ADB, Chongqing Tianzow sign $30m loan to scale up pig breeding stock volumes
Chongqing Tianzow Animal Husbandry Technology Limited is a wholly owned subsidiary of Tianzow, one of the largest pig breeding stock multiplier companies in the PRC.
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 the People's Republic of China (PRC).
Chongqing Tianzow Animal Husbandry Technology Limited is a wholly-owned subsidiary of Tianzow, one of the largest pig breeding stock multiplier companies in the PRC.
The funding comprises a direct ADB loan of up to $15 million (in equivalent yuan) and a syndicated loan of up to $15 million (in equivalent yuan) 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 the PRC. There is a need to rebuild pig breeding stock with strong genetics after the African swine fever (ASF) halved the pig population in 2019–2020. Half of the country'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 minimize 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 fertilizers and distribute them to local farmers. Biogas generated from treated pig urine will replace liquefied petroleum gas as an energy source for employees at farms. The project is expected to reduce 1,500 tons of carbon dioxide emission annually.
Tianzow operates 47 pig farms in 16 provinces across the PRC. 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 PRC to partner with leading international genetic companies to develop a strong genetic pool for breeding stock.