Muyuan Foodstuff Co Ltd
002714:CH CNE100001RQ3
Key Information
HQ:
China
Market Cap:
$39.98bn
Primary Market:
Asia
Company Information
Company Summary
Muyuan Foods Co., Ltd., together with its subsidiaries, operates in the hog industry in China. It provides feed processing, pig breeding, commercial pig breeding, and meat slaughtering services. The company offers commercial pigs, piglets, breeding pigs, and white stripes, as well as pork products such as cuts. Muyuan Foods Co., Ltd. was founded in 1992 and is based in Nanyang, China. It also produces animal feed products.![Muyuan Foodstuff](http://images.ctfassets.net/kc2xclar6nri/KZjm0CiFyqYzSfUcyctND/48a4238b8e7eb21e8f6246af3b6e8448/Muyuan_Foodstuff.png?fit=scale&w=1320&fm=webp)
Revenue
Total revenue:
$12.2bn
Revenue by Geography
Revenue by Protein
Revenue by Product Type
Disclosures
CDP ScoresLast Reviewed: 11/10/2023
CDP Climate | CDP Forests | CDP Water |
---|---|---|
No | No | No |
Science Based Target initiativeLast Reviewed: 03/10/2023
Target classification | Status | Date |
---|---|---|
Has not set SBT | - | - |
Coller FAIRR Protein Producer Index
Analysis Overview
Greenhouse Gas Emissions Deforestation & Biodiversity Water Use & Scarcity Waste & Pollution Antibiotics Animal Welfare Working Conditions Food Safety Sustainability Governance Alternative Proteins
Analysis Breakdown
Risk Score
29/100
High Risk
Greenhouse Gas Emissions
21/100
Scope 1, 2 & 3 Target
10/100
Type of Target
The company does not have a science-based emission reduction target.
0/3
Strength of Target - Non-SBT
The company states that it has implemented energy-saving and consumption-reducing management practices to promote the efficient utilisation of resources. It reports a decrease in emission intensity by 4.94% compared to the previous reporting period. However, it does not disclose specific emission reduction targets for the current reporting period. Although it disclosed emission intensity reduction targets previously, this information must be included in the current reports. It details the emissions associated with feed processing, breeding, and slaughtering activities. However, it does not disclose specific targets for reducing greenhouse gas (GHG) emissions in the current reporting period.
0.5/2
Innovation on GHG Emission Reduction
20/100
Innovation to Reduce Agriculture Emissions
The company has a code of conduct for suppliers, including labour and human rights, health and safety, environmental protection, business ethics and management system. However, it does not disclose information on working with suppliers to reduce emissions from agriculture.
0/1
Feed Farming Innovation
The company has been conducting trials of low-protein diets for pigs since 1992 and extensively promoted and applied it in 2000, reducing soybean meal consumption. It discloses that its annual soybean meal usage accounts for 7.3%, significantly lower than the national average. However, the company does not mention that the feed innovation aims to reduce greenhouse gas (GHG) emissions.
0/2
Animal Farming Innovation
The company has introduced heat exchange systems and installed better installation in some pig houses, reducing the need for heating.
1/2
Quality of GHG Inventory
35/100
Quality and scope of GHG inventory Completeness
The company discloses its Scope 1 emissions (3,894,500 tCO2e) and Scope 2 emissions (3,405,600 tCO2e) and emissions from feed processing, pig farming, slaughtering and processing. However, it does not disclose emissions from Scope 3, which could include emissions associated with feed farming or other indirect activities in the value chain.
1.25/1.5
Feed & Animal Farming Emissions
The company discloses emissions from pig farming. However, it is unclear if this encompasses all of the company's operations. It discloses the emission factor for feed processing. However, it does not disclose the GHG emissions from feed production.
0.5/2
Transparency of GHG Inventory
The company did not respond to the CDP climate questionnaire 2022.
0/1.5
Emissions Performance
15/100
Overall Emission Performance
The company reports an increase in Scope 1 emissions from 3,894,500 tons in 2021 to 3,076,500 tons in 2022 and an increase in Scope 2 emissions from 2,835,400 tons in 2021 to 3,405,600 tons in 2022. However, despite the overall increase in emissions, it has achieved a decrease in emission intensity by 4.94% compared to the previous reporting year. It discloses a reduction in nitrogen emissions by 1.3 kg per pig compared to the last reporting period. This reduction is equivalent to a decrease of 80,600 tonnes of nitrous oxide emissions from manure management. The reduction is achieved by reducing the protein content of the feed.
0.75/5
Climate-related Scenario Analysis
25/100
Climate-related Scenarios Analysis Conducted
The company has conducted a materiality assessment and identified climate change as one of the most material issues which it faces. However, it has not conducted a climate-related scenario analysis.
0/1
Disclosure of Analysis Results on Material Risks
The company mentions that due to extreme weather conditions, the prices of raw materials have increased, and market prices have changed. It is conducting in-depth research on pigs' optimal amino acid demand to mitigate this risk. This research aims to adjust the diet by decreasing the protein content and, as a result, reducing the reliance on soybean meal. It acknowledges that its production and operation sites are susceptible to natural disasters like rainstorms, floods, and typhoons, which can be intensified by climate change. It recognises that rising temperatures require improved pig breeding and transportation conditions, increasing costs. In response, it plans to establish strategic cooperation with reliable suppliers to enhance the resilience of its supply chain in managing risks. The company's long-term strategy is to develop a risk-response plan and continue research and innovation in indoor environmental control technology to maintain adequate temperatures in production and transport. It highlights several potential opportunities in the realm of alternative energy. These include harnessing biogas from manure for on-farm use, exploring photovoltaic power generation, and potentially replacing natural gas with geothermal energy to provide heat for pig houses.
1.25/3
Disclosure of Financial Material Events & Alignment of CAPEX
The company does not disclose its commitment to align capital expenditures with its GHG targets.
0/1
Deforestation & Biodiversity
15/100
Deforestation/Conversion-free Target - Soy for Animal Feed
0/100
Risk Assessment to Identify High-risk Locations
The company reports that the proportion of soybean meal used in pug feed is 7.3%. It states that it will collaborate with its major soybean suppliers, including Cargill and Yihai Kerry, to enhance the sustainability of its soybean supply chain. However, the company does not specify a target to source certified soy.
0/0.5
Strength of Deforestation Commitment
The company acknowledges its collaboration with Cargill and Yihai Kerry, its soy suppliers, to enhance the sustainability of the soybean supply chain. However, the company does not provide specific details about a commitment to sourcing soy sustainably.
0/3.25
Transparency - Progress Against Commitment
The company did not provide a response to the CDP Forest questionnaire in 2022.
0/1.25
Engagement, Monitoring & Traceability - Soy for Animal Feed
30/100
Supplier Engagement
The company discloses that it requires its soybean product suppliers to adhere to non-deforestation standards. Additionally, the company actively advocates for upstream suppliers of soybean products to reduce deforestation during soybean planting. The company monitors the progress made by suppliers to avoid the risks associated with deforestation and habitat loss in soybean procurement. It states that it actively engages in and supports practical activities aimed at avoiding the risk of deforestation. However, specific details regarding these activities are not provided in the disclosure.
0.25/1.25
Compliance monitoring & Traceability
The company states that it monitors compliance against its policies through audits of its business partners and suppliers. It discloses that if a supplier is found to be non-compliant the company can reduce the purchase volume of relevant suppliers, and will guide suppliers to improve their sustainability based on their audit results.
1/3.25
Feed Innovation
The company mentions that it assists farmers and actively works to reduce the quantities of soy in its feed to reduce deforestation risks. However, it is not explicitly mentioned whether these farmers are direct suppliers to the company.
0.25/0.5
Water Use & Scarcity
39/100
Water Use & Scarcity in Facilities
20/100
Monitoring Water Consumption & Withdrawals
The company mentions that it has developed and applied innovative water-saving technologies and measures to effectively reduce the consumption of fresh water and promote water conservation. It also discloses the segment-wise water consumption intensity for the year 2022.
0.25/0.75
Target to Reduce Water Consumption & Withdrawals
The company has set intensity-based water consumption targets for the short-term, medium-term, and long-term. In 2022, the company reported a current water intensity of hog production at 1.84m³/head.
0.5/1
Disclosure & Performance of Water Risks in Facilities
The company discloses that it has invested a total of over 5 million yuan in establishing reclaimed water utilisation systems in each production plant area. Muyuan did not provide a response to the CDP water questionnaire in 2022. The company reported an average water consumption intensity in both 2021 and 2022 and reported there was no decrease in water consumption intensity.
0.25/3.25
Water Use & Scarcity in Feed Farming
48/100
Supplier Engagement in Water Use in Feed Farming
The company has implemented a program to support local feed farmers, which includes initiatives to build high-quality farmland and reduce water usage, among other practices. However, the company does not specifically require its suppliers to set water reduction targets in the current reporting period. It invests in infrastructure that benefits farmers and provides agronomists to train them on various agricultural practices, including planting techniques, crop selection, fertilisation, and more. Additionally, the company supports its value chain partners through management and capital investments.
1.1/2.5
Disclosure of Water Risks in Feed Farming
The company discloses that the water intensity of its feed processing segment is 0.075 cubic meters per tonne of feed. It is investigating the combination of feed crop and livestock farming, utilising biogas slurry as fertiliser to create a circular system. In this system, wastewater is used for irrigation needs to reduce water withdrawals and water scarcity risks.
1.3/2.5
Water Use & Scarcity in Animal Farming
50/100
Supplier Engagement in Water Use in Animal Farming
The company has set intensity-based water consumption targets per pig for the short, medium, and long term but does not disclose progress against this target. Muyuan has a water conservation system in place, where it recycles wastewater from animal husbandry to reduce the consumption of clean water.
2.5/3
Disclosure of Water Risks in Animal Farming
The company has not established partnerships with third parties to input into sourcing/farming strategy, including water use.
0/2
Waste & Pollution
38/100
Wastewater at Facilities
25/100
Disclosure & Targets for Wastewater Quality & Volume Discharged
The company discloses that it received a fine due to a wastewater leak that impacted the surrounding environment. It states that it adheres to government regulations in China concerning quality standards. However, specific information regarding the company's own water quality targets are not provided.
0.5/1.5
Transparency on Water Pollution Risks
The company mentions that effluent water is discharged after treatment to meet legal requirements. However, the company does not provide additional information on these parameters. It reports the total wastewater treatment volume in 2022.
0.25/2
Performance on Wastewater Quality & Volume Discharged
The company mentions that it treats wastewater from its slaughtering plants. Specifically, wastewater from white offal rooms and waiting pens will be processed using anaerobic/aerobic treatment and denitrification technology.
0.5/1.5
Nutrient Management in Feed Farming
35/100
Supplier Engagement in Nutrient Pollution Risks
Muyuan has developed a circular economic model which integrates "pig farming, biogas fertiliser and green agriculture" and has applied manure to crops, increasing production and income. The company states that it helps farmers apply fertiliser scientifically and improves the soil fertility of surrounding land with manure. Muyuan actively explores opportunities in agricultural development and develops a circular economic model with reduced waste and improved resource utilisation. However, it does not mention a nutrient management plan with respect to its feed suppliers. It provides training from agronomists to feed farmers, including training on the application of fertilisers. Alongside this, the company discloses that it had installed a total length of 19.7 million meters of pipes to apply manure to fields for free. It has developed a shared platform for industrial interconnection and established cooperative relationships with partners.
1.13/4
Innovation to Improve Nutrient Management in Feed Farming
The company has conducted a trial on a low-protein diet which contains the optimal amino acid demand of pigs to reduce the quantity of proteins in feed and therefore, reduce the generation of nitrogen in the manure management process. The company currently has 270 agronomists who carry out soil-tests and recommend fertiliser applications for crops, including wheat and corn. This process was carried out at 201 subsidiaries. Muyuan does not disclose information about minimising pesticide use in feed farming.
0.6/1
Manure Management in Animal Farming
55/100
Disclosure of Pollution Risks from Manure
The company has adopted anaerobic fermentation technology to dispose of pig manure and treat production wastewater. The biogas generated from this process is utilised for electricity generation and farm operations. The resulting biogas slurry is applied to crop fields as fertiliser, while pig manure and biogas residues undergo composting and fermentation to produce organic fertilisers after solid-liquid separation. The company provides application advice to farmers based on soil sampling to prevent over-application and minimise pollution risks. Additionally, the company conducts similar testing for the fields surrounding its production sites, which third-party surveyors inspect. Muyuan also conducts assessments relevant to pollution to identify new sites, but it does not explicitly mention whether similar assessments are conducted for already existing sites.
0.75/1.25
Supplier Engagement in Manure Management
Muyuan actively explores opportunities in agricultural development and develops a circular economic model that integrates pig farming, biogas, and fertiliser production. It tests the nutrient content of soils to enable customised manure application to farmlands surrounding its sites. However, it does not specify whether certified nutrient management advisors are involved in the process.
1.5/1.5
Innovation to Improve Nutrient Management in Animal Farming
The company offers farmers manure-based fertilisers and organic fertilisers, but it does not disclose whether it provides incentives based on nutrient management performance. It has refined its feed recipe by reducing protein content, which helps in reducing nitrogen emissions in manure. Additionally, the company has a subsidiary that specialises in using manure as the primary material to produce organic fertiliser.
0.5/2.25
Antibiotics
19/100
Policy on Antibiotics Use
30/100
Policy on Antibiotics Use
The company commits to reducing antibiotic use through disease prevention measures including biosafety systems, air filtration and sterilisation, and environmental control in pig houses. It also explores alternative methods such as the use of probiotics and acidifiers, coupled with vaccination immunisation programmes. However, it lacks clear communication regarding the prohibition of routine antibiotic use or growth promotion throughout its operations and supply chain. Moreover, the company has not disclosed its stance on routine mutilation.
1.5/5
Disclosure of Quantity of Antibiotics Used
8/100
Disclosure of Quantity of Antibiotics Used
The company commits to responsible antibiotic administration and maintains internal records. It also actively studies alternatives to veterinary antibiotics, including acidifiers and probiotics. However, it does not disclose specific antibiotic use data or explanations for particular applications and lacks disclosure on the reduction in antibiotic use.
0.38/5
Animal Welfare
36/100
Animal Welfare Policy
77/100
Welfare Policy
The company commits to the Five Freedoms principle and has a whole-life-cycle animal welfare management system. It provides employees with both online and offline training, with particular focus sessions for pig technicians. Muyuan has developed intelligent pig houses featuring fresh air filtration and real-time monitoring via Internet of Things technology. However, whether these practices are implemented across all operations is kept a secret.
1.25/2
Key Welfare Issues
The company sets stocking density standards for pig pens, limits transportation times to 8 hours, and commits to humane slaughter through the use of carbon dioxide stunning. It provides enrichment materials to engage pigs in natural behaviours and maintains stable pig communities. The company also focuses on breeding pigs better suited for the Chinese environment. However, information on teeth clipping and tail docking is not available for the current reporting period.
2.6/3
Assurance & Certification
20/100
Auditing & Assurance by an Animal Welfare Organisation
The company has obtained GLOBAL GAP (Global Good Agricultural Practice) standard certification for five farms. The company applies Global GAP standards to its pig farms and conducts internal audits focusing on food safety and environmental protection. However, it is not certified by Global GAP and does not disclose conducting internal audits specifically for animal welfare.
1/4
Public Reporting on Welfare
The company does not disclose information in relation to animal welfare certifications or assurance programs for its beef operations.
0/1
Performance on Key Material Risks
11/100
Performance on Key Material Welfare Risks by Protein
The company has installed lightboxes with heat lamps for newborn piglets and implemented intelligent controls for various environmental factors. However, it does not mention the use of gestation crates, tail docking, or surgical castration and lacks provision for enrichment materials to promote natural pig behaviour.
0.53/5
Working Conditions
24/100
Human Rights
20/100
Strength of Policy
The company commits in writing to respect human rights, both within its operations and those of its business partners. However, it does not mention adhering to internationally agreed standards.
0.5/1
Due Diligence Process
The company conducts quarterly evaluations and updates on human rights issues for its suppliers, indicating its ongoing monitoring and assessment efforts. Additionally, the company has implemented an internal policy that requires suppliers to pay an integrity and honesty deposit. This deposit serves as a form of assurance, and if a supplier violates the integrity agreement, the deposit will be deducted as a consequence. However, the company does not discuss monitoring human rights risks in its operations or whether it undergoes a human rights due diligence process.
0.5/3
Evidence of Remediation
The company does not disclose whether it has identified any human rights risks in its operations through human rights due diligence
0/1
Fair Working Conditions
35/100
Policy for Direct Operations
The company prohibits child labour as well as discrimination. However, it does not explicitly mention the prohibition of forced labour, inhumane treatment and harassment, the promotion of fair wages or a paid sick leave policy within its operations. Further, the company does not make specific reference to audits covering human rights policies or fair working conditions. The company requires suppliers to prohibit abuse and harassment, child labour, forced labour and discrimination. However, it does not mention the promotion of fair wages within its supply chain.
1/3
Monitoring & Discosure
The company does not mention whether it conducts supply chain audits covering the policies of abuse and harassment, child labour, forced labour and discrimination.
The company has established grievance mechanisms for reporting integrity violations and company management. The company also mentions the use of WeChat as an anonymous reporting channel. Whether these reporting channels were designed in consultation with stakeholders such as unions and employees is still being determined. The company also provides a mechanism that external individuals can use. However, the company's whistle-blower protection mechanism does not mention the supply chain, so anonymity is not guaranteed. The company does not explicitly disclose the total number of grievances it received during the reporting period.
0.75/2
Safety & Turnover Data
10/100
Committee representation of workers
The company emphasises its commitment to protecting the health and safety of its workers. However, it does not disclose if it holds a certification for health and safety. Each company's business department has a dedicated safety management section responsible for ensuring safety, but the company does not state whether these include worker representatives.
0.5/2
Disclosure of safety and turnover data
The company does not disclose injury or fatality data for the current reporting or previous year. Nor does the company disclose turnover rates for the reporting period.
0/3
Freedom of Association
30/100
Strength of Policies
The company clarifies that freedom of association is prohibited in China, and therefore, the company is exempt from addressing the question regarding freedom of association. However, the company does not provide sufficient details of alternative representation methods or mention whether suppliers must set a policy on freedom of association and collective bargaining.
1/3
Disclosure of Collective Bargaining Metrics
The company explicitly mentions that it supports employees' collective bargaining rights. The company does not provide specific details about the distribution of its workforce across existing contractual agreements.
0.5/2
Food Safety
43/100
Food Safety System
25/100
Certifications
The company regards food safety as an important issue and has established a food safety system involving the whole process from raw materials to slaughter. It has improved its traceability system and established a "711" food safety assurance system. By the end of 2022, 14 feed mills were FSSC 22000 certified and five farms were GlobalGAP certified. Further, slaughterhouses in Neixiang and Zhengyang passed the China HACCP. These are GFSI-recognised. On its website, it states that all feed mills implement FSSC 22000. However, the proportion of total owned facilities certified with GFSI-recognised standards is not explicitly disclosed and cannot be inferred. Further, it does not confirm whether suppliers are expected to hold GFSI certification.
1.25/3.5
Performance
The company mentions that its pig farms undergo internal audits to ensure food safety. It further discloses that in 2022, its Neixiang Muyuan Modern Agricultural Complex Co., Ltd. obtained certification from China Good Agricultural Practice (GAP) and successfully passed the authentication review by the Certification and Accreditation Administration of the PRC. However, it does not provide information regarding the number or frequency of audits or the corrective action rate. It has integrated food safety management into its slaughter process, expanding its existing food safety management system to create a comprehensive quality traceability system across the entire supply chain. However, the information disclosed makes it unclear if this is consumer-facing technology.
0/1.5
Product Recalls & Market Bans
60/100
Product Recall Systems
The company mentions its efforts to enhance the "Product Recall Control Procedure" and the "Non-conforming Product Simulated Recall Exercise Plan," but it does not provide specific details about these improvements in the disclosed information. Zero product recalls took place in 2022.
2.5/3
Performance
The company does not provide any information regarding market bans, and none were detected during media screening in the reporting period.
0.5/2
Sustainability Governance
25/100
Assessment of a Company's Sustainability Governance
25/100
Board Sustainability
The board is responsible for developing the company's social responsibility development strategy and reviewing primary sustainable development goals and plans. In addition, the company conducted a materiality assessment to identify material issues for the company and its stakeholders. The identified issues included 27 topics across economics, social class, and environmental class. Furthermore, the board reviewed and confirmed the results of the materiality assessment. All board-level expertise in sustainability, food safety or innovation is kept secret.
1.25/2
Incentives & Policy Engagement
The company has not disclosed executive monetary remunerations linked with climate or sustainability performance. Nor has it disclosed engaging with civil or trade associations on ESG issues, a comprehensive list of trade association memberships or if it aligns any policy-engagement activities to restrict global temperature rise to 1.5C.
0/2.5
Innovation & Benchmarking
The company does not explicitly mention innovation in the context of sustainability or disclose how it benchmarks itself against peers in sustainability and innovation.
0/0.5
Alternative Proteins
0/100
Diversification of Products to Alternative Protein Sources
0/100
Existing product portfolio
The company does not explicitly acknowledge that protein diversification is a material business issue. Further, it has not yet set a timebound target to diversify protein sources, nor does not report revenue/sales linked to alternative protein sources
0/2.5
Investing for future growth
The company does not indicate having an approach towards diversifying its product range to include plant-based and alternative proteins.
0/2.5
Members-only Content
To register as a member of the FAIRR network, please fill out the sign up form or if you need additional information on the FAIRR network, please contact investoroutreach@fairr.org.
Workstream Information
2023 Risk Score:
29/100
Level:
High Risk
Ranking:
34/60
Main Protein:
Pork
Assessed Proteins:
Pork
Company Feedback Given:
Yes
Last Updated:
31 October 2023
2023 Resources
2023/24 Index Report Summary (Mandarin) 报告总结摘要(中文) Launch of the Coller FAIRR Protein Producer Index 2023/24 2023/24 Company Dialogue Questions 2023/24 Full Report Coller FAIRR Protein Producer Index
Coller FAIRR Climate Risk Tool
Analysis Overview
Cost Increase
Cost Increase
EBIT Margin
Cost Increase (%)
60%
40%
20%
0%
-20%
-40%
-60%
Net Zero Aligned
BAU
High Climate Impact
Cost Breakdown
2030 | Net zero aligned | BAU | High climate impacts |
---|---|---|---|
Total Costs | -1% | 4% | 7% |
Carbon Tax | 1% | 1% | 1% |
Feed | -2% | 3% | 6% |
Feed Additives | N/A | N/A | 0% |
Heat Stress | 0% | 0% | 0% |
2050 | Net zero aligned | BAU | High climate impacts |
---|---|---|---|
Total Costs | -1% | 5% | 12% |
Carbon Tax | 1% | 2% | 2% |
Feed | -2% | 4% | 10% |
Feed Additives | N/A | N/A | 0% |
Heat Stress | 0% | 0% | 0% |
Members-only Content
To register as a member of the FAIRR network, please fill out the sign up form or if you need additional information on the FAIRR network, please contact investoroutreach@fairr.org.
Workstream Information
Last Updated:
5 April 2023
2023/24 Resources
Walkthrough Video 2023 Public Report 2023 (English) Public Report 2023 (Mandarin) Coller FAIRR Climate Risk Tool
Waste & Pollution Engagement
Analysis Overview
Risk Assessment Value Chain Coverage Risk Mitigation Circularity Company Engagement
Summary
Muyuan now discloses having an unquantified company-level target to reduce wastewater pollutants for slaughter facilities including Chemical Oxygen Demand (COD) and ammonia emissions.
Analysis Breakdown
Risk Assessment
Medium
Coverage of water quality risk assessment
The company conducts initial local area inspections before each farm’s construction. Once the site is built, a site-wide survey is conducted twice a year. The company further explained how water resources, including wastewater, surface water and groundwater, are tested from the start of use of the operations in question. Muyuan also mentions how the site selection process for its pig farms is performed by a dedicated planning and design team which chooses the location based on the company’s production needs as well as the water requirements of the pig herd.
The company uses an internal methodology to assess water risks. However, it does not disclose the parameters used to classify an area as being "high, medium or low" risk from a quality perspective. The company does not disclose information about operations located in areas of high or medium water risk.
Transparency and disclosure of water quality indicators
The company discloses the average concentration of COD, ammonia, total nitrogen, and total phosphorus for all its sites. Except for total nitrogen, the company's average wastewater parameters are below the IFC EHS guidelines limits. However, this is a weighted average for all the sites, and it is not clear the % of sites whose individual parameters are in line with the IFC EHS guidelines.
The company also discloses that it received five fines in different subsidiaries due to wastewater pollution.
Recognition of nutrient pollution risk on biodiversity
The company recognises that pollution and changes in water quality and soil on the farms may lead to a decline in biodiversity. The company says that to avoid this, it follows the requirements of relevant laws and regulations and conducts environmental assessments before the construction of the project, and it carries out regular assessments and monitoring after the construction of the farm. However, the company does not discuss or disclose areas of high biodiversity value and/or water stress in geographic regions where it operates.
Value Chain Coverage
Poor
Inclusion of upstream feed and livestock suppliers in risk assessment
The company includes all its operations in the risk assessment, including livestock farms, as the company owns 100% of the sourcing farms. In phase 1, the company mentioned that it purchased all its feed raw materials from trading companies, and it does not have visibility of nutrient pollution at that stage of the value chain.
Downstream use of manure by animal feed suppliers
The company does not disclose this information. In phase 1, the company mentioned that it purchased all its feed raw materials from trading companies.
Acknowledgment of regulatory risks
The company does not disclose this information.
Transparency on non-compliance from suppliers
The company has audit systems in place to monitor the implementation and execution of animal welfare policies, as well as biosecurity, and environment control. It is unclear whether pollution is also monitored.
Risk Mitigation
Good
Biogas generation and organic fertilisers from animal waste
The company discloses that wastewater from pig farms is treated by solid-liquid separation and anaerobic fermentation, among other processes. It seems all the wastewater is treated before being used. In the engagement call with FAIRR, the company mentioned that in northern China, where there is more farmland available, the company uses a storage pond where the waste is stored for six months or more until it is needed by farmers, who use the water as fertiliser. The company mentioned it uses a treatment which implies removing heavy metals, and hazardous substances. In the south, the company mainly utilises anaerobic treatments. The different practices in the north and south of China are due to Muyuan’s own policies based on local conditions, rather than mandated by regulations.
The company has adopted anaerobic fermentation technology for disposal of pig manure and treatment of production wastewater. The biogas produced is used for electricity generation and farm operation, the biogas slurry is applied to crop fields, and pig manure and biogas residues are composted and fermented after solid-liquid separation to produce organic fertilisers. The company offers application advice to farmers based on soil sampling to avoid over-application and pollution.
Target-setting for water quality
The company discloses an overall target to reduce wastewater metrics for its slaughtering factories, including COD and ammonia nitrogen emissions targets.
Support to third-party suppliers
The company mentions that it actively promotes the combination of crop planting and pig farming. The company explains that it provides integrated manure utilization and scientific planting services by agronomists to third-party arable farmers that grow fruits such as oranges and apples. The company also mentions that it tests the soil nutrients before manure application and customizes schemes for each farm and cropland. In the engagement call with FAIRR, the company mentioned it engages roughly 300,000 farmers in its project to provide manure to fruit farmers.
In previous reports, the company disclosed using a feed receipt with lower protein content to reduce nitrogen emissions in manure. However, this information is no longer available in the public reports.
Circularity
Poor
Pilot projects around nutrient circularity
The company does not disclose this information.
Disclosure of investment in circular solutions
The company does not disclose this information.
Targets to increase share of manure under circular initiatives
The company does not disclose this information.
Company Engagement
Best Practice
Level of company engagement with the coalition
The company provided a response to the investor letter and responded to the engagement questions. The company met with investors within the engagement period. The company acknowledged the FAIRR’s assessment and provided feedback.
Members-only Content
To register as a member of the FAIRR network, please fill out the sign up form or if you need additional information on the FAIRR network, please contact investoroutreach@fairr.org.
Workstream Information
2024/25 level
Medium
Index Waste & Pollution Score:
38/100
Assessed Proteins:
Pork
Last Updated:
26 June 2024
2024/25 Resources
Waste & Pollution Engagement