ADB Disburses Loan to Promote Biosecurity in Livestock Farming in PRC
The Asian Development Bank (ADB) has disbursed a loan of $40 million (in Chinese yuan equivalent) to New Hope Liuhe Co., Ltd. (NHL) to promote biosecurity and help develop a more integrated, inclusive, and sustainable livestock business in the People’s Republic of China (PRC). ADB is also mobilizing $60 million (in Chinese yuan equivalent) from local commercial banks to cofinance the project.
The assistance will help finance the construction of two hog farms, one in Hebei Province and the other in Guangxi Zhuang Autonomous Region, both equipped with modern waste management facilities. A meat processing facility featuring an antibiotic-free processing line will be built in partnership with Cooperl Arc Atlantique, a cooperative of French farmers and one of the largest hog producers in Europe.
“Livestock accounts for nearly half of the total contribution of the agriculture sector to the PRC’s economy, but it faces animal disease risks, pollution, climate change impacts, antibiotic overuse, and low productivity,” said Head of the Agribusiness Investment Unit at ADB’s Private Sector Operations Department Martin Lemoine. “ADB’s assistance to NHL promotes an efficient, safe, and sustainable business model for meat production in the PRC and across the region given the high demand in protein.”
Pork consumption in the PRC reached about 55 million tons in 2019, around half of global consumption. But the country’s hog sector also generates about 864 million tons of animal waste per year—about one-third of total waste generated by PRC livestock. Enhanced biosecurity can reduce the risk of animal-to-human transmission of disease. Since 2018, the PRC hog industry has battled African Swine Fever disease, which though safe for humans had killed about 50% of the PRC hog population by end 2019.
NHL will also make efforts to empower women’s livelihoods through its operations by targeting 50% of jobs for women in the meat-processing plant and 20% of jobs in project farms.
Established in 1982, NHL is a leading integrated animal protein producer in the PRC, with major operations in animal feed production, livestock farming, slaughtering, and meat processing. It has more than 500 subsidiaries and 61,000 employees and operates in more than 20 countries. NHL implements biosecurity management best practices at all its hog farms.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.