Tiger Milk Mushroom Growing in Hainan ：Industry Leader

Tiger Milk Mushroom Growing in Hainan has successfully established a complete industrial chain for Tiger Milk Mushroom cultivation and deep processing through its innovative policy approach—the “coordinator mechanism”—in collaboration with Baisha Biotechnology Co., Ltd. This model, integrating policy support with corporate technology, provides a replicable blueprint for tropical agricultural economies.

To advance forestry economic development, Baisha Li Autonomous County (hereafter referred to as Baisha) formally released the Implementation Plan for the Key Industrial Chain Coordination Mechanism of Baisha Li Autonomous County (2025-2027). The plan explicitly establishes a “coordinator + leading enterprise” mechanism, with the forestry economic chain “leading enterprises” including Baisha Biotechnology Co., Ltd.

Government Implements Coordinator Mechanism to Boost Baisha Industrial Chain Development

According to reports, the Plan designates the principal leaders of the Baisha County Party Committee and County Government as “Chief Coordinators” to oversee the overall industrial chain operations. Each industrial chain will be jointly coordinated by two county leaders, who will spearhead comprehensive efforts including planning, investment promotion, and enterprise cultivation. Concurrently, the County Development and Reform Commission establishes a “Coordinator Office” to handle daily coordination, supervision, and performance evaluation, while implementing tailored support policies under the “one chain, one policy” approach. This series of measures provides robust policy backing for the development of under-forest industries in Baisha, such as the Hainan tiger milk mushroom.

In recent years, Baisha has become a shining example of Hainan’s forest-based economy by supporting “flagship enterprises” to advance the tiger milk mushroom lucidum industry. Today, we explore how Baisha Biotechnology Co., Ltd. (hereinafter referred to as “the Company”), the flagship enterprise of Hainan’s tiger milk mushroom lucidum industry, has become the driving force behind this sector’s growth.

Enterprise Drives Development, Building the Tiger Milk Mushroom Industry Landscape

As the “pioneering enterprise” of Baisha’s under-forest economy, the company has actively expanded its local presence to advance the tiger milk mushroom industry. Since its establishment in 2020, it has developed a seedling cultivation factory, primary processing and sorting center, Southern Medicinal Products Trading Center, and a 10,000-mu edible fungus cultivation base in Baisha, forming a relatively complete edible fungus industrial chain.

In cultivation, the company adopts a model of “growing yizhi and edible fungi under rubber trees,” maximizing forest understory space utilization and land efficiency. Large-scale tiger milk mushroom lucidum cultivation is now established across multiple townships, including Baisha. For instance, in Qingsong Township, a “government + enterprise + village organization” collaboration model generates over 10 million yuan in annual income for local farmers.

For processing, the company employs a green approach combining manual slicing with electric drying and natural sun-drying, using no additives to maximize retention of tiger milk mushroom lucidum’s nutritional components. Its primary-processed Hainan tiger milk mushroom lucidum slices are in high demand across regional markets. Additionally, the company actively develops tiger milk mushroom lucidum extracts for future use in premium health supplements and pharmaceutical research.

Beyond deepening its roots in Baisha, Baisha Company has also set its sights on other regions of Hainan. In Dacheng Town, Danzhou, the company has partnered with local stakeholders to advance the development of tiger milk mushroom lucidum cultivation under forest canopies through a “four-party collaborative model.” This approach involves grassroots organizations coordinating efforts to create a scalable demonstration effect; The company supplies premium spawn bags and technical guidance while signing guaranteed purchase agreements; the cooperative federation facilitates farmer loans; and farmers undertake the under-forest cultivation. Through this multi-party collaboration, Dacheng Town will become Baisha’s second large-scale tiger milk mushroom lucidum cultivation base, fully leveraging the region’s abundant forest land resources.

Policy Support: A Comprehensive Review of Tiger Milk Mushroom Growing in Hainan Under-Forest Economy Policies

Hainan has consistently prioritized the development of its forest-based economy, introducing multiple policies to propel the industry’s growth. Looking back over time, the province’s support for this sector has been strategically laid out for years:

In 2018, the Hainan Provincial Forest-Based Economy Development Plan (2018-2025) was released, first outlining four key sectors: forest-based cultivation, forest-based animal husbandry, forest product collection and processing, and forest landscape utilization.

In 2020, the “Hainan Rubber Forest Understory Economy Demonstration Province Construction Plan” designated edible fungi, southern medicinal herbs, and tiger milk mushroom lucidum as key demonstration categories under rubber tree canopies.

In 2022, the “Hainan Provincial Regulations on Traditional Chinese Medicine” explicitly stated support for “understory cultivation mimicking wild conditions for southern medicinal herbs like tiger milk mushroom lucidum and tiger milk mushroom lucidum var. tigrinum”;

In 2023, normative documents such as the “Implementation Rules for the Management of Provincial-Level Demonstration Base Incentive Funds for Hainan’s Understory Economy (Trial)” and the “Hainan Provincial Standards for Forest Land Utilization in Understory Economy (Trial)” were issued. The provincial government allocates 15 million yuan annually for provincial-level demonstration base incentives, with enterprises eligible for up to 5 million yuan in subsidies.

In 2024, the “Hainan Provincial Plan for High-Quality Development of Understory Economy (2024-2030)” was released, setting targets for the province’s understory economy to reach 333,333 hectares in area and achieve a comprehensive output value of 28 billion yuan by 2030. Based on Hainan Island’s climate conditions and resource characteristics, five development zones for the understory economy were delineated.

In 2025, the Hainan Provincial Government released the Three-Year Action Plan for Promoting the Wellness Industry (2025-2027), which for the first time included “development of distinctive medicinal resources” as a key focus area within the wellness sector. It explicitly called for “tapping the biological resource potential of the core zones within the Tropical Rainforest National Park.”

These successive policy “tailwinds” have paved the runway for tiger milk mushroom lucidum’s evolution from wild harvesting to simulated wild cultivation to industrialization in Hainan. Meanwhile, Baisha’s “coordinator mechanism” has upgraded this runway to a “maglev track”—precisely attracting industrial elements to cluster around “pioneering enterprises.”

The Future Holds Promise, Boosting the Takeoff of Understory Specialty Economies

Looking ahead, Baisha will continue to focus its efforts on Hainan’s tiger milk mushroom lucidum industry. The company will further increase investment in scientific research, collaborate with research institutions and universities, and continuously optimize tiger milk mushroom lucidum strains to enhance both yield and quality. Simultaneously, it will expand the product range of tiger milk mushroom lucidum. Beyond existing offerings like sliced products and broken-cell powder, it will develop more high-value-added products to meet the diverse needs of consumers.

In market expansion, Baisha will leverage the policy advantages of Hainan Free Trade Port to explore domestic and international markets actively. Since 2022, Baisha has enhanced the visibility and market share of Hainan tiger milk mushroom by participating in various exhibitions and leveraging e-commerce platforms. Furthermore, Baisha will continue to play its role as a “pioneering enterprise,” collaborating with more farmers and village collectives to promote tiger milk mushroom cultivation. This initiative aims to boost Hainan’s distinctive under-forest economy, enabling more people to benefit from the dividends of industrial development.

From provincial-level plans for forest-based economies to the implementation of Baisha’s “coordinator mechanism,” and now the island-wide expansion of this “pioneering enterprise,” tiger milk mushroom lucidum has finally evolved from a “mountain-grown elixir” into an “industrial protagonist.” Five key elements—policy, technology, capital, market, and culture—are now sparking a chemical reaction within Hainan’s tropical rainforests. Supported by government policies and driven by pioneering enterprises, Hainan’s tiger milk mushroom lucidum industry is steadily maturing.

We believe Hainan’s tiger milk reishi industry will usher in an even brighter future, emerging as a new highlight in the province’s economic development. Can it propel tiger milk reishi into the “billion-yuan” single-product category within the next three years? The answer lies in every tiger milk reishi plant returning to the rainforest and in the smiling faces of every forest farmer seeing increased income.

Leveraging the policies of the Hainan Free Trade Port and the ecological advantages of its tropical rainforests, the Tiger Milk Mushroom industry is transforming from a “mountain-grown medicinal herb” into a high-value-added cash crop. Through policy guidance, scientific research investment, and supply chain collaboration, Hainan’s Tiger Milk Mushroom cultivation practices not only drive local economic growth but also offer a Chinese solution for global under-forest economic models.