Xie Yongfu, vice-president of Layn, shared information on innovation, industry standards, laws and regulations in America and Europe.

As consumers are pursuing for natural foods, the restriction on pesticide residues and metal in herbal extracts are stricter in North America. The control of pesticide residues is the largest challenge to domestic suppliers. The level of pesticide residues in most domestic medicinal herbs is several ten times, even hundred times, of the level required by the European Standards. It sets no level restrictions on most pesticide in National Formulary. It just requires testing pesticide residues on Liquorice and Astragalus mongholicus, just including benzex and DDT.

There are 11146 kinds of herbs for use in the herbal extract industry by 2012, with 492 kinds of them being cultivated and 231 kinds widely cultivated, but most of them are wildly grown and the one with root in use accounts for 47.3 percent. Take Rhodiola and Epimedium for example, the wild materials are in tighter supply, but it needs much work for cultivation. Although Rhodiola has been cultivated somewhere, the service life is just 4 to 5 years. The cost is largely higher than that of wild Rhodiola.

For Stevia, many firms opened or expand production for emerging market, leading to overcapacity. The amount of stevia in stock can be consumed for 2 years. In the condition, the price war can't be avoided, largely affecting the sector's healthy development.

Domestic suppliers sell products by Three Sheet, namely Instruction, quotation and card. The terminal users want clinical support for products, which is lacked in domestic herbal extract industry. It needs more scientific research and innovation to achieve sustainable development and competitive figure.

Copyright：Herbridge Media