Emerging Ginseng Marketing System

   The Appalachian Ginseng Foundation (AGF) would like to thank those of
you who voiced your opinions on a future marketing system for ginseng.
Among some of the more persuasive remarks are included the following:  

   Marketing vs. Research Mechanism -- We must separate our interest in
ginseng research (AGF) from the actual marketing of the product (a separate
cooperative).  See table on the next page.

   Marketing Cooperative Name -- Any cooperative marketing system should
not have the word ginseng in the title due to the reluctance of growers to
identify with and be flagged for growing or showing interest in ginseng as
such.  This is being remedied both by the change of this quarterly to the
AGF Newsletter and by the seeking of funding for the Appalachian Medicinal
Herb Cooperative.  We thank both herb growers Bob Eidus from Marshall, NC
and Paul Gallimore from  Leicester, NC for these suggestions.

   Private versus Public Route -- As of autumn, 2001 it was becoming
clearer that a strong wild ginseng market would have to be neither totally
private nor public but involve both private initiative and governmental
support. There is a need for protection for the seller whether domestic or
in a foreign market. The bids for a certified graded product could be best
made through on-line processes, provided the material is graded and sold by
an authentic marketing card holder.  
   
   Vital Support -- We have been given a strong verbal commitment that the
Kentucky agricultural policy people are quite interested in both our
ginseng marketing card and the grading systems which the AGF has proposed.
They are being asked to see whether they can influence federal agricultural
policy to help with the two areas needing government involvement, namely,
the funding to strengthen state marketing offices which could qualify for
and issue ginseng marketing cards; and the funding of the training for
professional graders who could set grades on the ginseng being sold.  The
request covers all areas of the ginseng growing field, even though the
cultivated varieties are not in great need of cards.  Furthermore, the
system could serve as a template for extension to other medicinal herbs
which would be threatened by excessive wild crafting or other factors.
   
   Tobacco Analogies -- We are becoming aware that the tobacco
cooperatives are in deep trouble because of the movement to contract buying
by the tobacco companies.   This actually undercuts cooperative and
government grading efforts.  Some 30% of the total burley tobacco market
was purchased in the market year 2000 through this method and it is now
estimated that a minimum of 63% will be purchased by this method this
autumn and winter (year 2001).  Warehouses are closing for lack of
business; two thirds of certified graders are out of work; and the system
that was so painstakingly constructed in the early part of the 20th century
will soon die unless something unforeseen and drastic happens soon.  We do
not know whether these conditions will affect our efforts to duplicate the
program to some degree for marketing ginseng.

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                 Meeting in Carbondale,Illinois
                    Upcoming AGF Resources

    On September 11th, while other things were also happening, Al fritsch,
Syl Yunker and Frank Shaw journeyed to a ginseng research conference hosted
by Dr. Laura Murphy and staff at Southern Illinois University to see how we
could better work together on virtual wild ginseng projects.  The extracts
provided by Yunker-grown ginseng have had a marked effect on inhibiting the
proliferation of prostrate cancer cells (see AGF Newsletter No.8).  In her
current research work, Dr. Murphy is finding that two particular
ginsenoside fractions appear more promising than others.  In an effort to
control any root changes caused by processing, drying or shipping, Dr.
Murphy came to Kentucky two weeks later with liquid nitrogen and dry ice
containers and transferred a freshly dug root from the Yunker Farm directly
into a freezing container and took it directly to the laboratory.

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                     ASPI-Related Ginseng Projects

         Part I
               Appalachian Ginseng Foundation (AGF)    

Education                                                       Research-ASPI            
 
* Training Workshops                                   *  GIS Service - Dan Bond  
  with Syl Yunker & ASPI staff                      *  Value-added Products
* Appalachian Alternatives                                  1.Fresh & dry teas  
* AGF Newsletter  Dr.Al Fritsch                         2.Organic root  
* Earth Healing WOBZ-TV                              Ginsenoside separations
   videotapes  Mark Spencer                                 ASPI --                    
               Joey Kesler                                            Drs. Jack Kieffer &
* Ginseng Growers Manual                                    Eric Watson          
               Al Fritsch,                                          Cooperative Instrumental --
               Sherman Bamford                                 Eastern Kentucky U.
* Spot Radio Announcements                                Prof. Frank Shaw        
               Rob Ellis                                                Dr. William Schultz
               Ben Perry                                             Researcher Ben Estes
* Independent Feature Articles                ----------------------------
               Kristin Johannsen                            Independent Cancer Research --
               Carol Ann Morrow                            Southern Illinois University  
               J. Inhoff                                                  Dr. Laura Murphy & staff  

   Part II
           Appalachian Medicinal Herb Cooperative (AMHC)
     Marketing

     *  Possible Marketing Tracts     (2002)
                 a) Model after tobacco auctioning programs
                 b) Internet marketing with consulting by NC experts --
                       Bob Eidus, Paul Gallimore                        
     *  Market cards to prevent poaching discussion and legislative      
                   education in 2002 -- Al Fritsch and others
                   through private and public funding sources.
     *  Official Grading to offer fair price to small growers
                    Ginger Shelby, certification instructor
     *  Work with state marketing experts (2002-3)      
     *  Expansion to other herbal products (2004)

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        Editorial: Don't Worry about Synthesized Ginsenosides

   I do not often speak from my organic chemistry credentials since
testifying on Capital Hill in 1970-71.  However, at this juncture in the
promotion of ginseng it may be necessary to do so.  Some wild ginseng
growers are worried that the possibility of synthesizing ginsenosides would
be detrimental to their future marketings prospects.  Possibly there will
be  synthesized ginsenosides produced and sold by pharmaceutical companies
in a decade or so, and which may or may not be derived from wild or
cultivated ginseng in the laboratory.  I would like to allay these fears by
the following five reasons (there may be several more) for welcoming the
increased interest in ginseng as a medicinal herb of immense importance:

   1. It will most likely be several years before the synthetically
            produced ginseng finds its way on the commercial market;

   2.  The precursors for these commercial products will require a good
grade of ginseng either cultivated or wild -- and that will drive up the
price.  In other words, it is highly unlikely that the ginseng will be
synthesized from elementary materials due to the complexity of structure;
   
   3. Synergistic effects may be such that the presence of other
ginsenosides may enhance the anti-cancer effects and thus keep the prized
wild ginseng in the forefront of medical interest;
   
   4. The Asian market will remain strong in prizing wild ginseng for
about 200 other medical effects and is willing to buy all that can be
produced;
   
   5. Great interest exists now and will continue in America and the
western world for organic ginseng of which the virtually wild is so highly
valued.
                                           Al Fritsch

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                   Resources Available
   
    ASPI Publications (50 Lair Street, Mount Vernon, KY 40456)  and the
ASPI Web-site:  www. a-spi.org  have a number of items which can be
obtained free electronically or at publishing cost listed below:

    ASPI Technical Paper TP-57  Moratorium on Wild American Ginseng
Exports, by Greg Williams, (2000) 8pp.  $2.00 plus $1.00 P&H.

    A Manual for Ginseng Growers and Trainers:  How to Grow Virtually Wild
Ginseng, by Al Fritsch and Sherman Bamford.  This is a thorough source book
for growers, along with ample appendices for those wishing to learn more
about Panax Quinquefolius L.  (2001) 40pp.  $8.00 plus $3.00 P&H.

    Virtually Wild Ginseng videotape by Syl Yunker $25.00 plus $6.00 P&H
110  minutes.

    Four 28- minute videotapes through the Educational Foundation of
America grant. These are narrated by Al Fritsch, videotaped by Mark Spencer
and video- editing by Joey Kesler.  $25.00 ea. plus $6.00 P&H.

    AGF Videotape # 1 Growing and Protecting Virtually Wild Ginseng
               (2000)
    AGF Videotape # 2 Virtually Wild Ginseng and the Environment
               (2000)

    AGF Videotape # 3 on Ginseng Poaching and Marketing Cards -- A
practical response to the problems of poaching of wild ginseng is a
marketing card which verifies that the land on which the product is sold is
owned or leased to the one selling the ginseng.  

   Videotape # 4 on Ginseng Marketing Cooperatives and Grading --  A
marketing cooperative is being developed, and a key area is that of grading
the ginseng so that the value is easily known by both buyer and seller.
Ginger Shelby, an herb grower and marketing specialist in central Ohio, has
developed the tools for training growers and professional graders.  Her
address is P.O. Box 41 Shauck, Ohio  43349 and her web site is