On Wednesday (March 3), Xinjing News reported that after first acquiring part of Shandong’s well-known farming and animal husbandry group Huanshan Group in December 2019, Vanke intends to complete its wholly-owned acquisition around June this year, showing that Vanke is serious about raising pigs and has already entered the role.
According to Xinjing News, the main building of Vanke’s pig farm has been mostly completed, and the plant is expected to be fully completed and the first batch of sows will be put into pen in June and July this year. The pig farm covers an area of 2,400 mu, and the project is expected to slaughter 500,000 pigs after completion. In Qingdao Huayu Breeding Co., Ltd, which is directly appointed by Vanke as the farm manager, the first phase of the project has already slaughtered pigs, with an annual slaughter of about 9,600 pigs.
In March 2018, Yu Liang, chairman of Vanke’s board of directors, said at Vanke’s 2017 annual results presentation that “real estate companies have reached a Time when they must make changes, and real estate companies need to see themselves as manufacturing and service industries, and make money by working with their hands, and stop trying to make money by rising real estate prices.”
In September 2018, Yu Liang said that all actions are focused on ensuring that Vanke lives.
In December 2019, Vanke, which shouted to “live”, set up Zhuhai Qinshan Jiaye Agricultural Development Co Ltd (Zhuhai Qinshan) and took a 21.25% stake in Shandong Huanshan Group for the first time through Zhuhai Qinshan.
According to public information, Huanshan Group was established in 2004, and is a well-known agricultural and animal husbandry group in Shandong. Starting from the Food end, Huanshan Group invests and operates the food business, pig business, egg and poultry business and feed business as the main lines, and agriculture, logistics, training and consulting and integrated management as the auxiliary agriculture and animal husbandry food industry chain. During the years of development, Huanshan Group has formed a mature “company + Family farm” farming management model, with unified supply of seedlings, materials, drugs, technical services, production management and buy-back.
In March 2020, Vanke set up the Food Business Unit (BU), laying out three major fields: pig breeding, vegetable cultivation and corporate catering. According to the information on Vanke’s official website, the chief partner of the business unit is Tan Huajie.
In May 2020, Vanke published recruitment information on the recruitment App “Wanshoujun”, recruiting a number of social recruitment positions such as pig farm expansion manager, general manager of colony-based pig farms, professional manager of pig farm pre-settlement, pig farm development and construction specialist, and pig farm veterinarian. All the above positions require bachelor degree or above and minimum 2 years working experience.
After releasing the recruitment information, Vanke launched another M&A. On July 30, 2020, Vanke wholly acquired “Lijin Huayu Pig Farming Co.
Public information shows that in addition to Vanke, Vanda, Evergrande, Cinnamon Park, Yuexiu Group and other real estate companies have been rumored to raise pigs. This still seems to be the tip of the iceberg, last November, Liu Yonghao, chairman of the New Hope Group, said publicly at the China Livestock Industry High Quality Development Forum that “there have been more than 1,000 real estate companies switching to pig farming nationwide”.
Netease “Weiyang pig” sold for “sky-high price”
According to Radar Finance on March 5, Vanke is not the first large enterprise to test the waters of pig farming. Before Vanke, Netease Ding Lei’s pork feast has long been famous through the Wuzhen Internet Conference.
On the evening of November 21, 2014, Ding Lei of Netease, Zhang Chaoyang of Sohu, Robin Li of Baidu and Tian Suning of AsiaInfo sat around a slightly outdated dining table at an inn in Wuzhen, where Ding Lei’s “pork feast” was laid out.
Netease Ding Lei declared in 2009 that cross-border pig farming. According to the article “The Difficult Ding Family Pigs”, Netease’s agricultural division had only a dozen people and raised more than 400 pigs in four years, and the first 100 pigs were called “taste central pigs” after they were released.
In November 2016, Netease “taste central pig” officially listed. Taking advantage of the “Black Friday” Netease Kaola promotion, three “Dingjia pigs” were sold for 110,000 yuan, 160,000 yuan and 277,000 yuan, respectively.
Since then, Netease Taste Central has announced the completion of a 160 million yuan Series A financing round with strategic investments from Meituan, Innovation Works and Jingdong, and the construction of ecological pig farms in Zhejiang and Jiangxi provinces.
According to media reports, the first phase of Netease Taste Central’s Shaoxing project is scheduled to be completed by the end of 2021, with an annual output of 100,000 pigs after it is put into operation, and the total production capacity of the project will reach 500,000 pigs per year after all three phases are put into operation.
Ali, Jingdong and huawei entered the technology pig farming
In 2018, African swine fever caused pork prices to soar, and two large Internet companies, Ali and Jingdong, also entered into pig farming, in the form of technical cooperation.
On February 6, 2018, Ali cloud announced cooperation with Sichuan Special Drive Group and Dekang Group, and the three parties will conduct targeted training and research on Ali cloud ET brain to fully realize AI pig farming. According to media reports, Ali Cloud ET Brain increased the productivity of sows by 3 heads and reduced the dead amoy rate by about 3%.
Subsequently, Jingdong established Jingdong Farming and Animal Husbandry and Jingdong Agricultural Research Institute on November 20, 2018, claiming to use AI technology to promote the upgrade of pig farming.
It is reported that Jingdong’s intelligent pig farming can help large and medium-sized farming enterprises reduce labor costs by more than 30%, save feed by 8-10%, and shorten the slaughter time by 5-8 days. According to incomplete statistics, if the entire Chinese farming industry applies this solution, it can reduce industry costs by at least 50 billion yuan per year.
Recently, Huawei also announced its entry into pig farming industry. On February 9 this year, Huawei machine vision field president Duan Aiguo announced in the micro headlines, Huawei machine vision launched intelligent pig farming solutions, welcome partners and customers in need to contact. According to its introduction, Huawei machine vision will help pig enterprises to intelligent, digital and unmanned transformation through “intelligent native end cloud synergy Huawei cloud industry video cloud services”.
Radar Finance quoted Guo Yuxuan, a researcher at the Beijing Research Institute of Economics, as saying that China, as the world’s top pork consumer, has a huge pork market and pig farming can bring extremely high and stable cash flow.
However, some industry players also said that the empowerment of technology for the pig farming industry is yet to be tested by time.
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