China-backed Rs 20 bn buffalo meat factory approved in Sindhuli: Eyes Rs 270 billion annual export to China

KATHMANDU: In a landmark move for Nepal’s agri-food and export industry, the Government of Nepal has formally approved a direct foreign investment (FDI) of Rs 20 billion for a massive thermally processed cooked buffalo meat factory to be built in Sindhuli district, in partnership with a Chinese company. This will be the largest-ever foreign investment in Nepal’s food industry.

The Department of Industry gave the green light to the investment on July 24, confirming collaboration between Himalayan Food International Pvt. Ltd. and Chengdu Jian Food Ltd., a subsidiary of Shanghai Jian Public Co. Ltd. — a major Chinese food processor with over 6,000 retail outlets in China.

Project Highlights:
Total Project Cost: Rs 27.64 billion (~USD 200 million)

Foreign Investment: Rs 20 billion by Chengdu Jian Food Ltd.

Nepali Contribution: Rs 7 billion by Himalayan Food International Pvt. Ltd.

Location: Sahan, Marin Rural Municipality, Ward No. 4, Sindhuli District

Land Required: 100 bighas (including 50 bighas already secured)

Construction Start: Expected by October 2025

Operational Timeline: Full commercial export targeted by 2026-end

Construction Duration: 10 to 20 months

Jobs Created: Over 7,000 direct, including 5,156 permanent jobs

What Will Be Produced?

The facility aims to export cooked and processed buffalo meat to China, meeting strict Chinese sanitary and phytosanitary standards. Once fully operational, it will:

-Process and export up to 500 metric tons per day in the initial phase

-Expand capacity to 900 metric tons/day, valued at Rs 270 billion annually

-Export over 200,000 metric tons of processed meat annually

-Also produce 55,000 metric tons of by-products (bones, hides, organs, etc.)

All processed meat will be heat-treated at 70°C to comply with import protocols signed between Nepal and China in 2023. The meat will be exported through Kerung border, routed from Sindhuli to Kathmandu.

Employment and Infrastructure

The factory will house over 7,000 workers, with housing facilities inside the plant premises to prevent potential disease transmission. An additional 40 bighas of land will be used for grass farming to feed buffaloes and for worker housing.

Plans are also underway for an airport in Marin-7 (Bahrabise) to support logistics, with feasibility studies already started. The physical infrastructure design of the plant is completed.

Health Protocols and Chinese Requirements

China has laid out strict 15-page standards for buffalo meat imports, requiring:

-Cattle to be disease-free, less than 30 months old

-Raised in certified clean zones free of Lumpy Skin Disease and Foot and Mouth Disease

-Processed meat to meet high food safety, hygiene, and traceability standards

Nepal’s Department of Livestock Services has already designated districts like Ilam, Sindhuli, and Makwanpur as disease-free zones. A buffalo-rearing campaign has begun in 30 municipalities across the country to meet demand.

Strategic National Impact

This meat processing project has been labeled a “Game-Changer” by the government. It aligns with national objectives outlined in the 2081/82 budget to diversify agricultural exports, reduce trade deficit, and boost rural employment.

Nepal currently produces around 116,503 metric tons of buffalo meat annually. However, total demand in China — now met largely by India and Vietnam — remains significantly higher.

Land and Regulatory Status

-50 bighas of land already under transfer

-Additional land under process of finalization

-Requires approval for land exceeding ceiling limit, currently under discussion with the government

-Environmental Impact Assessment (EIA) and company registration ongoing

FDI tranches of Rs 6 billion (within 12 months), Rs 10 billion (within 27 months), and Rs 4 billion (within 36 months) to be invested as per the DoI permit

Road to Agreement

MoU signed between Himalayan Food and Shanghai Jian Food on Poush 1, 2081

The project is backed by diplomatic agreements signed during the official visits to China by Prime Minister KP Sharma Oli in December 2024 and by then-Prime Minister Pushpa Kamal Dahal in 2023.

-Nepal–China protocol signed in 2081 for official export of thermally processed buffalo meat

-Endorsed by Nepal’s Cabinet in Asar 20, 2081

Dr. Ramanandan Tiwari, Director General of the Department of Livestock Services, emphasized the strategic importance, “China’s market access for buffalo meat is a historic opportunity for Nepal. This could help cut our agricultural trade deficit and create a sustainable livestock export ecosystem.”

Buffalos in Nepal: By the Numbers

Population: 2.9 million (2021 census)

Declining trend from 3.17 million in 2011

Main production zones: Banke, Saptari, Rupandehi, Kailali, Bara, Sunsari, Kapilvastu

Top producer: Banke, with over 7,500 metric tons annually