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From China's Demand for Donkey Hides Drives African Commodity Markets

How could China's demand for donkey hides affect South Africa's rural communities?

Likely What happens if… A possibility worth considering, not a forecast.

China's demand drives up donkey prices in South Africa The exponential demand for donkey hides from China, driven by the traditional Chinese medicine ejiao, has placed immense pressure on African supply chains. This demand, which requires 4-5 million hides annually, has caused donkey prices to climb sharply in South Africa. Specifically, a donkey that fetched about US$30 in the late 2010s sold for US$125 by 2022. This price inflation makes donkeys unaffordable for poor families, negatively impacting household income, food security, and schooling, as these animals are vital for carrying water, firewood, and farm produce.

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How it reaches South Africa

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The facts so far

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  • The demand for donkey hides has grown exponentially over the past 15 years, driven mainly by demand from China.theconversation.com
  • Current demand for ejiao requires 4-5 million hides a year, far more than China’s donkey stock can supply.theconversation.com
  • In South Africa, a donkey that would have fetched about US$30 in the late 2010s sold for US$125 by 2022.theconversation.com
  • Africa holds about two-thirds of the world’s donkeys.theconversation.com

Why it matters

The donkey hide trade is a critical economic issue for rural African communities. Donkeys are vital working animals, and owning one can save women some five hours of labor a week and children about ten. When the price of these animals climbs beyond what poor families can afford, it directly threatens their ability to maintain livelihoods, access food, and ensure their children can attend school.

Africa is the primary source for this global commodity, holding about two-thirds of the world’s donkeys. The trade is complicated by porous borders and slow breeding rates, creating a compounding extinction risk. Efforts like the Dar es Salaam Declaration, which called for a 15-year continental moratorium on slaughter, are underway but implementation remains imperfect.

What we don't know yet

  • Will the implementation of the continental moratorium be sufficient to stabilize donkey prices in South Africa?
  • Can alternative, more sustainable sources of collagen or related compounds replace the need for donkey hides in the ejiao market?

Is this still moving?

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What would change this answer

The Dar es Salaam Declaration is fully implemented across all member countriesThe supply of donkey hides could stabilize, potentially easing the sharp price increases seen in South Africa.
The ejiao industry successfully commercializes alternatives to donkey hidesThe massive demand driving the trade could decrease, reducing the pressure on African supply chains.

Reporting

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The full eventChina's Demand for Donkey Hides Drives African Commodity Markets Everything aboutSouth Africa

Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.