KUNMING, July 8 (Xinhua) -- As dawn's light filtered through mist-shrouded pines in the rain-freshened woods behind Tanglangding Village in Shangri-La City, southwest China's Yunnan Province, Zhang Jianhong moved with practiced silence.

Armed only with a basket and a wooden stick, the seasoned forager scanned the thick carpet of pine needles beneath ancient trees. His trained eyes quickly revealed the prize: five pristine matsutake mushrooms nestled in the forest floor.

Shangri-La, a name synonymous with earthly paradise, yields an astonishing bounty of this global treasure, with a yearly production volume of 800 to 1,500 tonnes. These high-altitude forests produce 65 percent of matsutake output in Yunnan, a province that accounts for a staggering 40 percent of China's entire output.

Global demand is insatiable, with Japan and the Republic of Korea (ROK) leading the charge. In both 2023 and 2024, annual exports destined for Japan alone neared 15 million yuan (about 2.1 million U.S. dollars).

"We've agreed on community rules," explained Zhang. "We carefully refill the soil where each mushroom is picked. And we harvest only the mature ones, between 9 and 12 centimeters." Younger mushrooms are left to grow, seed and sustain future harvests.

The village economic cooperative sends every single freshly picked matsutake to a local agricultural operations management company, which in return, offers a premium price of 5 percent above the market rate.

Thanks to the company's investment, drones patrol the conservation zones, while infrared thermal imaging automatically monitors forest health. These sophisticated tools enable precise ecological intervention, balancing increased yield with long-term sustainability.

"We integrate modern eco-technology to protect the environment while boosting the villagers' income," said Zhang Yi, the company's deputy general manager.

Across Diqing prefecture, which administers Shangri-La, five matsutake conservation bases now span 25,000 mu (about 1,667 hectares).

"We promote conscious stewardship and reduce reckless harvesting," said Zhang Yangbin, deputy director of Diqing's agriculture and rural affairs bureau.

Time is the ultimate test for these forest gems. Thanks to a state-of-the-art cold chain, Zhang Yi said that within China, they deliver across provinces in seven hours, reaching 264 cities within 24 hours, and Japan and the ROK in just 36 hours.