In the highlands of Yunnan Province, Fenghé Town has transformed a humble tuber into a sophisticated, vertically integrated agricultural engine, driving rural revitalization through science, scale, and savvy market connection. This case study demonstrates how a focused, full-value-chain approach can elevate a staple crop into a high-value regional brand, benefiting thousands of smallholder farmers.
Fenghé’s strategy rests on three pillars: technological foundation, industrial integration, and guaranteed benefits for farmers. The town has established a robust seed system, producing 10 million virus-free minitubers and 10,000 tons of certified seed annually across 10,000 square meters of greenhouse space and a 2,000-acre seed base. This scientific backbone supports the standardized cultivation of over 5,000 acres of potatoes using a “virus-free seed + black plastic mulch + formula fertilization + mechanization” model. The operation is integrated under a “Party organization + leading enterprise + cooperative + base + farmer” structure, led by companies like Yunnan Penglong Potato Planting Co. This model ensures quality control and provides over 15,000 farming households with premium seed, technical guidance, and a secured purchase price 100 RMB/ton above market rates, boosting household income by an average of 1,200 RMB annually.
The most critical step in value capture is processing. Fenghé has moved decisively beyond raw commodity sales by establishing a deep-processing facility producing pre-cut vegetables and, notably, a branded line of premium potato chips under the “Maishudi” brand. This single chip line consumes 16,000 tons of potatoes annually, generating an output value exceeding 1.95 billion RMB (approx. $270 million USD). This industrial pivot creates local employment—120,000 person-days of work and over 1.2 million RMB in annual wages—and establishes a resilient market for growers. Fenghé’s success reflects a national imperative. China’s “Rural Revitalization” strategy explicitly promotes industrial integration to boost farmer incomes, with the potato sector being a key focus due to its food security and economic potential. According to the International Potato Center (CIP), similar models of linking smallholders to processing value chains in Asia have proven effective in reducing poverty and improving rural livelihoods, making Fenghé a relevant example for other developing regions.
Fenghé Town offers a compelling and replicable model for agricultural-led rural development. By strategically investing in the entire potato value chain—from elite seed production and scientific farming to branded consumer goods—the community has converted geographical and climatic advantages into sustained economic growth. It demonstrates that the true power of a crop lies not just in its yield per hectare, but in the sophistication of the system built around it. For agronomists and policymakers, the key takeaway is the synergistic effect of coupling production technology with strong off-take agreements and local processing, de-risking farming, capturing value locally, and turning a subsistence staple into a vehicle for widespread prosperity.
