Pakistan is witnessing a significant surge in its donkey trade with China, fueled by a robust demand for both donkey meat and, more critically, donkey hides used in traditional Chinese medicine. A modern abattoir and processing facility, operated by the Hangeng Group near Gwadar in Balochistan, is at the forefront of this burgeoning industry.
The facility currently processes hundreds of donkeys daily, with ambitious plans to increase its capacity to 800 donkeys within months. According to Hangeng Group CEO Andy Liao, this trade is projected to generate approximately $5 million in foreign exchange earnings monthly within six months, potentially rising to $7 million within two years.
The High Demand for Ejiao
The primary driver behind China's insatiable demand for donkey hides is 'ejiao,' a highly prized collagen-rich ingredient in traditional Chinese medicine. Ejiao is produced by boiling donkey skin to extract its collagen and is commonly used as a blood tonic to treat anemia, boost immunity, improve sleep, and is even incorporated into cosmetics for its purported anti-aging benefits.
The Chinese ejiao market alone was valued at an estimated $7.8 billion in 2021. However, China's domestic donkey population has seen a drastic decline due to millions of animals being slaughtered annually for their hides. This severe shortage has compelled Chinese buyers to seek supplies from international markets, including Pakistan, Brazil, and Australia.
Pakistan's Growing Role in the Global Supply
With a donkey population exceeding 6 million in 2025, according to the Pakistan Economic Survey, Pakistan has become a crucial supplier. The Hangeng Group initiated construction of its Pakistani facility six years ago, investing around $50 million. The operation employs nine Chinese managers and approximately 500 local workers.
The company sources donkeys from 11 suppliers, implementing a tagging system for traceability, and plans to expand its network to 50 farms. The first shipment of processed meat and hides reached China's Tianjin port in June, following government approval.
Global Implications and Future Outlook
The global demand for donkey hides has led to significant animal welfare concerns and a sharp decline in donkey populations worldwide. A 2023 US Congressional Research Service report estimated that between 2.3 million and 4.8 million donkeys are slaughtered annually for their hides. In response to these concerns, the African Union endorsed a continent-wide moratorium on donkey slaughter for skins and related exports in 2024. Animal welfare organizations, such as Brooke, projected in June 2025 that Africa’s donkey population could halve to around 14 million by 2040 if the ban is not effectively enforced.
Beyond the current trade, Hangeng Group has expressed plans to diversify its operations in Pakistan, including ventures into donkey breeding, establishing a laboratory, and exploring seafood exports.