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Progress seen in agri product processing

By WANG KEJU and LIU KUN | CHINA DAILY | Updated: 2026-03-10 09:33
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The key to transforming local agricultural resources into "rewarding" industries that drive rural prosperity and local economic growth lies in applying "industrial mentality and supply chain thinking", Yang Jun, mayor of Xianning, Hubei province, told China Daily in an exclusive interview.

The official's remarks came on the heels of the Government Work Report, submitted on Thursday to the national legislature for deliberation, which emphasized advancing comprehensive rural vitalization and developing specialty industries tailored to local conditions.

"We have upgraded production bases for vegetables, tea, fruit and medicinal herbs, ensuring quality at the source through standardized and scaled cultivation, while partnering with universities and research institutes to establish 10 key agricultural laboratories," said Yang, who is also a deputy to the 14th National People's Congress.

In 2025 alone, Xianning established 20,000 mu (about 1,340 hectares) of new traditional Chinese medicine bases and 5,000 mu of fruit bases, while renovating 500 mu of high-efficiency osmanthus flower demonstration plots and replanting 1,500 mu of low-yield osmanthus forests.

Xianning has focused on nurturing leading enterprises to achieve breakthroughs in agricultural product processing, Yang said, noting that the city now counts 276 agricultural product processing enterprises with annual main business revenue of 20 million yuan ($2.9 million) or more, generating total output value of 81.2 billion yuan in 2025.

"We have made innovation in our marketing strategies that combine online and offline channels. E-commerce livestreaming initiatives and specialty product pavilions collectively showcase our local offerings," he said.

"The ultimate goal is to benefit locals," Yang said, adding that profit-sharing mechanisms have been widely employed, channeling benefits from processing and sales to farmers through contract purchases, land renting and shareholding dividends.

Nearly 10,000 new agricultural entities now link 240,000 farming households to the industry chain, Yang added.

The osmanthus flower stands as a shining example of agricultural transformation, having evolved from a regional specialty into a sought-after ingredient in the cups of coffee chains such as Starbucks and Luckin, driven by upgrading of production bases, development of processing technologies and strategic partnerships with branded enterprises seeking distinctive ingredients.

As the only city in China officially designated as the hometown of osmanthus, Xianning boasts a centuries-long history of cultivation, extensive distribution spanning 118,100 mu across diverse varieties, and the country's largest ancient osmanthus forest.

"This rich endowment forms the foundation of what has become a rapidly modernizing industry supplying coffee chains," Yang said.

But heritage alone cannot sustain partnerships with the likes of Luckin and Starbucks. To transform tradition into reliable commerce, local authorities and enterprises have focused on what matters most to buyers: standardized quality and stable supply.

"We are promoting an 'enterprise + cooperative + farmer' contract model across the region," said Yang. Mechanized harvesting and intelligent sorting systems are being deployed to ensure that every osmanthus flower destined for major coffee brands meets rigorous quality specifications, he added.

Beyond harvesting and sorting, Xianning has invested heavily, according to Yang, in post-harvest technology through partnerships with universities and research institutes to perfect aroma preservation methods that maintain the sensory qualities of "just-picked from the branch" year-round.

The city is also weaving the osmanthus flower into the fabric of its urban development, transforming itself into a sprawling "osmanthus park" where visitors can follow the scent of blossoms through upgraded scenic areas, boutique hotels and immersive cultural experiences.

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