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China's Multistory Hog Hotels Elevate Industrial Farms to New Levels

by Reuters

   YAJI MOUNTAIN, CHINA --

   On Yaji Mountain in southern China, they are checking in the sows a
   thousand head per floor in high-rise "hog hotels."

   Privately owned agricultural company Guangxi Yangxiang Co Ltd is
   running two seven-floor sow breeding operations, and is putting up four
   more, including one with as many as 13 floors that will be the world's
   tallest building of its kind.

   Hog farms of two or three floors have been tried in Europe.

   Some are still operating, others have been abandoned, but few new ones
   have been built in recent years, because of management difficulties and
   public resistance to large, intensive farms.

   Now, as China pushes ahead with industrialization of the world's
   largest hog herd, part of a 30-year effort to modernize its farm sector
   and create wealth in rural areas, companies are experimenting with
   high-rise housing for pigs despite the costs.

   The "hotels" show how far some breeders are willing to go as China
   overhauls its farming model.

   "There are big advantages to a high-rise building," said Xu Jiajing,
   manager of Yangxiang's mountain-top farm.

   "It saves energy and resources. The land area is not that much but you
   can raise a lot of pigs."

   Companies like Yangxiang are pumping more money into the buildings --
   about 30 percent more than on single-story modern farms -- even as hog
   prices in China hold at an eight-year low.

   For some, the investments are too risky. Besides low prices that have
   smaller operations culling sows or rethinking expansion plans, there is
   worry about diseases spreading through such intensive operations.

   But success for high-rise pig farms in China could have implications
   across densely populated, land-scarce Asia, as well as for equipment
   suppliers.

   "We see an increasing demand for two- or three-level buildings," said
   Peter van Issum, managing director of Microfan, a Dutch supplier that
   designed Yangxiang's ventilation system.

   Microfan also supplied a three-story breeding operation, Daedeok
   JongDon GGP Farm, in South Korea.

   "The higher ones are still an exception, but the future might change
   rapidly," van Issum said.

   High-rise hogs

   Yaji Mountain seems an unlikely location for a huge breeding farm. Up a
   narrow road, away from villages, massive concrete pig buildings
   overlook a valley of dense forest that Yangxiang plans to develop as a
   tourist attraction.

   The site, however, is relatively close to Guigang, a city with a river
   port and waterway connections to the Pearl River Delta, one of the
   world's most densely populated regions.

   While Beijing is encouraging more livestock production in China's grain
   basket in the northeast, many worry that farms there will struggle to
   get fresh pork safely to big cities thousands of miles away.

   That has helped push some farm investments to southern provinces like
   Guangxi and Fujian, where land is hilly but much closer to many of
   China's biggest cities.

   Yangxiang will house 30,000 sows on its 11-hectare site by year-end,
   producing as many as 840,000 piglets annually. That will likely make it
   the biggest, most-intensive breeding farm globally. A more typical
   large breeding farm in northern China would have 8,000 sows on around
   13 hectares.

   In Fujian province, Shenzhen Jinxinnong Technology Co Ltd also plans to
   invest 150 million yuan ($24 million) in two five-story sow farms in
   Nanping. Two other companies are building high-rise hog farms in Fujian
   as well, according to an equipment firm involved in the projects.

   Thai livestock-to-retail conglomerate CP Foods is also building four
   six-story pig units with local firm Zhejiang Huatong Meat Products Co
   in Yiwu, a Chinese city near the large populations around Shanghai.

   High-tech complexity

   Yangxiang spent 16,000 yuan per sow on its new farm, about 500 million
   yuan total, not including the cost of the pigs.

   Building upward means higher costs and greater complexity, such as for
   piping feed into buildings, said Xue Shiwei, vice chief operations
   officer at Pipestone Livestock Technology Consultancy, a Chinese unit
   of a U.S. farm management company.

   "It would save on land but increase the complexity of the structure,
   and costs for concrete or steel would be higher," he said.

   Health concerns also raise costs, because the risk of rampant disease
   -- an ever-present problem in China's livestock sector -- is higher
   with more animals under one roof.

   Even two-story farms in Europe have sparked worries that pigs will
   receive less care, said Irene Camerlink, an animal welfare expert at
   the University of Veterinary Medicine in Vienna who has worked with
   Chinese farms.

   Any outbreak of disease could lead to extensive culling, she said.

   Farm manager Xu said Yangxiang reduces the risk of disease by managing
   each floor separately, with staff working on the same floor every day.
   New sows are introduced to a building on the top floor, and are then
   moved by elevator to an assigned level, where they remain.

   The ventilation system is designed to prevent air from circulating
   between floors or to other buildings. Air enters through ground
   channels and passes through ventilation ducts on each level. The ducts
   are connected to a central exhaust on the roof, with powerful
   extraction fans pulling the air through filters and pushing it out of
   15-meter high chimneys.

   A waste treatment plant is still under construction on Yaji Mountain to
   handle the site's manure. After treatment, the liquid will be sprayed
   on the surrounding forest, and solids sold to nearby farms as organic
   fertilizer.

   The project's additional equipment -- much of it imported -- to reduce
   disease, environmental impact and labor costs, significantly increased
   Yangxiang's spending, the company said.

   But after testing other models, Yangxiang concluded the multistory
   building was best. Others are less convinced.

   "We need time to see if this model is do-able," said Xue of the farm
   management firm, adding that he would not encourage clients to opt for
   "hog hotels."

   "There will be many new, competing ideas [about how to raise pigs in
   China]," Xue said, including high-rise farms. Eventually, "a suitable
   model will emerge."