Yunnan Shennong, Leshan Giantstar, and PIC have partnered to build a Genetic Nucleus Farm in Qiannan, Guizhou Province, China. This facility combines advanced global genetics with localized breeding to support the rapid growth of China’s two leading pig producers. The joint venture leverages expertise from all partners to produce high-performance breeding stock, setting a new standard in efficiency, sustainability, and innovation for the swine industry. The farm exemplifies the future of integrated genetic solutions in swine production by addressing both local market needs and global benchmarks.
Yunnan Shennong, Leshan Giantstar, and PIC have entered a groundbreaking partnership to establish a genetic nucleus farm in Qiannan, Guizhou Province, China. By combining cutting-edge global genetics with localized breeding techniques, this venture sets a new standard in swine production while supporting the rapid growth of China’s leading pig producers.
Supporting China’s Swine Industry
The joint venture marks a significant collaboration between Shennong and Giantstar—two of China’s most dynamic publicly listed pig producers—and PIC, the world’s largest swine genetics company. This facility underscores the partners’ shared ambition: achieving global leadership through efficiency, innovation, and quality.
Allen Shu (third from right), Managing Editor of AgriPost.CN, witnessed the establishment of the Qiannan JV.
In 2023, Shennong and Giantstar saw record-breaking sales, reporting 64% and 75% annual increases, respectively. Their combined sales exceeded 4 million hogs, with production costs consistently leading the industry at under CNY 14 (USD 1.92) per kilogram. The companies are poised for further growth, with Shennong targeting 3.2–3.5 million hogs in 2024 and Giantstar aiming for 4.5 million, eventually scaling to 10 million annually by 2029.
A Facility Designed for Excellence
To support this growth, the Qiannan nucleus farm was established under a unique tripartite ownership model: PIC holds 40%, Shennong 34%, and Giantstar 26%. Originally operated solely by PIC, the facility has expanded its focus to leverage collective expertise.
A bird view of the Qiannan nucleus farm.
Launched in late 2022, the farm houses 2,400 breeding sows and integrates PIC’s globally renowned genetics with advanced bio-breeding technologies, enabling it to produce up to 10,000 elite replacement gilts and 3,000 elite boars annually. While Shennong and Giantstar utilize the gilts for internal growth, PIC markets surplus boars to external clients, further enhancing its global footprint.
Innovation Through Collaboration
Xu Zhiyong, PIC China’s strategic key account director and chairman of the joint venture, highlighted the innovative structure of the partnership. “By pooling resources and expertise, we have reduced the opportunity costs of setting up individual facilities while enhancing our competitive edge,” Xu said.
According to him, the farm combines global genetic standards with traits tailored to China’s market, supported by cutting-edge research into localized breeding adaptations. This dual focus ensures superior performance while meeting the specific needs of Chinese producers.
Scaling Excellence for Global Impact
For Shennong and Giantstar, this partnership extends beyond securing genetic resources—it’s an investment in their ambition to become global benchmarks in swine production. Dun Chan, a Vice President of Shennong, emphasized the importance of sustainability and high-quality growth, stating, “Access to superior genetics is key to maintaining cost leadership and product excellence.”
Ren Jianming, head of Giantstar’s Pig Business Division, added that enhancing efficiency and reducing costs have become central themes in China’s pig farming industry. While Giantstar has achieved notable success in the past, the rapid advancements across the sector require the company to swiftly integrate top-tier resources and best practices into daily operations to maintain its competitive edge.
Zhang Shuai, General Manager of the Qiannan JV, highlighted the integration of distinct corporate cultures among the stakeholders as pivotal to the farm’s success. In the long term, he said, the focus remains on operational sustainability, high health standards, and superior product quality. This includes maintaining operational break-even, enhancing biosecurity measures in production, and striving for superior product benchmarks.
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