fbpx 53027-001: Integrated and Sustainable Livestock Value Chain Project | Asian Development Bank

China, People's Republic of: Integrated and Sustainable Livestock Value Chain Project

Nonsovereign (Private) Project | 53027-001 Status: Proposed

The project includes the construction of: (i) a new hog farm in Huanghua, Hebei Province , (ii) a new hog farm in Xiangzhou, Guangxi Province , and (iii) an antibiotic-free meat processing facility in Pinggu District of Beijing . While Huanghua farm and Xiangzhou farm operate as fully integrated farms, around one third of the hog fattening process will be outsourced to smallholder farmers within a radius of 100 kilometers of the farms, as part of an agreement with local governments to promote the integration of smallholder farmers into the hog production value chain.

The project will also include a TA to support the training programs for contract farmers in the following areas: (i) farming and breeding technology; (ii) biosecurity best practice, (iii) antibiotic management; (iv) waste management; and (v) animal welfare.

Project Details

Project Officer
Wang, Xiaole Request for information
Country
  • China, People's Republic of
Sector
  • Agriculture, natural resources and rural development
 
Project Name Integrated and Sustainable Livestock Value Chain Project
Project Number 53027-001
Borrower/Company New Hope Liuhe Co., Ltd.
Country China, People's Republic of
Location Nation-wide
Type or Modality of Assistance
Loan Ordinary capital resources USD 40.00 million Approved
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 Effective gender mainstreaming
Responsible ADB Department
Responsible ADB Division
Responsible ADB Officer Wang, Xiaole
Project Sponsor(s)
Description

The project includes the construction of: (i) a new hog farm in Huanghua, Hebei Province , (ii) a new hog farm in Xiangzhou, Guangxi Province , and (iii) an antibiotic-free meat processing facility in Pinggu District of Beijing . While Huanghua farm and Xiangzhou farm operate as fully integrated farms, around one third of the hog fattening process will be outsourced to smallholder farmers within a radius of 100 kilometers of the farms, as part of an agreement with local governments to promote the integration of smallholder farmers into the hog production value chain.

The project will also include a TA to support the training programs for contract farmers in the following areas: (i) farming and breeding technology; (ii) biosecurity best practice, (iii) antibiotic management; (iv) waste management; and (v) animal welfare.

Objectives and Scope ADB proposes to provide a long-term loan to support NHL's integrated food and agribusiness value chain in the PRC, including animal feeds, livestock farming, slaughtering, meat processing and distribution. The project will promote inclusive business (engaging directly with bottom of the pyramid contract farmers and employees and promoting gender equality across the entire value chain), enhanced biosecurity (in the context of the African Swine Fever pandemic), environmental sustainability (animal waste management), climate change mitigation (biogas digesters), public health (antibiotic-free meat processing facilityl), and food safety for millions of PRC consumers through high quality farming and production processes and complete traceability from feed to meat.
Linkage to Country/Regional Strategy

The project is aligned with Strategy 2030 which calls for ADB _to scale up its financing for agribusiness_ and _to promote gender equality in at least 75% of the number of ADB's committed operations by 2030_. The project is also consistent with ADB's PRC country partnership strategy (2016 to 2020) which supports (i) promoting rural development and food security by improving market connectivity and agricultural value chain linkages, (ii) increasing agricultural productivity, (iii) enhancing food safety, and (iv) promoting innovative technology.

The project is consistent with Strategy 2030 Operational Plan for Priority 5 (Promoting Rural Development and Food Security, 2019 to 2024) as the plan calls for: (i) _modern, sustainable, and responsible corporate farming models_ ; (ii) the _integration of farmers, agribusinesses, and consumers into efficient and sustainable value chains_ ; (iii) the reduction in _agriculture's contribution to GHG emissions through improved farming and livestock practices_ ; and (iv) _food safety and traceability systems development_ .

Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Environmental impact assessments (EIAs) were prepared for the two hog farms and an Initial Environmental Examination (IEE) was prepared for the meat processing plant. As construction has commenced for all subprojects, ADB has undertaken a corporate and site level compliance audit. Construction activities would contribute to pollution and waste increase, create noise and dust, with some occupational health and safety risks for workers including on workers accommodation; while at operation phase there would be generation of manure and animal carcasses, wastewater, odor and noise nuisance, as well as waste including veterinary waste. Effective measures manage identified impacts are incorporated in the environmental and social management plans. Corrective actions will be implemented to address gaps of the ESMP for subprojects, to establish formal environmental and social management system at corporate level, to compliance with ADB SPS 2009 requirements. An environmental and social monitoring report will be submitted to ADB at construction completion as well as on an annual basis during operation.
Involuntary Resettlement The project is classified as C for involuntary resettlement in compliance with ADB's Safeguard Policy Statement (2009). ADB loan will support 3 subprojects in different provinces of PRC and will be established in lands and assets that have been procured or leased in the past. A third party audit undertaken for the project indicated that compensation and rents have been paid on time and there are no outstanding issues to date. New Hope will adopt an ESMS which embodies the policies and principles of land acquisition and involuntary resettlement compliant with the applicable national and local laws and regulations and ADB SPS (2009).
Indigenous Peoples The project is classified as C for Indigenous Peoples (IPs). The meat processing plant will be established in an industrial zone while the two farms will be located in villages inhabited by Han people. Construction and operation of the 3 subprojects will not lead to any adverse impact to any IP as confirmed by the third party audit. New Hope will adopt an ESMS which embodies the policies and principles of indigenous peoples compliant with the applicable national and local laws and regulations and ADB Safeguard Policy Statement (2009).
Stakeholder Communication, Participation, and Consultation Consultation was carried out during the EIA and IEE preparation. Additional consultation has been conducted during the audit with local villagers. A formal Grievance Redress Mechanism (GRM) will be established during construction and operation to ensure that grievances are communicated and addressed appropriately, if any.
Timetable for assistance design, processing and implementation
Concept Clearance 03 Oct 2019
Credit Committee Meeting 31 Oct 2019
Approval 06 Dec 2019
Last PDS Update 09 Dec 2019

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.

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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

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Related Publications

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