Implications of Changing Supply Chain Dynamics of Global Ginseng Trade: A Pilot Study

Abstract

The strong overseas demand for American ginseng has led to both price increases and supply chain consolidation overseas, where most value creation takes place. This paper shows that, given price and volume dynamics for American ginseng in its journey from U.S. growers to Asian consumers, U.S. growers of wild simulated American ginseng have an opportunity to domestically capture at least part of those value-creating activities. Using a pilot study of potential ginseng growers in Tennessee, we show the economic impacts of capturing the wholesale and retail values of wild simulated American ginseng.