Chengtou Jinkun is emerging as a leading force in Shandong province’s swine breeding industry in China, despite challenges like ASF outbreaks and rising production costs. While major players such as New Hope Liuhe and Zhengbang have scaled back operations in the province, Chengtou Jinkun has expanded, focusing on top-tier genetics (New Danish line), optimized nutrition, and robust biosecurity.
Shandong, traditionally a stronghold of China’s pig farming sector, has faced mounting pressures in recent years. The spread of African Swine Fever (ASF) and soaring production costs have driven several major pig producers to scale back or relocate operations to the south. Yet, amidst this adversity, Chengtou Jinkun Agricultural Development Co., Ltd. is charting a different course. By focusing on genetics, nutrition, and biosecurity, the company is establishing itself as a key player in China’s evolving pig industry.
Shandong’s Swine Industry: A Shifting Landscape
Following China’s first ASF outbreak, Shandong’s well-developed pig farming ecosystem attracted significant investment during the 2019-2020 recovery period. However, the region’s high farm density and flat terrain, which lacks natural barriers, accelerated ASF’s spread. As a result, leading companies such as New Hope Liuhe, Zhengbang, and Aonong have reduced their footprint in Shandong, shifting capacity to Guangdong, Fujian, and Jiangxi.
The latest data from the Shandong Provincial Bureau of Statistics shows a 7.0% year-on-year decline in slaughter volume, with 43.34 million pigs processed in 2024. Pork production dropped to 3.56 million metric tons, significantly steeper than the national decline of 3.3% in slaughter volume and 1.5% in pork production.
Hou Lianjie
Amid these challenges, Chengtou Jinkun is bucking the trend. Under the leadership of Chairman Hou Lianjie, the company is pioneering an innovative, sustainable approach to swine breeding, strengthening its position in the province’s transforming industry.
Building a Competitive Edge: The ‘Dual-Negative’ New Danish Breeding System
With more than two decades of industry experience, Hou Lianjie has played a key role in establishing major pig production operations for Zhengbang, Ruidong, and Tech-Bank in Shandong. Her approach to modern pig farming is clear: operational efficiency and cost control are paramount.
In early 2021, Ms.Hou founded Chengtou Jinkun in Feicheng, Tai’an, Shandong province,with backing from the state-owned Feicheng Chengtou Agricultural Development Co., Ltd. The company launched its first grandparent (GP) breeding farm in August 2021, with a 4,800-sow capacity. By December 2022, it was fully operational.
By mid-2024, Chengtou Jinkun had further expanded, adding a second 4,800-head GP farm and a 1,200-head great-grandparent (GGP) farm. This created a 10,000-head breeding system based on the “New Danish” genetic line, cementing the company’s position as a major player in China’s pig genetics sector.
New Danish Genetics: Performance and Market Demand
Sourced from Aonong’s national core breeding facility in Fujian Province, the New Danish genetic line has gained a strong foothold in China. Known for exceptional reproductive performance, the breed has been further optimized for superior carcass quality and economic efficiency, making it highly sought after by pig producers.
According to Zhang Wei, Director of Piglet Sales, Danish-line piglets are the top choice among Shandong’s farmers. Each year, 15 to 20 million piglets are purchased by local producers, and Danish genetics consistently rank as the most preferred option, thanks to their strong adaptability and high efficiency.
Optimized Nutrition for High-Performance Sows
While the New Danish breed offers strong genetic potential, it also has high nutritional demands, particularly due to its prolific reproductive traits. To address this, Chengtou Jinkun has partnered with Cargill, leveraging its expertise in animal nutrition and farm management.
Gu Xiaowei
According to Gu Xiaowei, Head of Cargill Animal Nutrition’s China Swine Feed Division, the company has developed a specialized high-yield sow nutrition program tailored for Chengtou Jinkun’s herd. This includes customized feeding regimes based on European research and Danish farming best practices.
One challenge of high-yield sows is low birth weights and uneven litters. To counter this, Cargill introduced a novel milk replacer, significantly improving piglet survival rates and weaning weights.
Strong Biosecurity: A ‘Dual-Negative’ ASF & PRRS-Free Herd
Operating a high-health-status breeding program in Shandong is no small feat, given the persistent ASF risks. However, Chengtou Jinkun has managed to maintain a “dual-negative” herd—free from both ASF and PRRS.
Wang Shibo
Wang Shibo, Director of Health Management, attributes this success to:
- Strategic site selection
- Modern farm infrastructure
- Cutting-edge biosecurity protocols
The company has heavily invested in U.S.-style farm technology, implementing positive-pressure air filtration systems to prevent airborne disease transmission. Additionally, Cargill’s 360+ Smart Biosecurity System plays a crucial role in disease prevention, with annual audits, drone-based disinfection, and ongoing risk assessments.
The company also boasts a highly skilled workforce, with many of its key personnel having worked alongside Hou Lianjie in previous ventures. This shared commitment to long-term growth has fostered a highly engaged and collaborative corporate culture.
From Genetics to Integration: Chengtou Jinkun’s Expansion Strategy
Chengtou Jinkun is not just a genetics company—it is actively building a fully integrated swine production chain in Feicheng. With strong government backing, the company is developing infrastructure and partnering with major meat processors to solidify its supply chain.
One key milestone is the Shandong National Swine Trading Market, a leading digital platform for pig transactions in East China. Additionally, a partnership with Delicious, a publicly listed meat processor, will support the development of a vertically integrated pork production base, targeting an annual output of 1 million commercial pigs.
This expansion aligns with China’s rural revitalization strategy, ensuring economic stability and employment opportunities in Feicheng.
Developing the Next Generation of Swine Industry Leaders
To sustain long-term growth, Chengtou Jinkun is investing in talent development. The company collaborates with Cargill’s Swine Academy to train professionals and foster industry innovation.
Notably, Hou Lianjie is an alumna of P+ Academy, a joint training program by Cargill and China Agricultural University. This initiative provides specialized courses taught by industry experts and top academics, preparing future leaders for China’s modern pig industry.
Chengtou Jinkun is also a key member of the Cargill Swine Breeding Alliance, established in 2022. By the end of 2024, the alliance had:
- Partnered with 109 breeding enterprises nationwide
- Collaborated with major industry media and swine associations
- Organized over 100 industry events
- Serviced over 180,000 breeding pigs
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