In many developing countries, under-investment in livestock processing has resulted in poorly maintained infrastructure and declining quality of services. Helping clients maintain competitiveness, upgrade sanitary and food safety standards, and expand market access are key objectives for IFC.

As of March 31, 2007, investment in this sector totalled about $90 million. Livestock processing is the largest sub-sector and makes up 15.5% of the total IFC agribusiness portfolio.

Project Examples

ADC Zhengye project in China: a $15 million loan for IFC's own account to help the company integrate and expand its pork production activities. IFC’s investment will boost ADC’s efforts to add pig breeding farms, upgrade slaughtering capacity, and build a new processing facility to produce fresh and processed meats.

Pronaca in Ecuador: a $20 million loan was provided to construct a new distribution center and expand storage facilities. The environmental standards of the farms will be upgraded and short-term debt will be refinanced. This is a fully-integrated poultry and pork processor and one of Ecuador's leading agro-industrial companies.

Client Resources

"Animal Welfare in Livestock Operations." Animal Welfare in Livestock Operations is the sixth in IFC's series of Good Practice Notes on social environment sustainability. The publication is a joint initiative between IFC's Agribusiness Department (CAG) and the Environment and Social Development Department (CES). Its objective is to increase awareness among existing and potential IFC clients in emerging markets on how certain well-established animal welfare principles and practices can improve their business performance and help them gain competitive advantage. It does so by providing resource information about global trends and emerging good practices in this area. Read More...

"Creating Business Opportunity through Improved Animal Welfare," developed with funding from IFC's Agribusiness Department and the Social Responsibility Program, and with support from the Knowledge and Innovation Unit in the Environment & Social Development Department, demonstrates how IFC actively promotes good principles of animal welfare in investments in livestock operations in emerging markets as a way for our clients to improve quality and productivity. Read more...