MARAEROA C INCORPORATION

“Perfect Companions”

MAORI FORESTRY FORUM, ROTORUA16 August 2013

• 5,500ha Forestry Block, Pureora

• 70% Pinus Radiata 30% Douglas Fir

• Replanted 800sph from 2003 – 2008

• Thinned to 500 final stocking 350-400 sph

• No pruning – Structural grade

• 99 year Variable Stumpage Lease NZFP

• 500 – 700 metres above sea level

• Volcanic Ash Pumice – Soil ph 5

• Climate – Cold winters and dry summers.

Maraeroa C - Key Stats

Ginseng Discovery• Introduced by NZ Crop & Food 2005

• Field trials undertaken 2006/2007

• Trials moderately successful – 2009 report

• Established 2ha commercial crop 2009

• Commercialisation research 2010 - MoSI

• Established further 2ha crop in 2011

• 5 Maori Forest ginseng trials 2011 - TPK

• Ginseng Nursery established 2012

• Scoping Review of CNI Potential for

Ginseng completed 2013 – MPI

Sowing Seeds by Hand

Sowing Seeds by Direct Seed Drill

2 year old plants

4 year old plants

PERFECT COMPANIONS?

CNI pine forests & ginseng appear ideal as

Companion crops.

• Ginseng grows in 75-90% shade (300-400sph

• Natural growing environment is under trees

• Needs free draining soils -Taupo Ash, Pumice

• Needs cold (frosty) winters and dry summers

• Will grow on hilly or flat to rolling country

• Ginseng growing window – 15 years (12-27yr)

• 320,000ha of suitable pine forests in CNI

• And only 50ha of ginseng currently grown

SCION

CNI Research

The Potential Risks

0

5

10

15

20

25

30

0 10 20 30 40

Ligh

t tr

ansm

itta

nce

(%

)

Age

100

200

300

400

500

600

Stems/ha

Needs 80% to 90% shade Needs free draining soils

with pH of 6. Forest risk

Cut worms and

slugs are pests

Fungal disease Rabbits Birds Man

The Potential Returnsfor Wild Simulated Ginseng Root

Estimates for 7 year old ginseng 2013

Ave Fresh Root weight (g/plant) 15

Ave Dry Root weight (g/plant) 5

Ave Number of plants per m2 15

Number of m2 planted per ha 3,000

Net weight for 1ha 225kg

Root price ($/kg) Average $2k

Gross Revenues $450k

Less Growing Costs (Years 1-7) $48k

Less Harvesting Costs (Year 8) $40k

Less Opportunity Cost (5%) $19k

Potential Net Return to Grower $343k

Example is for ginseng grown from seed and requiring an 8 year time frame

Does not include value added returns

SCION -Profitability AnalysisForest + Carbon + Ginseng

Harvest Area 2014

Harvestable Products

Ginseng Seeds, Ginseng Leaf, Ginseng Roots

Quality Ginseng Product

The objective is to produce high quality

ginseng grown in wild simulated conditions:

• Which are high in the ginsenoside active

ingredient

• Without any chemical residues

• Looks, smells and tastes like wild ginseng

• Correctly processed and professionally

packaged

• With Testing Certification to support

Ginseng Examples

5 year NZ Ginseng

15 year Chinese Ginseng

6 year NZ Ginseng

Ginseng Forest North China

Efficacy of Ginseng

• Asian - Panax Ginseng (Yang - male)

Heating effect – For older users

• North American – Panax quinqefolius (yin –

female) Cooling effect – For younger users

• Active ingredient – saponins or ginsenoside

• 5,000 year Chinese history of ginseng

herbal medicine use

• Strengthens the immune system

• Promotes energy, strength, stamina and

vigour

American Sliced Ginseng

Korean Ginseng Tea

NZ Ginseng Manuka Honey

Korean Ginseng Liquor

Pureora Ginseng

Gift Box

Marketing

• The Global Trade in Wild simulated ginseng

is valued at $1b (JCNZ 2013)

• The major demand for Ginseng products is

from China with a growing affluent sector

• Consumers however include Chinese

populations in NZ, Australia, USA, Taiwan.

Malaysia etc

• NZ FTA with China – Lower tarrifs means

competitive pricing to USA, Korea, Canada

• NZ can leverage its’ relatively clean

environment

Traditional Medicine Pharmacy

Supermarket Shanghai Ginseng Wholesale Market

China Ginseng Outlets

China Herbal Stores

NZ Economic Potential

Nga mihi!

NEW ZEALAND

长大, 成熟于天然森林

最有益健康保健 新西兰人参