top of page
Writer's pictureBloggerTRI

The History Of Ginseng As A Globally Traded Commodity

Updated: Aug 18





Wisconsin's ginseng trade has a rich history intertwined with international commerce. While Wisconsin is popularly known for its cheese, it also leads the U.S. in ginseng production, contributing 95% of the country’s supply and exporting the herb globally. Recognizing its significance, the state designated ginseng as its official herb in 2017.

The roots of American ginseng in Wisconsin date back over a century. The Fromm brothers established the first ginseng farm in 1904, and demand, especially from China, grew rapidly. Historically, Native Americans used ginseng for various ailments, and its Asian counterpart has been a staple in Chinese medicine for over 5,000 years. The first U.S. trade vessel carrying ginseng sailed from New York to China in 1784, marking the beginning of a long-standing trade relationship.

Wisconsin ginseng, valued for its unique characteristics due to the state's specific climate and soil, has become a sought-after product, particularly in Asia. The plant’s root is larger, darker, and more elongated than other varieties, contributing to its high market value. Wild ginseng, with its superior medicinal properties, commands premium prices, reaching $700 to $800 per pound when dried. However, the plant is difficult to cultivate, requiring about five years to mature and specialized equipment.

Regulations on wild ginseng harvesting were established in response to overharvesting, with licenses now required. Despite these efforts, illegal harvesting persists, prompting the Department of Natural Resources to enforce rules to ensure sustainability.

Trade tensions have impacted Wisconsin’s ginseng market, especially recent tariffs imposed by China in response to U.S. trade policies. Will Hsu’s Ginseng Enterprise, founded by a Chinese immigrant in 1974, exemplifies the challenges faced. His father, who had little knowledge of ginseng, built a successful business from humble beginnings. The trade war prompted Hsu to diversify products and seek new markets beyond China.

Hsu’s enterprise primarily serves Asian communities across the U.S., with a significant portion of its clientele being ethnic Chinese. To reach those without local access to Asian products, Hsu’s father distributed catalogs nationwide in the 70s and 80s. As consumer preferences shift, there’s an increasing demand for convenient ginseng products, which may help attract non-Asian consumers.

The Ginseng Board of Wisconsin continues to promote Wisconsin ginseng as a premier product, educating the public about its health benefits. Despite cultural differences in medicinal practices, there is growing interest in ginseng among non-Asian demographics, particularly in places like California. Overall, Wisconsin’s ginseng trade reflects a blend of historical significance and modern challenges, maintaining a critical role in global markets while adapting to changing consumer needs and geopolitical dynamics. Read the full article here: https://www.midstory.org/how-wisconsin-ginseng-became-a-globally-coveted-commodity/

13 views0 comments

Recent Posts

See All

Comments


bottom of page