China, the fungus producer in the world, has begun to build a black edible fungus production base in its northeastern province of Heilongjiang, whose output accounts for half of the global total.

The base is expected to be operational by 2005, with an annual output value of about 220 million yuan (26.5 million US dollars). The base will produce export-oriented black edible fungus and other products for pharmaceutical use.

The project is state aided and the Heilongjiang Jiafeng Group, the developer of the project, got eight million yuan (964,000 US dollars) of state financial assistance.

The company will also set up China's first fungus product research and development center to address technical issues in the standardization of fungus' commercial production.

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