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Occupational Health and Safety

Since 2005, COPEINCA ASA has a Safety Management System in place, as a result of the application of Supreme Decree No. 009 and its amendment (SD 007), which established the framework for the implementation of safety and health at work regulations in the different productive sectors of the country. To this end, the Companys internal regulations were adapted to the provisions of SD 009, which was later distributed to all Company collaborators.

During 2008, monitoring was conducted of the physical, chemical and biological agents and risk factors of our plants; which allowed measuring potential health hazards that could affect our collaborators, as regards both noise and suspended particles in fishmeal. We have designed a corrective action plan that will be implemented starting in 2009 in order to minimize risks that may affect our collaborators health. In this sense, we have conducted and will continue to conduct a number of tests such as audiometry and dermatology.

COPEINCA has set up an IMG Committee at each plant, in which memeberas are Company and collaborators representatives, chosen through a vote. These committees ensure the participation of our collaborators at the same time as we comply with SD 009. In this sense, we have established accident safety statistics that have allowed us to identify the risks in each of our plants.

In spite that 2008 was a very good year for the Companys growth, this has implied variations in our accident ratios, controls and statistics with regard to previous years. In 2007 we had 5 plants and when our acquisitions were consolidated in 2008, we grew to 12 plants, thus increasing the number of personnel, facilities and accident risks. Thus, of 70 accidents in 2007 (including fleet), we were up to 173 in 2008. As far as fleet is concerned, in 2007 we had 34 vessels and 64 in 2008. In addition, from 700 we are up to more than 1500 crew collaborators, recording 134 accidents in the fleet sectors during 2008, as well as a higher sick leave index than in 2007.

With regard to training, we have worked nearly 1,700 man hours per plant. We have held earthquake and fire drills, provided training on handling of hazardous substances, handling of chemical elements, BASC information and accident prevention techniques.

BASC (Business Alliance for Secure Commerce) is an alliance among the business sector, customs authorities, government entities and international agencies, for the purpose of encouraging secure practices in logistics quality and international trade. It is a secure management system to prevent our facilities from being infiltrated by drug trafficking and/or terrorism. Through this system we conduct a number of data cross checks, both of our collaborators and customers, in accordance with the standards we must comply with, which are audited on an annual basis.

In 2008, the Chancay and Chimbote plants obtained BASC certification. In 2009 we expect to certify the Ilo plant. The Bayovar, Chicama, Casma and Huarmey plants obtained this certification in 2005. This allows us to assert that COPEINCA ASA has a BASC Secure Management System in place for the prevention of drug and terrorism infiltration. In turn, we have entered into security agreements with all our service suppliers.