Under-forest industry grows as economic pillar in Hunan

Workers apply organic fertilizers to barrenwort at a cultivation base in Huitong county, Hunan province, in October. HOU LIQIANG/CHINA DAILY

Yang Peiru's WeChat Moments this year have been dominated by his posts recruiting for his bamboo shoots processing company in Huitong county, Hunan province.

One post called out: "Emergency! Tonight. Need seven or eight temporary workers for packing. Both men and women are acceptable. Same-day payment is provided."

Standing amid the busy production lines of his factory, which processes 10,000 metric tons of preserved bamboo shoots annually, Yang marvels at the growing demand that sometimes exceeds the capacity of the factory's 60-strong team.

His company offers a microcosm of Hunan's thriving non-timber forest economy, where supportive policies are helping transform the region's lucid waters and lush mountains into tangible economic benefits for local residents.

Since last year alone, a total of 10 new bamboo shoots processing companies have been established in Huitong, spurred by local government policies that leverage the potential of the rich local bamboo resources in boosting economic development.

Before registering his company, Hunan Lyudi High-tech Agriculture and Forestry Development Co, in 2017, Yang had a decent job in Shanghai — he worked as a senior sales executive for a State-owned tobacco company.

He'd never considered investing in such a business back in his hometown. But when he was approached by cadres with an enticing proposal, he found it was something hard to refuse, as the local government was offering so many preferential policies.

Yang said he received a 120 yuan ($17) subsidy for every square meter of his factory, which has a floor area of 10,000 sq m. Facilitated by the authorities, he managed to lease over 3,300 hectares of bamboo from local farmers.

Using his forestry rights as collateral and backed by a government guarantee, he obtained a 10-million-yuan bank loan in 2021. Typical forestry rights-based loans are characterized by high credit limits, long repayment periods and low interest rates, he said.

Thanks to the loan, the company boosted its daily production capacity tenfold, from 10,000 to 100,000 packages, by investing in four automated packaging machines, a large-scale sterilization line, a quick-freeze production line, and a 10,000-cubic-meter cold storage facility.

"Since its official sales launch in June 2021, the company has experienced steady growth in its business, with sales projected to reach 80 million yuan this year," Yang said.

He added that most of the factory's employees are local residents, and that they can earn more than 4,000 yuan a month working on the production lines.

Yang leases his bamboo plantation from local farmers at a price of 1,050 yuan per hectare. In addition to working on his company's production line, local farmers can also gain income by harvesting bamboo shoots, cutting mature bamboo and handling transportation. For this additional work, the company annually pays out approximately 15,000 yuan per hectare.

The company hires up to 600 to 700 workers during the bamboo shoot harvesting seasons in winter and spring to meet production demand, Yang said.

Workers process bamboo shoots on a production line in Huitong. HOU LIQIANG/CHINA DAILY

Song Xiaofeng, a villager from Xuanshui village in the county, said working at the company has been such a boon for her.

The woman in her 50s said that though her family owned a hectare of bamboo themselves, they could hardly benefit from it before the company came to invest.

The road was bumpy, and she and her husband used to carry mature bamboo and bamboo shoots on their backs, often taking them an hour to get back home from the bamboo forest.

In addition, it took them more than two hours to transport bamboo shoots to sell at local markets. Because almost every household had its own bamboo plantations, it was not easy to sell much at a good price.

Her family hardly made more than 1,000 yuan from their bamboo forest annually, she said.

Lyudi High-tech's operations have brought transformative changes to her life. While leasing their bamboo forest to the company, she now works on its processing lines and can make 4,000 to 4,500 yuan a month.

"The factory is quite close to my home. That allows for a convenient daily commute, and I have enough time to care for the elderly and a child," she said. "I have also been freed from the hardships I previously endured when working in the mountains."

In addition to implementing preferential policies, the Huitong county government has allocated direct public funding to pave the mountainous roads that once hindered bamboo transportation, according to Jiang Jian, head of the local forestry administration.

He said an investment of 20 million yuan has funded the construction of 700 kilometers of paved roads, with an additional 200 km of rough paths scheduled for paving this year.

These infrastructure improvements are projected to reduce the costs related to bamboo felling and transport by approximately 30 percent, he added.

Su Zexiang, a resident of Xuanshui village in Hunan's Huitong county, pulls up weeds in an epimedium seedling farm in October. HOU LIQIANG/CHINA DAILY

Su Zexiang, also from Xuanshui village, is another beneficiary of the local government's push to develop the non-timber forest economy.

Previously, her family relied on a 0.2-hectare orange orchard. As the trees aged, generating sufficient income became increasingly difficult. When the 60-year-old was considering abandoning the orchard, a company named Zhongxin Agricultural Technology offered a solution: leasing her land for 4,500 yuan per hectare annually to cultivate epimedium seedlings. Epimedium, commonly known as barrenwort, is a medicinal herb noted for its anti-carcinogenic properties.

Now, during her spare time from managing her own crops and household duties, Su undertakes planting and weeding work for the company at a daily wage of 90 yuan, earning her approximately 10,000 yuan annually.

Cai Yemao, the company's general manager, said that Su is one of over 50 villagers engaged in similar part-time work.

He highlighted epimedium's high market demand and the value of its entire plant, noting that once established, it can be harvested continuously for over a decade, with an annual output value of 150,000 to 300,000 yuan per hectare.

Cai said the company's base in Huoshenpo village, which borders Xuanshui, features 16 hectares of greenhouse space dedicated to epimedium seedling cultivation.

Although completed just last year, the base is projected to annually produce 10 million seedlings this year, generating an annual output value of 20 million yuan.

Many other traditional Chinese herbs, including poria, Siberian Solomon's seal, and Sarcandra glabra, are also cultivated across Hunan. Together with the bamboo industry, they form the foundation of a forest-based non-timber economy that generates 67 billion yuan in annual revenue.

As of Last year, this industry had utilized 2.4 million hectares of forest land and created jobs for over 3 million people, lifting the average annual income of these workers by over 2,800 yuan.

The forest-based non-timber industry in Hunan is expected to continue to grow.

"I will apply for another forestry rights-based loan," said Yang. "We will soon install two additional packaging lines, creating demand for another 30 to 40 workers."