Zhang Denghai, staff reporter   

Zhou Shuwen, a 48-years-old, is a farmer with more than 20-year's experience in planting of panax pseudoginseng in the Gumu Town, Wenshan County. By planting of panax pseudoginseng, he was ever a millionaire for a while. But the fast changing market made him lose all his fortune and return to have-not life twice. For a while, "panax pseudoginseng" was a taboo word in his life. But things have changed as the time lapses. Now, the famous Daphne Co. makes him stay at ease. On August 20, the writer visited the Daphne Jinjitang GAP base, 15 km from the capital of Wenshan county, and got an eyeful of panax pseudoginseng flowers, amid which stood beaming Zhou Shuwen. With Daphne as "backup", he can grow panax pseudoginseng and make money at ease, says smiling Zhou.
The Daphne Pharmaceutical Co., Ltd. is a modern pharmaceutical enterprise based in the Wenshan County, dubbed Hometown of Panax Pseudoginseng. Since its foundation in 1994, the Company has embodied in its business the idea of "sourcing from panax pseudoginseng, outperforming panax pseudoginseng and serving human health". Through cooperation with China Academy of Military Sciences, Shanghai TCM University and Kunming Medical College, they have brought out many new products, which have upgraded from Generation I primarily processed products like panax pseudoginseng chips to the current Generation IV panax pseudoginseng ginsenoside Rg1 & Rb1 monomer Qishengli and Qishengjing Tablets, which lead the way in China, and co-certified by the State Ministry of Science & Technology and Ministry of Foreign Trade and Economic Cooperation et al as national key new products. With the unique product, the Company sales income has surged from tens of yuan annually at the very beginning to close to RMB 100 million yuan in the first half of this year. Last August, Daphne was listed by the Provincial Government as one of the provincial 10 pharmaceutical enterprises to enjoy preemptive support. On April 7 this year, the Company was praised by provincial Party Committee and Provincial Government in reorganization of their outstanding contribution to tax revenue in the non-state-owned category.
Emergence of Daphne has brought about breakthrough of the panax pseudoginseng industry, which has reportedly a growing history of more than 400 years. But the Daphne Co.'s ambition is far beyond that. They vow to lead the panax pseudoginseng industry to grow even bigger. Tang Xiuwen, Chairman of Daphne, targets "to better tap the godsend - panax pseudoginseng and construct a complete panax pseudoginseng industrial chain covering from planting to scientific research, product development, sales and construction of the Panax Pseudoginseng Industrial Park."
Daphne controls the planting practice according to the requirements of the Good Agricultural Practice: TCM Material Production (GAP). On the one hand, they work with the Wenshan Panax Pseudoginseng Research Institute, and on the other hand, they invested close to RMB 4 million yuan in establishment of 11000 mu (733.33 hectares) of GAP-compliant panax pseudoginseng base, which has been certified by the provincial FDA and included in national list of first pilot projects. This move gives Daphne the most important convincing qualification item to access to the international market. Currently, the Company takes the model of "company + farmer + technology + base", and provides deliberate support for panax pseudoginseng farmers distributed in Wenshan, Yanshan and Maguanon respectively so that their planting is carried in a normalized way. This year alone, Daphne has invested so far RMB 160,000 yuan. 16 leading planters including Zhou Shuwen are designated as team leaders, who are paid RMB 300 yuan per month each as technical allowance. Through support for 3 years running, this year will embrace a good harvest of panax pseudoginseng. Suppose the minimal production estimate (3 million kg) is used, the panax pseudoginseng farmers will earn direct income of RMB 210 million yuan, says Xiang Changwan, vice President at the Daphne Co.
As to the production, Daphne obtained GMP certificate from the state regulator on April 7, 2000, becoming the first pharmaceutical enterprise in Yunnan obtaining such certificate. In 2002, the Company obtained GMP certificate issued by the Australian Federal Drug Administration. It marked that the Company made a key step towards modern TCM drug production.
When it comes to sales, Daphne has established own sales network which has extended to 29 provinces/municipalities across the country, and subsidiaries in Hong Kong and the USA. The sales performance escalates steadily. Daphne won the contract of the provincial government for investment and development of the Wenshan Panax Pseudoginseng Industrial Park, and takes this chance to integrate the existing resource and product advantages, and absorb more foreign investment and foreign partners to develop the panax pseudoginseng industry. Currently, close to RMB 70 million has been invested in infrastructure of the park. Daphne has invested RMB 55.71 million yuan in the Wankang Panax Pseudoginseng Foodstuff Co., Ltd., which production premises are expected to start production by the end of this year. The Hong Kong Daguang Industrial Company invested RMB 150 million yuan in a primary material processing center.

Editor's comment: Leading panax pseudoginseng processing enterprises led by Daphne have carved out a new way for better development of the panax pseudoginseng industry. The farmers will obtain stable income growth only when they are included in the industrial chain. This is also a direction in which Yunnan province abounding in biological resources develops a green economic power.

(Source: September 17 of 2003 issue of Yunnan Daily)