ADB OKs P1 billion loan for China-owned agriculture firm

MANILA, Philippines — The Asian Development Bank has approved a $20-million (P1 billion) loan for a Chinese-owned agriculture firm that aims to improve poultry and livestock production in the Philippines and seven other countries in the region.

In a statement Monday, the Manila-based multilateral lender said it inked a loan agreement with New Hope Singapore Private Ltd. (NHS) to support the poultry, livestock and aquaculture sectors of eight countries in South and Southeast Asia.

Apart from the Philippines, the countries include Bangladesh, Cambodia, Indonesia, Laos, Nepal, Sri Lanka and Vietnam.

The latest financing will support its increased working capital needs and operating expenses in the eight countries amid the pandemic.

Singapore-based NHS is owned by New Hope Liuhe Co. Ltd., a leading enterprise in agricultural industrialization in China that specializes in food processing and modern agriculture.

New Hope has grown its operations into animal feed, livestock breeding and raising, meat processing and financial investments. It operates across China and in 20 other countries and regions.

In the Philippines, New Hope operates largely in Central Luzon, particularly in Bulacan, Tarlac, and Pampanga where most of the country’s poultry and livestock production are.

ADB said the fresh funding would be used to purchase raw materials for animal feed production, to extend larger advances and longer payment terms to feed distributors and livestock farmers, and to provide personal protective equipment for workers.

NHS provides animal feed and technical services to about 200,000 poultry, aquaculture and other livestock farmers in South and Southeast Asia.

ADB Agribusiness Investment Unit head Martin Lemoine said shortage of agricultural inputs such as animal feed will have a severe impact on food availability, prices, and poverty if pandemic-related restrictions persist, especially in countries vulnerable to the economic impacts of COVID-19.

“Livestock plays a major role in food security as smallholder farmers rely on it for food and income. ADB’s loan will help preserve supplies of affordable protein, as well as the livelihoods of smallholder farmers,” Lemoine said.

The Philippines has yet to solve the African swine fever (ASF) that significantly reduced the country’s hog inventory and eventually pushed prices up.

As a temporary measure, the Philippines has increased its pork imports volume and reduced tariff rates to ensure more supplies will be available at the domestic market.

Meanwhile, ADB will provide technical assistance to the NHS to support the training of 7,200 female poultry and fish farmers in Bangladesh and the Philippines on climate-resilient farming best practices and financial literacy, including a focus on access to credit.

ADB has previously helped New Hope develop its integrated livestock business in China through the establishment of two pig farms and a meat processing plant.