Wisconsin’s ginseng growers are working to expand export markets as they face trade barriers from their largest ginseng buyers.
Wisconsin is No. 1 in the U.S. in the production of ginseng, accounting for up to 95 percent of all ginseng produced in the country, according to the Department of Agriculture, Trade and Consumer Protection.
“We’re always looking for new markets, hoping to gain some markets in different areas where we can get more demand,” says Dave Schumacher, vice president of the Ginseng Board of Wisconsin.
This market order board’s purpose is research, marketing, new product development and education. This board is responsible for managing up to $200,000 a year. The assessment rate is $125 per acre under shade.
Schumacher is also a second generation ginseng farmer in Marathon County. The farm, Schumacher Ginseng, grows, processes, packages and sells ginseng. Marathon County is the top ginseng growing county in the state, producing about 95 percent of Wisconsin’s annual crop, according to DATCP.
Schumacher says there are two barriers to trade into their top market, Asia. The first are tariffs, which he says came into play when the trade wars started a few years ago.
“The other issue that we’re also running into are the different type of permits that are required to ship ginseng into China,” he says. “It’s next to impossible right now to ship small amounts of ginseng into China due to some of the specific permits that China is requiring. We’re of course working on those issues with government officials, but it’s a tough go with that.”
He says in the past 10 years, Wisconsin has seen a steady decline in both ginseng grower numbers and production volumes. In addition to the trade barriers he mentioned above, the industry is also competing with other countries that grow ginseng at a cheaper rate.
“A lot of ginseng is grown in Canada and China, and that puts a lot of pressure on Wisconsin ginseng,” he says. This is despite Wisconsin ginseng’s reputation as being the premier ginseng.
In addition to finding other markets in Japan or the UK, he says the industry is also looking at expanding domestic markets through programs like Alice in Dairyland. The barrier ginseng runs into in the U.S. is that herbal medicines are not a custom in American culture as it is overseas.
“If we can prove what ginseng is good for, then people are more accustomed to trying it,” he says. “So we will continue to work on the medical research side for that reason.”
Find real Wisconsin ginseng near you: https://realwisconsinginseng.com/
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