FWD 2 New Research Project Plans to Benefit Ontario Ginseng Industry

HerbalEGram: Volume 5, Number 3, March 2008

New Research Project Plans to Benefit Ontario Ginseng Industry


A team of researchers in Ontario, Canada, has initiated a massive research project to protect and enhance Ontario’s ginseng industry.1,2

The project, worth $20,782,919 in Canadian dollars ($21,104,866 USD), titled “New Technologies for Ginseng Agriculture and Product Development,” intends to provide information for differentiating Ontario-grown North American ginseng (Panax quinquefolius) from that grown elsewhere—particularly China or Korea—and enable the certification and branding of Ontario-grown ginseng. The project further intends to examine the specific uses of various varieties of Ontario ginseng in addressing different health concerns.

The project is being directed by Edmund M.K. Lui of the University of Western Ontario, who will coordinate with researchers from 5 other Ontario universities.3 Project partners include the Ontario Ginseng Growers Association (OGGA); Jamieson Laboratories Ltd., a manufacturer of natural health products; Naturex, a producer of standardized herbal extracts; and A&L Canada Laboratories Inc.2 The Ontario Ministry of Research and Innovation has provided $6,927,640 ($7,033,786 USD) in funding, which is being matched by industry and other partners of the collaboration.

“We believe in this project because it is a milestone in the dietary supplement business,” said Jacques Dikansky, president and CEO of Naturex, according to a recent Naturex press release.3 “For the first time all of the participants will join efforts to create an innovative and scientifically-supported range of North American ginseng derivatives. For this reason, Naturex is proud [to be] supporting this ambitious project.”

Canada is the world’s largest producer of American ginseng, generating around 5 million pounds of dried ginseng root each year.4 The majority of this ginseng is grown in Ontario, where ginseng ranks as the province’s fifth largest cash crop.2 According to the OGGA, prices of North American ginseng root have been declining over the past few years, while the production of American ginseng in China has been increasing.1 The OGGA has stated that the blending of low-cost Chinese-grown American ginseng with Ontario-grown ginseng has confused consumers both in the United States and abroad and is negatively impacting Ontario’s ginseng industry. The organization has further argued that the ginseng grown in Canada tastes differently and possibly performs differently than the American ginseng grown in Asia. By being able to conclusively identify and brand Ontario ginseng, the industry hopes to create a sustainable competitive advantage for Canadian ginseng.

The Wisconsin ginseng industry has likewise complained in recent years of problems caused by Chinese-grown American ginseng in the herbal market.5 Wisconsin growers and their representative organizations specifically cited problems of product misbranding—wherein marketers would erroneously try to pass off Chinese-grown American ginseng, or possibly even Asian ginseng (Panax ginseng), as Wisconsin grown. Wisconsin growers have similarly argued that their own area’s ginseng is superior. An article concerning the historical problems and recent developments within the Wisconsin ginseng industry was published in HerbalGram issue 75. That article is available here.

—Courtney Cavaliere

 

References

1Good things come to those who grow and wait [press release]. Ontario: Ontario Ginseng Growers Association; February 1, 2008.
2$20 million public private partnership to strengthen Ontario ginseng industry. Market News Service for Medicinal Plants and Extracts. March 2008;26:34.
3Naturex participates in major ginseng research program [press release]. Avignon, France: Naturex; February 26, 2008.
4Zhang J. How Wisconsin lost its big advantage in the ginseng game—foreign competition, fakery and mislabeling abound; trading on state’s name. Wall Street Journal. March 8, 2006;A1.
5Cavaliere C, Blumenthal M. Wisconsin ginseng farmers fight to protect product reputation. HerbalGram. 2007;75:54-61.