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Beijing, China, August 18, 2010
—IFC, a member of the World Bank Group, is taking a $10 million equity stake in Muyuan Foodstuff Company Limited, China’s leading integrated hog-raising company, to help increase production capacity and elevate its food safety standards, while providing a more reliable source of income for nearly 50,000 farmers.
IFC’s investment will support Muyuan, which makes use of environmentally-friendly hog-feeding practices, in doubling its annual production to 1,000,000 hogs, creating new demand for feed from local wheat and corn farmers in China’s eastern central Henan province. The investment will strengthen Muyuan’s financial structure and facilitate its initial public offering in the domestic securities market.
“I am pleased to enter into an investment agreement with IFC since we share IFC’s commitment to sustainable development and highest environmental and social business standards,” said Qin Yinglin, Chairman of Muyuan Food. “IFC’s support will help us increase the supply of high quality and safe pork to consumers while helping to preserve the environment.”
Muyuan's biogas facility is the first Clean Development Mechanism project of its kind validated by United Nations in China's hog-raising industry, which utilizes hog manure to generate electricity.
Jyrki Koskelo, IFC Vice President for Global Industries, said, “IFC is pleased to support Muyuan, a company with a strong focus on a cleaner environment and sustainable development in food industry. This partnership also will help promote rural development by supporting farmers in one of the frontier regions, which is a strategic priority for IFC in China.”
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org
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