December 20, 2021
ADB, Tianzow sign loan to improve pig breeding stock production in China
The Asian Development Bank (ADB) and Chongqing Tianzow Animal Husbandry Technology Limited have signed loan agreements of up to $30 million in equivalent yuan to scale up high-quality pig breeding stock volumes and provide income for smallholder farmers in China.
Chongqing Tianzow Animal Husbandry Technology Limited is a wholly owned subsidiary of Tianzow, one of the largest pig breeding stock multiplier companies in the country.
The funding comprises a direct ADB loan of up to $15 million and a syndicated loan of up to $15 million from commercial banks, with ADB as a lender of record. It will be used to finance the construction and first-year operation of a modern pig breeding stock farm in Chongqing municipality, which will produce up to 170,000 breeding and commercial pigs per year. The project will help secure the income of 120 smallholder farmers through a contract farming approach.
Pork is the most important source of protein for consumers in China. There is a need to rebuild pig breeding stock with strong genetics after African swine fever (ASF) halved the local pig population in 2019–2020.
Half of China's pig producers are small farms that have low efficiency and little capacity to invest in improved pig genetics, environmentally responsible animal waste treatment and advanced biosecurity management. Biosecurity management is critical not only for the prevention of epizootics like ASF, but also for the benefit of human health to prevent zoonoses and to minimise the use of antibiotics and help contain antimicrobial resistance.
"Financing from ADB and international commercial banks will help expand Tianzow's investments in genetics, biosecurity and waste management that are needed to rebuild the pig industry and support smallholder farmers," said ADB private sector operations investment specialist Linda Wang. "ADB will also work with Tianzow to implement agreed action plans on environmental and social standards, gender inclusion, corporate governance and animal welfare following international good practices. This model of sustainable, inclusive and biosecure pig production can be replicated in other ADB developing member countries."
The project also aims to reduce animal waste-related pollution by supporting Tianzow's efforts to convert pig manure to organic fertilisers and distribute them to local farmers. Biogas generated from treated pig urine will replace liquefied petroleum gas as energy source for employees at farms. The project is expected to reduce 1,500 tonnes of carbon dioxide emission annually.
Tianzow operates 47 pig farms in 16 provinces across China. It implements biosecurity management best practices in its farms, resulting in less herd loss than the industry average. It is one of the first companies in the country to partner with leading international genetic companies to develop a strong genetic pool for breeding stock.