Canada's Ginseng Industry

Ginseng is a slow-growing herbaceous perennial plant of the Araliaceae family. There are two species of ginseng that comprise the bulk of world production and trade: Asian ginseng (Panax ginseng) and North American ginseng (Panax quinquefolius). Other species, such as Brazilian, Siberian, and Chinese-type ginsengs may be cultivated commercially, but are not considered to have the medicinal qualities associated with true ginseng. Ginseng is cultivated for its root and is one of the most widely used medicinal herbs in the world, especially in Asia. Ginseng root is dried, sold whole, powdered, and sliced.

North American ginseng has a special place in the history of Canada. Roots have been used in traditional Aboriginal medicines for thousand of years. After its discovery in 1716 by the Europeans, it was gathered and exported to China. At one time, ginseng trade rivalled the fur trade. However, with time, the wild ginseng population became severely depleted from over-harvesting and wild ginseng is now considered an endangered species in Canada ⁽¹⁾. Commercial cultivation of North American ginseng in Canada began in the late 1890's, but it was not until the early 1980's that ginseng production witnessed exponential growth due to the lure of lucrative profits.

North American ginseng is native to the floor of the mixed hardwood forests of Eastern North America. It requires only 20% sunlight, in fact, if light intensity exceeds this level for any length of time, it will age and die. The high organic matter of the forest floor provides the moist, well-drained environment required by the ginseng plant. Also, wild ginseng is usually found higher on a slope where good drainage is ensured. These growing requirements mean that for successful commercial field cultivation, the environment must be modified to resemble ginseng's natural preferences. Environmental modification for ginseng production involves the formation of raised beds, application of straw mulch or other suitable material to mimic the forest floor, and the erection of shade sufficient to filter out 70-80% of sunlight.

Area of Production

Canadian ginseng production is concentrated in two regions: South-Western Ontario and British Columbia. According to the 2001 Census of Agriculture, 380 farms in Canada produced ginseng on 2,880 hectares of land that year, including farms from every province except Manitoba. In 2001, 290 farms in Ontario accounted for 1,813 hectares of Canadian production area, while 60 farms in British Columbia produced on 1,023 hectares.

Yield

Ginseng yield usually refers to dried root yield and varies according to production method and duration ⁽²⁾. Under artificial shade, ginseng yields approximately 2.8 tonnes per hectare after a three year period or 3.4 tonnes per hectare after four years of growth. Ontario-grown ginseng is usually harvested after three years whereas most British Columbian production consists of four-year roots. Wood-grown ginseng is generally harvested after six years and yields about 1.23 tonnes per hectare. Under wild-simulation, a yield of approximately 0.56 tonnes of ginseng per hectare can be expected after nine years of growth. Yield of ginseng root is highly variable and can be easily reduced by several factors such as diseases, pests, poor seed and soil quality, weeds, and weather.

Volume of Production

Canada has become the world's largest grower of North American ginseng in recent years, currently accounting for more than 60% of global production. Canada is also believed to be the third largest ginseng producing country in the world, behind China and Korea. In 2003, Canadian ginseng production was estimated at 2,041 tonnes, with 67% of Canadian ginseng being produced in Ontario and the remaining 33% coming from British Columbia. ⁽³⁾

Disposition

The majority of Canadian ginseng root production is exported. In 2003, Canada exported almost 74% of its estimated production, exporting 1,508 tonnes worth over $69 million. Most Canadian ginseng production is exported in dry bulk root form and sold to buyers at the farm gate. Hong Kong is the world trading center for ginseng and Canada's largest market for ginseng root, importing 76% of total Canadian exports in 2003. The Chinese consumers are the ultimate end users of North American ginseng, and statistics show that China is the destination of 94% of all Canadian ginseng exports.

Additional Information

Ginseng root is processed into a wide range of products, including tea, candies, beverages, tablets, and capsules. Asian and North American ginseng are not substitutes; rather, they complement each other. Each is described as having unique effects. While Asian ginseng is said to have a heating effect that invigorates, stimulates, and heals the body, especially when the body is depleted, North American ginseng is said to have a cooling effect that relieves stress, calms the body, and strengthens the internal organs. Recent scientific research in Canada shows that a regular dosage of North American ginseng is believed to reduce stress and fatigue, improve short-term memory, reduce high blood pressure, regulate blood sugar level, reinforce the immune system, and increase longevity.

For the latest market information and analysis available from Agriculture and Agri-Food Canada, please consult the following publications:

• Canada: Pulse and Special Crops Outlook
• Bi-weekly Bulletin
• Drought Watch

⁽¹⁾  Information on the Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES).

⁽²⁾  According to the Government of British Columbia and the Government of Ontario.

⁽³⁾  Data provided by the Associated Ginseng Growers of British Columbia.