Commodity chain as a negotiated process: Empirical analysis of benefit allocation, governance, and powers of upstream and downstream actors in matsutake mushroom trade in Shangri-La, Yunnan Province

Abstract

The commercialization of non-timber forest products beyond in-house consumption is a strategy for alleviating rural poverty and forest degradation. With the implementation of the ecological civilization program, the Chinese government has explored the value realization mechanism of sustainable ecological products, and many successful cases of agricultural product commercialization have emerged. Focusing on the matsutake of Shangri-La as an example, this study applies both qualitative and quantitative analysis of semi-structured interviews, participatory observation, secondary data collection, and statistical analysis for the dynamics of the matsutake commodity chain construction in the southwest plateau of China to obtain unique insights into contemporary rural China. Specifically, the interrelationships and functional logic of diverse participants in the core process of commodity management were analyzed. We found that the upstream and downstream participants in the matsutake commodity chain are subject to institutional constraints, such as land tenure and non-unified standards, and that markets are crucial to matsutake's trading in Shangri-La. Certain participants along the commodity chain have inefficient information sources, while middlemen have greater autonomy in the matsutake transaction process and a larger profit margin. Additionally, the involvement of the government and non-governmental organizations impacts the preservation of natural resources and the creation of a stable market order, but policies and funds tend to be short-lived. To improve the commodity chain sustainability of non-timber forest products in plateau areas, it is necessary to consider social and cultural factors, ensure the equity of different participants in the commodity chain, and protect traditional local knowledge related to natural resource management.