Hubei's Qichun expands mugwort industry beyond the fields

Guan Zhijin, a mugwort grower in his 80s, drove a three-wheeled vehicle loaded with dried leaves to a purchasing site near the village committee in Hanpoling village, Qichun county, Central China's Hubei province.

Workers tested the moisture level, graded the leaves and weighed them before loading them for transport. Guan sold more than 8,000 yuan worth of mugwort that day.

He said in the past, growers had to search for buyers, but now the village collection point allows them to sell their produce close to home. Mugwort, he said, is more profitable than other crops he has grown.

His experience illustrates how Qichun is connecting individual farmers with a wider industry built around qiai, the locally grown variety of mugwort.

The county's mugwort industry generated 19 billion yuan in output across its value chain in 2025, according to local authorities. Traditionally used in moxibustion, qiai is now being developed into products ranging from personal care items to textiles. Processing, retail and services are also creating local employment.

For growers supplying Qiai Group, arrangements for selling the crop begin months before the harvest.

Wei Zilong, deputy general manager of the group, said the company adopted its current contract-farming model in late 2023. Each December, it works with village committees in designated townships to identify farmers interested in planting mugwort.

Purchase agreements specify planting areas, expected output, prices, collection dates and quality requirements. About a week before collection, farmers are notified to pack their leaves and take them to designated village sites, where company employees weigh the crop and settle payments in cash, Wei said.

At the purchasing operation attended by Guan, the company followed countywide grading and pricing standards. First-grade leaves were purchased at the government-guided price of 15 yuan per kilogram.

The arrangements give farmers a specified buyer and collection plan before the crop is ready, while helping the company organize raw material supplies. Wei said the group has more than 6,000 metric tons of mugwort leaves in storage, where they are kept for three years before further processing.

For Qiai Group, however, the business began with services rather than manufacturing. It first developed sales channels through moxibustion outlets, then expanded processing capacity in response to orders.

The outlets address a practical barrier to sales: some consumers do not know how to use traditional mugwort products. Staff-assisted services give customers a place to try them, Wei said.

The first phase of Qiai Group's industrial demonstration park began production in June 2024, bringing together leaf storage, processing and logistics.

Across Qichun county, manufacturers have developed essential oils, personal care items and moxibustion equipment. Research partnerships are also extending the use of mugwort into textiles, with mugwort-cotton underwear and socks reaching the market in small batches, according to county authorities.

The group is also creating work closer to where the crop is grown. Wei said it has established processing facilities in four townships, where some stages of making foot-soak packs and mugwort incense can be completed by hand.

Locating the facilities near villages allows residents to take on processing work during quieter periods in the farming calendar. Training programs in Qichun also offer courses in e-commerce and moxibustion, helping residents seek work in product sales and services.

Li Guihua, who previously worked in beauty services, joined a government-funded moxibustion training program in 2025. After completing the program, she began working at a local moxibustion outlet that September.

By January 2026, Li was earning about 7,000 yuan a month, compared with her previous, less stable monthly income of 3,000 to 4,000 yuan.

Her experience shows how the industry is creating opportunities beyond cultivation and processing.

"The work is stable, and I can also look after my family and child," Li said.