coonaprosal - cegesti desarrollo sostenible en.pdf · 2 coonaprosal presentation the national...

Case Study

COONAPROSAL

January, 2008 – September, 2011

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Presentation

The National Cooperative of Salt Producers (Cooperativa Nacional de Productores de Sal R.L. - COONAPROSAL) is located in Abangares, Guanacaste. The Cooperative is dedicated mainly to the production of salt, fresh fruits, pulps, frozen goods, shrimp and financial activities.

The following is the case study of COONAPROSAL and the main results of the project, “Promoting social and environmental business opportunities in Central America and Dominican Republic SCHOKLAND-SME CA&DR Fund”.

On reading this document, please bear in mind that it is not thorough in addressing all of the Millennium Development Goals, but only objectives 1, 7 and 8 (refer to box “Millennium Development Goals”), as these constitute the sphere of influence of the analyzed project. Likewise, each objective mentions the indicators that best illustrate the contribution of the enterprise and the project. The report has been prepared by CEGESTI, based on the information and indicators provided by COONAPROSAL and OIKOCREDIT (the source of information is included in each case); both organizations are responsible for the accuracy of this information.

The project Promoting social and environmental business opportunities in Central America and Dominican Republic SCHOKLAND-SME CA&DR Fund

This initiative has been possible thanks to funds granted by the Netherlands Ministry of Foreign Affairs and the alliance established between Oikocredit, ICCO and CEGESTI.

Case Study

COONAPROSAL

Millennium Development Goals Millennium Development Goals are a set of eight goals with specific time limits with the purpose of eradicating extreme poverty in the world by 2015. In the United Nations Summit of 2000, world leaders from rich and poor countries committed to reaching these goals.

The project intends to contribute with Millennium Development Goals 1, 7 and 8 by facilitating the financial resources and technical assistance to small and medium enterprises in the region.

GOAL How the Project intends

to contribute G

OA

L 1

Eradicate extreme poverty and hunger

Promote the creation and maintenance of decent job posts by strengthening socially responsible enterprises and their economic exchange with stakeholders.

GO

AL

7

Ensure environmental sustainability

Support enterprises in continuously improving their environmental development.

GO

AL

8 Encourage a World alliance for development

Encourage alliances among organizations and national and International actors for development.

Further information on the Millennium Objectives:

www.endpoverty2015.org www.minbuza.nl

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Mission We commit to learning and continuous improvement.

Our work is results-oriented under the framework of competitiveness and productivity.

Customer service quality and opportunity will constitute our permanent work orientation.

We believe in and commit ourselves to comply with corporate social responsibility.

We believe in and live by the cooperative values and principles.

Our collaborators are our main resource conducting teamwork in a proactive manner.

“The National Cooperative of Salt Producers (Cooperativa Nacional de Productores de Sal R.L.) is a multiple-service cooperative organization with a closed bond membership, pertaining to salt producers located in Golfo de Nicoya. It is dedicated to the industrialization and marketing of the production of its members in the activities of salt, tropical fruits, shrimp and the financial and commercial area, striving for greater social, environmental and economic development of its members and collaborators, as well as the inhabitants living in the Cooperative’s zone of influence”.

Vision “To seek excellence in the quality of the products generated and marketed, ensuring its associates, collaborators, suppliers and clients the best alternative for its production and marketing, maintaining adequate profitability levels to ensure their permanent socio-economic improvement and quality of life with social justice”.

Corporate Values The values representing Coonaprosal reflect the feelings of its directors, associates and collaborators on providing services aimed at improving the quality of life of the persons with whom they relate. The main values are:

We always work with honesty and ethics.

We strive to be leaders with loyalty and commitment in all activities.

COONAPROSAL

COONAPROSAL in brief Year founded 1974

Products Salt, shrimp, fresh fruits (mango, papaya, pineapple), pulps and frozen fruits.

Workforce 61 in the pulps and frozen fruits plant. A total of 345, information as of September, 2011.

Associate producers

24

Shareholders 130

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The project in COONAPROSAL

COONAPROSAL was selected as beneficiary of the project “Promoting social and environmental business opportunities in Central America and Dominican Republic”, due to its contribution to the region’s integral development and for its sustainability principles.

As part of the project, COONAPROSAL received a credit from Oikocredit and Schokland Fund in the amount of 665,950,000 colones (Costa Rican currency), in addition to capacity building by CEGESTI, with the purpose of improving and strengthening its social and environmental performance.

Objective of the credit

The objective of the credit received by COONAPROSAL was to expand and make improvements to the existing agro-industrial plant in order to process greater volumes of tropical fruits, such as mango, papaya and pineapple, in pulps and frozen fruits. The credit was complemented with a capacity building program to implement improvements in the socio-environmental scope.

Capacity Building Objectives

COONAPROSAL received capacity building with the purpose of improving and strengthening its social and environmental performance. The main results obtained were the following:

New proposals were defined within the organization’s strategic framework, aimed at the concept of sustainability.

With the purpose of improving the efficiency in the use of resources (water, electricity) in the organization, different actions were developed in the pulps and frozen fruits production plant.

Efforts were made to reduce environmental contamination, mainly concerning sewage and organic and inorganic solid waste.

In the social area, the organization worked on improving the employees working conditions (comfort at the workplace, occupational health and safety), as well as on outreach activities in the local community.

Improvements were made regarding the innocuousness of the pulps and frozen goods plant, taking into account good manufacturing practices and HACCP principles.

Sustainability in COONAPROSAL

The loan and capacity building provided to COONAPROSAL had the clear objective of strengthening the organization’s medium and long-term goals in a context of continuous search for sustainability. Specifically, the goal was to contribute with the Millennium Development Goals numbers 1, 7 and 8. The following chapters explain this contribution in detail.

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Contribution to social development through the strengthening of COONAPROSAL

CHAPTER SUMMARY

COONAPROSAL has a direct impact on the development of its stakeholders, which includes employees, producers, associates, consumers, community and government. Therefore, on strengthening COONAPROSAL’s competitiveness, the stakeholders experience a positive impact. This chapter presents the contribution of the Cooperative to the Millennium Development Goal no. 1.

Milenium Development Goal

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Employees

At present, there are 61 workers in COONAPROSAL’s Pulps and Frozen Fruits plant. The Cooperative is characterized by its responsibility concerning the employer’s liability and is considered a source of stable employment in the zone, particularly taking into account that other work options in the region fail to provide these benefits. In fact, the sources of employment in the community are very scarce, which highlights the enterprise’s positive impact. According to Costa Rica’s Cantonal Human Development Atlas (UNDP, 2011), Abangares is positioned as one of the poorest cantons of the country (specifically, number 71 in the year 2009, out of 81 cantons), according to the Human Poverty Index.

The following figures provide a more detailed picture of the organization’s employees.

“One of the greatest benefits of the project without a doubt has been the training and empowerment provided to the collaborators. It’s not only about teaching what has to be done and how to do it; it’s also about understanding why things get done the way they do. That provides sustainability to all efforts carried out”.

Román Venegas. Pulps and Frozen Fruits Division Manager, COONAPROSAL.

Source: Pulps and Frozen Fruits Division, COONAPROSAL. Information to Sept, 2011.

Source: Pulps and Frozen Fruits Division, COONAPROSAL. Information to Sept. 2011.

Source: Pulps and Frozen Fruits Division, COONAPROSAL. Information to Sept. 2011.

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Producers

The Pulps and Frozen Fruits Division maintained a relationship with 24 producers for the year 2011, mostly pineapple producers. The Division also works with papaya and mango producers. The plant has processed some amounts of melon; however, it has been performed as a maquila-type operation, in which a third party is in charge of marketing the final product. For this reason, the relationship is not direct between COONAPROSAL and the melon producers. The average amount of fruit received per producer decreased from 2010 to 1011, which can be explained by the fact that even though the total amount of fruit received in that same period of time was maintained at a relatively constant rate, there was a significant increase in the number of producers (from 13 to 24). The chart and figures show the main indicators of the Pulps and Frozen Fruits Division in the scope of its producers.

Source: Pulps and Frozen Fruits Division. COONAPROSAL. Information to Sept 2011.

* For further details on the indicators, refer to the Sustainable Scorecard Chart at the end of the document.

Source: Pulps and Frozen Fruits Division. COONAPROSAL. Information to Sept, 2011.



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Consumers

The capacity building project included a strong benefit component for consumers, through a significant improvement regarding food innocuousness obtained by means of Good Manufacturing Practices (GMP) application and HACCP principles. As a result, the Pulps and Frozen Fruits plant is about to receive its HACCP certification, and in this way, improve its competitiveness in the face of demanding markets.



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Support to the School of Raizal:

The Cooperative supports the development of the School of Raizal, located in Colorado, Abangares. Different joint projects aim at changing the children’s mentality, teaching them sustainability principles and environmental protection. A project worth highlighting is the planting of fruit and wood-producing trees in the school’s neighboring grounds. This activity was carried out jointly between the organization’s personnel and the school’s children.

Other projects conducted jointly with the community include support provided to the enterprise ADIME, for the management of inorganic solid waste, reforestation and ecosystem conservation projects, support to the Red Cross for first-aid courses, assistance to paint the local Church, among others. Some of these projects are explained further in other chapters of this document.

Community COONAPROSAL has had a very significant impact on the neighboring communities. The Cooperative represents an important work option for the inhabitants of the zone. Most of the collaborators of the Pulps and Frozen Fruit plant live in nearby communities.

The Cooperative maintains great efforts aimed at promoting the development of the neighboring communities.

Support to ASADA of Limonal:

COONAPROSAL collaborates with the Aqueduct Administrative Association (ASADA, abbreviated in Spanish) of Limonal, through the donation of a lot (where an aquifer exists) for the construction of the so-called “Water Park”. The Cooperative has contributed with the inscription and land registry legal procedures, in addition to training events, fencing the property and volunteering for tree planting activities. The starting date for the operation of the new well has been planned for 2012.

Water Park, Limonal.

Members of the ASADA Association of Limonal

with COONAPROSAL collaborators.

Tree planting in the School of Raizal, Colorado.

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Financial Intermediaries

COONAPROSAL maintains relationship with different financial intermediaries. The graph shows details of the financial expenses during the last years.

Associates

Currently, COONAPROSAL has 130 associates. Approximately 60% are male and 40% female. As shown in the graph, the number of associates has been growing stably during the last years.

* For further details on the indicators, refer to the Sustainable Scorecard chart at the end of the document.

Source: OIKOCREDIT. Information to August, 2011.

Source: Assistant Manager of Management Department, COONAPROSAL. Information to Sept 2011.

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Cooperative

The following chart shows the Cooperative’s financial performance.


“COONAPROSAL experiences a healthy financial situation. It should be pointed out that the

Cooperative has started and maintains important projects, such as the case of shrimp production

and the capacity building program provided by CEGESTI. In spite of the crisis that has affected the

agro-industrial sector, for this year we are expecting outcomes similar to those of the

previous year”.

Adolfo Rivera. Financial Manager, COONAPROSAL.

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Environmental Sustainability

CHAPTER SUMMARY

Thanks to the analyzed project, COONAPROSAL has improved the control of its environmental performance significantly, in areas such as solid waste management, sewage treatment and the efficient use of resources. In addition, the organization continues to support initiatives concerning reforestation and the ecosystem conservation.


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Efficient use of resources

Prior to the capacity building, COONAPROSAL lacked a monitoring system for environmental indicators. During the development of the project, a baseline has been calculated for electricity consumption. Water consumption has not been duly quantified due to the fact that this resource is obtained from two different sources: an administrative association (ASADA) and a well owned by the Cooperative. Nevertheless, flow meters will be installed in the medium term to be able to measure this resource adequately. An IQF freezing equipment was renewed, obtaining quantitative and qualitative advantages. Constant efforts are being made to raise awareness among the workers, and allusive labels on this topic are used.

Solid waste management For the management of inorganic solid waste, the Cooperative works jointly with ADIME, S.A., an entrepreneurial women’s enterprise dedicated to rescuing and separating waste. ADIME has a collection center where the different kinds of waste are separated, and it has agreements with several organizations that deal with the treatment of these separated wastes (recycling of paper, cardboard, plastics, tin cans, glass or the special management of electronic waste and batteries).

Regarding the organic waste, initial research has been conducted and machinery has been acquired for its use and revalorization as animal feed concentrate. Currently, resources are sought to build a waste processing plant, as these wastes cannot be manipulated in the Pulps and Frozen Fruits plant, in keeping with innocuousness principles.

ADIME Collection

center

Source: Pulps and Frozen Fruits Division. COONAPROSAL. Information to June, 2011.


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“The Schokland Fund’s financial support was fundamental due to its characteristics; in particular, the

favorable credit conditions, as well as the capacity building component. Regarding the latter, the project

turned out to be a very positive one, teaching us a systematized way of implementing Corporate Social

Responsibility and how to monitor the most adequate indicators to this end. In addition, a work team was

formed and trained in the Management Department with which we hope to apply the lessons learned in the

rest of the Cooperative’s departments.

Luis Jiménez, Manager of the Agricultural and Management Department, COONAPROSAL


Source: Assistant Manager of Management Department, COONAPROSAL. Information only includes the period between week 16 and week 42 of the year 2011.

Source: Assistant Manager of Management Department, COONAPROSAL. Information to Sept, 2011.

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Sewage treatment COONAPROSAL has conducted the construction of its sewage treatment system. The beginning of its operation has been planned for the end of 2011 and the due operating reports will be submitted to the authorities within the following months. Initial lab tests indicate that the treatment system is functional. Water parameters have remained below the maximum permitted by the applicable regulations.

Conservation of ecosystems and reforestation COONAPROSAL has two main environmental conservation projects. Jointly, these projects extend across more than 200 hectares. Approximately 70 hectares are planted with teak, while another 150 hectares have been left to natural regeneration. Only in 2010, nearly 20,500 trees were planted and 33 hectares were reforested.

Training

As a way of encouraging the participation and empowerment of COONAPROSAL’s personnel, training activities on environmental topics are carried out. This training program is not only for the Pulps and Frozen Fruits plant; it has also extended to other divisions in the Cooperative.

Sewage treatment ponds

Teak reforestation

project


Source: Assistant Manager of Management Department, COONAPROSAL. Information to Sept, 2011.

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World Association for Development

CHAPTER SUMMARY

Being a cooperative, COONAPROSAL has the faculty to form integrations with the purpose of increasing and developing the productive and cooperative sector. This chapter provides a summary of the different integrations presented by COONAPROSAL.


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Partnerships for Development

The Cooperative Associations Law and the creation of the National Institute of Cooperative Development (Instituto Nacional de Fomento Cooperativo - Law no. 6756) authorizes the cooperatives to associate, “being one of the most effective means for the economic, social, cultural and democratic development of the country’s inhabitants”. COONAPROSAL maintains several active memberships and associations, which are briefly described as follows:

Participation Brief description

INFOCOOP Member Public promotion and development institution that divulges, promotes, strengthens, finances and supervises the cooperative associations through technological, financial and identified, committed and trained human resources.

CENECOOP Partner Non-profit cooperative organization that conducts research educates and trains for the development of the cooperative enterprises’ human resource, with the purpose of strengthening their competitive capacity, according to cooperative principles and values.

CONACOOP Member

Governing body of the Costa Rican cooperative movement, whose purpose is to represent and defend the sector. Consequently, it is a political body, that is, its function is to provide the guidelines by which the cooperatives are regulated.

FEDEAC Member Second-degree cooperative organization, created to defend the interests of the credit unions, while consolidating a strong movement that represents the sector in the national stratum and the cooperative system in general.

North Bay Produce Partner

International marketing and fresh fruit and vegetables distribution cooperative, whose owners are the producers. Its main office is located in Michigan. Its twenty-three shareholders are located in Argentina, Chile, Costa Rica, Guatemala, Mexico, Peru and United States.

GER Partner Represents the opportunity for the cooperative and social economy sector to obtain a direct participation in the undertaking of activities in diverse sectors. It constitutes a diversification and complementarity tool of cooperative services.

COONAPROSAL Ahorra y Crédito Owner All types of financial services.

COOPEPROSA Owner Salt producing sister company.

Grupo Corporativo del Sol Co-owner System that operates with third parties, particularly with collaborators and raw material and service suppliers. The other owners are COOPEROSA, COONAPROSAL Credit Union, COOPREROSA and ASOCOONAPROSAL.

Brinsa de Costa Rica Co-owner Imports and distributes chlorine-based (salt) cleaning products, manages the Palmareños biscuit factory and a food distributor. The other owner is Brinsa, Colombia.

CATSA Shareholder Owns a small block of shares acquired through a government initiative through INFOCOOP.

ASOCOONAPROSAL Support and promotion

As the employer, it supports the employees’ association. Its support goes beyond the legal requirements, thanks to a provision of the Administration Council. An example is ASOCOONAPROSAL’s participation in Grupo Corporativo del Sol.

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Final Message

“The Schoklandfund project has been highly satisfying for

COONAPROSAL. The financial support has enabled us to

improve the infrastructure, as well as the pulps and frozen products

management. The capacity building has come to tie up a

series of isolated efforts that the Cooperative had been working

on since its foundation. Without a doubt, with the support of the assistance and training events

provided, we have professionalized our management team, and now we can integrate

Corporate Social Responsibility into every field in which we

participate.

Carlos Bonilla

General Manager, COONAPROSAL

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COONAPROSAL´s Sustainability Indicators

The following pages integrate all indicators detailed in the

previous chapters.

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