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With the development of economy, people’s standard of living is improved and health awareness is enhanced constantly. Meanwhile, TCM course have a good chance to develop. Astragalus membranaceus is nourishing medicine in our county, when it’s medicinal value, edible value and hairdressing value to be researched, it is also be concerned by people. But in the prospect of broader market demand, China faced a state is that astragalus membranaceus planting has been shrinking. In order to ensure demand, there is no time to delay to develop astragalus membranaceus industry. Longxi is“hometown of astragalus membranaceus in china”, appropriate climatic conditions and rich resources laid a good foundation for the development of astragalus membranaceus industry. Chinese herbal medicine is one of four pillar industries, supporting the development of economy in Longxi and astragalus membranaceus industry has become pillar industry. The market of Longxi is the barometer about astragalus membranaceus. Therefore, making systematic and comprehensive study for astragalus membranaceus industry in Longxi, has important practical significance to promote the development of the scale, the standardization and the base.In this study, based on the related theories of industrialization of agriculture, industrial economics, diamond model, and using its to analyze the present situation of the development of astragalus membranaceus industry in Longxi, from planting, processing, distribution. Analyzing the important significance of astragalus membranaceus industry, from farmer income and boosting employment ability, based on the understanding of the natural conditions in Longxi. Using the analysis method of SWOT to analyze the influence of industrial development, including strength, weakness, opportunity and threaten. Meanwhile the thesis uses the“Diamonds Framework”for reference, combing the domestic situation and designs“Six Factors Framework”of Longxi county’s astragalus membranaceus industry and using it to analyze the influence of three factors, including demand condition, the situation of relevant and pillar industries, and the function of government.The empirical analysis through the investigation in the production area of astragalus membranaceus, from the survey date concluded: although Longxi natural environment is suitable for astragalus membranaceus growth, in the process of development still exist many problems. There exist some main problems, for example, the planting dose not conform to norm and have a low lever of yield, the high expenses of labor and the low value-added of finished, the industrial access is not standard and the information is lag, the development of related industries is leg behind, in single sales mode and the power of industry associations organized is weak. Based on the above analysis, proposed a series of countermeasures to promote the development of Longxi’s astragalus membranaceus industry, such as, the basic power of production should be strengthen, establish and perfect the standard for admittance into industries, develop the pre-ordered agriculture, focusing on the development of relevant industries, playing the role of industry association and improving the organizational level of the industry management.
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