Donkey-hide Gelatin Prices Surging, the Whole World to Keep Donkeys for China

"Inspired by the example of African states like Nigeria, Kenya and Burkina Faso, the Khyber-Pakhtunkhwa government is looking to export live donkeys to China."Pakistan The Express Tribune reported according to an informed source on April 7 that the province had initiated steps to increase the donkey population and was planning to present this donkey export program to investors in China in the road show on April 17-18.

Pakistan plans to invest RMB 60 million to keep donkeys

According to report, this program, titled the "Khyber-Pakhtunkhwa-China Sustainable Donkey Development Programme" with expected investment of PKR 1 billion (about RMB 60.17 million), is one of the many investment portfolios the province's Planning and Development Department has planned to attract Chinese investment in the province’s agriculture sector under the frame of the China-Pakistan Economic Corridor. An official document pertaining to this plan mentions that while much neglected in Pakistan, donkey is highly valued in China, especially for its hide which is used to manufacture medical material. "The proposed project will help improve the socio-economic status of donkey-rearing communities by improving the health and production of local donkeys," the document states. The province government will also introduce new technologies to improve the breeders’ donkey-rearing ability.

Data of the Ministry of Agriculture and National Bureau of Statistics of the P.R.C. show that the number of donkey raised in China has showed great fluctuations since the founding of the P.R.C.: Up to 12.70 million in 1954, declined to 6.45 million in 1962, picked up after 1978, exceeded 11 million in 1989, but after entering the 21^st century, the number began to decline year by year. There was a media report: "China needs to buy donkeys worldwide".

The Times of India reported on April 8 in an article titled "For 'all-weather friend' China, Pakistan to ramp up breeding of donkeys" that both Niger and Burkina Faso exported tens of thousands of donkeys to China in 2016. At the beginning, the high demand resulted in a steep increase in the value of donkeys in both countries, but sooner, the local donkey populace dropped and donkey breeding caused environmental and economic problems. Then both countries banned the donkey export. The report sourly commented, "Perhaps Pakistan will have better luck".

 "Donkey keeping itself does not cause much environmental problem," said Sun Yujiang, Secretary General of Donkey Industrial Technology Innovation Strategic Alliance, in receiving the interview of Global Times reporter on April 9, African countries’ banning of donkey export will not necessarily last long, and it is not correct to blame China for the reduction of donkey breed resource. He told the reporter that China consumed a surprising number of donkey every year and the import could not solve the fundamental problem. The donkey import can only supplement the quantity, and the number of donkey raised in China is still the basis.

Khyber-Pakhtunkhwa Province is very optimistic about the prospects of the donkey raising program. Pakistan The Express Tribune reported that the province planned to develop the donkey raising industry through joint venture mutually agreed with the investors, and it would also be open for state-owned and private entities. Khyber-Pakhtunkhwa Province held that the donkey raising program could not only recover the investment cost but also generate a good amount of revenue.

Donkey hide price rises by about 150 times in 16 years

There was another rumor that Dong-E-E-Jiao would increase prices in March this year. This is not confirmed officially, but the inquiry by National Business Daily (WeChat account: nbdnews) on Dong-E-E-Jiao official mall (in March) showed that the retail price of 250g donkey-hide gelatin is RMB 1350 and that of 20ml×48pcs Compound Donkey-hide Gelatin Slurry is RMB 468 while the above two were separately RMB 1185 and RMB 365 as shown by data of Dong-E-E-Jiao official mall on February 27.

Prices of the same products separately rose by RMB 165 and RMB 103 in just more than 10 days.

According to the statistics of National Business Daily (WeChat account: nbdnews), the retail price of Dong-E Donkey-hide Gelatin has risen from RMB 130/kg to RMB 5400/kg since 2001, rising by more than 40 times.

The heat of donkey-hide gelatin, one of the precious Chinese herbal medicines, wore off temporarily after its price was controlled in 1994.

Dong-E-E-Jiao, the largest donkey-hide gelatin producer in China, has increased the price for more than 10 times since 2006, according to the statistics of an analyst who has been long tracking the donkey-hide gelatin price. In the latest price raising in November 2016, the company separately increased ex-factory prices of the key products Dong-E Donkey-hide Gelatin, Compound Donkey-hide Gelatin Syrup, and Taohuaji Donkey-hide Gelatin Cake by 14%, 28% and 25%. According to that analyst, donkey hide is the only raw material of the traditional Chinese medicine donkey-hide gelatin, and the reasons for the reduction of donkey hide in China are the demand for donkey-hide gelatin and rapid price rise.

And the "shortage of donkey hide resource and increase of procurement cost" is also Dong-E-E-Jiao’s explanation for the price increase. According to the data of Dong-E-E-Jiao, the donkey hide price was only over RMB 20/hide around 2000, and soared to about RMB 3000/hide in 2016, rising by about 150 times in 16 years.