IFC backs Chinese animal feed firm

The commitment is intended to help improve food quality and safety in the country.

The International Finance Corporation (IFC), the investment arm of the World Bank, is planning to commit a $50 million loan to animal feed firm Guangxi Yangxiang Co. in China.

The capital will be used to finance a $293 million project to enable 80,000 parent stock sows and ancillary facilities, together with recruiting and training contract farmers to raise two million hogs, in Guangxi and Liaoning.

“The project will improve the overall supply chain efficiency including the pig farming operation and quality of output of the company,” said the IFC in a statement.

“The Chinese pig sector is still characterised by poor hygiene standards, inadequate bio-security, and over-use of antibiotics. By investing in Yangxiang, IFC is supporting a company with both the capacity and willingness to improve food safety.”

Through the partnership with the IFC, Yangxiang stands to benefit from the organisation’s due diligence as well as enhancing the company’s image and reputation. An IPO is planned in the near future.

Guangxi-headquartered Yangxiang was established in 1998. The company’s main businesses includes the breeding and farming of pigs and the manufacturing of pig feed. It has a presence mainly in the frontier provinces of China including Hebei, Henan, Hunan and Liaoning provinces.