What Are the Production Costs and Returns of Balloon Flower (Platycodon grandiflorus)? A Survey in Lixing Town, Taihe, Anhui

    I. Basic Situation of Balloon Flower Production in Lixing Town

    Lixing Town, Taihe County is located in the northwest of the county seat, at the junction of two provinces and three counties/cities (Anhui Province, Henan Province; Taihe County, Jieshou City, Dancheng County), with a total population of 67,000 and 69,000 mu of cultivated land. At its peak, the balloon flower planting area reached 60,000 mu, making it the largest native production base and export base for the Chinese medicinal herb balloon flower in the country. Balloon flower series products are exported to more than ten countries and regions including South Korea, Japan, the United States and Southeast Asia. Lixing Town has now initially formed a productized operation pattern of "leading enterprise + specialized market + production base + farmers," with more than 100 balloon flower production and processing enterprises and export earnings reaching 10 million US dollars.

The Junong Egou Chinese Medicinal Materials Specialized Market has more than 100 street-side purchasing outlets, with a daily trading volume of 50,000-70,000 kg and a transaction value of 200,000-300,000 yuan. Lixing Town is known as the "Hometown of Balloon Flower in China."

    II. Balloon Flower Yield, Output Value, Production Costs and Returns

    Balloon flower is generally grown for two years before being dug up. The average yield per mu (fresh balloon flower) is 1,750 kg, with a selling price of 3.60 yuan per kg, giving sales revenue of 6,300 yuan; each mu yields 25 kg of seed (7.5 kg in the first year and 17.5 kg in the second year) at a selling price of 35 yuan per kg, giving sales revenue of 875 yuan. The output value per mu is 7,175 yuan (6,300 yuan + 875 yuan), and the annual output value per mu is 3,587.5 yuan.

    First-year costs per mu (materials + labor) are 1,305 yuan: 60 yuan for plowing and rotary tilling, 105 yuan for seed, 260 yuan for chemical fertilizer (base fertilizer: urea, phosphate fertilizer, compound fertilizer), 100 yuan for watering the field at sowing, 30 yuan for sowing, 180 yuan for covering and uncovering wheat straw, 300 yuan for weeding 3 times, 120 yuan for spraying 4 times, and 150 yuan for watering twice in summer.

    Second-year costs per mu (materials + labor) are 1,267 yuan: 67 yuan for topdressing (27 yuan for urea, 40 yuan for labor), 200 yuan for weeding twice, and 1,000 yuan for digging.

    Total costs over two years are 2,572 yuan (1,305 yuan + 1,267 yuan), averaging 1,286 yuan per year. Land rent is 900 yuan per mu per year. Net income per mu per year is 1,401.5 yuan (3,587.5 yuan - 1,286 yuan - 900 yuan).

    III. Comparison of Benefits

    Growing balloon flower gives a net income of 1,401.5 yuan per mu per year, while growing two crops of wheat and corn per mu per year gives a net income of about 1,000 yuan. Growing balloon flower gives 401.5 yuan more net income per mu than growing grain.

    IV. Characteristics of Balloon Flower Cultivation

    First, balloon flower is easy to manage. After balloon flower is planted in the field, each year it only needs weeding 2-3 times, watering twice, and spraying 3-4 times; basically no other field management is required. After one year of planting, management becomes even easier. Growing balloon flower does not interfere with going out to work, so both working and farming can be done without conflict.

    Second, balloon flower offers flexible selling timing. Balloon flower is generally harvested at 2 years, but can also be harvested at 3 or 4 years, and at most at 5 years. That is, it can remain in the field waiting for a good price, and growers can decide whether to harvest based on whether the price that year is high or low.

    V. Existing Problems and Relevant Suggestions

    (1) Existing Problems

    First, market conditions fluctuate unpredictably. In recent years, the market for balloon flower has been fluctuating. 2010 was the year with the highest balloon flower price, with fresh balloon flower at 14 yuan per kg, after which it declined all the way to the current 3.60 yuan per kg; the 2010 price was nearly 4 times higher than the current price. According to analysis by relevant industry insiders, because prices have continued to decline in recent years, making the returns little higher than growing grain, the planting area has already decreased somewhat, and output and inventory have also declined somewhat. Based on the price trend patterns of balloon flower, its price will rise somewhat in the next 1-2 years, but there will not be a sharp price increase.

    Second, balloon flower cultivation is fairly blind. In recent years, with the acceleration of land transfer, some people, holding the mindset that balloon flower will certainly rise in price in the future, have begun renting land to plant it. At present, there is still a possibility that the balloon flower planting area will increase. However, this increase is fairly blind and can easily lead to a "rush into it all at once," causing a phenomenon of low prices and a stagnant market lasting for several years.

   (2) Relevant Suggestions

    First, establish online information and release price and market information in real time, so that growers can promptly grasp market conditions and effectively avoid planting risks.

    Second, strengthen contact and communication with local medicinal herb traders, make use of the advantage local traders have in medicinal herb cultivation and price information, notify growers as early as possible, and guide growers in planting.

    Third, give risk warnings to growers, so that growers can adjust their planting structure in a timely manner, grow more varieties with high returns and good sales, and ensure the steady growth of farmers' income.

(Source: Taihe County Price Bureau)