Rural Industries Research & Development Corporation

The New Rural Industries
A handbook for Farmers and Investors

Ginseng

Introduction

Opportunities and challenges for Australian ginseng production have been demonstrated in forest floor gardens at Gembrook, Victoria since early 1985. Organic, aged roots from these gardens are exported, and are also part of a retail product for Australian sales. Although many new trial gardens have commenced in Australia since late 1992, the only available data for current production are from the Gembrook gardens.

Ginseng, known as an `adaptogen', helps to restore the balance in the pituitary gland which, in turn, encourages the system to cure itself. Research shows Panax ginseng (Asian) has a hot acid action while Panax quinquefolius (American) performs in a cool or alkaline way. Generally speaking, ginseng grown on the forest floor is more medicinally potent than that from intensive field cultivation.

Recorded Australian imports of ginseng exceed 14 t/year, with an estimated value of $8 million. There are further estimates that 5 times this amount may be entering the country undeclared. The increasing consumption of ginseng in Australia is the result of the rising proportion of the population of Asian origin and heavier demands for natural health products in society in general.

With wild ginseng stocks from Asia and North America diminishing, plus growing demands for better quality, chemical-free products, there is clearly potential for Australian commercial ginseng production, as an export commodity and for import replacement.

Growers need patience and commitment to achieve results with this long-term crop.

Markets and marketing issues

Ginseng is traded by weight as dried or fresh whole roots, with different prices paid for approximately 40 market grades. Some 95% of all ginseng production is consumed in Asia. In major Asian and Japanese centres American ginseng is the preferred choice. The Koreans prefer their own product. As little was available or known about American ginseng until recently, Asian ginseng has dominated Australian markets.

Little private trading occurs in China or Korea although this should change with new government regulations. Trading in North America takes place at the farm gate, although co-operative or network marketing is becoming popular there. This type of marketing is being considered by Australian growers. Successful profits can also be made by growers who manufacture and market retail products.

One Australian grower sells fresh and dried, 7-year-old American type whole roots to Singapore. Sales are based on the Wild American price plus 20%. It is estimated that other Australian growers will harvest from 2000 onwards.

Singapore buyers are keen to purchase more Australian-grown ginseng to satisfy client demands for top quality roots.

Market trends are best assessed from North American information. Similar information from China and Korea is difficult to correlate. In 1996, North American production exceeded 2500 t at prices that ranged from $60/kg for Artificial Shade 4-year old-roots to $1600/kg for Wild American roots. Oriental production dwarfs the North American production but prices start at $15/kg with no records for wild ginseng.

Production requirements

Ginseng will not grow in the sun. It requires 80-90% density shade, either artificial or natural; a nitrogen poor soil which can range in structure from sandy to heavy clayey loam; an acid soil with pH between 4.5 and 7; and a climate with four distinct seasons to encourage the plants to progress through their cycle in order to reach maturity. A cold winter is required for stimulation of the root to encourage the following years growth. A good rule of thumb is, `grow ginseng with apples, not with bananas'. While the plants can survive hot summer days, they do not cope well with high humidity. Tropical or sub- tropical climates are not suitable. (See attached map with current trial areas showing some success.)

Ginseng is not a heavy drinker but requires a well-drained soil which needs to be kept moist and cool. In times of adversity, ginseng is known to withstand droughts better than floods. Land on river flats subject to flooding, or at the bottom of potentially wet gullies would not be suitable. If required, ground level drip irrigation is better than overhead systems.

Normally unproductive steep slopes and/or forest floor areas where shade is so dense little else grows, can be quite suitable. Easterly or southerly aspects are generally preferable to north- or west-facing land. Beds should be raised to ensure good drainage.

Varieties/breeds

Ginseng (Panax spp.) belongs to the Araliaceae family, and is a slow maturing, woodland plant native to Asia and North America. From 11 known ginsengs, the two species with greatest medicinal and commercial value are Panax ginseng C.A.Meyer (native to Asia and sold as Chinese, Asian or Korean ginseng), and Panax quinquefolius L. (native to North America and sold as American or Canadian ginseng).

Both types are under cultivation in Australia, with the estimated ratio being 80% American and 20% Asian.

Australian-grown seed is not yet available for purchase. New gardens are planted with imported seed and/or Australian grown 1-year-old rootlets.

Many attempts worldwide have been made to clone ginseng, but none so far has succeeded. Ginseng research including tissue culture is being undertaken at the Gatton Campus of the University of Queensland. Results are not yet available.

Agronomy

There are three cultivation methods recognised: artificial shade, woods grown and wild simulated. Each growing method produces different results and consequently different market prices. Approximately 95% of the world's ginseng production occurs under artificial shade. Wild simulated is the cheapest growing method and produces the highest returns per dried weight yield.

Soil testing for pH and nutrient levels should be done as part of site selection and bed preparation. Minimal tillage should be employed whenever possible. No tillage is used with wild simulated planting. Planting space should be free of debris and weeds, and beds should be raised to provide good drainage. Beds should run down slopes, not across them. Normal farm tilling machinery may be used in open ground. Most site preparation in a forest setting is carried out manually with normal garden implements, although some small mechanical devices may be useful, taking into consideration obstruction from trees and their roots.

Imported seeds are planted in spring/early summer. Australian grown seeds are planted in late autumn/winter. After planting, mulch is applied to conserve moisture and to protect the plants from hard frosts. If shade structures are being used, frames should be erected but covering is not required until seed has germinated. To prevent damage by heavy snow, shade covers may be removed during winter. If required, install irrigation systems after planting.

The plants are fully deciduous perennials with dieback in autumn and new growth each spring as the natural cycle.

Weeding, re-mulching and addition of soil conditioners are part of winter maintenance. Application of fertilisers should be minimal to ensure better value crops. New beds for planting can be prepared in advance at any time. Apart from site preparation, planting, harvesting and drying time, approximately 100 hours per annum for each hectare of forest cultivation is required for maintenance. Artificial shade maintenance can require less time if it is mechanised.

Plants reach maturity during their fourth or fifth year under artificial shade and after six or more years when grown under trees.

Pest and disease control

Potential pathogens including Rhizoctonia spp., Fusarium spp. and Pythium spp. can destroy young plants. Although soil fumigation or chemical treatments are available, the majority of Australian growers prefer organic methods. Growers should be mindful that chemical treatments have the potential to leave residue on the roots, causing a reduction in market price. More importantly, natural therapies should not contain synthetic substances. Intensive planting in a monoculture garden can leave plants weak and more susceptible to disease.

Less intensive plantings generally allow better air circulation and reduce the risk of foliar transfer of fungal problems.

With approx 70% of gardens in virgin bush soil where beneficial fungi appears to provide the appropriate mycorrhizal action required for healthy growth, there is little evidence of fungal disease being a major hurdle in Australia. Similarly, forest floor gardens have not yet experienced any problems with pests.

Trials in previously cultivated or grazed soils have not been as trouble free. Various treatments have been applied to infestations of reticulate slugs (Deroceras reticulatum), cockchafers (Adoryphorus couloni and Aphodius spp.), chevron cutworm (Diarsia intermixta) and corbies (Oncopera spp.) with mixed success. Rather than straw, `scratchy'' mulches, such as rice hulls mixed with coarse sawdust, can be a deterrent, especially for slugs.

Animals such as rabbits, kangaroos, wallabies and wombats are deterred by fencing. Protecting ripe berries with netting prevents parrots from destroying seed production. Anchoring wire mesh firmly across the surface of planted areas prevents lyre bird problems.

Harvest and processing

Where planted grounds do not freeze, harvesting of the roots can take place throughout the dormant period, otherwise, all harvesting must be completed before the freeze occurs. Harvesting can be done either by hand or by mechanical methods, again depending on the chosen growing method. Mechanical harvest is done with modified potato or bulb diggers. After harvest, roots are sorted, removing damaged or spoiled roots to avoid a reduction in sale price.

For dried root sales, each days harvest is washed, loaded onto mesh trays and placed on the bottom rack in the drying area. Each successive days harvest is added at the bottom level with previous trays moved up in sequence Roots can be air dried in a temperature controlled heated building or in a kiln if quantities are larger. Dried roots are stored and transported in cardboard barrels and require dry atmosphere storage. Correctly dried roots can be stored indefinitely.

Fresh roots need to be harvested as close to sale as possible. They are washed and re-packed in a growing medium, such as peat moss, for transportation. Fresh roots are stored under refrigeration and are marketable only during the dormant period.

Security measures should be taken to guard against theft of harvested, stored and transported roots.

Ginseng products need to comply with the Australian Therapeutic Goods Act (TGA) and must be manufactured and sold under special Australia List numbers (AustL No). TGA licensed consultants can prepare a listing application for approval, although it is possible to do it yourself. Once TGA has granted the AustL No, it must appear on all packaging of the product.

Under the Convention on International Trade in Endangered Species (CITES) the U.S. government has listed Panax quinquefolius on Schedule 2.

Therefore, a CITES Permit needs to be obtained from Australian Wildlife Protection before any whole root product is exported, even though the roots are cultivated in Australia. This rule does not apply to export of Panax ginseng.

Economics of production

The formula for expenses (Table 1 - not available in this html version) uses a site comprising 100 beds, 18 m long by 1.5 m wide, which have been planted intensively (50 ¥ 150 mm spacings) with 20 kg of seed. Shade is erected singly over each bed on a structure of posts and wire. The cost of the shade is listed as a total expense but should last for three successive crops. Mulch is spread at the rate of 3 bales per bed. Soaker hoses are used for irrigation and use of fungicides and soil additives is minimal. Costs for land, rates etc., machinery and tools are not included.

Projected income (Table 2 - not available in this html version) is based on the anticipated sale of varying quantities of surplus seed from the end of the third growing season, plus the income from a yield of organically grown dried roots at the end of 5 years. Seed sales are calculated on the possible yield, amount kept for own use and consequent surplus sold. The price obtained for seed is expected to fall as more Australian grown seed becomes available. The production of seed for own use will reduce set-up costs for successive years and should be taken into account for any planning budgets. A harvest of 908 kg (2000 lb) of dried roots is considered to be a good average, with an excellent crop being about 1589 kg (3500 lb). Some crops yield less than 908 kg per 0.4 hectare (approx. 1 acre).

Key contacts

Key References

Hosemans, F. and C. Ginseng Growing in Australia. Published by Gembrook Organic Ginseng Pty Ltd.

Persons, W.S. American Ginseng Green Gold. Available from Gembrook Organic Ginseng Pty Ltd.

Lee F.C. 1992. Facts About Ginseng— the Elixir of Life. Hollym.

*About the author

Charlene Hosemans is Managing Director, Gembrook Organic Ginseng Pty Ltd (see Key contacts for address), a Director of Austral-Asian Ginseng Pty Ltd, and Foundation Secretary of the Australian Ginseng Growers Assoc. Inc.

She has made presentation on ginseng at a number of recent national and international conferences including: IGC'94, Vancouver, B.C., Canada; ICG'95, Harbin, China; New Crops Conference, Gatton 1996; and New Zealand Ginseng Seminars, July 1997