High-quality and disease-resistant seed is a serious concern. According to Liu Zhenwei, deputy director of Laiwu Agricultural Science and Technology School, 90 varieties of ginger seeds are studied. Over the past 10 years, five have been developed that are highly resistant to yellow rot.

Companies are also working with universities to develop processed ginger, which has a much higher rate of return compared with fresh ginger.

Ginger is processed into more than 2,000 kinds of products in Laiwu, for food, healthcare, cosmetics and pharmaceuticals.

The city's export of processed ginger products was valued at $62.3 million last year, almost three times that of 2009.

In collaboration with institutions such as China Agricultural University, Shandong Academy of Sciences and Shandong Agricultural University, Shandong Sun Dainty Food Co Ltd has developed dozens of processed ginger products. They include a clear ginger tea developed by the company that is sold in more than 20 countries.

Sun Kai, deputy general manager of Sun Dainty Co Ltd, says the 1.2 billion yuan the company has invested in research and development has proved worthwhile.

"Our new technology enables us to get rid of residue after crushing the ginger to liquid," he says.

Xie says Laiwu still has a way to go regarding processed products, because their exports only contribute 18.7 percent to the city's total export of agricultural products.

Laiwu is also a major garlic exporter. Last year, 142,000 tons of raw garlic and garlic-related products were sold overseas, accounting for 10.2 percent of China's total exports of garlic.

China is the world's largest garlic exporter.