IDB Invest has financed Corporación Multi Inversiones (CMI) Global, also known as CMI Alimentos, since December 2019, with direct loans totaling US$250 million and up to US$475 million in syndicated loans granted by partner banks. CMI is headquartered in Guatemala and has active operations in Central America, the Dominican Republic and other countries in the region. CMI produces, among other foods, poultry, pork, sausages, and processed meats from its industrial animal breeding operations as well as concentrates for animal feed. Starting in 2023, BIC and its partners have supported field research and engaged local communities who have shared concerns about the impacts of CMI activities.
Our joint project monitoring work with local partners reveals that CMI Foods has not met the Performance Standards (PS) as required by the IDB Invest Sustainability Policy (SP). The standards that appear not to have been fully complied with are:
PS1: Evaluation and Management of Environmental and Social Risks and Impacts
As part of its assessment and management of environmental and social risks and impacts, CMI Foods should have carried out:
Field interviews showed that none of these steps were carried out by CMI. Despite the new CMI facilities built in the municipality, no community member interviewed was invited to or participated in any consultation.
“There was no information before the construction of the Farm. We found out because people started saying that the previous owners had sold the property. Then we saw that they began to deforest it, because that farm was previously a citrus producer.”
“Here we had no prior information about the construction of the Farm. “We only found out when it was already under construction.”
“While I was in the COCODE [Community Development Council], until almost a year ago, there was no contact from the company to publicize the installation of the Farm.”
Furthermore, no person interviewed knows of any communication or complaint channel, which shows that the Complaints and Claims Mechanism does not exist in a way that is practically accessible to workers and communities.
PS4: Community Health and Safety
Bad odors were a topic that emerged in all interviews carried out with project-affected communities as a nuisance impact from CMI operations. It is feared that during the rainy season, the proliferation of flies adds to the bad smell, which could cause health problems, especially for children.
PS 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources
Members of one community reported a fish and crustacean poisoning event in the river during the construction of the CMI facility that has resulted in the loss of fish and crabs, which supplemented the diet of some nearby communities. The fish and crabs have not recovered to their prior levels.
PS 7: Indigenous Peoples
Santa Rosa is a department inhabited by the Xinka Indigenous People. Therefore, community consultation with Indigenous Peoples is pertinent both in the case of “Los Pensamientos Farm” and in the case of the most recently built “Chiquimulilla” farm.
Despite this, the members of the Xinka People (Xinka Indigenous Community of La Libertad Village and Xinka Indigenous Community of Guazacapán) have not been consulted at any time. Instead, Indigenous leaders told field researchers:
“The companies do not consult with the people, they simply arrive, buy the land, negotiate with the mayor, build their companies, and do not talk to anyone about it.”
“There was no consultation, we never heard anything about that, the companies do not comply with the consultation with the Indigenous Peoples and communities.”
"They didn't consult us at all, we found out when they were already building the Farm, afterwards they haven't come to talk to us either."
CMI Foods (CMI) is a regular client of IDB Invest, with a first loan of US$100 million signed in December 2019, part of a syndicated loan led by IDB Invest of up to US$350 million, with a term of 5 years. IDB Invest signed another US$50 million loan in November 2020, with an additional US$25 million from the Chinese Cofinancing Fund for Latin America managed by the IDB. IDB Invest signed a third loan, also for US$ 50 million, in December 2022. The most recent loan, again for US$ 50 million, was signed in December 2023. Additionally, the latest loan is part of a long-term syndicated senior loan for CMI for up to US$ 250 million. IDB Invest reports that CMI Foods plans to invest US$1 billion in technology and infrastructure, including US$480 million to expand and improve facilities in Guatemala, El Salvador and Honduras.
A large portion of the community's concerns have arisen from CMI's lack of communication with project-impacted communities. All those interviewed have expressed interest in following up and engaging in dialogue with CMI Foods/Granja Los Pensamientos to reach an adequate level of communication and agreements regarding their operations and impacts.
Accordingly, IDB Invest should work with CMI to develop a corrective action plan to address its failures in PS 1, PS 4, PS 6 and PS 7. IDB Invest should:
