Contract farming gains momentum as IFC backs local poultry sector

The local poultry sector is seeing a renewed push towards contract farming and sustainable production, with the International Finance Corporation (IFC) backing an expansion by New Anthony’s Farm Group (NAF) that aims to integrate more smallholder farmers into formal supply chains while strengthening the country’s export potential.

The World Bank Group’s private sector arm will invest up to US$10 million in NAF, one of Sri Lanka’s largest integrated poultry producers, to expand production capacity, improve value chain efficiency and strengthen its network of contract farmers and outgrowers.

The investment is expected to benefit at least 200 smallholder farmers, of whom 22 percent are projected to be women and 80 percent low-income earners. 

NAF said smallholders already account for around 40 percent of its production, significantly higher than the national picture where smallholders comprise about 85 percent of poultry farms but contribute less than 30 percent of total supply.

NAF was founded in 1986 as a smallholder enterprise.Describing itself as Sri Lanka’s only fully antibiotic-free poultry producer, is also the country’s first Green Certified poultry producer, the first to obtain Greenhouse Gas Measurement and Verification Certification, and the first company in South Asia and Sub-Saharan Africa authorised to use the Sustainable U.S. Soy label. “New Anthoney’s Farms Group (NAF) is proud to enter its next phase of growth through a partnership with International Finance Corporation. This collaboration represents a paradigm shift for NAF, reinforcing our commitment to world-class governance, transparency, and operational excellence, while upholding the highest standards of social and environmental sustainability. We believe this marks a transformative moment for Sri Lanka’s poultry industry and sets a new benchmark for responsible agribusiness in emerging markets,” Chief Executive Officer Neil Suraweera said.

IFC noted the project supports a broader shift towards more resilient and efficient food production systems that can simultaneously improve domestic food security and expand exports.

“IFC’s investment in a leading agribusiness like NAF will help build a more efficient and resilient poultry sector and support the scale-up of exports. By expanding modern, sustainable, all-natural production.”

According to the IFC, NAF is expected to increase access to fresh products and lower costs, while strengthening food security and creating jobs and opportunities for smallholder farmers across the value chain,” IFC Asia Pacific Regional Industry Director for Manufacturing, Agribusiness and Services Carsten Mueller said.

At full capacity, NAF expects to export 1,936 metric tonnes of poultry annually, equivalent to around 10 percent of its output and a 29 percent increase from 2024 levels. The expansion is projected to generate an additional US$4.95 million in foreign exchange earnings by 2032. 

In 2024, the company accounted for more than 90 percent of Sri Lanka’s poultry meat exports.