Study On Traditional Chinese Medicine Industry Development In Dingxi And Its Strategies

As the drawbacks of chemical synthetic drugs are gradually recognized, traditional Chinese medicine has aroused world attention, which promotes the booming development of green herbs industry. Dingxi city, with a superb location, and benign climate, is an important area of traditional Chinese medicine planting, processing and warehousing in Gansu province and even in China. Although Dingxi covers a long history of development in traditional Chinese medicine industry and has become China’s “Millennium Land of Medicine ”, many problems still exist, which is unfavorable for the goal of building Chinese Medicine City. This study, adopting industrial clusters, industrial upgrading, industry competition and other related theories, SWOT analysis method as well, systematically reviews the traditional Chinese medicinal material industry development in Dingxi, analyses its advantages, opportunities, threats and challenges, verifies the negative factors in industrial restructuring and proposes strategies to handle threats and unfavorable factors. The main findings are as follows:1 Traditional Chinese medicinal materials industry in Dingxi has experienced raw materials sales, primary processing to standardized deep processing.Dingxi has long known as Land of Medicinal Materials. Its medicinal materials were based on collection of wild medicinal resources in the 1950 s to 1980 and small-scale home production with raw materials sales in the 1980 s until 1996. Primary processing system, with backbone processing enterprises as its center and large-scale cultivation as base, was formed from 1996 to 2003. Since 2004, Dingxi has established deep-processing production lines, formed scale production of advantageous regions and standardized production patterns, increased the degree of marketization, thus, equipped with the industrial basis to accept the fierce market competition.2 Clarifies basic structure of traditional Chinese medicinal material industry in Dingxi and analyzes its development status.The basic structure of traditional Chinese medicinal materials industry in Dingxi includes planting, processing and service, and the industrial clusters is initially formed. Its present development is mainly characterized by increase of planting areas and production year by year, gradual acceleration of improved seeds promotion, improvement of drug source base construction, expansion of the industry scale, increase of the leading enterprises, increasing prominence of brand effect.3 Analyzes the advantages, disadvantages, opportunities and threats of traditional Chinese medicinal material industry in Dingxi.Advantages of traditional Chinese medicinal material industry in Dingxi include eight aspects as superior location, various medicinal materials, excellent the market mechanism. Disadvantages include six aspects, for example, high-level leading enterprises needs to be increased to guide industrial upgrading, deep degree of processing remains to be improved. The main threat is that the surrounding areas begin large-scale cultivation so that regional competitiveness gradually strengthens. Opportunity is that release of national development plan of traditional medicinal materials will make it get policy support.4 Proposes strategies for restructuring and development of traditional Chinese medicinal material industry in Dingxi.Based on the threats and disadvantages Dingxi traditional Chinese medicinal material industry faces, the study proposes strategies of taking full advantage of the opportunities and benefits, mainly including standing out regional advantages, strengthening government guidance, being market-directed, combining the whole and the part, good quality and appropriate size, increasing technology in planting and processing, establishing safeguard mechanism and so on.