The International Finance Corp. (IFC) of the World Bank Group, which has as of March 2015 invested $3.3 billion along the entire global agriculture value chain, has made its first investment in Nepal, investing $3.8 million in Probiotic Industries, a poultry feed manufacturer that established the first pelleted feed mill in the country.
The investment comes at a critical time for the country as it resolves to rebuild its industries after a devastating earthquake hit the nation weeks ago.
“IFC remains committed to supporting Nepal as it rebuilds its agribusiness sector that employs 70 percent of the workforce,” said Vivek Pathak, IFC’s Director for Asia-Pacific. “This investment will help create jobs, both at the plant and farm level, and have a direct positive impact on farmers’ incomes.”
The capital gained from the deal will be used by Probiotic to fund the capacity to produce high-margin, value added products such as soy flour nuggets and refined oil. It will also enable the company to expand its procurement and distribution networks. Currently the company distributes its products throughout 70 districts of Nepal through 100 registered dealers and 500 sub-dealers. This financing will support the expansion of the company’s sourcing network to 8,000 farmers and suppliers across the country, lifting rural incomes and ensuring a higher level of food safety for the nation.
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