CHINA All except Agaricus
Shanghai Xuerong Biotechnology Co. Ltd is the premier mushroom producer in China. During the Chinese Mushroom Days, of which Xuerong is a main sponsor, we had a chance to talk to President and Chairman of the company, Mr Yongping Yang, with Michael Lee as our capable interpreter.
By Roel Dreve S
hanghai Xuerong Biotechnology Co. Ltd. was established in 1997 and started industrial cultivation of mushrooms in 2004. Four years later this became the company’s core business. In 2016, Xuerong was listed on the Shenzhen stock exchange. According to the company, total daily production on Xuerong farms had reached 580 tons per day last September, making it the number one mushroom producer in China in terms of production volume.
Xuerong’s strategy
The key to this growth lies in multiple factors. Firstly, Xuerong has committed to product diversification. Many different mushroom varieties are cultivated, which enhances customer loyalty and competitiveness. The company has six production sites in China with its own distribution network and marketing teams. Being close to the customer, Xuerong can reduce logistics costs and quickly respond to changes in market demand.
The company also prides itself on its research achievements, with its own successful breeding and strain programmes. Xuerong has pioneered with the use of liquid strains to produce enoki and hypsizygus marmoreus, reducing the production cycle and the risk of contamination. Xuerong believes in brand development as an important driving force, which is, for example, reflected in the partnership with ‘China Aeros- pace’, and actively raises consumer awareness. Being such a big, nationwide market player, Xuerong’s sales cover nearly 90% of China’s regional population and it works with important supermarket chains and e-commerce platforms. The company aims to strengthen its leading position and increase its market share in China, seeking overseas investment at the same time.
20 MUSHROOM BUSINESS
Harvesting hypsizygus marmoreus in the Shanghai plant of Xuerong, during a visit in November 2015.
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