A Boost to Industry, Exports and Hope

A large-scale buffalo meat processing industry is set to begin operations within the next two years in Marin Rural Municipality–4, Sindhuli, with an investment of Rs 20 billion from China. The project, approved by the Department of Industries (DoI) on July 20, is being developed by Chengdu Jian Food Company from China’s Sichuan Province as per the agreement reached between Nepal and China during Prime Minister KP Sharma Oli’s visit to China in December last year. According to the company, the plant will produce 200,000 metric tons of meat and 55,000 metric tons of by-products including hides, internal organs and heads annually. The facility is expected to create jobs for 5,156 people and export around Rs 150 billion worth of meat to China each year. The company has proposed acquiring 100 bighas of land in Sindhuli, with construction expected to finish in 10 to 20 months and production to begin within two years. While some of the meat will be sold domestically, exports will be routed through the Kerung border point as China is expected to be the main market. This development marks a significant milestone in Nepal’s industrial and investment landscape. The registration and operation of such a large foreign direct investment project is a rare and noteworthy event. For a country striving to diversify its economy and generate employment, the establishment of large-scale industries like this one carries substantial meaning.

While some may object to the idea of a meat production company on cultural or ethical grounds, it reflects the practical realities of a diverse society. People consume meat and it is natural to produce and supply what is in demand. Every consumable product has its own supply chain, market and production ecosystem. For Nepal—strategically located between two economic giants, India and China—projects like this highlight the untapped potential of regional trade and production. Meeting the meat demand of a populous country like China requires massive production capacity and logistical readiness. The returns from such effort, labor and investment can be significant. Nepal’s recent export performance also offers a promising sign. In the last Fiscal Year (FY) 2024/25, the country exported soybean oil worth Rs 106.79 billion to India and Australia. Even though the raw materials were imported, processing them domestically for export demonstrated what is possible with the right infrastructure and initiative. If such industries were based on locally sourced raw materials, energy, manpower and management, the benefits would reach even further—generating employment, reducing out-migration and revitalizing rural economies. To sustainably address Nepal’s growing trade deficit—which now exceeds Rs 1.5 trillion—the country must invest in industries that produce unique exportable goods for nearby markets. If India and China were to import just a few Nepali products regularly, Nepal’s economic trajectory could shift significantly.

The world today is interconnected and no country can thrive in isolation. In recent years, Nepal has become heavily dependent on imports of petroleum, food grains and fruits. But there are now viable alternatives—renewable energy to offset petroleum reliance and domestic agriculture to replace costly food imports. Large industries like this upcoming meat processing facility could play a crucial role in transforming Nepal’s economic outlook. Producing buffalo meat at this scale will initially require the purchase of around 500 animals daily, rising to as many as 5,000 as operations expand. This could be a game-changer for rural farmers, creating new incentives for livestock farming and generating both direct and indirect benefits across the agricultural sector. In a country where progress has often stalled due to inaction, such bold initiatives are essential. If we never begin, we will never move forward. Prime Minister Oli deserves credit for helping pave the way for industrial development and for facilitating large-scale foreign direct investment. To keep hope alive and to lay the foundation for long-term economic transformation, such efforts must continue—consistently, strategically and at scale.