Jiaozhou City is the largest distribution center of dried chili in Northern China. The chili market located in Yujia Village has an annual transaction volume of 12 billion CNY, accounting for 70% of the annual transaction share of China’s dried chili market, and the export volume of chili products accounts for more than 80% of the country’s total.

Therefore, there is a saying in the international chili market that “the world’s chili price depends on China, and the Chinese chili price depends on Jiaozhou”. The chili market in Jiaozhou City controls the “pricing power” of Chinese chili to a certain extent.

Looking at the history of Jiaozhou City, it is not difficult to find that Jiaozhou City was an important producing area of chili several decades ago. With the increase in production and trading volume, a spontaneous chili trading market has formed around Yujia Village, and its scale is expanding year by year.

After the year of 2000, the local capsicum production had reaching its limit and the trading volume of chili was still rising. A large amount of chili pods from other places were poured into the Jiaozhou market. They were processed in Jiaozhou before being sold outside. Therefore, Jiaozhou city has successfully completed the industrial upgrading and transformation. Nowadays, it has formed a very large chili chain covered the area of production, sales, deep processing industry group.

At present, the planting bases rented by Jiaozhou people have radiated Xinjiang, Shandong, Henan, Hebei, Shanxi, Inner Mongolia, Gansu and other provinces (regions) and Northeast China. The total area of the planting bases could be about 450,000 mu, driving the surrounding development of more than 200,000 mu. The total coverage of each production area is over 1.2 million mu.