Fed: Ginseng growers told to act as one to crack markets

AAP General News (Australia)
12-17-2001
Fed: Ginseng growers told to act as one to crack markets

CANBERRA, Dec 17 AAP - Australia's fledgling ginseng industry has been told to work
together to make inroads into a quickly growing market.

A report for the Rural Industries Research and Development Corporation (RIRDC) into
the ginseng industry found it is well placed to latch on to the interest in the herb.

Ginseng-based drinks and foods have grown in popularity in recent years, in association
with its long tradition as a herbal medicine.

The report found Australia could grab a share of the market, but it had to market itself
in a single manner against major producing nations such as the United States.

"Australia can only be a small player in the international market but to be effectively
recognised needs to develop a national approach to branding, marketing and processing,"

it said.

"This would provide a platform for the many small growers to access international markets
with branded and guaranteed high quality products that can generate a price premium."

The report said one of the problems facing ginseng was that it was a light weight crop
which was difficult to differentiate between producers and countries.

It said ginseng producers could look to Australian wheat growers to find ways of being
profitable.

"The Australian wheat industry has shown that it is possible to be internationally
competitive on quality," it said.

"It would seem that the Australian ginseng industry should aim to develop an international
reputation as a supplier of high quality raw material as well as processed and manufactured
products in order to gain preferential access to the higher price market segment."

The report, based on ginseng production in Victoria, found Australian-produced ginseng
had the same amount of active ingredients as the herb grown in Asia and the US.

In the case of Victoria, there was concern the ginseng could be affected as it was
grown under a canopy of gum trees.

The report also found Australian farmers could use the leaves and hair roots of ginseng
- unused by traditional producers - and market them to the medical industry.

AAP sw/daw/mg/bwl

KEYWORD: GINSENG

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