The Department of Industry has approved a Foreign Direct Investment (FDI) proposal worth Rs 20 billion from Chengdu Jian Co. Ltd., a Chinese company, for establishing a modern buffalo meat export facility in Nepal. The investment will fund the construction of a state-of-the-art slaughterhouse and a buffalo-rearing center, with meat exports targeted at the Chinese market.
According to Rajeshwor Gyawali, Director General of the Department of Industry, the investment was approved on Thursday after the submission of all required documents. “The proposal aimed at exporting buffalo meat to China was submitted with complete documentation yesterday, and I approved the FDI today,” Gyawali confirmed.
Joint Venture to Set Up a Slaughterhouse and Buffalo Farming Facility
Himalayan Food International of Nepal and China’s Shanghai Ziyan Food Company Limited signed a Memorandum of Understanding (MoU) last December. According to the agreement, Himalayan Food International will export 2.7 million metric tonnes of processed meat annually during the first phase.
Established in 2011, Himalayan Food International specializes in meat exports, while Shanghai Ziyan Food Company operates more than 6,000 outlets across China.
Dr. Naveen Kumar Sharma, Chairperson of Himalayan Food International Pvt. Ltd., a project partner, said that the investment aims to promote buffalo farming and establish a fully automated animal slaughterhouse. The project will be executed as a joint venture between companies from Nepal and China. Of the total Rs 20 billion investment, Rs 10 billion will be brought in during the first phase. “We have received the industry registration certificate,” Sharma said, adding, “Company registration will take about a week, and the investment inflow will follow within another week.”
Construction to Begin from mid-August
Construction work is scheduled to begin on Bhadra 1 (August 17), Dr. Sharma informed. The facility will be located in Ward No. 4 of Marin Kalika Rural Municipality, Sindhuli, where 50 bighas of land have been secured for the industry and an additional 35 bighas for buffalo farming. The land will be purchased using the approved FDI.
“Approval from the Chinese side has also been obtained,” Sharma noted. “Design work is complete and the Environmental Impact Assessment process is underway. We expect to complete construction by next Bhadra.”
Following this initial Rs 20 billion investment, an additional Rs 7 billion is planned for the second phase. Himalayan Food International will be responsible for exporting the processed meat from Nepal.
Dr. Sharma emphasized that only buffaloes raised in disease-free zones for the last three months will be processed. Identified disease-free areas include regions stretching from Ilam to Marin and Hariharpur in Sindhuli, and Bakaiya and Bagmati rural municipalities in Makwanpur. He further urged the government to prioritize the project, stating that this level of investment in agriculture is unprecedented in Nepal’s history.
This project is a result of a bilateral protocol signed during former Prime Minister KP Sharma Oli’s visit to China in 2024, allowing the export of thermally processed buffalo meat from Nepal to China. The new venture follows the terms of that agreement.
