China's Forest Food Products

China's Forest Food Products: cluster development and value added growth

    China's forestry sector is undergoing a structural transformation: from traditional logging to the sustainable development of the non-timber forest products sector. Provinces across the country are showing impressive results in developing the undergrowth economy, creating industry clusters and deepening processing, which makes it possible to multiply the added value of products and create new sources of income for rural areas.

Jiangxi: six clusters of the forest food industry

    Jiangxi Province, located in southeastern China, has formed six major industrial clusters in the field of forest food, creating a diversified and sustainable production structure.:

    This cluster development allows the province to efficiently use its forest resources, create jobs and form sustainable supply chains.

Technological innovation: productivity growth through modernization

    During the summer harvest of 2025, Jiangxi Ecological Forestry demonstrated the advantages of technological modernization. A new sprinkler irrigation system has been installed on edible mushroom plantations, including fresh wood mushrooms, which has significantly improved the water supply.

The result: yields increased by about 10%. This example illustrates how investments in infrastructure and modern forestry technologies can significantly improve production efficiency.

Heilongjiang: the economy of the undergrowth has exceeded 100 billion yuan

    Woodlands provide a solid foundation for the development of the undergrowth economy — the collection and processing of mushrooms, berries, medicinal herbs and other resources growing under the forest canopy.

    Heilongjiang Province in northeast China has achieved impressive results:

•     - The value of the products of the undergrowth economy in 2025 exceeded 100 billion yuan (about 14.5 billion US dollars).
•     - The growth was more than 6% compared to the previous year.

    Heilongjiang, which has the largest forests in China, demonstrates how the sustainable use of forest resources can become a powerful driver of the regional economy without harming the environment.

Hunan: deep processing increases added value fivefold

    Traditional Chinese medicinal herbs remain the most important segment of the forest economy. In the city of Chenzhou (Hunan Province), 40 tons of an herb called zhike (a variety of citrus fruits used in traditional Chinese medicine) were harvested on an area of 33 hectares.

Key innovation: The company engaged in the cultivation and processing of zhike has made a strategic transition from the sale of raw materials to the management of a complete production chain, including 14 stages of processing.

Economic effect: The added value of herbal products has increased more than fivefold.

    This example clearly demonstrates the potential of deep processing of forest raw materials. The transition from exporting or selling raw resources to producing finished products with high added value allows not only to increase profitability, but also to create new jobs and develop local competencies.

Key indicators of the sector's development:

Importance for Chinese forestry

    The development of the non-timber forest products sector in China is of strategic importance in several areas:

1. - Food security: Forest foods are becoming an important addition to traditional agricultural production, increasing the diversity and sustainability of the food system.
2. - Rural development: The undergrowth economy and the processing of forest products create jobs and sources of income in remote forest areas, helping to narrow the gap between urban and rural areas.
3. - Environmental sustainability: The development of non-timber forest management reduces the pressure on woodlands associated with logging and contributes to the conservation of biodiversity.
4. - Innovation and added value: The transition from a raw material model to deep processing, as shown by the example of Zhike in Hunan, makes it possible to multiply the economic benefits of forest resources.
5. - Cluster development: The formation of specialized industry clusters, as in Jiangxi, creates synergies, facilitates knowledge exchange and increases competitiveness.
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The prospects

    China continues to invest in the development of forestry as an important sector of the green economy. It is expected that in the coming years:

•     - The number and scale of industrial clusters of forest products will grow.
•     - Technological modernization (irrigation, automation of processing) will continue.
•     - Deep processing will become the norm, not the exception.
•     - Forestry products will play an increasingly important role in ensuring the country's food security.
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    These trends open up new opportunities for market participants, from investments in processing facilities to entering export markets with high-grade finished products.

Tags: #China #forestry #non-wood products #food security #undergrowth economics #Jiangxi #Heilongjiang #Hunan #cluster development #deep processing