Chinese property developer China Vanke is diversifying into more profitable industries to make up for the slump in homes sales amid the ongoing economic downturn brought about the coronavirus pandemic. The company is reportedly now moving into the hog raising business, with the goal of breeding up to 250,000 pigs per year.
Reports have cited recent job vacancy posts on the company's website, where it stated that it was planning to sell pork meat and other pork-based products. The job ads stated that China Vanke had already established its new food business, mainly breeding hogs and growing vegetables, which needs new workers to get it off the ground.
The ads also revealed that China Vanke is offering corporate catering services, with it using fresh ingredients from its own farms. The establishment of the new business venture is likely the company's way of helping it weather the slump in China's property market, which is also what other property developers are doing.
In 2018, Chinese developer Evergrande Group famously announced that it would be establishing a new electric vehicle business, with the intention of taking on local and foreign competitors such as Tesla and NIO.
China Vanke posted ads for five particular positions, including open positions for pig farm managers, veterinarians, and business development officers. The positions listed outlined different responsibilities that included implementing swine breeding systems and pork production line operations.
One of the ads listed on its description Vanke's aim of joining the farm to table market, a decision inspired by the recent volatility in the nation's pork industry and the growing need for food amid the economic crisis. Vanke has yet to officially announce its new food business and the company has yet to respond to questions regarding its alleged new venture.
Analysts at DBS Bank in Hong Kong pointed out that venturing into other businesses is not surprising for property developers given the current situation in the country's property industry. Hog raising is also becoming particularly attractive given the recent surge in pork prices. Danielle Wang, the head of China property analysis at DBS Bank, stated that they expect more well-capitalized companies from various sectors to try out other businesses to compensate for their lowered earnings.
China's property sector has been struggling for the past couple of years due to several factors. Property firms first had to deal with policy changes imposed by the government, which included price caps and sales limits. This was then followed by the uncertainties brought about by the China-US trade dispute, which was exacerbated by the spread of the coronavirus disease in the country.
