During the visit of Honorable Prime Minister Mr. KP Sharma Oli, Nepal and China signed the protocol of exporting thermally processed buffalo meat to China. This is a huge milestone in the sector of agriculture and buffalo farming. The protocol states that the animal has to be born and raised inside the country. It has suddenly opened a door that can stop the migration of rural community mainly from the hilly region. Buffalo farming can bring the prosperity to lower socio-economic strata population of Nepal.
China imports beef (Equivalent of buff from Nepal) mainly from Brazil, Argentina, USA, Australia and New Zealand in a quantity exceeding 2.7 million tons annually. Nepal can easily take up to 10 percent of the volume because of closer proximity, higher acceptance of buff over beef in some region of China. However some of the constraints are-
- Nepal falls under Foot and Mouth Disease (FMD) endemic country. We can’t export meat to any developed countries. The concept of heating the meat at 70 degree C that kills the virus has made the export possible. However, the government has to separate some of the zones with programs of disease control measure that includes active surveillance, mass vaccination and reporting of disease outbreak. Animals have to be raised in the disease free area only or if raised elsewhere, have to be kept in disease free are for at least last 3 months.
- Lack of modern slaughterhouse is another problem. Currently there are 6 medium scale slaughterhouse that may satisfy domestic consumers but can’t qualify for export. Investment for modern facility easily exceeds USD 50 million which is beyond the scope of businessmen involved in the field.
- The method of traditional farming in small numbers is neither lucrative nor possible to trace the animal from the birth. Exportable meat requires the animal to be raised in more advance facility where nutrition, health status and vaccination records can be checked by competent authority at any time.
Our Plan
Shanghai Zi Yan Food Co. Ltd is a reputed public company in China with a capital of USD 1.6 billion. It will partner with Himalayan Food International (a Nepali company, estd 2011) and inject a capital of USD 200 million. USD 50 million will be used in construction of fully automated slaughterhouse that can qualify for the standard of any developed country. Remaining amount of USD 150 million will be used for farming buffalo in partnership with young entrepreneurs and rural farmers.
The company will take guarantee of buying the animals back at a rate profitable for farmers. The company will provide technical skill, medication and vaccination. Currently there are about 3 million buffaloes in Nepal including small calves. Our plan is to increase the number to 10 million where 4 million male buffaloes can be sent for meat production annually. It requires assistance from government mainly for disease control and certification process. Our fund may not be enough for the big campaign that can alleviate the poverty of rural population within few years. Bankers need to assist by providing low interest loan. Our fund can be used as part of equity from the farmers’ side. Local government can support by providing government owned land for growing animal feed.
Our Mission
We will export meat of 5000 animals that is worth USD 1.5 billion annually. Make the export of buff meat possible despite many hurdles starting from planting animal feed to rearing the buffalo and processing in a world standard slaughterhouse. Transform the deserted and people less villages to a vibrant, green, eco-friendly and livable place. We can stop the migration of 3,00,000 people . We will reduce the trade deficit with China to half of current level.
Additional business entities
Silage producers can benefit by giving us the product. We need to buy a huge quantity of animal feed and pellet. Leather industry can flourish with the undamaged hides collected at a single place. Vaccine suppliers can contact us for mass vaccination. Bankers can get a guaranteed repayment market to provide a bulk loan of agriculture sector with the company as a guarantor.
(A project briefing was issued in Kathmandu during an agreement signing ceremony between Shanghai Zi Yan Food Co. Ltd and Himalayan Food International, Nepal on December 16, 2024.)
