Amway Commits $35 Million to Establish Advanced Organic Farm in China's Sichuan Province

Deep News03-30

On March 26, Amway signed an investment agreement with the governments of Chengdu City and Pengzhou City in Sichuan Province, committing $35 million (250 million yuan) to construct a high-standard, modern organic farm spanning 1,680 mu in Pengzhou, Chengdu. This marks Amway's first self-operated production farm outside the Americas, representing a critical step in establishing its integrated "R&D-Planting-Production-Sales" supply chain in China. The project is also expected to inject new momentum into Sichuan's agricultural modernization, high-quality development of the traditional Chinese medicine industry, and the integrated growth of the health and wellness sector.

Upon completion, the farm will collaborate closely with the Amway (China) Botanical R&D Center. Leveraging Amway's three research centers in Guangzhou, Shanghai, and Wuxi, along with its comprehensive innovation system covering basic research, raw material cultivation, and product development, the initiative will explore innovations in germplasm resources for Chinese herbs, regenerative organic agriculture technologies, and smart farming techniques.

The Pengzhou farm will utilize IoT technology to monitor soil moisture, weather data, and crop growth in real time, enabling precision irrigation through big data analysis. Drones will be deployed for growth monitoring, pest control, and precise fertilization, while automated sowing, harvesting, and processing equipment will significantly enhance production efficiency and reduce labor costs.

Furthermore, the farm will delve into regenerative organic agriculture practices, implementing crop rotation and fallow systems. Green manure plants will be cultivated to improve soil structure, and agricultural waste from the farm and surrounding areas will be converted into organic fertilizer, eliminating the use of chemical fertilizers. For pest and disease management, biological control techniques such as biodiversity planting and introducing natural predators will be employed to avoid chemical pesticides. Given the farm's mountainous terrain, measures like terracing and cover cropping will be adopted to conserve soil and water and protect the ecological environment.

Over its 30 years in China, Amway has benefited from the country's open and integrated innovation ecosystem. Through deep collaborations with authoritative institutions including the China Academy of Chinese Medical Sciences, the Nanjing Institute of Soil Science under the Chinese Academy of Sciences, and Beijing University of Chinese Medicine, Amway has achieved multiple breakthroughs in plant nutrition research and development.

Supported by localized innovation, Amway (China) has continuously achieved new results in product development. A series of nutritional and health products based on traditional wellness wisdom, featuring Chinese herbs, have been successfully launched in the Chinese market.

According to a relevant Amway official, both the No. 1 Central Document for 2026 and the "Implementation Plan for High-Quality Development of the Traditional Chinese Medicine Industry (2026–2030)" emphasize the application of digital and intelligent technologies. They also explicitly call for the establishment of high-standard raw material production bases for traditional Chinese medicine, the enhancement of key technologies and quality standards, and the initiation of special projects tackling technical challenges in areas like seed selection and cultivation. This policy direction reinforces Amway's confidence in extending its industrial chain and deepening innovation within China.

Han Qiang, General Manager of the Amway (China) R&D Center, explained that the Pengzhou organic farm project was selected as the optimal choice after evaluating over 200 candidate sites across more than 10 provinces and municipalities, followed by on-site inspections of over 40 locations. The selection process involved a comprehensive assessment based on multiple dimensions including soil quality, water sources, natural environment, policy support, and industrial supporting facilities.

Han Qiang stated that the Pengzhou farm will provide Amway with multiple safeguards for raw material supply, effectively reducing supply chain risks. It will supply high-quality organic plant materials for Amway's Chinese herbal nutritional and health products in the Chinese market, as well as for some of these products in overseas markets. Simultaneously, the project will contribute to advancing modern agricultural construction in Pengzhou and Sichuan, and to the high-quality development of the traditional Chinese medicine industry.

Mike Nelson, Amway's Global President and CEO, who attended the signing ceremony in Chengdu, stated that China is Amway's largest global market, as well as a vital innovation hub and strategic growth engine. Rooting in China and serving the Chinese market remains Amway's unwavering development strategy. He expressed strong confidence in China's future, citing the new blueprint for Chinese modernization outlined in the 15th Five-Year Plan, the national policy guidance of "Healthy China," and the concentrated release of high-quality consumption capacity.

Amway has initiated a five-year investment plan totaling 2.1 billion yuan, covering the entire operational chain in China: 700 million yuan will be used to upgrade and transform the Guangzhou production base and optimize the global supply chain; 400 million yuan will be allocated to upgrading digital and intelligent infrastructure to enhance operational efficiency; 500 million yuan is designated for upgrading over 100 experience stores and venues across the country to promote high-quality healthy lifestyle consumption; and another 500 million yuan will strengthen innovation and R&D efforts.

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