Danosha Pig Farms in Ivano-Frankivsk Region

20.8.2017 - Sivka Voynilivska, Deliyevo, Lany

Axzon is a Danish pig farming and meat processing group with operations in Poland, Ukraine and Russia. The company, through its Ukrainian subsidiary Danosha, currently has around 10 pig production farms, a biogas plant, and over 11.000 hectares of farming land in the Ivano-Frankivsk region of western Ukraine. Considering the output and type of production, all farms of Danosha Company are objects of high environmental danger. The number of pigs on each farm of the Company reaches 12,000-54,000. According to Ukrainian legislation, farms of such scale should be regarded as the highest class of hazardous objects.

Halych National park in danger

Danosha pig farms are located in Halych and Kalush district of Ivano-Frankivsk region. In Halych district, the company's facilities are situated in the immediate proximity to the Halych National park, which protects extremely sensitive wetlands and is an important center of biodiversity. The facilities for pigs' fattening on the farm in Lany are located only in 10-15 meters from the Park line. Representatives of the Park indicate that no consultations were conducted regarding the potential impact of the Danosha Company's activity with the specialist of the Halych National Natural Park during the selection of the construction sight, construction itself and exploitation of the pig farm. In Kalush district, where the rest of the pig farms are located, Danosha has already built additional facilities and plans further increase of capacities, although this district has been recognized as an emergency environmental situation zone by a special Decree of the President of Ukraine, as well as, by the joint United Nations/European Commission Technical Scoping Mission. Moreover, all Danosha's pig farms are located in the basin of the Dnister River, which is a trans-boundary watercourse of the regional significance.

Complaint to the Office of the Compliance Advisor/Ombudsman 

In March 2013, International Finance Corporation, comprising the World Bank group, has provided a $ 70.6 M credit to Axzon for the pig farming in Ukraine. The goal of the credit is to consolidate and increase the capacity via additional industrial objects. In February 2014, a complaint to the Office of the Compliance Advisor/Ombudsman was lodged by members of communities from Deliyevo, Sivka-Voynylivska, and Lany of the Halych and Kalush districts in the Ivano-Frankivsk region, with the support of the National Ecological Centre of Ukraine. The complainants raise issues regarding odors, land and water pollution related to the project’s use of manure, improper use and compensation of land, lack of information disclosure and consultation, impacts to road infrastructure, and environmental impacts to natural parks and other areas. The complainants also express concerns about the project being in violation of national law as well as the International Finance Corporation Performance Standards. The Compliance Advisor/Ombudsman found the complaint eligible in March 2014. An assessment of the complaint was consequently undertaken and was completed in August 2014. Based on stakeholder discussions conducted as part of the Compliance Advisor/Ombudsman's assessment, the complainants and company agreed to engage in a voluntary dispute resolution process to address the issues raised in the compliant. In 2016, the International Finance Corporation provided the company with yet another loan despite the ongoing and unresolved process of mediation causing the village representatives to terminate the meetings. Meanwhile, the case has been transferred to CAO Compliance Review for appraisal of International Finance Corporation’s performance related to the project. Another round of investigation will be conducted on whether the company adhered to requested standards in its activities and stakeholder engagement. Recently, the company released its plans to expand with more farms in the neighbouring Luka village.

Axzone decided to change its name in 2017. From the end of February 2018 on the company with all it’s subsidiries including Danosha will be called ‘Goodvalley’.

 

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