Published by ChinaMNC · Lishui

Longquan Lingzhi: What a 9.042 Billion RMB Brand Tells Foreign Founders About China’s Local Specialty Economy

A practical look at Longquan’s lingzhi industry for foreign founders evaluating China-based operations: geographic indication protection, agricultural heritage status, brand value, processing upgrades, and a company-buys-smallholders-grow model, based solely on official source facts.

A local specialty with a long record

For foreign founders considering a China entity, Longquan lingzhi is a useful case study in how a county-level industry can combine historical identity, protected designations, processing innovation and structured farmer cooperation. The source article traces Longquan lingzhi to the Northern Song dynasty and states that its buried-wood cultivation technique has been passed down for more than 1,000 years.

The article also notes that both Longquan lingzhi and Longquan lingzhi spore powder hold national geographical indication product protection. It adds that the “Zhejiang Mountain Lingzhi Culture System (Wuyi County, Longquan City)” was included in the eighth batch of China Important Agricultural Heritage Systems. For founders, these are not merely cultural details: they show how local products can carry layered official recognition that supports branding and market positioning.

Historical references cited in the source

The article cites several historical markers. During the Northern Song reign of Emperor Huizong, Longquan-born chancellor He Zhizhong wrote a poem describing lingzhi culture at the time. According to the Longquan County Gazetteer, in 1129, during the Southern Song, lingzhi even grew naturally in the residence of Ji Ling, an official titled Taichang Shaoqing, suggesting that cultivation was already widespread locally.

The source also cites Ming dynasty physician Li Shizhen’s Bencao Gangmu, which recorded that Chuzhou produced red lingzhi that could be eaten and used as medicine. Because Longquan historically belonged to Chuzhou for a long period, the article links Longquan lingzhi to the historical name “Chuzhou red lingzhi.”

Three stages of cultivation technique

The source describes three stages in Longquan’s lingzhi cultivation technique:

• Northern Song to 1987: long-section raw-material buried-wood method, in which wild lingzhi was crushed into a homogenate, spread on notches, covered with soil and leaves, and left to grow naturally.
• 1988 to 2016: short-section cooked-material soil-covering cultivation, which improved yield and stability.
• 2017 to present: a high-quality factory-based restored section-wood cultivation method that retains traditional tree species while enabling intelligent production.

This progression is relevant to founders in agri-food, biotech or health products because it illustrates how traditional local techniques can be upgraded through controlled production without abandoning the source identity.

Brand value and national reach

In 1996, the source states, Longquan was awarded the title “China’s First Hometown of Lingzhi” by the Development Research Center of the State Council. In 2010, Longquan lingzhi received national geographical indication protection, and in 2011 Longquan lingzhi spore powder received the same protection.

Today, according to the article, “Longquan lingzhi plus Longquan lingzhi spore powder” has a brand value of 9.042 billion RMB and has ranked first among national lingzhi regional brands for four consecutive years. More than 3,000 Longquan mushroom technicians have gone to 15 provinces and more than 80 counties and cities to develop the lingzhi industry. Annual planting volume reaches 150,000 cubic meters, accounting for 60% of the national total of section-wood lingzhi. In 2025, the annual output value of the entire lingzhi industry chain reached 1.12 billion RMB.

For foreign founders, these figures signal a mature local supply base and a brand with national recognition. They also suggest that a China-based entity in this sector may find established production know-how and a network of technical practitioners.

From brewing slices to snacks and drinks

The source notes that lingzhi was traditionally sliced and boiled for tea or ground into powder. Longquan is now extracting more value from the whole plant, moving from “growing lingzhi” to “making snacks” and “making drinks.”

Longquan has developed more than 70 deeply processed products and more than 30 food-medicine homology foods, covering wall-broken spore powder, spore oil, lingzhi beverage, lingzhi coffee and lingzhi pressed candy. In 2025, the first lingzhi soft candy developed with Xianghu Laboratory was launched. Its core ingredient is lingzhi extract, combined with American ginseng and sea cucumber peptide, with a texture described as like chewy candy.

This product diversification matters for founders evaluating product registration, food category classification and marketing claims. The source describes food-medicine homology foods, a category that in China can involve specific regulatory pathways. Founders should verify applicable rules with qualified advisers rather than relying on general descriptions.

A company-buys-smallholders-grow model

The article highlights an innovative “company guaranteed purchase plus farmer cultivation” model. In Zhengzhuang Village, Yanzhang Township, after a company was introduced, three standardized lingzhi planting sites were built, covering nearly 90 mu. Annual output value exceeded 5 million RMB. The sites bring the village collective more than 100,000 RMB in rent each year, pay more than 300,000 RMB in wages, and can provide more than 80 nearby jobs at peak times.

In Meidi Village, Lanju Township, the “Lingzhi Valley” combines cultivation, research and development, processing, sightseeing and study tours. In 2025 it received more than 30,000 visitors and encouraged villagers to open farm restaurants and homestays. The source describes this as an upgrade from “growing and selling lingzhi” to “viewing and tasting lingzhi.”

For foreign founders, such models show how local governments and enterprises structure rural supply chains. They may be relevant to sourcing, joint ventures or CSR-linked operations, but any participation should be assessed through local due diligence.

Practical visitor and market information

The source lists the following practical details, which may be useful for founders visiting the region:

• What to eat: lingzhi coffee, lingzhi slice tea, lingzhi and polygonatum small-can tea, lingzhi cup tea and other food-medicine homology products, plus lingzhi soft candy and pressed candy.
• Where to buy: offline at Longquan Sanbao Hall, the Zhejiang-Fujian-Jiangxi Edible Fungi Trading Center and lingzhi spore powder specialty stores in Longquan; online via the “Jianci Longquan Mall” mini-program, Douyin and Tmall flagship stores.
• What to visit: Lingzhi Valley in Meidi Village, Lanju Township, with a 5 km ecological trail and no ticket; the simulated wild lingzhi base in Zhengzhuang Village, Yanzhang Township, for forest viewing, tea tasting and spore powder traceability; and the Quanling Valley forest health base in Jinxi Town.
• When to go: August to September for lingzhi viewing and harvest observation; July to August for health and summer retreat, with Meidi Village Lingzhi Valley at least 5°C cooler than the urban area.
• How to get there: take the high-speed rail to Longquan City Station, then transfer by bus or drive; navigate to “Meidi Village Lingzhi Valley,” “Zhengzhuang Village, Yanzhang Township” or “Quanling Valley Forest Health Base.”

FAQ points from the source

The source also addresses common questions. On the difference between Longquan lingzhi and ordinary lingzhi, it attributes Longquan lingzhi’s quality to deep mountain conditions, a subtropical vertical climate and pure section-wood natural cultivation, resulting in round caps, fine patterns, dense texture, plump spores and high active ingredient content. On benefits, it says that in traditional Chinese medicine theory lingzhi is used to tonify qi, calm the spirit and support vitality, while modern research suggests potential activity in immune regulation, antioxidant and liver protection areas. On tickets, it states that Lingzhi Valley, the Zhengzhuang simulated wild base and Quanling Valley are free and do not require reservations.

Foreign founders should treat such health-related statements as source claims, not as approved product claims in any jurisdiction.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.