Both foreign non-agriculture companies, such as Goldman Sachs, and local large-scale companies, such as NetEase.com and textile manufacturer Dymatic Corp., are investing in China pig production, according to reports.
The companies are taking advantage of the high profit the industry has brought in recent years, as well as the gradual exit of China's backyard pig farming and small-scale pig farms. But in spite of the capital advantage non-agriculture enterprises may have, they are still challenged by farming land availability and environmental protection issues. They have to face higher disease and market risk, as well.
China's pig industry, say experts, stands to benefit from this trend in that its scale and the level of machination and automation will be improved.