IT tycoon turned swineherd in no hurry

(Ecns.cn)--Ever since the CEO of NetEase, a leading Chinese web portal, announced in 2009 that the company would raise pigs using high-tech equipment and natural feed, the public has longed to "savor the taste of nature" in its products. However, three years have passed and Ding Lei's magic pork has yet to arrive on China's dinner tables.

NetEase's fancy hog lot is to be built in Luosifang Village, located in Anji County of Zhejiang Province. Luosifang is the country's first "ecological" town and once praised as "China's most beautiful village" by the People's Daily.

The spot was chosen after "rigorous" testing by Chinese and foreign experts for factors such as temperature, humidity, precipitation, wind, underground water and possible geological hazards.

Mao Shan, general manager of agriculture at NetEase, explained to China Daily that Luosifang enjoys fresh air, clean water and a moderate climate. It also has the advantage of being relatively close to markets in big cities like Shanghai and Hangzhou.

"Pigs in China are mostly raised in factory-like conditions, confined in tight spaces and fed commercial feeds that are chemically enriched," Mao added.

"In contrast, pigs in Europe lead relaxed and healthy lives in well-kept farms surrounded by orchards and roam about freely," he said, which is how NetEase intends to raise pigs in Luosifang apparently.

According to the Southern Metropolis Weekly, the pigs will live in luxurious surroundings, with air purification units for hog lots and "intelligent" sensors in latrines. The devices will turn on water taps and flush droppings once they detect a certain amount of ammonia, hydrogen sulfide, carbon monoxide and methane in the air.

All animal waste will be recycled as organic fertilizer for local tea plantations, Mao said.

The pigs are to be fed natural ingredients prepared in-house by NetEase and they will also drink spring water, "which is better than bottled mineral water," said Zhou Jiong, vice head of NetEase's agriculture department.

In accordance with local scenery, "all equipment at the piggery will be put up high and supported by frames," Zhou added.

Yet NetEase's plan has created little change so far in Luosifang. According to the China Daily, one can still see hares and boars darting between rows of tea planted on the hillsides, which are dotted by a few log cabins – but no hi-tech pig farms.

The only evidence of NetEase's ambitious project is a newly-paved road leading to a clearing in a bamboo forest.

NetEase has said it expects to complete the farm by this November, when it will begin a vertical operation from breeding to slaughtering and packaging. The farm will be able to hold 6,000 to 10,000 pigs at any given point in time, Mao Shan told the China Daily.

Zhou Jiong said piglets will be brought to Luosifang the same month. The company expects their pork to appear on the market six to eight months later.

So far, Ding Lei has shown great patience about a venture that will reportedly cost tens of millions of yuan in its initial stage.

Mao Shan said NetEase is not unduly worried about the returns from the pig farm, as the company's core business is doing reasonably well.

"The core value is not the pigs, but the system," said Zhou Jiong, who is confident their pork will enjoy good sales.

According to the Southern Metropolis Weekly, NetEase is trying to create a standard for modern agriculture, rather like IBM, which made rules for software engineering.

NetEase said it is willing to freely share its proprietary pig farming research with those who are interested in setting up similar ventures.

However, "the system we advocate is not providing healthy pork for free or at a very low price, which is unsustainable. You have to let the businessmen and farmers profit from the new pig-raising project, so they can join in and expand the market," said Mao Shan.

The pork will be more expensive than normal meat, but still affordable, the company has said.

The company also says that some of Ding's peers from the IT or other industries have been inspired to invest in the agriculture sector. Liu Qiangdong (founder of 360buy.com, a leading e-commerce website) and Han Xiaobing (marketing director at hc360.com, a famous B2B platform) have already volunteered to help Ding sell pork.