Country Bird

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Country Bird Holdings Limited (“CBH” or the “Company” or the “Group”) is a Johannesburg Stock Exchange listed agricultural group comprising poultry and stock feed business operations in South Africa trading as Supreme Poultry and Nutri Feeds; and poultry breeding and stock feed operations in the southern Africa region trading as Ross Africa and Master Farmer. Supreme Poultry operations comprise breeder farms, hatcheries, a wide base of contract growers – seventy six (76) at the time of appraisal, and processing plants in Bloemfontein, Tigane and Mafikeng. Supreme slaughters a combined total average of six million chickens per month at its three processing plants. The bulk of Supreme’s products are marketed and sold throughout South Africa under the Supreme brand whilst 4% is exported to neighboring countries. Since its inception six years ago, Supreme has grown to become the third largest poultry producer and the country’s largest poultry exporter. It is also South Africa’s second largest supplier to the quick service restaurants (QSR) and food service markets, notably KFC, Nandos, Dorego’s and Hungry Lion.Nutri Feeds comprises feed mills in Viljoenskroon (with a capacity of 24 000 tons per month), Bloemfontein (with a capacity of 6 000 tons per month) and Mafikeng (capacity of 8 000 tons per month). Nutri Feeds produces a complete range of animal feed products for chickens, pigs, , game, dairy cattle, beef cattle, sheep and animal licks. These products are distributed through 280 outlets in South Africa and exported to Botswana, Lesotho and Namibia.CBH owns 60% of Ross Breeders Botswana (Pty) Limited via its wholly owned Ross Africa subsidiary. Ross Breeders Botswana comprises three divisions, namely; Master Farmer - manufacture and distribution of animal feed (currently producing 7 000 tons per month); Ross Breeders - production and distribution of hatching eggs, and day-old chicks (DOCs); and Oistins - rearing of broiler chickens (at six own sites and two contract growers’ sites), and processing and distribution of processed chicken. The Oistins chicken abattoir currently processes 187 000 chickens per month. Ross Breeders Zambia (Pty) Limited is a wholly owned subsidiary of CBH (also via its Ross Africa subsidiary) which comprises a grandparent and parent breeding operation, a hatchery, and a feed mill with a monthly capacity of 5 000 tons per month. The proposed IFC’s investment of approximately $25m will support CBH’s expansion project (the “Project”) in Botswana, Zambia and South Africa, over the next three years. The Project entails: (i) increasing DOC production from 12.8m to 14.6m per annum at Ramaphatle Breeder farm in Thamaga, Botswana; (ii) increasing DOC production from 12.4m to 26.8m per annum at Chainda farm, and increasing feed mill capacity from 60 000 to 108 000 tons per annum, in Zambia; (iii) increasing processing capacity from 28.8m to 41.4m chickens per annum at Mafikeng plant, and installing 2 soya Deactivation plants at two of CBH’s feed mills, in South Africa.While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards:PS1: Assessment and Management of Environmental and Social Risks and Impacts PS2: Labor and Working ConditionsPS3: Resource Efficiency and Pollution PreventionPS4: Community Health, Safety, and SecurityPS 5: Land Acquisition and Involuntary Resettlement does not apply to the current investment as none of CBH’s activities have triggered involuntary resettlement and/or economic displacement, and land acquisition/lease for CBH’s operations from private owners and government entities is done on a willing seller-willing buyer principle. PS6: Biodiversity Conservation and Sustainable Natural Resources Management does not apply because CBH’s operations are located within existing consolidated agricultural or commercial/industrial zoned areas and no conversion of natural/critical habitats will take place. There is no presence of Indigenous People – PS7 - (as defined in the IFC Performance Standards) and no Cultural Heritage – PS8 – issues have been identified from the documents reviewed and site visits.