Businesses in Zhaoqing are expanding applications for traditional Chinese medicinal materials, elevating the value of ‘southern medicines’ through innovation and partnerships, Wu Kunling reports.

In today’s thriving global flavored coffee market, a unique fusion of flavors is emerging in Zhaoqing, Guangdong province.

The city, known for its traditional Chinese medicinal materials (TCMMs) industry with an annual output exceeding 10 billion yuan ($1.39 billion), is now blending locally-grown cinnamon — typically used as a herbal remedy — with coffee beans. The result is a rich, aromatic brew with a hint of spice, that is quickly becoming a favorite among consumers.

As a pioneer in infusing local cinnamon into coffee, Lai Yana, who founded Huge-hunter Agricultural Products, said he got the inspiration during a market survey in Japan, where locals used cinnamon sticks as tea stirrers and savored the unique blend of flavors and aromas — a practice also common in Northern Europe and the Middle East. Recognizing the potential, Lai trademarked his idea and partnered with coffee companies.

Today, his business supplies cinnamon powder to global chains like Costa Coffee and Starbucks, and exports cinnamon sticks to overseas beverage markets. His curiosity did not stop at coffee.

His company began supplying custom cinnamon to a Japanese preserved flower brand years ago. He says cinnamon is not merely decorative — its texture naturally deters pests and, when infused with perfume, releases fragrance for an extended period.

These ventures aim to enhance the added value of the herb, Lai said, adding that it is crucial for the TCMM industry, as essentially the products are agricultural raw materials with relatively modest unit prices. He also plans to expand into wedding bouquets, premium aromatherapy, food and toothpaste to maximize the herb’s value.

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In Zhaoqing, numerous enterprises like Lai’s drive a TCMM market worth billions of dollars. In China, medicinal materials from across the southern parts, including Guangdong, Hainan, and Fujian provinces, as well as Guangxi Zhuang autonomous region, are commonly referred to as “southern medicines”.

Zhaoqing’s ideal climate, with abundant sunlight, water and heat, makes it perfect for growing high-quality “southern medicines”, including bajitian (morinda root), bergamot, cinnamon and heshouwu (fleeceflower root).

According to official data, the output value of Zhaoqing’s TCMM industry hit 10.6 billion yuan last year, with 660,000 metric tons produced across 1.56 million mu (104,000 hectares). Cinnamon alone contributed 5.72 billion yuan, surpassing half of the total. The city has built a full industry chain covering seedlings, processing, sales and technical services.

In addition to being used in local innovative products, Zhaoqing’s TCMMs are sought after by customers elsewhere as raw ingredients. Lai’s company is a major supplier to seasoning, food, pharmaceutical and consumer-goods giants worldwide, including sauce brand Lee Kum Kee, global life science leader Bayer and Japan’s House Foods Group. Over half its revenue stems from overseas markets like Germany, Japan, Britain and the Middle East.

Lai says the company gained the trust of customers by establishing measurable standards based on robust scientific research that focused on the quality of medicinal materials and production phases.

He recalls that when he entered the industry decades ago, customers, especially those from abroad, struggled to specify their TCMM requirements. Similarly, local farmers and businesses lacked consistent standards to showcase their products efficiently. Such ambiguity often led to customer returns and financial losses for farmers.

To address this, his company began its own cultivation, starting from seed-selection. By combining its own observations, expert guidance, and customer feedback, the enterprise created rigorous quality standards evaluating flavor, composition and manufacturing procedures like processing, using precise data. He also leased about 50 mu of land to showcase standardized cultivation methods to partner farmers.

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As these standards gained recognition among consumers, premium products began to fetch higher prices, motivating both enterprises and farmers, says Lai.

Power of science

Lai owes the establishment of such standards much to the company’s emphasis on scientific research, particularly its collaboration with research institutions like South China Botanical Garden and universities, where experts consistently offer advice on producing top-tier products.

Every aspect of Zhaoqing’s TCMM market incorporates scientific guidance into practice. A seamless collaboration mechanism has been established among research institutions, the government, businesses and farmers.

In 2018, the Zhongkai Institute of Agricultural Science and Tech Innovation was founded with government support in Zhaoqing’s Deqing county — a key production hub for medicinal materials. Since then, local farmers and businesses have been able to gain access to agricultural experts without having to travel to big cities, receiving support across all production and processing phases.

Actively engaging with the government, farmers, businesses and fellow researchers, Zhang Weili, the institute’s director and a seasoned agricultural expert, says she witnessed such cooperation firsthand.

The Zhaoqing authorities have given extensive support to the institute, including approvals for sites and experimental fields, funding assistance and a well-rounded talent program. More researchers have begun participating in on-site work in the remote county, says Zhang.

Researchers not only introduce cutting-edge agricultural theories through training sessions and outreach programs but also flexibly address concerns from businesses and farmers. Annually, they conduct up to 60 company visits and numerous farmland trips, resolving problems and gathering inquiries. Those facing challenges also come to the institute to seek advice.

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For instance, upon observing frequent bacterial wilt infections in local patchouli — a herb widely utilized to stop vomiting and relieve summer heat — the institute collaborated with universities to investigate the disease. Their research findings have been shared through field practices in recent years and have helped local farmers combat the issue.

Zhang says academics have been closely monitoring the TCMM sector’s demand for adding value to raw materials and are fully committed to supporting the industry. However, while the top-notch quality of the herbs offers endless application possibilities, the industry still lacks creativity in product development and promotion. She is calling for the industry, and particularly universities, to organize regular competitions to inspire more innovation.

More herbs could be added to the nation’s catalogue of substances that are traditionally considered as both food and TCMMs, she says, adding that the inclusion could offer a golden opportunity to expand such materials’ use in the health industry.

Stepping up production while continuously seeking innovation is pivotal to helping the millenniumold industry to thrive even more, Zhang says.

Contact the writer at amberwu@chinadailyhk.com