The project will promote a livestock farming business model that includes smallholder farmers in a sustainable production process. ADB will support Lihua' s $183 million investment plan during 2017 to 2019, including (i) breeder farm expansion, (ii) contract farming expansion, (iii) environmental capital expenditure, and (iv) animal health and food safety capital expenditure.
|Project Name||Inclusive and Sustainable Livestock Farming Project|
|Borrower/Company||Jiangsu Lihua Animal Husbandry Stock Company
|Country||China, People's Republic of
|Location||Anhui, Guangdong, Hunan, Jiangsu, Shandong, Sichuan, Zhejiang|
|Type or Modality of Assistance||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Partnerships
Private sector development
|Sector / Subsector||
Agriculture, natural resources and rural development / Livestock
|Gender Equity and Mainstreaming||Some gender elements|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Office of the Director General, PSOD|
|Responsible ADB Officer||Hoshi, Hayato|
|Description||The project will promote a livestock farming business model that includes smallholder farmers in a sustainable production process. ADB will support Lihua' s $183 million investment plan during 2017 to 2019, including (i) breeder farm expansion, (ii) contract farming expansion, (iii) environmental capital expenditure, and (iv) animal health and food safety capital expenditure.|
|Objectives and Scope||The project will set a benchmark in terms of smallholder farmer inclusion, environmental and social sustainability, animal health, and food safety practices for the livestock industry in the PRC.|
|Status of Operation/Construction||First disbursement of CNY150MM from ADB A Loan has been executed on 4 Jan 2019 to fund the constructions of Huankou and Liangzhai pig farms.|
|Linkage to Country/Regional Strategy||
The project is aligned with ADB''s Midterm Review of Strategy 2020, which emphasizes the need to contribute to food security and agricultural productivity, promote food safety and quality standards, and support inclusive businesses such as agribusinesses that connect farmers to food markets. The project is also consistent with ADB''s country partnership strategy, 2016 to 2020, for the PRC. To support rural development for inclusive economic growth, ADB will help the PRC develop suitable methods to (i) modernize agriculture, (ii) promote circular agriculture, and (iii) improve food safety. Through its private operations, ADB will support agribusiness projects that enhance productivity, the inclusion of smallholder farmers in value chains, and food safety.
The project fully aligns with ADB''s Operational Plan for Agriculture and Natural Resources, which stresses that ADB''s private agribusiness investments _have the potential to benefit millions of smallholder farmers directly and contribute to public goods, such as food security, food safety, and reduced soil and water pollution_. The project builds on lessons from ADB''s long history in the PRC''s livestock sector, particularly the need to achieve development impact through private agro-enterprises with sufficient scale and direct linkages with farmers. The project will complement a PRC sovereign project approved in 2015, which will provide similar assistance to livestock companies in Henan.
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The project 's potential environmental and social impacts have been identified and effective measures to avoid, minimize, mitigate, and compensate for adverse impacts are incorporated in the safeguard reports and plans. The livestock farms will be located in coordination with the local government to ensure that they conform with local land use plans, within the designated buffer zone and avoid legally protected areas and sensitive receptors (schools, residential area, church, mosques, etc.). Potential risks and impacts during construction are mostly site-specific and short-term, and can be effectively managed by good engineering construction and housekeeping practices implemented through a construction environmental management plan. During operation, the new animal waste treatment facilities will mitigate concerns as to solid waste, including animal manure and wastewater treatment and disposal, which has the potential to pollute soil, and surface and ground water. Since the farms will be located away from inhabited areas, nuisance, noise, and odor impacts will be mitigated. The audit noted that the existing livestock farms that were visited during the project processing stage fully comply with applicable regulations from the Animal Epidemic Prevention Law of the PRC. The company has established procedures/manual and systematic process of documentation to ensure that issues related to enviornment, health and safety, as well as workers' welfare are well tracked.|
|Involuntary Resettlement||Lihua will either lease unused or abandoned lands on a willing lessor -willing lessee basis, or procure state-owned land from the local government. In case of unavoidable displacement, such as relocation related to a sanitation buffer zone set by local regulations, Lihua will discuss and coordinate measures with the government to address any identified gaps between national and ADB requirements. Investment transactions supporting Lihua's projects entailing significant involuntary resettlement impacts will be excluded from ADB financing.|
|Indigenous Peoples||As the farms are expected to be developed in non-ethnic minority-concentrated provinces, impacts on indigenous peoples are unlikely.|
|Stakeholder Communication, Participation, and Consultation|
|Timetable for assistance design, processing and implementation|
|Concept Clearance||10 Nov 2015|
|Credit Committee Meeting||04 Nov 2016|
|Approval||13 Dec 2016|
|Last PDS Update||09 Sep 2020|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
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|Title||Document Type||Document Date|
|具有包容性和可持续性的畜牧业项目 : 项目数据表||Translated PDS||Jan 2017|
|Inclusive and Sustainable Livestock Farming Project: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Dec 2016|
|Inclusive and Sustainable Livestock Farming Project: Report and Recommendation of the President||Reports and Recommendations of the President||Nov 2016|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
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