Pan'an Chinese Herbal Medicines

Pan'an Chinese Herbal Medicines

Pan'an Chinese Herbal Medicines is a protected geographical indication product.

　　The Chinese herbal medicine industry is a traditional and competitive sector in Pan'an. Since the Song Dynasty, Pan'an's Atractylodes macrocephala, Corydalis yanhusuo, Scrophularia ningpoensis, Paeonia lactiflora, and Polygonatum odoratum have been highly praised. Blessed with unique natural conditions, Pan'an has become a "natural treasure trove of Chinese herbal medicine resources" and was named the "Hometown of Chinese Medicinal Materials" by the Development Research Center of the State Council and other organizations in 1996. The region is home to 1,219 species of medicinal plants, including five of the famous "Eight Treasures of Zhejiang"—Atractylodes macrocephala, Corydalis yanhusuo, Fritillaria thunbergii, Scrophularia ningpoensis, and Paeonia lactiflora (commonly known as the "Five Treasures of Pan'an"). The herbal medicine industry plays a pivotal role in Pan'an's rural economy and is a major source of income for local residents. In recent years, the annual planting area of medicinal herbs in the county has exceeded 80,000 mu (including woody medicinal materials), accounting for 23% of the province's total area (340,000 mu), making it the largest producer of medicinal herbs in the province. The yields of Atractylodes macrocephala, Corydalis yanhusuo, Fritillaria thunbergii, Scrophularia ningpoensis, and Gastrodia elata all account for over 20% of the national total. The county produces over 10,000 tons of medicinal herbs, with an output value exceeding 200 million yuan, accounting for about 30% of the total agricultural output value.

　　I. Basic Situation of Herbal Medicine Production

　　(1) Exceptional Ecological Environment and Abundant Wild Medicinal Resources. Pan'an was among the first regions designated as a "National Ecological Demonstration Zone" by the State Environmental Protection Administration. The county has a forest coverage rate of 80.1%, consistently meeting national Class I air quality standards, with drinking water sources classified as Class I and over 99% of its rivers meeting the same high water quality standard. The clean environment, fresh air, and broadly suitable ecological conditions for medicinal plant growth, combined with a subtropical monsoon climate, fertile soil, and diverse microhabitats, create ideal conditions for a wide variety of medicinal herbs. Surveys indicate that the region hosts 1,219 species of medicinal plants (68% of the province's total) and 42 species of animal-derived medicinal materials. There is an abundant supply of over 40 types of wild medicinal herbs such as Pueraria lobata, Peucedanum praeruptorum, Crataegus pinnatifida, Rubus idaeus, Lonicera japonica, Chrysanthemum indicum, Lindera aggregata, and Rosa laevigata. Nearly 100 rare and valuable medicinal plants are found here, including two Class I nationally protected species (Ginkgo biloba and Taxus chinensis var. mairei), four Class II protected species (Eucommia ulmoides, Coptis chinensis, etc.), and six Class III protected species (Asparagus cochinchinensis, Polyporus umbellatus, Gentiana scabra, etc.). Additionally, there are rare and endangered species like Dendrobium moniliforme, Panax pseudo-ginseng, Dysosma versipellis, Paris polyphylla, Pleione bulbocodioides, Tetrastigma hemsleyanum, Goodyera schlechtendaliana, Polygonum suffultum, and Croomia japonica. The area also preserves germplasm resources of authentic medicinal herbs such as wild Corydalis yanhusuo and wild Polygonatum odoratum. These rich wild medicinal resources provide strong support for local production and product development, offering significant conservation and utilization value. The Dapan Mountain, rich in wild medicinal plants, has been designated as a National Nature Reserve—the only one in China primarily focused on protecting medicinal plant germplasm resources.

　　(2) Effective Construction of Herbal Medicine Demonstration Bases, Enhancing the Reputation of Authentic Herbs. In recent years, leveraging its ecological and medicinal resource advantages, Pan'an has actively promoted standardized, regulated, and industrialized development of herbal medicine. With strong support from the provincial finance, economic, and agricultural departments, multiple demonstration bases have been established. Projects such as the Zhejiang Pollution-Free Atractylodes macrocephala and Corydalis yanhusuo Standardization Demonstration and Promotion Project have been implemented, establishing 20,000 mu of pollution-free demonstration bases for these herbs. Between 2004 and 2005, 15,000 mu of Scrophularia ningpoensis and Fritillaria thunbergii demonstration bases were set up, with the latter being listed as a key provincial agricultural standardization project and a national Class II agricultural standardization demonstration project. In May 2005, 10,000 mu of the Fritillaria thunbergii base passed inspections by the provincial quality supervision and agricultural bureaus. Seedling bases for high-quality medicinal herbs have also been strengthened, with over 3,000 mu dedicated to varieties like Zhebei No.1, Zhehu No.1, and Zhepeony No.1, improving the coverage of superior seedlings. Additional bases include 1,000 mu for high-yield Fritillaria thunbergii, 3,000 mu for pollution-free Corydalis yanhusuo, 3,000 mu for Scrophularia ningpoensis GAP technology demonstration, and 3,000 mu for pollution-free Atractylodes macrocephala export demonstration. These bases have achieved notable economic and social benefits, serving as models for standardized production across the county and province.

　　With the implementation of GAP (Good Agricultural Practice) standards, Pan'an's clean environment and abundant authentic herbs have attracted significant interest from enterprises seeking to establish GAP bases. Companies like Jinling Pharmaceutical have set up 3,000 mu of Scrophularia ningpoensis GAP bases in Dapan, Anwen, Shanghu, and Jiuhe. Lanxi Sanjiang Traditional Chinese Medicine Slicing Co., Ltd. has established a 1,000 mu Fritillaria thunbergii GAP base in Xinwo. Shanghai Huayu Pharmaceutical Group and Kexin Pharmaceutical Co., Ltd. jointly founded Huaxin Traditional Chinese Medicine Co., Ltd., processing GAP-grown herbs locally to create an integrated cultivation and processing system for high-quality herbs and slices. Other firms, including China National Medicinal Materials Group Corporation, Yangzijiang Pharmaceutical, and Zhengzhou Changjia Group, are considering GAP base investments in Pan'an. Local enterprises and traders are also actively involved. A "business-led, department-supported" mechanism has emerged, with 12,000 mu of GAP bases currently in operation. Among these, 3,038 mu of Gastrodia elata have received IMO organic certification, while 1,000 mu of Fritillaria thunbergii, 2,000 mu of Atractylodes macrocephala, and 500 mu of Corydalis yanhusuo hold green medicinal plant certifications. Led by key enterprises and supported by government policies, farmers are shifting from scattered to scaled production, with notable large-scale growers emerging. Examples include Zhou Zhixing in Dapan Town (80 mu of Atractylodes), Yang Changcai in Renchuan Town (150 mu of Atractylodes), Liu Shenggen (135 mu of Scrophularia), and Yang Dongshan (120 mu of Polygonatum). In Xinwo Town, Chen Fengyang and Chen Baisong in Shenze Township have planted 40 mu and 30 mu of Paeonia lactiflora, respectively. Production is becoming more base-oriented, professional, and large-scale, creating a thriving landscape of "medicinal flowers blanketing the hills and fragrances filling the air."

　　Base construction has boosted local herbal medicine production, enhancing both yield and quality. Pan'an's Atractylodes macrocephala, resembling a frog in shape (locally called "Frog Atractylodes") with chrysanthemum-like cross-sections and a fragrant taste, is considered premium-grade. With an annual planting area of 18,000 mu and output of over 3,000 tons (about 30% of the national total), it’s dubbed "Four in Ten Atractylodes Nationwide Come from Pan'an." Pan'an's Corydalis yanhusuo features bright yellow, plump, and high-alkaloid content, grown on 15,000 mu annually with 1,500 tons produced (around 30% of the national total). Pan'an's Scrophularia ningpoensis, known as "Black Scrophularia" for its firm texture, dark flesh, and robust branches, supplies major pharmaceutical companies like Jinling Pharmaceutical. With 8,000+ mu planted yearly and 2,000 tons produced (over one-third of the national total), it’s a key raw material. Pan'an's Paeonia lactiflora, with its straight form, solid texture, and chrysanthemum-like cross-sections, is favored by merchants. Pan'an's Fritillaria thunbergii, prized for its quality and powderiness, dominates the market—over 8,000 mu planted annually with 800+ tons produced (over half the national total). 80% of China’s Fritillaria trade flows through Pan'an, making it the nation’s true distribution hub. Pan'an's Polygonatum odoratum, known for its long, fleshy, and sweet roots, is grown on 3,000+ mu with 200 tons produced yearly, ranking it as a major export base. Pan'an's Gastrodia elata, with over 3 million cultivation sites and 200 tons produced annually, leads the nation and is hailed as the "Capital of Gastrodia." Other herbs like Platycodon grandiflorus, Pseudostellaria heterophylla, Salvia miltiorrhiza, Cortex Moutan, Evodia rutaecarpa, Sparganium stoloniferum, and Gardenia jasminoides are also widely cultivated.

　　(3) Deepening Herbal Medicine Research and Positive Post-Harvest Development. The Pan'an Institute of Chinese Herbal Medicines has established long-term collaborations with the Provincial Institute of Traditional Chinese Medicine and others, undertaking multiple national and provincial key projects. It completed the Seventh Five-Year Plan project "Research on High-Yield Cultivation Techniques for Atractylodes and Corydalis," the Ninth Five-Year Plan project "Standardized Cultivation of Atractylodes," and the Tenth Five-Year Plan project "Standardized Cultivation of Tripterygium wilfordii," all passing national evaluations. Recent initiatives include "Breeding New Atractylodes Varieties Rich in Active Compounds," "Conservation and Utilization of ‘Eight Treasures of Zhejiang’ Germplasm," and "Quality Control Techniques for Three ‘Five Treasures of Pan'an’ (including Scrophularia)." The institute has collected extensive germplasm resources, established a resource garden, and conducted research on Atractylodes breeding (including genetic trait identification, mutation trials, and tissue culture), Corydalis breeding, space-bred Fritillaria thunbergii, and DNA analysis of the "Five Treasures." The Atractylodes breeding project succeeded, producing certified superior varieties like Zhebei No.1, Zhehu No.1, and Zhepeony No.1, while introducing new species like Gardenia jasminoides, Crocus sativus, Tripterygium wilfordii, Japanese Angelica, and Lonicera japonica. Techniques for high-yield cultivation of Atractylodes, Corydalis, and Fritillaria, as well as sexual propagation of Gastrodia, have been promoted, providing robust technical support for local production.

　　Deep processing of herbal medicines has begun, showing promising momentum. Three local enterprises hold "Pharmaceutical Production Licenses" for slicing: Dayu Pharmaceutical Slicing Factory, Huaxin Traditional Chinese Medicine Co., Ltd., and Dasheng Traditional Chinese Medicine Slicing Co., Ltd. Huaxin became the first in the province to pass GMP certification in November 2005. Currently, Pan'an's slicing enterprises produce over 400 varieties, selling more than 1,000 tons annually with sales exceeding 40 million yuan—over half of which are local staples like Atractylodes, Fritillaria thunbergii, Gastrodia, Scrophularia, and Corydalis. Dasheng also offers health products like Ganoderma spore powder capsules, primarily exporting its slices. Beyond slicing factories, local traders process and sell over 1,000 tons of sliced herbs yearly. Some well-funded traders plan to establish their own slicing enterprises, indicating strong growth potential. Leveraging abundant herbal resources, health product development has expanded. Jianyuanhuang Wild Plant Products Co., Ltd. has launched health supplements like Jianbao Granules and Capsules, approved by the Ministry of Health. Local agricultural processors create products such as Ginkgo tea, Gynostemma tea, quick-cook Platycodon, Chrysanthemum tea, and Herba Sarcandrae tea, along with medicinal wines like Gastrodia wine, Crocus wine, and Rosa laevigata wine.

　　(4) Robust Market Sales Network and Expanding Pan'an Herbal Influence. Pan'an has developed the Xinwo Herbal Medicine Market and Pan'an Specialty City. Established in 1985, the Xinwo Market covers 10,556 square meters (3,905 sqm built-up, 1,550 sqm canopy, 53 shops). Built in 1997, the Specialty City spans 19,950 square meters (15,731 sqm built-up, 15.4 million yuan investment, 83 shops). These markets provide timely sales information and convenient channels for farmers, bridging Pan'an's herbs to national markets and driving stable industry growth. Annually, the two markets achieve over 400 million yuan in herbal trade. The county has 400+ registered herbal traders and 3,000+ temporary buyers, along with leading enterprises like Dayu Pharmaceutical, Foreign Trade Pharmaceutical, Huaxin, Panshan Herbal, and Gongping Medicine Station. Additionally, 180+ traders operate outside the province, forming a nationwide sales network.

　　To further expand the market, Pan'an is upgrading its infrastructure and boosting external promotion. In 2002, with provincial approval, the Xinwo Market was renamed the "Zhejiang ‘Eight Treasures of Zhejiang’ Specialty Market." The project, listed as a 2005 provincial key initiative by the Development and Reform Commission, will cover 350 mu with over 300 million yuan investment, creating a modern trading hub. From 2002 to 2004, three successful herbal trade fairs were held—high-profile events with significant contracts that stimulated demand, enhanced market prosperity, and solidified Pan'an’s reputation as the "Hometown of Chinese Medicinal Materials," greatly boosting its herbal brand. In August 2003, the Pan'an Herbal Association secured origin-mark certification for Atractylodes, Corydalis, Fritillaria, Scrophularia, Paeonia, Gastrodia, and Polygonatum. By 2006, five proof-of-origin trademarks (Atractylodes, Corydalis, Fritillaria, Scrophularia, and Hangzhou Paeonia) were registered, establishing Pan'an's herbs as a recognized brand.