March 26, 2024

 

Zhongxin and SciGene: Independent subsidiaries take Chinese pig breeding to new heights

 
An eFeedLink Exclusive
 
 

 

China is the world's largest pig-producing country and possesses a huge breeder pig market.

 

The country's annual demand for commercial sow amounts to approximately 12.3 million head, with the value of this market at approximately ¥18.45 billion (US$2.6 billion). The demand for purebred sow stands at approximately 1.23 million heads, with a total market value of approximately ¥5.54 billion (US$769 million). Overall, the value of the breeder pig market is approximately ¥24 billion (US$3.4 billion).

 

Within the market, major pig producers have found owning pig breeding units to be a strategic imperative. These units can be delegated to the control of subsidiary companies of large animal husbandry groups — these subsidiaries include Zhongxin Breeding and SciGene which can operate independently from their parent companies.

 

Zhongxin Breeding was set up in 1998 by Wen's Group and has been focusing on pig breeding and reproduction for 23 years. In 2021, Zhongxin Breeding became independent from its parent organisation, accumulating over 20 years of breeding and research experience and leading the industry in terms of scale and technological development.

 

Zhongxin Breeding has seven branches in several parts of China, along with 32 pig breeding bases, six regional boar stations, 75,000 sows, 6,000 boars and 23,500 'core' breeders. It can supply up to 450,000 breeder pigs annually.

 

As for SciGene, its sales of breeding pigs in 2022 reached 220,000, out of which 70 were exported. The company has two genetic core farms in Chizhou, Anhui and Guigang, Guangxi, with a total of 4,500 core breeders. It also invested in building a 3,000-head core breeder farm in Shangzhi, Heilongjiang.

 

Meanwhile, the company built seven breeder pig production bases (including four core production farms and three reproduction farms) in Anhui, Guangxi, Hubei, Shanxi and Heilongjiang, with a total inventory of over 44,000 breeder pigs and 11 boar stations which hold a combined more than 6,000 boars.

 

In the past two years, even as pig prices stayed low, the profit margin of the breeder pig industry was otherwise as high as 55%. This alone is enough to attract several pig breeding companies and investors to pour capital into the sector, making it a hot spot for capital investments.

 

With those market conditions, Zhongxin Breeding and SciGene could enjoy further opportunities to flourish in their respective sector.

 

- David Lin, eFeedLink

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