ST Tech-Bank has downsized operations in Shandong province while expanding its national sow herd through a partner farming model and digital upgrades. Despite low capacity utilization, the company improved breeding performance, cut costs, and significantly reduced debt, aiming for 400,000 sows by end-2025.
Chinese swine producer ST Tech-Bank Food Co., Ltd. has concluded a sweeping restructuring of its operations in Shandong Province, significantly downsizing its regional presence while aligning for leaner, more performance-driven growth. By the end of Q1 2025, the number of self-operated and leased finishing farms in the region had been reduced to just 10, down from a significantly higher base. The inventory of breeding sows in Shandong fell to 55,800 heads. In total, the company ended leases for six sow farms and 69 finishing farms nationwide in 2024, including 40 facilities in Shandong alone.
Maintaining National Capacity, With Growth in Sight
Despite the regional retrenchment, national sow numbers held firm. The company’s total breeding sow inventory ticked upward from 260,000 at the beginning of 2024 to 262,000 head by Q1 2025. Looking ahead, ST Tech-Bank is setting its sights on expansion: it plans to scale up to 400,000 active sows by the end of 2025, reactivating idle farms to bring an additional 90,000 head online.
Much of that expansion will rely on a partner farming model, through which the company aims to revitalise mothballed facilities. Approximately 50,000 sows are expected to be added in the near term as these farms ramp up to full capacity.
Lean Operations and Tech Integration
The restructuring was accompanied by a substantial reduction in staff numbers. Livestock subsidiary Han Shiwei Group cut its workforce by nearly 30%—from over 7,000 in early 2024 to around 5,000 by March 2025. At the same time, ST Tech-Bank introduced digital tools and upgraded biosecurity measures to a number of facilities, particularly focusing on non-ASF (African Swine Fever) technologies. The retrofitted farms have reported improved efficiency, including better feed conversion rates.
Its partner farming model is also beginning to show results: by Q1 2025, partner-managed facilities accounted for 15% of finishing pig output.
Performance on the Rise, Despite Underutilisation
Key performance metrics indicate significant improvement. Finishing survival rates rose from 88.7% in 2023 to 91.3% in 2024, reaching 92.72% by Q1 2025. Average slaughter weight climbed from 110 kg in 2023 to 118 kg in 2024, and hit 121 kg in early 2025.
Operational cost control has tightened as well. In Q1 2025, the cost per weaned piglet stood at CNY 308 (USD 44.67), while the full fattening cost dropped to CNY 13.62/kg (USD 1.98/kg), down from CNY 13.93/kg (USD 2.03/kg) in Q4 2024.
Nevertheless, utilisation rates remain a concern. Sow farm utilisation was just 46% in Q1 2025, with finishing farms operating at 43%. Depreciation costs from idle facilities added CNY 0.49/kg (USD 0.07/kg) to production costs.
Debt Down, Profits Up
Financially, the company has taken decisive steps toward recovery. As of Q1 2025, ST Tech-Bank’s liabilities had fallen to CNY 9.87 billion (USD 1.43 billion), a reduction of CNY 5.05 billion (USD 734 million) compared to end-2023. The debt ratio dropped by 14.94 percentage points from 86.73% to 71.79%.
On the profitability front, the company posted a net profit of CNY 1.46 billion (USD 211.64 million) in 2024. Its non-recurring net profit surged 108.6% year-on-year to CNY 257 million (USD 37.27 million). In Q1 2025, net profit reached CNY 127 million (USD 18.41 million), while non-recurring profit jumped to CNY 102 million (USD 14.78 million), both figures showing triple-digit growth.
Lower Sales, Higher Efficiency
In 2024, pig sales dropped 16% year-on-year to 5.99 million head, but slaughter volume saw a slight rise to 1.58 million pigs. For Q1 2025, the company sold 1.48 million pigs and slaughtered 436,500.
Despite shrinking output, ST Tech-Bank’s pivot toward consolidation, efficiency, and tech integration may help stabilise its market position.
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