ANIMAL WELFARE CONSIDERATIONS IN FUNDING

LIVESTOCK DEVELOPMENT PROJECTS

ROBERT JOHN HATTON

CHIEF AGRIBUSINESS SPECIALIST
INTERNATIONAL FINANCE
CORPORATION
20 NOVEMBER 2016
IFC: A MEMBER OF THE WORLD BANK GROUP

IBRD IDA IFC MIGA ICSID

International International International Multilateral International
Bank for Development Finance Investment Centre for
Reconstruction Corporation Guarantee Settlement of
Association
and
Agency Investment
Development
Disputes

Loans to Interest-free Guarantees of

middle-income loans and Solutions foreign direct Conciliation
and credit- grants to in investment’s and arbitration
worthy low- governments private non-commercial of investment
income country of poorest sector risks disputes
governments countries development

1
 IFC’s Global Reach

• 104 regional offices present in

98 countries worldwide
• 3,757 staff (59% are based
outside Washington DC)
2
 Over US$200 billion Invested in Emerging Markets since 1956
Overview (FY 15) Portfolio (Total $52 billion at June 2016)
BY REGION
Shareholders ▪ 184 member countries

S&P &Moody’s
▪ AAA/Aaa
rating

Total Assets ▪ US$87.5 billion

Portfolio ▪ US$52 billion

Committed in ▪ US$18.8 billion own

account BY SECTOR
FY16
▪ US$7.7 billion mobilized

# of Projects in
▪ 2,033 projects
Portfolio

# of countries in
▪ 83 countries
Portfolio

Largest development institution focused

exclusively on the private sector in developing
countries

3 3
 Agribusiness: An IFC Strategic Priority Sector
Agribusiness Strategic Action Plan (ASAP)
Three Agribusiness Strategic Pillars:

Enhance Food Security:

focus on productivity,
efficiency, waste reduction
and income enhancement

Promote Inclusive Economic

Development:
focus on small farmers,
women, and risk
management

Make Environmental & Social

Sustainability a business
driver (e.g. irrigation,
precision farming)

4 4
Six Sectoral Themes Drive Our Agribusiness Agenda

Water Small Farmers

Inclusive supply chains
Global Irrigation Program
Global Food Security
Inputs (e.g. seeds)
Program (GAFSP)

Land Urbanization
Princ. of Resp. Agri Investment Safe food processing &
Africa Hybrid Investments efficient supply chains

Productive Land: Ukraine/Brazil Food affordability

Animal Protein Nutrition &

Mitigate impacts of full value Innovation
chain (e.g., feed efficiency) Food ingredients
Seafood Fortified foods and drinks

5
 …Resulting in a Well-Diversified Portfolio
(US$5.6 Billion at FYE 2016)
REGIONAL BREAKDOWN SUB-SECTORAL BREAKDOWN

6 6
 Standard Setting:
IFC Performance Standards

PS1: Assessment and PS2: Labor and Working PS3: Resource Efficiency and PS4: Community Health,
Management of E&S Conditions Pollution Prevention Safety and Security
Risks and Impacts

PS5: Land Acquisition and PS6: Biodiversity Conservation PS7: Indigenous Peoples PS8: Cultural Heritage
Involuntary Resettlement and Sustainable Management
of Living Natural Resources

7
IFC GLOBAL LIVESTOCK PORTFOLIO

• Trade in live animals and animal products represents 40% of

global value of agricultural output
• In developing countries animal production is one third of gross
value of agricultural production
• Supports livelihood of over 1.3billion people
• Demand spike with rising GDP and growing middle class
• IFC portfolio over US$900mn – pigs, poultry, beef, dairy and
aquaculture
APPROACH TO CLIENTS

• PROFITABILITY
 Animal Health, Nutrition, Housing, Biosecurity
• MARKET ACCESS
 Customer specifications, Legislative requirements
• EDUCATION
 Selling the concept, Manuals, Checklists
• COMPLIANCE
 Audit documentation
HACCP – VENTILATION AIR QUALITY IN BROILERS
 Contact Information

ROBERT JOHN HATTON

Head Industry Specialist
Singapore Office
Email: rhatton@ifc.org
Phone: + 1 202 203 0536

For more information

IFC Agribusiness: www.ifc.org/agribusiness

12
Annex

October 2016
 INVESTMENT
 Project and corporate financing
Loans
 On-lending through intermediary institutions

 Direct equity investments

Equity
 Private equity funds

Trade and
Guarantee of trade-related payment obligations of
Commodity
approved financial institutions
Finance

 Capital mobilization to serve developmental needs

Syndications
 Over 60 co-financiers: banks, funds, DFIs

Derivative and
Derivative products to hedge interest rate, currency, or
Structured
commodity-price exposures of IFC clients
Finance

Blended Finance Augmenting IFC resources with donor funds

14
 ADVICE
 Improving productivity and standards
 Strengthening the performance of SMEs in their networks
 Advancing gender equality
To Companies
 Addressing energy, environmental, social, governance
challenges
 Helping build new markets and improve competitiveness

 Strengthening risk management, diversifying product

To Financial offerings
Institutions and  Promoting universal access to finance
Funds  Developing the private equity industry

 Designing and implementing public-private partnerships in

infrastructure and basic public services
 Improving the business environment via reforms that
To Governments promote investment, spur growth, and create jobs
 Addressing water scarcity by convening multi-stakeholder
platforms (2030 Water Resources Group)

15
 WHAT CLIENTS VALUE ABOUT IFC
• Results of IFC Client Survey

Financing Ability to
Long-Term Not Readily Stamp of Mobilize
Partner Role Available Approval Additional
Elsewhere Funds

Advice based
Affiliation with
on Global Worldwide
the World Pricing
Expertise and Presence
Bank Group
Knowledge

16