1. The “Desert Ginseng” – a green miracle for poverty reduction Liu Ke Associate Country Program Officer IFAD China

2. Setting stage: the Hotan Prefecture (1)

3. Setting stage: the Hotan Prefecture (2) Total area: 247,800 square kilometer Boarder the world’s 2 nd largest desert, Taklamakan to the north 63% of desert, 34% of mountains, 3% of oasis Annual precipitation 35 mm Annual evaporation 2480 mm Total population 1.6 million, 96% Uygur 2013 per capita income in Hotan: USD 300 2013 per capita income in Xinjiang Uygur Autonomous Region (XUAR) USD 1000 Poverty, advance of desert

5. Red Willow Cistanche- the “desert ginseng” Able to survive in highly arid areas A natural shield from desert expansion reduce wind speed by 60% at 1 meter height; improve moisture by 10% Good market and sales potentials Around USD 3,000 net returns per hectare

6. Challenges Infrastructure: lack of canal and leveling facilities Technical capacity: low skills on seedling, planting, pesticide application, drying and storage Small scaled production: household based production with planting area of 1/15 hectare Market inaccessibility

7. Farmer + Cooperative + Companies Red willow cistanch farmer cooperatives Provide trainings and information Organize infrastructure construction Allocate land and seedling Provide pesticide, drying and storage skills Seek marketing opportunities

8. Farmer + Cooperative + Companies Pooled and up-scaled household based production Improved technical level, quality and standardization of production process Expanded marketing opportunities in the after-production phase Strengthened capacity of self-management and self- organization among local communities Received participation of 550 members (households), being replicated in government programs

9. Farmer + Cooperative + Companies Chairman Board member Secretariat

10. Farmer + Cooperative + Companies The chairman, secretariat and board members are voted with a three-year tenure The board meets every month with attendance of 2/3 of board members The board is required to disclose annual financial status including income and expenditure Women are encouraged to be board members

11. Reflections Sustainability: will and how the cooperative (and its institution) continue when supports from IFAD project completes? Independence: how the cooperative keep its independence while interacting government and private sector entities ?? Equity: how to avoid the “elite phenomenon” and ensure poor household receive their justified share of benefits ???