Appalachian Ginseng Foundation

About the Appalachian Ginseng Foundation

The Appalachian Ginseng Foundation (AGF) is an interstate regional organization of ginseng growers that assists its members to grow 'virtually wild Ginseng' and save the valuable forest cover of the region because it is required to grow it. AGF will also assist in developing marketing strategies which will help prevent the illegal poaching of wild ginseng and help them attain the best prices available.

AGF Goals
Potential
Barriers

AGF Goals:

AGF does not promote health or economic benefits of wild ginseng as such. Rather, AGF will focus on promoting the growth, protection, marketing and value added addition of wild or virtually wild ginseng. Wild ginseng is rapidly becoming a threatened or endangered species.

In order to achieve these goals the Foundation will focus on the following:

Gather information on ginseng production and historical use in various parts of the world but especially in Appalachia which is known for its high quality wild ginseng
Act as a clearinghouse to spread information on the World Web and through videotapes, literature and spoken conversations with a special emphasis on Appalachian ginseng-growing techniques and barriers
Organize workshops and conferences in various parts of Appalachia to inform people of the benefits of ginseng-growing
And conduct research on better ways to cultivate, secure, promote, and market ginseng especially on a regional basis.

The AGF will not do the following:

research medicinal claims as such, even though we may disseminate information on the sources of such claims
attest to the safety of ginseng products, especially those involving cultivated ginseng which contain herbicides from growth. We are convinced that ginseng is not harmful in its pure state but that non-organically grown "cultivated" ginseng could be harmful due to contaminating agents used as herbicides and fungicides. Virtually wild ginseng is organically grown and is free of any chemical contaminants.

Potential:

High-grade wild or virtually wild ginseng has a proven market that could climb into the billions of dollars as the Asian economy recovers. Ginseng production among central Appalachia's private woodland owners offers a viable option for small-time tobacco farmers who are unable to compete with extensive crops such as kenaf or hemp, or agricultural operations such as llama, deer, bison, emu, or other exotic forms of livestock- raising. However, there are barriers to the successful initiation of ginseng production. Property security and financial security for the grower during the years of ginseng crop maturation are the two biggest barriers. The Foundation (AGF) could do more to save our private forestlands than any program that we could undertake at this time. The overcoming of these barriers will be part of the focus of this Foundation. The publicity of AGF will allow the consideration of proper regulations to protect ginseng growers from the very real threat of poaching by offering the state of Maine's example of a marketing card that only permits sale by verified growers. One of our major goals is to educate the public to the economic potential of ginseng in the Appalachian region.

Raising virtually wild ginseng demands hardwood forest canopy, something not present in the deforested Orient where a closely related and equally valuable variety (Panax ginseng) grows and has been prized for thousands of years for the number of it's cures .

Cultivated ginseng is grown in covered buildings in deforested areas such as Wisconsin. However, the cultivated variety requires herbicides due to mold problems and is only worth a small fraction of the wild variety.

Promoting virtually wild (organic) ginseng saves the forests, offers a worthwhile or harmless economic alternative to tobacco and can become a source of income for the woodland growers. Ginseng advocates are convinced that the growing of this crop will furnish the Mountain people with a steady income while also saving forest cover which is essential for the crop. Ginseng is the silver bullet and the key to liberation of the Appalachians from the shackles of the extractive coal, timber, oil and wood fiber industries.

The region and its people will have an opportunity to survive and thrive, but there are solvable problems that need to be addressed to make virtually wild ginseng a viable economic and environmental alternative.

These problems need to be acknowledged and addressed, namely:

the problem of length of growing time (about ten years),
poaching of wild ginseng in the region,
protected marketing so that the grower gets a fair share.

BARRIERS TO GINSENG GROWING

There are a number of barriers to individuals starting in ginseng cultivation. If we are to encourage the growing of ginseng we will have to provide concrete solutions to overcoming these barriers. One of the key concepts of human action is the risk and return involved. If the risk is too large for individuals to undertake the effort, they will not do so.

As such, there are a number of risks with ginseng.

The long period required for maturation, and hence, payback (7 years). How do individuals devoid of alternative income streams provide for their existence prior to maturation? After all, it is the low income individuals whom we hope to reach.Other current ginseng growers have alternative income streams which provide for their needs prior to maturation. For them it is not an issue.
Possible crop failures. A related issue is what does one do if the crop fails at or near maturation - they are left with nothing. Is it possible that the state or maybe the Commodity Growers Association would support a ginseng insurance program?
Security of the ginseng site. Due to the marked increase in wild ginseng poaching, the private ginseng crop is at a greater risk for theft. This means that an individual's efforts could be wiped out in a short time - perhaps with no knowledge to the grower. How does one privately ensure security?
Establish a marketing card system. A partial answer to the security problem is a marketing card system. Theoretically, this would ensure that growers can only market a certain amount of ginseng - that is, one could not poach someone else's crop and then be able to market the product. However, couldn't a poacher take the crop to a state which does not have a marketing card system? Does this mean that all neighboring states need systems? Wouldn't the marketing card, the price and the demand for ginseng promote a ginseng black market? This could circumvent any state or federally mandated marketing card system.
Establish an information resource for new growers to access. If we are to promote the growing of ginseng, there could be many first-time growers. How does one effectively provide information and technical assistance to these new growers? Through state or USDA extension service materials? Through producer co-ops? How many varieties of ginseng should be promoted? Only virtually wild ginseng? Simulated wild ginseng? Cultivated ginseng under artificial cover? Only organically grown ginseng?
Establish an effective marketing medium for the growers. How does one access the market? Is a co-op the best means? The growers have to get the product to market somehow. What is the best way to do this?