appConfigEntityId

bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

hooksArticlePageAdvertisementConfigArticle

liveArticle

appConfig

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

sponsorType

urlAlias

moreOnThisArticles

sectionsV2

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

json

SCMP Reporter

THE US Government has thrown its weight behind a programme to crack down on Hongkong herbalists passing off cheap varieties of ginseng as American.

  Up to 90 per cent of Hongkong's 2,000 ginseng shops are believed to be guilty of passing off China White ginseng - whose price is one-tenth of that of the North American variety - as its American counterpart, or of cutting pure Wisconsin ginseng with thecheaper substitute.

  Mr Ng Chun-man, director of the Asian operation at the Wisconsin Department of Development, alleges that the biggest instigator of the practice is the 37-branch Ginseng USA.

  He said: ''They really started this one on a large scale, because of the number of shops they have. They are very clever about it.

  ''They used to be very blatant, but we have been going to their shops and buying things and had meetings, so now they are changing their approach and being less obvious.''   But Ginseng USA marketing director Andy Luk said the allegations stemmed from misunderstandings and business rivalry.

  He said his company, which derives more than half its revenue from American ginseng, sold both types of the herb and the Korean variety, but clearly differentiated by using technical terms.

  He said: ''We don't say the country, but use special names for Chinese ginseng and American ginseng so people can tell the difference.''   Ginseng Board of Wisconsin executive director Ron Rambadt, in Hongkong this week with a delegation of 10 Wisconsin growers, said Hongkong shoppers were being palmed off with imitation American ginseng when they thought they are buying the genuine article.

  His board's scheme, backed by both the US Government - through the Department of Agriculture - and the Wisconsin state government, will kick off with television, press, bus and tram advertising campaigns.

  There will also be in-store demonstrations in a bid to explain to the public the difference between types of ginseng, and Genuine Wisconsin Ginseng Store posters will be displayed in approved shops.

  Mr Ng said many small shops were forced into selling imitation American ginseng to survive.

  ''If the guy next door is doing it, and selling it for $35 a tael [about 37 grams], the consumer will say 'Why are you charging $75 a tael and he is charging just $35? Maybe I should go next door.''    ''We have seen some changes in the marketplace recently. A lot of shops are changing tactics: not mixing, but selling straight China White and calling it American ginseng.

  ''It is packed and sliced in such a way that it is difficult even for us to tell which one it is.''   Local importers say the problem is now very serious. They say it dates from the opening of China's market 10 years ago. Before then ginseng from the mainland sold for about US$15 to US$18 a pound, but the price dropped as supply surged. The wholesale price is now about $3 to $4 a pound, compared with $40 to $45 for the American variety.

  At the same time, Hongkong retailers face increasing overheads as rent and labour costs escalate.

  The importers say the trend was exacerbated about four years ago with the entry into the market of cash-rich company Ginseng USA, which was able to pump dollars into advertising and an extensive distribution network.

   The problem is modest in China, where consumers are more discerning and careful in their purchases. Shopkeepers who mislead the public face jail sentences or fines.

  Mr Ng said labelling laws in Hongkong sought to protect consumers, but the difficulty was in proving a case in a law court where it was one person's word - based on taste - against another's.

  He said: ''The difficulty is in getting concrete evidence as well as evidence you can present in court. The judge would not accept it if I said 'This is China White' because the opposition can say 'No, my buyer says it is American'.

 ''Unless we can discover a chemical way of analysing these items, it is difficult to prove in law.''    Once this difficulty has been solved, Mr Ng hopes to rope in the Hongkong Government and Consumer Council to the cause.

  Unlike Korean ginseng, the US version is not packaged and Mr Rambadt said consumers were used to buying it loose.

    In 1991 Hongkong bought US$67 million worth of American ginseng, or more than 523 tonnes. More than 90 per cent of America's production comes from Wisconsin.

    Mr Rambadt described the difference between the two ginsengs as similar to that between an orange and a tangerine: if you had never seen either, they would look similar.

  American ginseng is stronger, believed to have greater medicinal properties - the herb is said to aid digestion, restore energy and promote restful sleep - and leaves a sweet after-taste in the mouth.



Clampdown on ginseng fraud