A donkey farm in Binzhou, Shandong province. In China, the benefits from raising cattle and sheep are shrinking, but earnings from raising donkeys are on the way up. [Photo/China Daily]

The number of donkeys in Aohan Banner has increased to 215,000 from the 160,000 in 2012.

Zhang Yaxing who graduated from Inner Mongolia University of Science and Technology in 2012, returned to his hometown to raise donkeys.

Starting from scratch, the 27-year-old spent one-and-a-half years building infrastructure for his 2,000-square-meter donkey farm in Xinhui town, Aohan Banner.

"It's especially hard in winter－I have to live in the simple house at my farm where there is no heating system and no tap water," Zhang said. His only companions there are his donkeys and a violin.

Visitors to the area may notice a defining characteristic－an absence of young men.

"Although my classmates supported my decision of return to my hometown, they wouldn't choose to raise donkeys as the work is too hard for them," Zhang said.

Zhang has spent 300,000 yuan on the farm, of which 200,000 yuan was collected from his friends.

In February, he sold 70 donkeys he had raised for six months, earning 70,000 yuan.

Zhang, who majored in design, plans to expand the outdoor space for his donkeys.

"With spring and summer coming, donkeys need spacious room to exercise to be strong," he said.

Li said donkeys raised in Aohan Banner used to be sold whole to provinces like Hebei where donkey meat-stuffed baked cakes are very popular and Guangzhou, where the animal's meat and skin are used to make soup.

"The value of donkeys is expected to continue growing as we are cooperating with Dong'e Ejiao Co Ltd to extend the industrial chain," Li Baolin said.

In March, the Aohan Banner government and Dong'e, the largest Chinese maker of ejiao, a traditional Chinese medicine made from donkey hide that can improve blood supply, inked a contract to jointly develop the donkey industry.

According to the contract, Dong'e will build donkey farms in Aohan Banner.

Qin Yufeng, chairman of Dong'e, said a shortage of donkeys is threatening the ejiao industry.

The company has raised the factory price of ejiao four times since 2013 as the cost of the raw material－donkey hide－keeps increasing, Qin said.

Li said the price of donkey skin in Aohan market has increased to 2,000 yuan from 500 yuan within three years.

Dong'e will also build production lines to process donkey meat, milk and placenta in Aohan to raise the value of donkeys.