Rising pork prices gain attention

Some of China’s biggest real estate developers are branching out in a surprising direction. China’s property developers are renowned for being politically wise and taking fresh opportunities. The new venture at the moment being undertaken by China’s real estate companies is pig farming.

In fact, Vanke, one of the biggest property companies in the country, is sending out job adverts on its own website for a pig farming project. The website states that: ‘Vanke will aim to provide healthy food at affordable prices, and will join peers in the whole chain, from farm to table’ according to a report from the South China Morning Post.

Why are they starting to farm?

Firstly, it makes sense of the current market environment. China’s property prices are pressured while at the same time China’s live pig prices are high. Look a the chart below to see the recent rise in live pig prices:

In this environment, it makes sense to diversify the property business.

The second reason is that it is part of a wider government move to encourage rural investment. It is reported that China’s authorities would like to give a ‘jump start’ to rural investment in what could be described as a ‘public-private’ partnership.

Some of the thinking seems to be reported on the Dim sum blog (which discusses some of China’s economic policies): Investments are encouraged to follow a whole industry chain model that integrates and “pulls along” farmers, processors, and providers of services.

So, this is just one example of how creative industries are showing adaptability. In this post COVID-19 world it will be those fastest to adapt who will be able to take advantage of rising and falling markets.