Unusual Harvest: The Chinese government was unpleasantly surprised by the recent unrest in Tibet, especially with the Olympics just a few months off. Tibet has been experiencing strong economic growth, but that hasn't soothed the long-simmering tensions.
A surge of government spending on infrastructure in recent years and strong growth in Tibet's tourism industry (made easier by the new infrastructure, especially the rail link, which was opened in 2006) have helped the region's GDP growth rate stay above 12% for the past seven years. In 2007 it was 14%, more than two points higher than the national rate.
Incomes have been rising fast too. Officials predict a 13% increase this year for rural residents, a sixth straight year of double-digit growth. Urban residents enjoyed a 24.5% increase in disposable income last year. Robbie Barnett of America's Columbia University says a new middle class has emerged in Lhasa in recent years.
Tibet has enjoyed double-digit economic growth for seven years running. But, many Tibetans feel that the increasing number of Han Chinese immigrants are making disproportionate gains. Plus, inflation is eating significantly into the improved incomes. There are also concerns that the gaudy figures are rather lumpy in the countryside.
Incomes may have been growing fast on average, but in the countryside averages have been skewed by soaring demand in the rest of China for a type of traditional medicine known as caterpillar fungus. Tibetans in rural areas where this fungus grows have seen their incomes rocket (and fights have broken out among them over the division of fungus-producing land).
Yes, that's where I was going with this intro.
Vegetable Caterpillar: Despite "vegetable" in the title, Cordyceps is a genus of parasitic fungi that preys predominantly upon insects. The species in question, sinensis, targets the caterpillars of a few species of bat moths (genus Hepialus)--the same genus as the swifts we have here in North America (photo of the common swift here). The bat moths which are killed by the fungus live at high elevations--at least 6,000 feet, but more commonly from 11,000 - 15,000 feet. Most are found in SW China and neighboring regions in the Himalayas.
Here's what the fungus does to its victims (which have a two-year life-cycle).
During the winter, the fungus grows inside the body of the caterpillar, feeding off of its body and absorbing its nutrients. The mycellium invades and eventually replaces the host tissue, while the elongated fruiting body sprouts from the caterpillar, and releases the fungus' spores into the air...
Here's a picture of a dead caterpillar, with the fruiting body at the top--extending from the caterpillar's head (from this link).

The nocturnal caterpillars reside in vertical tubes in the soil, emerging to dine upon grasses. But, a parasitized caterpillar dies above ground, allowing the infectious spores from the fruiting body to spread in the wind. This clip shows that phenomenon via other victims of various Cordyceps fungi.
It will soon be harvest time for the dead caterpillars and their bounty.
Properties: The caterpillar fungus first achieved notoriety beyond the world of herbal remedies a few years ago.
The Cordyceps sinensis craze first started in 1993 when two female Chinese athletes, within the span of a week, shattered the world records for track & field's 1,500 meter race, 3,000 meter race and 10,000 meter race. Such unprecedented performances raised immediate suspicions. Steroids and other performance enhancing drugs were tested for but the subsequent results came back negative.
Their coach eventually admitted that he'd been giving the women a secret elixir comprised of vegetable caterpillar and tortoise shell. So why didn't these and other women he trained keep winning? Well, supposedly...
Due to a number of reasons, mostly associated with personality conflicts between Ma and his track stars (he refused to let them grow their hair, to keep much of their prize money or to keep the luxury cars they won as prizes on the world track circuit, for example), virtually all the women refused to stay in Ma’s camp and they all went independent. No longer having access to his secret Cordyceps recipe, all of the stars have lost their dominating athlete prowess. In 1995, a year after leaving Ma, only one of the former superstars qualified for the National Team which represented China at the World Championships.
Curious. Nonetheless, vegetable fungus is highly valued in Chinese medicine.
The wonders of Cordyceps sinensis have been known in China for at least 1,000 years, where the mushroom is recognized as a national medicinal treasure, a precious and virtually sacred tonic. As a health supplement, it is known to increase energy and vitality. Cordyceps is one of the safest medicinal foods. The mushroom is used to treat liver diseases, cancer, angina pectoris, cardiac arrhythmias, bronchial problems, anemia, tuberculosis, jaundice, emphysema, infertility, and sexual dysfunction. In traditional Chinese medicine, Cordyceps is believed to nourish the yin, boost the yang, and invigorate the meridians of the lungs and kidneys.
As per a couple of those treatments, vegetable fungus is said to be a natural Viagra. It's also advertised in the U.S. as something that will help cravings and thus promote weight loss.
Strong demand and the grueling and limited harvest (in places like rural Tibet) had the price of natural Cordyceps over $4,000 a pound last year. There are also laboratory-grown types of Cordyceps available (examples here, here, and here). That's a whole 'nother topic.
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