KATHMANDU, July 29: A meat industry focusing on buffalo meat is set to come into operation within the next two years in Marin Rural Municipality in Sindhuli, with an investment of Rs 20 billion from China.
Pashupati Babu Puri, Information Officer at the Department of Industry (DoI), said the company is being established to produce and sell buffalo meat. It received approval from the DoI on July 20.
Prime Minister KP Sharma Oli also shared information about the project through social media on Monday. Posting a related image on Facebook, he wrote: “According to the agreement made during my visit to China in December, Chengdu Jian Food Company from China’s Sichuan Province has received approval from the Department of Industry to establish a buffalo meat processing industry in Marin Rural Municipality–4, Sindhuli, with a direct foreign investment of Rs 20 billion.”
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The DoI reports that the Chinese company will provide employment to 5,156 people and export approximately Rs 150 billion worth of meat to China annually. PM Oli noted that the industry will play a vital role in exports and job creation.
Puri mentioned that the company plans to complete construction within 10 to 20 months and begin production within two years. It has proposed acquiring 100 bighas of land in Sindhuli to set up the industry, a request that must be approved by the Cabinet. He added that the facility will produce 200,000 metric tons of meat and 55,000 metric tons of by-products—such as hides, internal organs, and heads—every year.
The DoI further noted that initial operations will involve the purchase of 500 buffaloes per day. As production scales up, this number is expected to rise to 5,000 daily. These animals will be sourced from different districts across Nepal. The project is expected to generate significant indirect economic benefits for farmers. While the meat will be sold both in Nepal and China, demand is projected to be higher in China. Exports will be routed through the Kerung border point.
Puri stated that the DoI has categorized the project as an agro- and forest-based industry. The entire investment will be funded by the Chinese company. The project is being seen as a 'game changer' for Nepal’s export potential and employment generation.
Despite ample buffalo production in Nepal, large-scale meat exports have not been realized, with only small volumes currently sent abroad.
One major hurdle has been the lack of standard packaging, which has hindered effective exports. If the Chinese company proceeds as planned, buffalo meat will be exported in a more organized and scientific manner.
If operations begin in Sindhuli, Puri said the company will invest Rs 6 billion in the first 12 months, increase that to Rs 10 billion within 27 months, and reach a total investment of Rs 14 billion within 36 months of establishment.
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