#China #Poverty Alleviation #Traditional Chinese Medicine #Nanyang Mugwort #Nanyang

The Transformation of Nanyang Through the Mugwort Industry

As the festive atmosphere of the Spring Festival subsides, a vibrant scene unfolds at the Nanyang Yaoyibao Mugwort Products Company in Central China's Henan Province. The factory hums with activity, where automated machines efficiently weave aromatic mugwort into bundles, ready to be packaged and shipped globally. This bustling operation is not just a workplace; it's a lifeline for many local farmers who have experienced a significant economic turnaround thanks to the booming mugwort industry.

A New Era for Farmers

Before the implementation of China's targeted poverty alleviation campaign, rural residents of Nanyang faced economic hardship. Once considered the poorest city in Henan, where many farmers sought work far from home during off-seasons, a watershed moment occurred in 2016 when the local government focused on industrial poverty alleviation. By 2020, the region reported a complete eradication of poverty among its 901,600 impoverished residents, with all impoverished counties rising above their status.

The Role of Mugwort

Central to this success story is mugwort, a versatile herb celebrated in Traditional Chinese Medicine (TCM) for its health benefits, which include alleviating dampness, ceasing bleeding, and minimizing inflammation. Nanyang's geographical advantage allows for the production of a high-quality mugwort rich in essential oils and flavonoids. Over the past three decades, this humble herb has transitioned from a staple of local agriculture to a key player in rural revitalization.

In May 2021, President Xi Jinping visited the Yaoyibao Company, highlighting the significant impact of the mugwort industry in generating employment and supporting local farmers. Today, Nanyang stands as China's largest hub for mugwort cultivation and processing, accounting for over 70% of the national market as of 2024. This sector provides more than 300,000 farmers with a stable income through a combined annual output value of approximately 18 billion yuan (around $2.4 billion).

Pathway to Prosperity

Mr. Zha Hongfu, Chairman of Yaoyibao Company, attributes much of this transformation to a corporate model supportive of impoverished farmers. His own journey began as a migrant worker before he recognized the opportunity to produce mugwort in Nanyang, marking the genesis of Yaoyibao in 2011. What began as a small initiative has sparked the evolution of villages into vibrant industrial towns, replete with enterprises specializing in cultivation, processing, and logistics, empowering over 3,000 local villagers.

However, challenges such as inconsistent production and lack of regulation persisted, limiting earnings in the mugwort sector. To tackle these issues, local authorities established a mugwort industry association, incentivizing cooperation among farmers and fostering specialized cooperatives that provide technical guidance and procurement services. This strategic shift towards a unified production model has stimulated growth and security for local farmers.

Impact on Lives

The positive effects on employment in Nanyang are substantial. Liu Bing, deputy general manager of Yaoyibao, notes that the workforce primarily consists of local villagers who benefit from steady jobs that allow them to care for their families and maintain agricultural ventures. Employees like Wang Xinyang report their salaries have grown from around $150 monthly to over $800, significantly improving their quality of life.

Future Aspirations and Global Reach

Looking forward, Zha envisions expanding the mugwort industry to create a comprehensive ecological chain that will contribute even further to the revitalization of rural areas. Despite its success, challenges remain in enhancing brand power and market perception beyond its traditional role. Efforts are underway to elevate the