Published by ChinaMNC · Qingyuan

What a 1,000-Year-Old Lingzhi Brand Reveals About China’s Agri-Food Opportunity

A government profile of Longquan lingzhi shows how a protected local crop became a branded, processed and tourism-linked industry — useful context for foreign founders exploring China’s agricultural and food markets.

A Local Crop With a Long Record

Longquan, a county-level city in Lishui, Zhejiang, has cultivated lingzhi (reishi mushroom) since the Northern Song dynasty. Its “buried-soil” growing technique has been passed down for more than 1,000 years. Both Longquan lingzhi and Longquan lingzhi spore powder hold national geographical indication product protection. The “Zhejiang Mountain Lingzhi Culture System,” covering Wuyi County and Longquan City, was included in the eighth batch of China’s Important Agricultural Heritage Systems.

The source traces the crop’s cultural record through several markers: a poem by He Zhizhong, a Longquan-born chancellor during Emperor Huizong’s reign; a county gazetteer entry from 1129 noting lingzhi growing naturally in an official’s home; and Li Shizhen’s Ming-dynasty Compendium of Materia Medica, which records that Chuzhou produced red lingzhi usable as food and medicine. Longquan historically belonged to Chuzhou, which explains the “Chuzhou red lingzhi” reference.

For foreign founders, the takeaway is not the folklore but the structure underneath it: a long-established local supply chain, formal geographical indication protection, and a heritage designation that together support branding and premium positioning.

Three Generations of Growing Technique

The source describes three stages of cultivation:

• Northern Song to 1987: long log segments, raw material, buried in soil; wild lingzhi was crushed into a slurry, applied to notches, covered with soil and leaves, and left to grow naturally.
• 1988 to 2016: short log segments using sterilized substrate and soil covering, which improved yield and consistency.
• 2017 to present: a factory-based “restored log” method that retains traditional tree species while introducing intelligent production.

This progression — from wild inoculation to standardized substrate to controlled-environment manufacturing — mirrors the path many Chinese agricultural suppliers take when moving from raw material to higher-value processed goods.

Brand Value and Scale

In 1996, Longquan received the title “China’s First Hometown of Lingzhi” from the Development Research Center of the State Council. Longquan lingzhi obtained national geographical indication protection in 2010, and its spore powder followed in 2011.

According to the source, the combined “Longquan lingzhi plus Longquan lingzhi spore powder” brand is valued at RMB 9.042 billion and has held the top spot among national lingzhi regional brands for four consecutive years. More than 3,000 Longquan mushroom technicians work across 15 provinces and over 80 counties and cities. Annual planting volume reaches 150,000 cubic meters, accounting for 60% of China’s total log-grown lingzhi. In 2025, the industry chain’s annual output value reached RMB 1.12 billion.

For a foreign founder, these figures illustrate how a geographically concentrated crop can support a national supply network, with local expertise exported as a service.

From Brewing to Snacking

Longquan lingzhi was traditionally sliced and boiled or ground into powder. The source says the city is now extracting value from the whole mushroom and shifting from “growing lingzhi” toward “making snacks” and “making drinks.”

More than 70 deep-processing products and over 30 food-medicine homology foods have been developed, including wall-broken spore powder, spore oil, lingzhi beverage, lingzhi coffee and lingzhi pressed candy. In 2025, the first lingzhi gummy — developed with Xianghu Laboratory — was launched, using lingzhi extract with American ginseng and sea cucumber peptide, with a chewy texture.

This product diversification is relevant to founders in functional foods and supplements: Chinese local governments are actively pushing primary producers into processed consumer formats, which can create sourcing, co-manufacturing and brand partnership opportunities.

How the Model Links Companies and Farmers

Longquan has promoted a “company buys all output plus farmer cultivation” model. In Zhengzhuang Village, Yanzhang Township, an incoming enterprise helped build three standardized lingzhi planting sites covering nearly 90 mu, with annual output value exceeding RMB 5 million. The source states this brings the village collective more than RMB 100,000 in annual rent, over RMB 300,000 in wage payments, and more than 80 local jobs at peak times.

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

Foreign founders considering rural or agri-tourism projects should note that these models depend on village collective land arrangements and local enterprise partnerships — structures that typically require local counsel to navigate.

Practical Visitor and Sourcing Information

The source lists the following, which may be useful for founders planning a sourcing or site visit:

• What to try: lingzhi coffee, lingzhi sliced tea, lingzhi and polygonatum jar tea, lingzhi cup tea, lingzhi gummies and lingzhi pressed candy.
• Where to buy: offline at the Longquan Sanbao Hall, the Zhejiang-Fujian-Jiangxi Edible Fungi Trading Center, and spore powder specialty stores in Longquan; online via the “Jianci Longquan Mall” mini-program, Douyin and Tmall flagship stores.
• Where to visit: Lingzhi Valley in Meidi Village (5 km ecological trail, no ticket); the simulated-wild lingzhi base in Zhengzhuang Village; and Quanling Valley forest health base in Jinxi Town.
• When to go: August to September for viewing and harvest; July to August for summer health retreats, with Meidi Village at least 5°C cooler than the urban area.
• Getting there: take high-speed rail to Longquan Station, then bus or drive; navigate to the named sites.

Quality and Claims

The source’s FAQ states that Longquan’s mountain conditions, subtropical vertical climate and pure log cultivation produce lingzhi with round caps, fine ripples, dense texture, plump spores and high active-ingredient content. It notes traditional Chinese medicine use for qi tonification and vitality, and says modern research suggests potential activity in immune regulation, antioxidant and liver protection areas — phrased as potential, not proven.

The sites listed are free and do not require booking, according to the source.

What This Means for Foreign Founders

This is a government-published profile, not an investment guide. Still, it shows a template common in China’s specialty agriculture: heritage plus geographical indication plus brand valuation plus processing upgrade plus rural tourism. Founders in food, nutraceuticals or agri-tech may find partnership openings in co-manufacturing, export sourcing or consumer brand development. Any engagement with land, licensing or health claims should be checked against current regulations with qualified local advisers.

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