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Shangri-La's mushrooming reputation

Highly-prized forest delicacy links mountain communities to tourism opportunities, Asian market

By YANG FEIYUE and LI YINGQING in Diqing, Yunnan | China Daily | Updated: 2026-08-19 07:13
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Villagers sort matsutake mushrooms in Jidi. CHINA DAILY

Preparing for sales

The mushrooms' commercial value must be hastily maximized when villagers lift them from the soil. From the moment they are picked, the clock starts ticking to get them to dining tables in time.

At the Shangri-La matsutake trading center, about 30 kilometers from Jidi village, workers sort, pack and dispatch the fragile harvest.

Inside the market, the atmosphere is frantic. Phones ring constantly and buyers inspect the quality of the mushrooms under bright lights. The fungi are separated by hand, according to size, appearance and freshness before being sent to destinations hundreds or even thousands of kilometers away.

At the center of the trading hall stands a large model airplane — a reminder that these mushrooms, once collected mainly for local consumption, have become part of a global food network.

Fresh matsutake is highly perishable, making transportation a challenge.

During the peak harvest season in July and August, dealers handle dozens of kilograms each day. Mushrooms are packed with ice and moved quickly through cold-chain logistics to preserve their texture and aroma.

Some major buyers travel to Shangri-La in search of the highest-quality mushrooms.

Trucks transport matsutake to Kunming, the provincial capital, in the morning to larger distribution networks and for export. Flights from Diqing Shangri-La Airport connect with major domestic markets, including Beijing, Shanghai, Guangzhou, Guangdong province and Chongqing.

But expansion of the market has brought new challenges.

For generations, matsutake buyers relied on experience to judge quality and developed their own standards based on size, appearance and aroma. As demand increased, however, the industry needed clearer standards.

"Matsutake is different from ordinary agricultural products," said Jia Xiao, a researcher at the Research Center for Rural Economy of the Ministry of Agriculture and Rural Affairs. "Because it cannot be cultivated on a large scale, protecting the natural environment where it grows is the foundation of the industry."

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