation (Tulas—in

Spanish).

environmental permits observing current legislation.

70

11 treatment

plants for residual water

implemented nationwide.

74,193trees planted as

of 2011.

kilos of recycled paper.

11,455

tons of CO2 not released into the atmosphere as

of 2011.

202,617

man-hours of training inenvironmental culture.

4,615

26

Kw-h / year2011Business

Kw-h / ton pt*2011

27,471,723

5,231,100

435,062

25,770,856

7,133,321

637,517

1,499,109

Poultry

Pork

Commercial eggs

Livestock

Cold meats (cold cuts)

Preserves

INAEXPO - Heart-of-palm

270

205

38

45

550

116

148

Energy consumption Fuel

Non-toxic waste

gal. fuel/ año 2011

gal. / ton pt.2011

27,471,723

5,231,100

435,062

25,770,856

7,133,321

637,517

1,499,109

270

205

38

45

550

116

148

Business

Poultry

Pork

Commercial eggs

Livestock

Cold cuts

Preserves


Kg / year2011

Kg / ton pt2011

15,7121

55,870

62,848

6,00,080

153,481

16,947

92,559

1.5

2.2

5.5

1.0

11.8

3.1

9.2

Business

Poultry

Pork

Commercial eggs

Livestock

Cold cuts

Preserves


Residual water

m3 of industrialresidual water 2011

m3 / ton pt2011

1,072,417

111,168

8,765

115,165

125,362

78,720

161,771

10.6

4.3

0.8

0.2

9.7

14.3

16.0

Business

Poultry

Pork

Commercial eggs

Livestock

Cold cuts

Preserves


Packaging

Number of bags 2011

Unitsbags/ton pt.2011

43,296,713

7,195,642

426

281

Business

Poultry

Pork

Toxic waste**

Spent oil(gal)

Biopeligrosos(kg)

Bio-hazardous chemicalcontainers (kg)

4,282

4,369

1,545.5

1,019.7

2,424

12,628

726

15,778

5,486

2,138

3,383

11,007

Zone

Coast

Santo Domingo

Highlands

Total

** Final disposition: Environmental manager certified by environmental authority.

* Tons per finished product.

* Tons per finished product.

Figures of an environmentally-friendly administration.


Large-impact environmental initiatives.

Continuously, the company invests in the continuous

implementation and improvement of environmental control

and prevention systems in order to optimize resources,

minimize impacts on water and air in their areas of

influence, and improve the management of solid waste.

The resulting waste stemming from the various production

activities that PRONACA embarks on is managed and

disposed of by following procedures the observe current

legislation.

Inorganic waste that is not reused internally is delivered

to environmental managers, certified by local authorities.

Organic waste stemming from industrial plants represents

the raw material for new production processes. Some

is used for the production of fertilizers commercialized

nationally, and is used at plantations and gardens within

the company’s facilities.

Concerning pig breeding, since 2000 to-date, a system has

been developed and implemented for rearing pigs with

decreased impact on the environment. This system uses

rice-husk beds, eliminates the use of water in the cleanup

of production areas, minimizes the presence of odors, and

allows obtaining organic fertilizers. There are bio-digesters

at the breeding and fattening farms for the treatment of

residual water.

Bio-digesters at pig farms use a technology that allow for the

comprehensive management of organic waste. These are

closed systems that facilitate the decomposition of organic

matter under anaerobic conditions, i.e., the absence of

oxygen. As a result of this process, it is possible to obtain bio-

fertilizers, organic fertilizers, and bio-gas. Processing based

on bio-digesters represents one of the most advanced

techniques employed in Ecuador, and in this aspect,

PRONACA sets the highest standards for the industry and for

this sector of the economy.

Paper recycling, reuse and reforestation.

PRONACA continued with the 3R Program for paper, water,

and energy reduction, reuse, and recycling. The same is done

with reforestation, which links co-workers and their families.

This initiative forms part of the corporate volunteerism effort

that seeks to motivate environmental awareness not only as

co-workers but also as citizens.

3R Campaign, paper reduction, reuse, and recycling.

2828Laboratory, residual water treatment plant, Valle Hermoso, Santo Domingo de los Tsáchilas.


SUCCESS CASE

Residual water treatment plants.

One of the most relevant aspects of PRONACA’s operations

has been the implementation of 11 modern residual water

treatment plants nationwide. As of 2011, PRONACA has

invested close to $10.2 billion dollars, which comprises an

example nationally concerning adequate environmental

management in this industry. These plants employ

microbiological techniques to purify the residual water and

allow for discharges that return back to nature to fulfill the

parameters established by current environmental legislation.


During 2011, PRONACA continued with

the CDM project (Clean Development

Mechanism).

We consolidated the culture of environmental

work in the organization, and we set

challenges for management in excellence at

national production centers.

As of 2011, we have planted 74,000 trees

nationwide.


During 2012, we will work on the carbon and hydric

footprint.

To register a Clean Development Mechanism at the

United Nations Organization (UNO).

Environmental Care

Julio AguilarDirector of Operations

The practice of responsible production policies forms an

essential part of PRONACA’s organizational culture. This is

why the Company has a management model that implies a

renewed commitment with its stakeholders. This work, which

has been performed in a gradual, progressive, and sustained

manner in time, highlights important projects developed

during 2011.

One of them is the incorporation of a new technology to

improve the bio-digester system in the production of pork.

This makes it possible to use gas as a source of fuel in order to

generate sustainable electrical energy.

The physical and human investment to implement a

composting system in our plants represents another

contribution to the environment since through this mechanism

we can use our own waste and turn it into organic fertilizer

containing agronomic value.

“PRONACA is permanentlycommitted with the environment”.

3030PRONACA offers Ecuadorian families high-quality innovative products.

PRODUCT RESPONSIBILITY

Social Balance

PRONACA’s commitment is geared toward maximizing quality, healthy, innovative, and fairly-priced products.

PRONACA anchored its presence in the market during 2011 with

the creation of innovative products with attractively presented

packaging.

PLUMROSE strengthened its Daily Line, which responds to the

needs and likes of consumers. It grew to 68,232 points of sale

with its fractioned presentations, accessible prices, and an

efficient distribution system. Its sales grew by 54% in relation

to 2011.

Since June 2011, Ecuadorian consumers can enjoy the new

fractioned presentations in Mr. Pollo cold cuts with sausages

and bologna, nutritional and economic products with the

guarantee of PRONACA. Its excellent acceptance was reflected

in brand sales at the 46,490 points of sales where it is present.

This year PRONACA continued working together with the

Programa Socio Solidario (Partner in Solidarity Program),

through which it contributes with products that fulfill high quality

and nutritional value standards to the Ecuadorians’ basic family

food basket. Its sales grew 35% in comparison to 2010, and its

products were present in over 36,900 points of sale nationwide.

The portfolio for Mr. Chancho fractioned products consolidated

its presence at the dinner table of Ecuadorians. Its sales

registered a 105% increase in comparison to 2010, as a show of

trust and preference by Ecuadorian families. Similarly, ready-to-

bake Mr. Pavo turkey breast was launched this year intended for

modern housewives who wish to maintain family tradition and

save time in food preparation.

In order to diversify the daily menu of Ecuadorian families

along with economic, nutritional, and easy to prepare menus,

PRONACA broadcast Te Queremos Mejor Alimentado TV (We

Want You Better Nourished) (TQMA.TV). During this second

season, PRONACA delivered 40 new menus costing between

US$ 0.60 and US$ 1.00 per serving. The quick preparation

channel presented a growth of 8%, which responds to

PRONACA’s commitment with its customers, by offering quality,

reliable products, which are in addition profitable for the

individual businesses.

In the pet business, during 2011, Ecuadorian consumers

awarded our efforts in developing nutritional and quality

products for dogs, with an increase of 9% in comparison to

2010 in PROCAN sales. Furthermore, the company set the

bases for the PRONACA Pet Care and Nutrition Research and

Development Center. With an investment surpassing 1 million

US dollars, this complex was created to foster the study and

creation of new healthy and quality pet food.

In order to comply with the standards of launching new

products, PRONACA conducts blind tests in order to determine

which products will be launched to the market with less than

70% customer acceptance.

All products reaching the final consumer comply with labeling

and sanitary legislation, and its labels contain information on

the nutritional value, date of manufacture and expiration, list of

ingredients, sales price, commercial brand, and further data

demanded by current legislation. During 2011, PRONACA did not

report cases of labeling incompliances.

PRONACA ethically respects consumer rights, and its advertising

is neither deceitful nor does it employ images of children.

POP growth

for Mr. Cook en through Socio Solidario.

35%new productssales growth.

11.4% offer products for the base

of the pyramid.

sales points68,232

growth of Mr. Chancho from fractioned sales.

105%

32

Social balance


With the presentation of the new TQMA.TV (We Want You

Better Nourished) recipes, PRONACA broadcast over

19,519,000 spots on TV, radio, press, and the Internet.

PRONACA opened the doors to its new value/added

product plant in order to satisfy the growing demand for

these products and in order to reach the base of the pyramid

with the Mr. Cook brand.

market share in the cat food segment.

COMMITMENTSFOR 2012

For 2012, the presence of the quick

preparation channel will continue

consolidating itself with the development

of a portfolio in keeping with the needs of

this segment.

House pets will now have new pet food:

COMPA with the quality of PRONACA.

The Socio Solidario line will have a new

member in its family when fish products

join in. Its great taste and affordable

prices place them among the most

preferred foods by consumers.

PRONACA will continue contributing to

the diet of Ecuadorian families with its

portfolio of functional food with products

such as Indaves Eggs with Omega 3.

Practical and Nutritional Solutions

My customers have always sought PRONACA products for their quality, variety, and flavor. Sausages and bologna from the PLUMROSE Daily Line are the preferred cold cuts of those who buy at my store. Whenever they are no longer in my fridge, my customers tell me: “Neighbor, you are out of Daily Line”.

Sofía ParedesOwner of BigMarket - Quito

“My customers protestwhen there is no Daily Line”

PRONACA creates innovative products that are easily commercialized in order to promote its clients’ businesses. In this regard, the Company has designed a distribution channel that directly involves small business owners, such as convenience stores, which are given a wide portfolio of easily-commercialized products that boost their growth.

Juan MayaMarketing Director

“A goal that is achievedstep-by-step”.

A company that listens to the voices of customers and consumers.

Whoever wishes to make a suggestion or to present a complaint may do so at 1800-PRONACA, 1800-PLUMROSE, 1800-SUTIENDA,

our webpages, and through direct contact at fairs and events.

Publication ContentTargetPublic

Print-Run2011

Print-Run2010

*TQMA Magazine

“Alimentarte”(Nourishing You)

Online

Quarterly magazine offering information on health, nutrition, family, ways to protect the planet, and recipes. The purpose is to generate fidelity, facilitate knowledge on the use of the products, and support the launch of new brands or presentations.

This virtual bulletin contains notes on nutrition, health, family, and current issues. Its purpose is to foster consumption of PRONACA products and to consolidate an interactive communications channel that strengthens the relationships and loyalty with the consumer.

Consumers

Consumers

690,000copies,

5 editions

326,056deliveries,12 digital editions

760,000copies,

5 editions

461,787deliveries, 12 digital editions

Su Tienda

(Your Store)

Proagro

Procampo(Pro-field)

This is a magazine that publishes information that facilitates the management and administration of these businesses in a simple and direct manner.It is designed to reinforce relationships with this segment, communicate releases, promotions, and foster training.

This is a trade technical magazine, which addresses agricultural health and nutrition, seeds and the options of technical support that farmers can count on. Its purpose is to disseminate information, product portfolios, and releases.

Magazine of trade technical content that addressesissues of animal nutrition, health, and genetics. Its purpose is to improve productivity through technical, commercial, portfolio, and new product launches.

*We Want You Better Nourished.

Clients(Storeowner)

Clients:(farmers)

Clients(livestockranchers)

600,000copies,

12 editions

4,000copies,1 edition

0

600,000copies,

12 editions

36,000copies,

6 editions

36,000copies,

6 editions

Ganadería:

Porcicultura:

Avicultura:

Revi

sta

Bim

estr

al /

Dis

trib

ució

n G

ratu

ita /

Dic

iem

bre

- Ene

ro 2

011

- 201

2 / E

dici

ón #

6

Revi

sta

Bim

estr

al /

Dis

trib

ució

n G

ratu

ita /

Dic

iem

bre

- Ene

ro 2

011

- 201

2 / E

dici

ón #

6

Alimentación del

cerdo, ¿por qué

escoger los balancea-

dos?. Página 6

Los principales

cuidados para el

ganado seco.

Página 8

El agua: nutriente

principal para la

anancia de peso.

1

Los inclusivos y zonales

también tienen mérito

Página 9

Mazorca de Oro: Una historia de

compromiso con el desarrollo del

sector maicero ecuatoriano

Página 4

REVISTA AGRÍCOLA

PUBLICACIÓN BIMESTRAL. CIRCULACIÓN GRATUITA.

NO.7. DIC. 2011- ENE. 2012

PRONACA premia a los mejores

productores de maíz

¡Es hora

de jugar!

El juego divierte e

integra a la familia

Ipads, smartphones

y gift cards

CELEBRAR

EN FAMILIA

www.tqma.tv

EDICIÓN

NAVIDEÑA

CELEBRAREELEBRAR

CELEBRARACELC

FASCÍCULO 40

DICIEMBRE 2011

el mejor regalo

Compra lomos

marinados Mr. Chancho

Participa por un IPAD2

y varios premios más

Pág. 25

Pág. 2

Pág. 24¡Únete en Facebook

y gana con Mr. Pavo!

34

Contact center Complaints and claims

(1) Advertising, damaged labels, nutritional information, promotions.(2) Damaged product, expired product, damaged packaging, misrouted.(3) Service, delivery, dispatch.

Category

Marketing (1)Quality (2)Service (3)

Total

Complaints 2010

%

2542167

711

0%76%23%

100%

%Complaints 2011

2%70%28%

100%

18528210

756

Social balance

During 2011, PRONACA adequately handled complaints and

claims from clients and consumers, thus demonstrating its

commitment of guaranteeing healthy and quality products.

PRONACA has a quick and efficient process to provide

answers in the shortest time possible, to concerns,

complaints, and claims from our clients and consumers.

Clients and consumers who wish to make a suggestion or a

complaint can do so by calling 1-800 PRONACA or by visiting

www.pronaca.com. Means of Contact

Contact Center PRONACA.com webpageprocan.com.ec webpageplumrose.com.ec webpage

Contact numberat fairs and events

Total

Contacts 2011

19,338445,185

8,3077,567

1,043,329

1,523,726

Contacts 2010

36,721470,060

28,6103,821

1,000,460

1,539,672

34PRONACA listens to its clients and consumers.

QUALITY AND SECURITY

analyses guaranteequality and food safety of

our products.

850,815 certificationssupport

productive processes at PRONACA.

84

Taking quality food to Ecuadorian homes is a commitment always present throughout our production chain.

Prioritization of control systems

PRONACA has developed a standard process in order to ensure

that all of its products, besides being designed in agreement

with the likes and preferences of the consumer, are imbued with

quality and food safety. This process is cross-cutting to the entire

production and supply chain. In order to guarantee compliance

International industry standards demand this type of norms at

production facilities. An adequate system of good practices is

the first tool for biosafety and comprises a management model

that prioritizes process standardization, decrease of production

costs, compliance of productive parameters, food safety

culture, personnel training, preventive and corrective equipment

maintenance, process variable control, continuous improvement,

and environmentally-friendly production. This system allows

obtaining legal permits.

with national and international parameters in the food industry,

PRONACA maintains a system of technical cards for raw materials,

packaging materials, and finished products. All operational

centers have internal laboratories that perform quality and food

safety analyses.

Total # of analyses performedduring 2011 to guarantee compliance in quality and harmlessness in all PRONACA brands.

Number of total analyses

Animal nutrition (3 plants)Poultry (3 plants)PorkAdded Value - PifoOperational Center - GuayaquilRicePreservesEgg classificationHeart-of-palmArtichokePRONACA - ColombiaMardex

Total

463,67012,219

4,17160,24142,68315,360

137,983582

76,29713,92217,3876,300

850,815

Sector # of Certifications

Poultry incubatorsPoultry Reproduction FarmsPoultry Fattening FarmsTurkey FarmsPig FarmsIncubatorsProcessing PlantsDistribution Centers

311196

163

251

36

Food safety control

The food safety control process is defined in technical

scientific follow-up studies, which are process-strict and

delineated by HACCP plans (Hazard Analysis for Critical

Control Points, which is a system that identifies, evaluates,

and controls hazards that are significant for food safety),

which are shown per sector below:

INAEXPO heart-of-palm:

Heart-of-palm, whole or in preserves(canned or in glass jars).

Heart-of-palm sub-products in preserves (cannedand in glass jars).

Poultry:

Poultry Plant at Yaruquí:(1) Chicken slaughtering and cuts.(2) Turkey slaughtering and cuts, broilers, and roasters.

Poultry Plant at Valle Hermoso:(1) Chicken slaughtering and cuts.

Poultry plant at Bucay:(1) Chicken slaughtering and cuts.

Pigs:

Pig slaughtering and cuts.

Meat-product added value:

Fine pastes.Full-muscle products cooked in slow-cookers.Full-muscle products cooked in ovens.Raw frozen.Cooked frozen.

Artichoke:

Production of artichoke and mixed products – artichokes and heart-of-palm in jars and cans in heavy salt, normal and marinated.

Operational centers continue being certified and have

implemented an auditing system. During 2011, scores obtained

with the GMP norms at the Coast and South of Ecuador, were

highlighted.

As in proprietary PRONACA Operational Centers, raw materials,

packaging materials, ingredients and input suppliers, are required

to have certifications obtained in order to guarantee food safety

of products. Concerning seafood products, these suppliers have

certifications from:

In the case of external suppliers of preserve products, these have

certifications in:

GMP-certified plants (Good Manufacturing Practices)

manufacture products in an environment with high hygiene and

comply with International Norms such as those of the CODEX

ALIMENTARIOUS, a world-renowned food code.

Social balance

OMARSA: BRC e ISO2000:2005/ACC/EUROLEAF/GLOBAL GAP

PRODUMAR: Best Aquaculture Practices/HACCP/Global Gap

EXPALSA: HACCP/Global Standard for Food Safety/BRC/

Global GAP

SANTA PRISCILA: HACCP/BRC/Organic/Aquaculture

Stewardship Council

FACUNDO: HACCP

DC Guayaquil: 93% compliance

DC Cuenca: 94% de compliance

DC Montecristi: 92% compliance

Certifications at operational centers to-date.

Poultry

Op. Center Type of Certification Certification CriteriaCertifying Agency Validity of Certificate

Plant atYaruquí

Plant atSto. Domingo

Plant atBucay

HACCP (Hazard Analysis Critical Control Point)ISO 22000:2005Regulation GMP 3253 - Ecuador



Codex AlimentariusISO 22000:2005Regulation GMP 3253 - Ecuador



SGSSGSMSP

SGSSGSMSP

SGSSGSMSP

201220142014

201220142014

201220142014

Pork

Cold meats and Added Value

Op. Center Type of certificate Certification CriteriaCertifying Agency Validity of Certificate

Pork Plant(Frimaca)

ISO 22000:2005Regulation GMP 3253 - Ecuador

ISO 22000:2005Regulation GMP 3253 - Ecuador

SGSMSP

20142014

Op. Center Type of certificate Certification Criteria

Cold meats Pifo(Carnasa)

PRONACAGuayaquil(Ecuadasa)

Regulation GMP 3253 - EcuadorISO 22000:2005

GMP (Good Manufacturing Practices)

Regulation GMP 3253 - EcuadorISO 22000:2005

Codex Alimentarius

MSPSGS

SGS

20142014

2013

Certifying Agency Validity of Certificate

38

Social balance

Eggs

International

Livestock Business

Distribution Centers - Logistics

Op. Center Type of Certificate Certification CriteriaCertifying agency Validity of certificate

Carcelén Classifier

GMP (Good Manufacturing Practices) Codex Alimentarius SGS 2014

Op. Center Type of Certificate Certification Criteria

Heart-of-palm

Artichoke

HACCP (Hazard Analysis Critical Control Point)ISO 22000:2005IFS

HACCP (Hazard Analysis Critical Control Point)IFS

Codex AlimentariusISO 22000:2005IFS

Codex AlimentariusIFS

ECOCERTSGSECOCERT

ECOCERTECOCERT

201320152013

20132013


Puembo

Quevedo

Durán

GMP (Good manufacturing practices)



Codex Alimentarius

Codex Alimentarius

Codex Alimentarius

ICONTEC

ICONTEC

ICONTEC

2013

2013

2013


Puembo

Quevedo

Durán




Codex Alimentarius

Codex Alimentarius

Codex Alimentarius

ICONTEC

ICONTEC

ICONTEC

2013

2013

2013

Certifying agency

Certifying agency

Validity of certificate

Validity of certificate

Certifying agency Validity of certificate

SUCCESS CASEPRONACA began the certification of Good Manufacturing

Practices based on the GMP Regulation for Ecuador N° 253

published in Official Registry 696, with the Ministry of Public

Health, on February 2008.

Joint timely work performed together with the National

Association of Food and Beverage Manufacturers made 2011 the

year in which the poultry, pig, value-added – Pifo, and heart-

of-palm plants were audited and achieved the certification.

PRONACA led this process and obtained 6 concurrent

certifications, making it the first company in Ecuador to fulfill

this legal requisite.

These certifications help us to better handle the post-control

criteria for registering products exercised by the Health

Authority, having Certificates recognized by regulating

agencies from other countries, and taking national regulation

and making it comparable with that of other countries.


The processing plants for heart-of-palm and artichoke

obtained the highest level of certification for the IFS

Norm (International Food Standard), required for

international clients.

Poultry processing plants initially HACCP certified showed

improvement due to the ISO 22000:2005 certification.


Work together on the ANFAB with the

MCPEC and the MSP toward a change in

norms to secure a change in legislation to

obtain the Sanitary Registry through GMP.

Define a measurement index as a

parameter in quality assurance.

Maintain the certification and audit

scheme at operational centers.

Quality and Food Safety

Ricardo VargasDepartment Head9, Quality Systems

The voices of PRONACA clients, in the form of complaints, mark an opportunity to ascertain their needs and provide follow-up solutions for problems that arise in time.

During 2011, we handled over 400 complaints, which were subjected to research and follow-up, which in turn allowed advising and training our co-workers in order to improve the quality of service.

“PRONACA listens to the voices of its clients”.

40

Animal Well-being

Within the standard that PRONACA implements, animal well-

being is a key factor. Strict care during the rearing stage,

transport and processing of chickens and pigs, achieves a

lowering of animal stress levels to a minimum. The company

controls rest time prior to processing. We comply with

standards that ensure care and treatment in production

sheds, loading and unloading ramps, population density,

location, cleaning time, amount of water and food, among

other factors that determine that the animal meat is healthy

Biosafety

PRONACA applies a strict Animal Biosafety and Well-

being System in every process in the rearing of pigs and

chickens with the purpose of ensuring the health and well-

being of the animals, which forms the basis for healthy food

production. Implementation of these measures guarantees

that animals that are reared in farms, remain healthy, which

ensures the health of consumers.

This procedure, cross-cutting to all operational centers,

implies restricting visits, use of appropriate working clothes

and equipment, mandatory showers prior to any entry,

washing of hands, constant health monitoring of all co-

workers, among various measures as to avoid any type of

contamination risk.

and of excellent quality. During 2011, PRONACA maintained

its animal well-being standard in the chicken and pig farms.

PRONACA has a research center for the pet food business

associated to the Pro-Can and Pro-Cat brands. The AVANT

Center allows performing research and development so that

pet food may be high quality food. This center fulfills and

observes good animal treatment parameters for dogs and

cats.

Pig Farming Center, Campo Lindo, Santo Domingo de los Tsáchilas.

782(thousands of US$) invested in human

development.

7,734 employment sources

nationwide.

co-workers withdisabilities

hired as of 2011.275

ORGANIZATIONAL DEVELOPMENT

Oversight in Human Rights compliance and the occupational health and safety of our co-workers, as well as outreach to communities where we are present, are essential factors of our sustainability management.

The performance of PRONACA as a signatory company of

the Global Pact has as its core principle respect for Human

Rights, in reference to Principles 1 and 2. Its performance is

focused on people above all, and it is because of this that

it develops policies that foster favorable conditions and

promote professional growth in its people.

During 2011, our company was consolidated as one of the

companies that generated 7,734 direct jobs. Distribution of

these jobs was done as follows: 32% in the Coastal region;

35% in the Highlands; and 34% in the Province of Santo

Domingo de los Tsáchilas. Business performance has

centered on compliance of current legislation.

Social Balance

PRONACA fosters teamwork in all of its co-workers.

42

PRONACA co-workers by type of job, contact, and region*

Total number of co-workers and average turnover

Region No. of persons %

Coast

Highlands

Sto. Domingo

Total general

2,453

2,670

2,611

7,734

32%

35%

34%

100%

Region Type ADM EXEC MIX OPER Total

Coast

Total Coast

Highlands

Total Highlands

Nationwide

Total general

FixedFeesOccasionalInternship



7319

291

770723

17265

7711,454

26556

1,541

21003

347004136800

44

5590

560

615355

0690

425914

0125

0

1,039

3,5190

1100

3,6291,433

0480

1,4814,952

0158

0

5,110

4,81110

1951

5,0172,545

24143

52,7177,356

34338

6

7,734

Number of co-workers and turnover

Número total de empleados que han dejado el trabajo durante el período reportado

Número y rango de empleados que han dejado el empleo durante el período reportado

Número total de empleados al final del período reportado

2010

11.03% Accrued 0.92% Average

1,461 persons total122 persons on average

Calculation with 6,082 persons on average/month

2011

11.23% Accrued0.94% Average

1,632 persons total 136 persons on average

Calculation with 7,175 persons on average/month

Total number of co-workers that have resigned during the reported period.

Number and range of co-workers who have resigned during the reported period.

Total number of co-workers at the end of the reported period.

Social Balance

*Data presented include INAEXPO co-workers.

Continuing education

The company centered its efforts and actions in the

development of its great human capital. Working alongside

its co-workers, it developed and implemented plans

that create added value for industrial processes and the

generation of quality professionals in Ecuador.

Through the area of Organizational Development, PRONACA

is executing the Training Plan, which has generated

alliances with Educational Institutions and first-rate Training

Providers. The training includes Postgraduate Studies

(Degrees and Masters Programs) that are executed with

the best universities and institutions, which insures the

development of the course of study of our co-workers.

During 2011, the company contributed with 70% and 90% of

the training costs of our co-workers.

Among the most noteworthy aspects of this endeavor is the

implementation of the Continuing Education System, which

is focused on the development of behavioral competencies

and techniques that seek the comprehensive growth of co-

workers personally and professionally.

Employment

Number of co-workers per level throughout Company operations at the end of the reported year.

Total number of hours invested in personnel training at each level of co-workers.

Number of training hours per year, per co-worker, and level.

Number of training hours per year, per level = Total hours per level/Total number of co-workers per level.

2010

OPE: 4,691 ADM: 2,335

EJEC: 46

OPE: 6,189ADM: 4,450

EJEC: 13

OPE: 15 h/hADM: 1.9 h/h

EJEC: 0.3 h/h

Total 1.7 h/h

2011

OPE: 4,918ADM: 2,409

EJEC: 44

OPE: 6,818ADM: 5,526

EJEC: 217

OPE: 1.39 h/hADM: 2.29 h/h

EJEC: 4.93 h/h

Total: 1.7 h/h

Continuing Education System; PRONACA co-workers.

44

PRONACA has valuable co-workers in various regions of

the country. Each one is the visible face of the company in

reference to the client and final consumer.

During 2011, PRONACA executed an Organizational Climate

and Culture Study along with a psycho-social survey that

reached 88% of the company’s population, thus achieving

majority participation and significant results for the planning of

co-workers’ well-being.

PRONACA executed a Development Evaluation (basically

measuring organizational competencies), with a participation

of 99% in administrative areas (this evaluation is not performed

at the operational level). We were able to ascertain proof

of a significant growth of 87% regarding competencies in

comparison with last year’s 86%. This indicator is vital in

measuring the positive impact of internal training.

Co-workers who have received performance evaluations

Percentage of men and women in the Company

Percentage of income per position

Percentage of income per level and gender

YearNo. of PersonsEvaluated

% of totalco-workers

% of Adm.and Exec. groups

20072008200920102011

1,3291,6332,0622,0122,117

21%25%31%28%29%

97%92%91%84%86%

Social balance

Age group Women Men Total general

Under 30Between 30 and 50 Over 50

Total

57581146

1,432

2,5943,411297

6,302

3,1694,222

343

7,734

Administrative Executive Mixed

2010 2011

10.65%10.57%

FEM FEM FEMMASC MASC

35.02%35.13%

0.36%0.34%

11.76%10.71%

0.55%0.23%

32.06%32.97%

100%100%

Year Administrative Executive Mixed Operations Total

2010 2011

45.67%45.70%

12.12%11.05%

10.15%10.27%

32.06%32.97%

100%100%

Operations TotalYear

Employment benefits

The company complies with current national legislation,

nonetheless, our co-workers have additional benefits such as

private health care and life insurance, savings accounts, which

is optional, the PRONACA store, and membership cards for

supermarkets and pharmacies.

The uniform is established as a benefit for the feminine staff,

sales, and messengers. The personal injury insurance policy is

for all organizational levels, depending on the valuing of the job

position.

Has the benefit

Does not have the benefit

OPE

Benefits2011

MIX ADM EXEC

Savings account

Company outing

Christmas basket

Uniform

Work clothes

PRONACA store

Supermaxi card

Fybeca card

Type of Job Position

OPE

Insurance 2011

MIX ADM EXEC

Life

Medical care

Personal accidents

International policy

OPE

Services 2011

Acknowledgments2011

MIX ADM EXEC

Meals

Transport

Medical Services

Best in operations

Seniority

Honorable mention

Golden Rooster



46

Inclusion of persons with disabilities Intent on the purpose of promoting and strengthening

observance of the rights of persons with disabilities,

PRONACA has worked towards achieving the equitable

inclusion of 275 co-workers with disabilities as of 2011.

PRONACA received on behalf of the Office of the Vice

President of Ecuador and of the Ecuadorian General

Foundation, a business acknowledgment for best practices

in social and labor reinsertion for persons with disabilities for

this period.

Human work designed to improve the lives of our co-workers

The company worked hard to gather socioeconomic data

that could provide information on co-workers and their

families. In order to do this, PRONACA created a nationwide

team of 12 professionals called the Social Work Team for the

three regions covering our operations. Our social workers

address issues shown below as part of a comprehensive

procedure focused on verifying the situation of families:

We covered 3 programs that have to do with the following

issues:

Home visits at the administrative and operational levels.

Permanent hires.

Data updating and demand for services that have to do

with the family’s surroundings.

Domestic violence.

Financial intelligence and family economics.

Entrepreneurship with our co-workers’ wives.

Results-oriented work is one of PRONACA’s keys for success.

Acknowledgment Category Awardees

Wood plaquesGlass plaquesGolden RoosterLarge Golden RoosterGlass plaquesGold plaquesSilver plaques

Best in OperationsHonorary mentionGolden RoosterBest teamwork / Operations centerBest operations centerAcknowledgment admin. and mixed years in serv.Acknowledgment oper. years in service

Total Awards

802120

74

209317

658

2011 Golden Roosters

The Golden Rooster is an initiative designed to acknowledge

the efforts of company co-workers. During 2011, we evaluated

the work of 658 co-workers. We evaluated:

The minimum time a co-worker must remain in the company

in order to reach this recognition is 5 years. This is an event

that recognizes seniority and is applied to every level in the

10, 15, 20, and 25-year categories.

GOLDEN ROOSTER

A recognition to the effort and commitment of many years

Teamwork.

Results-oriented work and service.

Communication.

Innovation and creativity.

Self-development and organizational knowledge.

Annual Golden Rooster awards ceremony.

48

Pronoticias’ (Pronaca news): 4 issues per year

with a total circulation of 7,500 magazine, i.e., one per every

co-worker.

The Pronoticias corporate magazine includes the bulletins

“My Plant, My Job”. Its pages depict the life of the organization

in general terms and those of certain operational centers

specifically.

It offers historical information on the company, answers

questions on procedures and internal practices, and

addresses pertinent issues of PRONACA.

Intranet: We reach close to 1,500 users.

Corporate Address for emails

(PRONACA Comunica): 1,500 users. Means for

delivering official information by the company, which seeks to

channel and centralize information on the various businesses

and areas.

PRONACA successfully implemented the digital display pilot

project in two operational centers of the company: at the Inverna

Building (head office) and at the Southern Quito Distribution

Center. Through this pilot, PRONACA seeks to standardize

message broadcast in the various operational centers with

updated and pertinent information for each center, keeping all

co-workers apprised of relevant issues.

The information is transmitted through the internet via

appropriate software and equipment.

During 2011, we reached approximately 750 persons between

both operational centers. Starting on 2012, this initiative will be

extended to other centers nationwide.

Internal Communications Other communicationtools

Internal communications system through digital displays, Inverna Building, Quito.


The company drove the development of a School

for Internal Facilitators in order to capitalize on the

knowledge and experience of its outstanding co-

workers and thus multiply knowledge.

We held alliances with noteworthy institutions in the

country in order to lead processes for learning and

transfer of knowledge directed at specific needs of the

company, equipment, and persons.

We signed medium-term interaction agreements in

order to guarantee quality education with institutions

such as INDEG, ADEN BUSINESS SCHOOL, and the

Zamorano Pan-american Agricultural School.

PRONACA offered its executives the “Comprehensive

Updating Program” in which high-ranking specialists of the

company share knowledge and experiences with our top

executives in order to hone our management skills by using

the most advanced Human Development and Business tools.

“It’s Never Too Late To Learn” is a project PRONACA

continued for those co-workers who did not finish their

elementary or high-school studies.


To work together on the ANFAB

with the MCPEC and MSP in order

to lobby for a legislative change to

obtain the Sanitary Registry through

GMP.

To define a measurement index as

a parameter for Quality Assurance.

To maintain the certification and

auditing process at operational

centers.

Lorena VallejoCost Accounting

Respect and equality for all of us working at PRONACA is the main

characteristic of this Company. For nine years I have developed

my activities normally since I have been given the necessary tools

here to do so.

PRONACA has granted me the opportunity to grow professionally

and demonstrate that a physical limitation does not hinder

intellectual growth.

Organizational Development

“Equality among co-workers is PRONACA’s priority”

Social balance

50

OCCUPATIONAL HEALTH AND SAFETY

The culture of risk prevention at the jobsite is the basis of occupational health and safety.

2011 was noted for work performed in risk prevention at the

jobsite. Within the area of Occupational Health and Safety,

PRONACA concentrated its efforts on the management of

incident control as the basis of accident prevention. The

Company executed safety promotion campaigns.

In order to decrease work-related accidents, PRONACA

implemented and promoted safe attitudes and behaviors as

an ongoing Company program. The result of this work was a

full year without major accidents or fatalities. The company

began observing in April the World Day of Occupational

Health and Safety.

As part of the new scheme of medical services, we

inaugurated the Bucay Regional Medical Dispensary, which

was followed by the same model for the Santo Domingo

Regional operations. PRONACA redefined and standardized

the Health Monitoring Plan for the control of work-related

diseases.

With the purpose of strengthening emergency readiness,

PRONACA trained brigadiers for the control of fires,

evacuations, and first aid. The company began the paperwork

for renewal of Regulations and Registration of Occupational

Health and Safety Committees.

Social balance

50 PRONACA co-workers have the necessary tools and instruments to minimize work-related risks.

Grain sorting machine, Rice peeler, Durán.

Creation of joint committees and subcommittees

(1) The accident rate (AR) is calculated based on accidents that generated a full workday of absenteeism, multiplied by a factor of 1,000,000, and divided by the co-worker hours worked, with data going to December.(2) The Rate of Occupational Diseases (ROD) is the number of cases of possible occupational diseases, multiplied by 1,000,000 and divided by the number of co-worker hours worked. (3) The Rate of Lost Time Days (RLTD) is the sum of lost days due to work-related accidents, multiplied by 1,000,000, and divided by the number of co-worker hours worked, with data going to December.

Joint Committees andSubcommittees

Occupational Health and Safety Committees and Subcommittees with a constituency of 50% of all co-workers.

Creation of the Central Committee and Subcommittee with the participation of co-worker representatives.

INAEXPO Central Committee.

2010

50%

1 Central Committee22 Subcommittees138 co-workers out of 4,833

1 Central Committee1 Subcommittee12 co-workers out of 825

2011

50%

1 Central Committee75 Subcommittees348 co-workers out of 5,539

1 Central Committee1 Subcommittee12 co-workers out of 907

Rates Results

Accidents (1)

Possible occupationaldiseases (2)

Lost time days (3)

Absenteeism (4)

2010

7.65

44.02

90.77

729.67

2011

7.51

32.16

109.33

855.8

124 AR during 2011, with 16,508,300 co-worker/hours worked

531 possible occupational diseases with 16,508,300 co-worker/hours worked

2010 – 2011 variation (12,098) -(14,128); absenteeism increased

2010 (12,098) - 2011 (14,128); absenteeism increased.

52

*The proportion is calculated by dividing promotion hours by the number of co-workers. Emergency preparedness implies the development of two annual drills.

Company / Hoursin training 20102011

Co-workersTotal promotion hoursProportion

6,4486,0210.96

6,6124,7580.74

Drills 20102011

Operational centersDrill complianceNº of co-workers evacuated% of co-workers evacuated

89%94%

9,525%74%

89%100%

11,295%87%

Health promotion

Areas of Investment

Industrial SafetyPPEIndustrial hygieneHealth

Total

(thousands of US$)

Health CardMedicinesHealth MonitoringHealth PromotionTotal

Total SSO

2010

29871322

109

1,143

3751

16710

264

1,407

2011

300841300

1,172

1,527

9410812528

355

Preventive health is a priority for the Company. Medical dispensary, Rice Peeler, Durán.

A+Sustainability Reports published by PRONACA.

is the score obtained by the16

associations form a working network of which PRONACA forms a part.

social and trade

is a member of the Global Pact in Ecuador,

CERES, and CEMDES.

PRONACA

DIALOGUE AND RELATIONSHIPS WITH STAKEHOLDERS

Social balance

Through specialized technical consultancy, PRONACA offers permanent advice to Integrated Farmers. Circle of Success Program.

54

PRONACA contributes to position Corporate Responsibility in Ecuador by maintaining positive relationships with all stakeholder groups.

During 2011, PRONACA worked together with the Global Pact

Network, The Ecuadorian Consortium of Social Responsibility,

(CERES), and the Business Council for Sustainable

Development of Ecuador (CEMDES), in order to strengthen

and drive corporate responsibility in Ecuadorian Society.

During 2011, PRONACA exchanged knowledge and shared

experiences with public and private sector companies,

fostering the importance of business sustainability. At

the same time, it maintained cooperation bonds with

representative organizations and associations of industrial

and business development.

Social balance

THE GLOBALCOMPACT

Generating positive relationships with the communities.

During 2011, the company worked hard at consolidating

good relationships with the various stakeholders from

the production chain. It excelled in managing joint work

with authorities and providing information on issues that

the company handles. In specific cases, visitors toured

operational centers from PRONACA operations.

Relationships with stakeholders were concentrated in the

three regional centers: Coast, Highlands, and Santo Domingo

de los Tsáchilas. PRONACA strengthened communications

channels with communities and specific stakeholders at the

local level.

PRONACA implements initiatives that seek for

the well-being of stakeholders and communities

with which it interacts.

Acknowledgments

Year Granting institution Award, acknowledgment, or certification

2011

CEMEFI, Mexican Center for Philanthropy

Líderes Ecuadorian Magazine.

General Rumiñahui Acknowledgment, Provincial Council of Pichincha.

CERES Ecuadorian Consortium of Social Responsibility.

CEMDES Business Council for Sustainable Development of Ecuador.

Global Pact, Ecuador Chapter.

Recognition to Exemplary Company in Latin America.

First place nationwide as a Socially Responsible Company.

Acknowledgment to the Company with Best Consumer Practices in the category of large national companies.

Acknowledgment for outstanding participation as part of the Board for 2010-2012.

2011 Elections, Presidency of the Global Pact Network,

Ecuador Chapter.

2011 Elections for the Presidency of the Global Pact Network for a period of 2 years.

56

Wellbeing and health of neighboring communities

The most relevant aspects of the implementation were as

follows:

PRONACA delivered updated information to the network

of integrated poultry farmers from Santo Domingo de los

Tsáchilas concerning changes on legal norms of the area.

The company held training workshops for small business

owners on proper feed processing.

Work with the Poly Ugarte Foundation in campaigns for

breast cancer prevention in communities of operations of the

Coast. PRONACA led an awareness-creation campaign on

the importance of having a timely medical checkup.

With the support of the Municipality of Bucay and of the

IESS (Ecuadorian Institute for Social Security), PRONACA

assisted 1,522 women aged 15 to 70. in collaboration with the

Municipality of Guayaquil and other private companies, we

assisted a total of 15,000 women.

PRONACA created medical brigades designed to prevent

diseases and promote health. Within this context, we

vaccinated 65 children under the age of two against polio

and the influenza virus.

The Company implemented a campaign in Bucay for

the prevention of alcoholism and drug addiction through

community speakeasies held with local zonal leaders.

PRONACA held two workshops together with the

Municipalities of Cumandá and Bucay regarding how to act

in the event of fire, and also on first aid.

Groups of co-workers participated in community group

efforts to clean up and paint several schools such as the

26 de enero de Casa Blanca, Matilde Esther and Martha

Bucaram schools, as well as the recovery and improvement

of the park at the neighborhood of Brisas de Santay.

The PROvoluntarios (PROvolunteers) brigade organized a

Christmas dinner for the elderly living in the area of influence

of operational centers in order to share the spirit of the

season.

5656

Visit from representatives of the Netherlands Development

Organization (SNV) from Mozambique, Zimbabwe, and The

Netherlands in order to learn about the Included Integrated

Program from PRONACA.

FUNDACIÓN SAN LUIS

114graduates and 10graduate classes.

7,747hours of

social volunteering.

2,686 hours of environmental

volunteering.

61 social-action institutions

involved.

18,986 persons received food through the San Luis

Foundation.

Social balance

Students from the San Pedro de Valle Hermoso Educational Unit, Fundación San Luis.

58

PRONACA is committed to education in the rural sector and to the delivery of food for the lower-income population.

EducationHuman education, use of technologies, early-age stimulation,

and training of small entrepreneurs, are the four areas

targeted by the educational model of the Fundación San Luis

at the Educational Units of San Juan de Bucay and San Pedro

de Valle Hermoso.

These centers, where PRONACA co-workers children attend

together with youngsters from neighboring communities,

offer high-level elementary and high-school education in rural

areas.

During 2012, the San Pedro de Valle Hermoso Educational Unit

will graduate its first group of students.

Information /EducationalUnits

Total Community PRONACA Graduates Promotions

San Juan deBucay

San Pedro deValle Hermoso

375

293

63%

68%

37%

32%

114

0

10

0

Social balance

58 Students apply their knowledge in computers at the computer lab at the Educational Units of San Pedro de Valle Hermoso and San Juan de Bucay

It’s Never Too Late to Learn

PRONACA offers the option of finishing elementary or high-school

for its co-workers who for whatever reason have not finished their

studies, through the “It’s Never Too Late to Learn” (Netpa—in

Spanish) Program.

Those who are part of this group on occasion attend classes imparted

by qualified teachers in order to conclude the studies that for

personal or family reasons were not concluded at their due time.

Food Bank

During 2011, in cooperation with the Archdioceses of Guayaquil,

the Fundación San Luis expanded its coverage of food donation

programs, through the Food Bank Program, geared to donating

products to underprivileged areas of Guayas.

During this year, this action benefited 9,559 persons of the Province

of Guayas.

Participants from It’s Never Too Late to Learn - 2011 Program

Highlands

Coast

Sto. Domingo

Total Netpa

199

152

77

428

Students from the It’s Never Too Late to Learn Program.

60

Volunteering During the last period, PRONACA created work teams called

PROvolunteers in order to manage activities of social and

environmental support led by the Fundación San Luis. The

Company highlighted reforestation programs in Quito and in

Guayaquil.

The Fundación San Luis works with charitable foundations

and institutions in a self-managing system that allows

During 2011, PRONACA donated a total of 45,086 kg of food that benefited 18,986 persons.

*Data from the Fundación San Luis including the Food Bank.

*Data Fundación San Luis, including the Food Bank.

Another important project is the personal support minimally-

disabled PRONACA co-workers offer other institutions and

foundations as part of their work. In this manner, these

organizations receive support in their tasks by generating

new spaces of employment for persons with special

capacities.

delivering food to more people, thus expanding its coverage.

Social balance

Product Total Kg. 2011

ChickenCold cutsPork meatRiceCooking oilEggsFish

Total

18,70810,2222,016

12,029874242994

45,086

CityNumber ofFoundations

%Coverage

PersonsBenefited

%Benefited

BabahoyoCayambeCuencaEsmeraldasGuayaquilIbarraMantaQuitoSanta Elena

Sto. Domingo

Total

2131441

4014

61 100% 18,986 100%

3%2%5%2%7%7%2%

66%2%7%

12065

139205

9,559180200

8.127150241

1%0%1%1%

50%1%1%

43%1%1%

Children from foundations associated to the Food Bank Program.


Pronaca built four laboratories at each one of its

educational centers.

Today, the Educational Units of San Juan de Bucay

and San Pedro de Valle Hermoso each boast specific

facilities and equipment for their Biology, Chemistry, and

Physics courses, along with other audiovisual equipment.

428 co-workers participated in the Netpa Program.


To deliver daily rations of nutritional food,

and expand coverage of the number of

persons attending the institutions with

which Fundación San Luis works.

To offer opportunities to improve quality

of life and help in solidarity by increasing

corporate volunteering to 8,000 hours.

To implement two academies in English

and Computer Science at each one of the

Educational Units.

To train 640 parents in issues related to the

integral rearing of children and youngsters.

Paúl BarreraProduction Supervisor

Avepica Incubator

My relationship with PRONACA began 14 years ago when I had

the opportunity to study high-school at the San Juan de Bucay

Educational unit. The children of PRONACA co-workers children

and the youngsters from the community attended this school.

I’m very thankful to PRONACA because, besides contributing

towards my studies, the company recognized my effort and

dedication. Through the auspices of the Fundación San

Luis, I was awarded a scholarship to attend the university at

the Escuela Superior Politécnica del Litoral, where I studied

Telematics Engineering.

Another one of the opportunities PRONACA has afforded

me is to be able to demonstrate my know-how and accrued

experience, since I now work at the Avepica Incubator Plant as

Production Supervisor.

Volunteering

“I am a great professional thanks to the support given to me by PRONACA”

Application Level A+ Third-party-checked Assured by Deloitte & Touche

STANDARD DISCLOSURES PART I: Profile Disclosures

Profile Disclosure Description Reported

Cross-reference/Direct answer

If applicable, indicatethe part not reported

Reason for omission Explanation

2. Organizational ProfileProfile Disclosure Description Reported




Indicators GRI

1.1

1.2

Statement from the most senior decision-maker of the organization. Fully P. 6

65

Opportunities are mentioned but no key impacts or main risks of the business.

The information is not detailed enough, and it is not reported in two paragraphs, as recommended by the GRI.

G3 Content Index

1. Strategy and Analysis

Proprietary information

Partially P. 6Description of key impacts, risks, and opportunities.

2.1

2.2

2.3

2.4

2.5

2.6

2.7

2.8

2.9

2.10

Name of the organization.

Primary brands, products, and/or services.

Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.

Location of organization’s headquarters.

Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

Nature of ownership and legal form.

Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).

Scale of the reporting organization.

Significant changes during the reporting period regarding size, structure, or ownership.

Awards received in the reporting period.

P. 5

P. 7

P. 9

P. 9

Pp. 9 - 15

P. 9

Pp. 9,15,31

Pp. 11-12-13

P. 65

Pp. 46 - 55

3. Report ParametersProfile Disclosure Description Reported




3.1

3.2

3.3

3.4

3.5

3.6

3.7

3.8

3.9

3.10

3.11

3.12

3.13

Reporting period (e.g., fiscal/calendar year) for information provided.

Date of most recent previous report (if any).

Reporting cycle (annual, biennial, etc.)

Contact point for questions regarding the report or its contents.

Process for defining report content.

Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance.

State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope).

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.

Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols.

Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g.,mergers/acquisitions, change of base years/periods, nature of business, measurement methods).

Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.boundary, or measurement methods applied in the report.

Table identifying the location of the Standard Disclosures in the report.

Policy and current practice with regard to seeking external assurance for the report.

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Partially

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

P. 5

P. 5

P. 65

P. 65

P. 5

P. 5

P. 5

P. 65

P. 65

P. 62

Pp. 62

Pp. 62 - 66

Pp. 5-69-70

4. Governance, Commitments, and EngagementProfile Disclosure Description Reported




4.1

4.2

4.3

4.4

Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.

Indicate whether the Chair of the highest governance body is also an executive officer.

For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members.

Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

Fully

Fully

Partially

Partially

P. 9

P. 6

P. 9

P. 9




Some info about shareholders is missing

The number of independent members are mentioned, executive members is missing

The specfic mechanism to provide such recommendations is missing.

Only the general governance body is mentioned, the rest of the members are not mentioned because it is strategic information of the company.

The way the board and government operate is reported, the mechanisms to provide with recommendations exist, but were not fully described in the report as it is the internal strategic procedure

66

G3 DMA Description ReportedCross-reference/Direct answer


Reason for omission Explanation To be reported in

DMA EC

4. Governance, Commitments, and EngagementProfile Disclosure Description Reported




4.5

4.6

4.7

4.8

4.9

4.10

4.11

4.12

4.13

4.14

4.15

4.16

4.17

Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization’s performance (including social and environmental performance).

Processes in place for the highest governance body to ensure conflicts of interest are avoided.

Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organization’s strategy on economic, environmental, and social topics.

Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.

Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.

Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance.

Explanation of whether and how the precautionary approach or principle is addressed by the organization.

Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.

Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: * Has positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic.

List of stakeholder groups engaged by the organization.

Basis for identification and selection of stakeholders with whom to engage.

Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.

Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.

Not

Not

Not

Fully

Fully

Fully

Fully

Fully

Fully

Partially

Fully

Fully

Fully

--

--

--

P. 8

P. 9

P. 9

Pp. 9 - 50

Pp. 55-56-57-58-59

Pp. 54, 66

Pp. 53, 54

Pp. 55-56

Pp. 55-56

Pp. 55-56


It is core financial information of the company, thus it is not likely to be revealed in a public document.

The information lies within the highest governance body, and as a company internal procedure, not reported.

The information lies within the highest governance body, and as a company internal procedure, not reported.



STANDARD DISCLOSURES PART II: Disclosures on Management Approach (DMAs)

Aspects Economic performance

Market presence

Indirect economic impacts

Fully

Fully

Fully

Pp.11-13-16-18

Pp. 9-11-13-15

Pp. 19 -20-23

Disclosure on Management Approach EC

DMA EN

Aspects Materials

Energy

Water

Biodiversity

Emissions, effluents and waste

Products and services

Compliance

Transport

Overall

Fully

Partially

Fully

Not

Partially

Fully

Fully

Not

Fully

Pp. 35-36

Pp. 25-26-29

Pp. 18-25-27-29

--

Pp. 25-26-27

Pp. 32-36

Pp. 8-18-23-28

--

Pp. 24-29

Disclosure on Management Approach EN

The stakeholder groups are not clearly identified in the report

A complete description of the management of energy is not fully described, the amount of indirect energy consumption or the energy saved for instance.

There are not data about amount of composted waste, recovered waste, deep well injection or on-site storage policies or programs.

Pronaca has many stakeholders, with whom it has good communication and relationship. Nevertheless the mapping is not yet clearly stablished in the report, it is strategic information of the company

There are no measurements yet about the total amount of energy saved and the multiples of joules (Kw) for direct energy use are not specified, or for the indirect energy consumtion.

Pronaca is not present in sensitive areas of high biodiversity or near protected natural areas.

Programs or policies are not set up yet by the firm.

Information gathering still in process


Not available

Not available

Not available

Not available

2013

2013

2013

Economic

Indicators GRI

67

G3 DMA Description ReportedCross-reference/Direct answer



DMA LA

DMA SO

DMA PR

DMA HR

Aspects

Aspects

Aspects

EC5

EC6

EC7

EC8

EC9

Aspects

Employment

Labor/management relations

Occupational health and safety

Training and education

Diversity and equal opportunity

Community

Corruption

Public policy

Anti-competitive behavior

Compliance

Customer health and safety

Product and service labelling

Marketing communications

Customer privacy

Compliance

Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation.

Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.

Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.

Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.

Understanding and describing significant indirect economic impacts, including the extent of impacts.

Investment and procurement practices

Non-discrimination

Freedom of association and collective bargaining

Child labor

Forced and compulsory labor

Security practices

Indigenous rights

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Fully

Not

Fully

Fully

Fully

Fully

Fully

Partially

Fully

Fully

Fully

Pp. 21-27

Pp. 21-33

Pp. 28-30

Pp. 31-33

Pp. 42-44

Pp. 55-56

P. 8

P. 8

Pp. 8-31

Pp. 18-31

Pp. 31, 35-39

P. 31

P. 29-33

P. 31

P. 31

P. 13

P. 31

Pp. 11-13

Pp. 11-13

Pp. 19-20-21

Pp. 43-46

P. 46

P. 69

P. 41

P. 42

Pp. 35-36-50

P. 70

Disclosure on Management Approach LA

Disclosure on Management Approach SO

Disclosure on Management Approach PR

Market presence

Indirect economic impacts

Disclosure on Management Approach HR

Specific actions or programs to fight against child labor are missing from the report

The company respects the law and has joined the Global Compact principles, but does not have a specific program or actions regarding child labor yet.

Not material

Performance Indicator Description Reported




STANDARD DISCLOSURES PART III: Performance Indicators

Economic performanceEC1

EC2

EC3

EC4

Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.

Financial implications and other risks and opportunities for the organization’s activities due to climate change.

Coverage of the organization’s defined benefit plan obligations.

Significant financial assistance received from government.

Fully

Fully

Fully

Fully

P. 11

P. 11

P. 11

P. 67

Pronaca is working on the process on the regions it operates but with no information yet

Not available

2013

68

EnvironmentalPerformance Indicator Description Reported




MaterialsEN1

EN2

Materials used by weight or volume.

Percentage of materials used that are recycled input materials.

Fully

Fully

P. 26

P. 26

EN3

EN4

EN5

EN6

EN7

EN8

EN9

EN10

EN11

EN12

EN13

EN14

EN15

EN16

EN17

EN18

EN19

EN20

EN21

EN22

EN23

EN24

EN25

EN26

EN27

EN28

Direct energy consumption by primary energy source.

Indirect energy consumption by primary source.

Energy saved due to conservation and efficiency improvements.

Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.

Initiatives to reduce indirect energy consumption and reductions achieved.

Total water withdrawal by source.

Water sources significantly affected by withdrawal of water.

Percentage and total volume of water recycled and reused.

Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.

Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.

Habitats protected or restored.

Strategies, current actions, and future plans for managing impacts on biodiversity.

Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.

Total direct and indirect greenhouse gas emissions by weight.

Other relevant indirect greenhouse gas emissions by weight.

Initiatives to reduce greenhouse gas emissions and reductions achieved.

Emissions of ozone-depleting substances by weight.

NOx, SOx, and other significant air emissions by type and weight.

Total water discharge by quality and destination.

Total weight of waste by type and disposal method.

Total number and volume of significant spills.

Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.

Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff.

Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.

Percentage of products sold and their packaging materials that are reclaimed by category.

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations.

Fully

Partially

Partially

Not

Not

Not

Not

Not

Fully

Fully

Fully

Not

Not

Fully

Not

Fully

Not

Not

Fully

Fully

Not

Fully

Not

Fully

Partially

Not

P. 26

P. 26

P. 27

P. 68

P. 68

--

--

--

P. 68

P. 68

P. 68

--

--

Pp. 25-29

--

Pp. 25-29

--

--

Pp. 25-29

P. 26

--

P. 68

--

Pp. 25-29

P. 25

--

Energy

Water

Biodiversity

Emissions, effluents and waste

Products and services

Compliance

The indirect energy is not measured specifically



The indirect energy consumption hasn´t been measured by the company yet

The energy saved is not measured specifically yet by the company

The company hasn’t developed yet a program to reclaim its products at the end of their life cycle

There haven’t been any measurements performed

There haven’t been any measurements performed

There haven’t been any measurements performed. Pronaca is plannig to measure its hydric footprint. There haven’t been any measurements performed. Pronaca is plannig to measure its hydric footprint.

There haven’t been any measurements performed. Pronaca is plannig to measure its hydric footprint.

There haven’t been any measurements performed, but Pronaca is plannig to measure this in the incoming years.



As there wasn’t any kind of spill, there wasn’t any measurement performed

As there wasn’t any kind of spill, there wasn’t any measurement performed

Pronaca hasn’t had any sanction

As mentioned before, PRONACA does not have any operation near high biodiversity areas, so any strategy or program for mitigate impacts were implemented.

As mentioned before, PRONACA does not have any operation near high biodiversity areas, so any study on red list species made.

Not available

Not available

Not available

Not available

Not available

Not available

Not available

Not available

Not available

Not available

Not available

Not material

Not material

Not material

Not material

Not material

2013

2013

2013

2013

2013

2013

2013

2013

2013

2013

2013

2013

EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce.

Not --

TransportThe measurement is still in processNot

available2012

EN30 Total environmental protection expenditures and investments by type.

Partially Pp 25-28

OverallThere are not measurements made on emissions treatment, or prevention programs.

Pronaca does not have a complete program to measure all its environmental impacts yet.

Not material

Indicators GRI

69

Social: Labor Practices and Decent Work

Social: Human Rights









Employment

Investment and procurement practices

LA1

LA2

LA3

HR1

HR2

HR3

Total workforce by employment type, employment contract, and region.

Total number and rate of employee turnover by age group, gender, and region.

Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.

Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening.

Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken.

Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.

Fully

Fully

Fully

Fully

Fully

Not

P. 45

P. 42

P. 45

P. 69

P. 70

--

Labor/management relations

Occupational health and safety

LA4

LA5

LA6

LA7

LA8

LA9

Percentage of employees covered by collective bargaining agreements.

Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs.

Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region.

Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.

Health and safety topics covered in formal agreements with trade unions.

Not

Not

Fully

Partially

Fully

Fully

--

--

P. 51

P. 51

P. 69

Pp. 50-51, 68

There isn’t any association or syndicate formed within the company

There isn’t any association or syndicate formed within the company

Not material

Not material

The data per region is missing

The work fatalities per region are missing, only a global record has been kept.

Not available

2013

Training and education

Diversity and equal opportunity

LA10

LA11

LA12

LA13

LA14

Average hours of training per year per employee by employee category.

Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.

Percentage of employees receiving regular performance and career development reviews.

Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity.

Programs for skills management and lifelong learning that support the continued employability of employees and assist them in madevelopment reviews.

Fully

Partially

Fully

Partially

Fully

P. 43

--

P. 44

P. 9

P. 44

PRONACA hasn’t developed this kind of career ending managing programs yet.

Not material

Missing information about minorities or other groups.

No detailed information about minorities or other groups is given, there hasn’t been a measurement of these two aspects yet.

The training subjects are not specified, only the global amount of training hours are measured and reported, all subjects combined.

Not available

Not available

2013

2013

Non-discrimination

Freedom of association and collective bargaining

Child labor

HR4

HR5

HR6

Total number of incidents of discrimination and actions taken.

Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights.

Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor.

Fully

Not

Not

P. 70

--

--

There are not workers associatedNot material

No measures to counter child labor have been developed yet Not available

2013

70

Social: Human Rights

Social: Society

Social: Product Responsibility













Forced and compulsory labor

Community

Customer health and safety

HR7

SO1

PR1

PR2

Operations identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of forced or compulsory labor.

Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting.

Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.

Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.

Partially

Not

Fully

Fully

P. 70

--

P. 35

P. 71

Security practices

Corruption

Indigenous rights

Compliance

HR8

SO2

SO3

SO4

HR9

SO8

Percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rights that are relevant to operations.

Percentage and total number of business units analyzed for risks related to corruption.

Percentage of employees trained in organization’s anti-corruption policies and procedures.

Actions taken in response to incidents of corruption.

Total number of incidents of violations involving rights of indigenous people and actions taken.

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.

Partially

Not

Not

Fully

Fully

Fully

P. 70

--

--

--

P. 70

P. 70

There hasn´t been a study to determine activities with significant risk concerning compulsory labor

The personnel has been trained, but there is no percentage of the part that recieved the training.

PRONACA respects the current legislation and the Global Compact principles, and does not allow compulsory labor

It is still an ongoing process

The personnel has been trained, but there is no measurement of the percentage that recieved the training specifically.

No percentage is mentioned, PRONACA has joined the Global Compact and it is planning to make an internal analysis in the incoming years.

No percentage is mentioned, PRONACA has many training programs but it is just setting up the anti-corruption training.

Not available

Not available

Not available

Not available

Not available

2013

2013

2013

2013

Public policy

Public policy

SO5

SO6

PR3

PR4

PR5

Public policy positions and participation in public policy development and lobbying.

Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.

Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements.

Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.

Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.

Fully

Fully

Fully

Fully

Fully

P. 70

P. 70

Pp. 30-34

P. 71

P. 34

Anti-competitive behavior

Marketing communications

SO7

PR6

Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes.

Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.

Fully

Fully

Pp. 31, 70

P. 31

Indicators GRI

71





Customer health and safetyPR7 Total number of incidents of non-compliance with regulations and

voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.

Fully P. 71

Customer privacyPR8 Total number of substantiated complaints regarding breaches of

customer privacy and losses of customer data. Fully Pp. 34, 71

CompliancePR9 Monetary value of significant fines for non-compliance with laws

and regulations concerning the provision and use of products and services.

Fully P. 71

CONTENTSSUSTAINABILITY REPORT FINAL CREDITS

Procesadora Nacional de Alimentos C.A., PRONACA

Responsible for the Sustainability Report 2011: Christian J. Bakker, Corporate Responsibility Manager

Content Development Coordination: Ximena Almeida Cordero, Stakeholder Manager

Design and Photography Coordination: Xavier Noboa, Corporate Marketing Manager

EDITIONBenjamin Ortiz, Chief Executive Officer. BO Asociados - Quantum Alejandra Torres Onofa, Account Manager. BO Asociados - Quantum DESIGN AND LAYOUTNorlop JWT Ecuador

PHOTOGRAPHYXavier JácomePRONACA Photo Archives

PRINT - OUTEQUIGRUPO

For further information: www.pronaca.comComments: [email protected]

This sustainability report is printed on environmentally friendlyand non-toxic inks, in a limited edition of 50 copies, with a digital versionin order to avoid the consumption of resources affecting nature.

SustainabilityReport

Procesadora Nacional de Alimentos C.A. Los Naranjos N44-15 y Los Granados (593)23946700. Quito – Ecuador.www.pronaca.com

Corporate Responsibility 2011

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Transcript of Corporate Responsibility 2011