Ancient warhorse supplier breeds its way into modern market

A horse ranch in northwest China is undergoing the biggest transformation in its 2,100-year history, as it moves away from breeding war horses to supplying racehorses and horses for equestrian sports for the booming domestic market.

The Shandan Horse Ranch, situated across the mountainous border between Gansu and Qinghai provinces, covers an area of 219,694 hectares, making it the largest ranch of its kind in Asia.

Its mission as a royal breeding center for warhorses began as early as the Han Dynasty (202 BC - AD 220), and the ranch maintained this mission through centuries and many regime changes, according to official historical records.

After the founding of the People's Republic of China in 1949, the ranch, under the control of the People's Liberation Army (PLA), provided over 84,000 horses for military use over a span of five decades.

"During that time, we took good care of the horses and waited for military officers to choose their favorites. It was a proud moment seeing my horses get picked," says 72-year-old Zhou Linxue, a retired breeder.

In 2001, the PLA decided to cut spending on warhorses, as they became a less crucial part of the country's defense system. The ranch was then handed over to the China Animal Husbandry Group and began building a clientele base.

"Since then we've been struggling under market pressures that were completely new to us," says Liu Xinchun, administrator of the ranch. "Most importantly, we didn't have a marketable breed."

The locally-bred Shandan horse has a strong physique and excellent load capacity and it is considered one of the best breeds for military tasks, especially under harsh natural conditions.

However, the breed is petite, with an average height of 1.45 m, and not particularly attractive.

"People buy horses mainly for entertainment purposes and equestrian sports nowadays. What they want are tall and attractive horses, while warhorses are more about practicality," Liu says.

To adjust to market demands, Shandan imported some of the finest studs from Britain, Saudi Arabia and Kazakhstan to crossbreed with its military breed.

Liu said the crossbreeding has gone well, as evidenced by taller, faster and more attractive foals.

The ranch currently has some 3,000 horses in four small ranges, far fewer than the 20,000 horses it housed in 1971, and work has become more intense for breeders.

Chen Hai, who started working at Shandan in 1979, is now in charge of the ranch's largest range. He says the unusual workload is the result of more sophisticated breeding and training techniques as well as inadequate manpower.

In the past, breeder jobs at the ranch were often handed down from father to son. However, many young people now choose to leave home to find other jobs, because they don't want to live isolated lives on the vast prairie, Chen said.

Of the 200 workers in Chen's division, only five are under the age of 30, and Zhao Liang is one of them.

With a college degree in mechanics, Zhao worked in the southern city of Zhenshen before deciding to return home to assume the family job in 2009.

"In big cities like Shenzhen, horse racing and equestrian sports are getting increasingly popular. Shandan is an ideal place for horse breeding, so I think if we promote this brand properly, it will get a share of this new market," the 28-year-old said.

According to the Chinese Equestrian Association, the country has over 300 equestrian clubs, and the number of private horse owners continues to grow, bringing immense opportunities to the domestic horse industry.

Last year, Shandan sold around 200 horses, the most in the past decade. The ranch's clients came from coastal provinces like Jiangsu, Guangdong and Shandong, as well as Hong Kong, Macao and Taiwan.

A crossbred Shandan horse can be sold for 70,000 to 80,000 yuan (11,011 to 12,584 U.S. dollars) -- 10 times more than a purebred Shandan horse can fetch.

"Right now, it is impossible to match the prices of top exotic horses, which can cost up to several hundred thousand or even a million yuan," said Zhang Jixian, who runs an equestrian club in Jiangsu Province.

"It takes decades or even centuries of crossbreeding before the best horses come along," he says.

But he is also quick to point out Shandan's advantages.

"Horses bred in such high-altitude areas usually have great endurance, and the ancient ranch has unique training techniques," he says. "So, I believe that with their height and looks improving, Shandan horses will eventually break into the international market."