Farmers flock to sheep bank for funding

Breed purity

Ningxia's Tan sheep have a combined brand value of 6.8 billion yuan, according to the Ministry of Commerce.

However, ensuring breed purity is a constant headache. Over the past decade counterfeit Tan meat has flooded the market, pushing down the price and ultimately taking a toll on farmers.

The problem is exacerbated by the fact that Yanchi lies at the junction of the provinces of Shaanxi and Gansu and the Inner Mongolia autonomous region.

That means Tan sheep can easily be interbred with other strains, which undermines the quality of the meat, according to Feng Jingtao, director of Suyuan, who said the sheep are among Ningxia's most recognizable products.

"The sheep bank was designed to tackle the problem and assist poverty relief efforts," he said.

Suyuan uses the loans and interest payments to encourage farmers to ensure the purity of their Tan sheep. Meanwhile, in an effort to counter fakes, it has established a system to trace the origins of meat entering the market.

"We have rigid standards that we apply when sheep are registered. That has sent a message to farmers: if you want to collect interest payments or obtain a loan, you need to ensure that your flock only contains purebred Tan sheep and you must alter your farming methods to meet market needs," Feng said.

He added that the change would boost market prices and sales, which will benefit the farmers.