After signing a Clean Production Agreement, poultry producers will implement the Chile Conscious Origin sustainability standard that will promote adopting best practices, but also strengthen the sector financially, as companies that consider ESG variables are increasingly valued.
To include sustainability requirements in Chile’s broiler industry, the Agency for Sustainability and Climate Change (ASCC) and the Chilean Meat Exporters’ Association (ChileCarne) signed a Clean Production Agreement (APL in Spanish) to implement the poultry sector’s sustainability standard. The agreement is part of the Chile Conscious Origin Program led by the Office of Agricultural Research and Policy (ODEPA), part of the Ministry of Agriculture, to incorporate sustainability as a differentiating attribute in the production of processed foods in Chile.
The ASCC’s Executive Director, Ximena Ruz, underscored that “this APL linked to Chile Conscious Origin, together with those signed by the pork and dairy production sectors, is an efficient tool to help poultry producers implement the measures set by the standard, thus helping improve the Chilean agri-food sector’s image in international markets and to a sustainable, resilient and low-carbon economy.”
“For the Ministry of Agriculture, this APL allows the gradual implementation of sustainability requirements at the farms, in line with our commitment to move towards sustainable development,” emphasized Andrés Azócar, ODEPA’s Acting Director.
Given the industry’s relevance in producing animal protein, the APL aims to put sustainable rearing at the center of a successful production process. “The APLs are tools that help operate the Chile Conscious Origin program. We needed to ensure the traceability of the goals and actions of Chilean companies, and these agreements can verify that compliance. It is a third-party certification given by registered auditors who will be trained by the private sector and validated by the public sector. This means that the Chilean government will guarantee that the companies are complying 100%,” Ruz added.
When joining the APL, companies can choose between two levels of certification depending on the actions they commit to implementing. The level chosen will also determine the validity of the certification and the possibility of extending it. The facilities that obtain the APL’s compliance certificate granted by the ASCC can apply to the Chile Conscious Origin seal granted by the Ministry of Agriculture.
“This new Clean Production Agreement for the poultry industry shows the sector’s commitment to move towards increasingly sustainable production. Every year, the world demands more animal protein and our challenge as an industry is being able to respond while using resources efficiently and promoting a circular economy,” said Juan Carlos Domínguez, President of ChileCarne.
During the signing of the agreement, Ximena Vial, Quest Capital Chile Impact Investment Manager also highlighted that the traditional risk-return approach for assessing investments is now adding a third variable: impact.
Vial pointed out that including environmental, social, and governance variables (ESG), gives companies a broader picture by identifying risk matrices not visible with the traditional approach. This way they can assess risk better and make more precise decisions, which is highly valuable for investors.
The Chile Conscious Origin Program helps with that, as it validates sustainability standards for various Chilean agri-food sectors, certifying food-producing companies’ compliance. The organizations that join the program can assess and demonstrate their performance on various dimensions of sustainability, helping them become more attractive for investors.