Rural livelihoods and caterpillar fungus collection: Diverse economies of surplus for dignified labour

Abstract This study explores the appropriation and distribution of surplus in caterpillar fungus collection in Qinghai using a diverse economies of surplus approach. Ethnographic fieldwork included semi‐structured interviews, focus group discussions, oral histories and participant observations during collection. Findings suggest that one particular enterprise type, with more typically capitalist features has come to dominate caterpillar fungus collection in Qinghai. The surplus appropriation and distribution in this enterprise poses problems for rural farmer collectors in terms of insecure incomes and stringent working conditions that deprive them of their dignity of labour. This study suggests a rethink of surplus appropriation and distribution based on culturally valued dignity of labour to design more sustainable and equitable livelihood within and beyond the dominant model.