Gov. Doyle: Announces major ginseng trade agreement

Contacts: Laura Smith, Office of the Governor, 608-261-2162

Lora Klenke, Department of Agriculture, Trade and Consumer Protection, 608-224-5119

Partnership Follows Governor’s September Trade Mission to China

MADISON – Governor Jim Doyle today announced a major trade agreement between a Chinese company and Wisconsin ginseng growers estimated to bring more than $12 million back to Wisconsin in the next five years. Under the agreement, Tong Ren Tang will be the exclusive distributor of Wisconsin ginseng in China.

“Wisconsin is far and away the United States’ largest producer of ginseng, and China is our number one market,” Governor Doyle said. “I’ve worked hard towards building business partnerships in China, and this agreement exemplifies the work that evolves from government and private industry partnering on trade missions to expand Wisconsin’s market share around the world. I look forward to a long and prosperous relationship between Tong Ren Tang and Wisconsin.”

The Wisconsin Ginseng Board represents the state’s 200 growers. Wisconsin grows about 95 percent of the United States’ total ginseng crop. The state’s climate and soil, and the growers’ extensive experience, have led customers to regard Wisconsin ginseng as the world’s highest quality cultivated ginseng.

Tong Ren Tang is one of the oldest and widely recognized brand names in China. The company was established in 1669 as a pharmaceutical company using traditional Chinese medicine and healing practices, and in recent years has joined with several companies outside China, diversifying into spa and skin care products. Its Beijing office has become a regular stop for dignitaries visiting the Chinese capital.

Last year, China was the third largest customer for Wisconsin products. In 2008, $1.2 billion worth of products were sold directly to China from Wisconsin.

Governor Doyle first traveled to China on a 2004 trade mission, and returned in September of this year. This mission provided participants from the private sector the opportunity to meet with distributors, potential customers, and key government and business officials. Another outcome from this year’s mission was a long-term agreement between Cooperative Resources International, based in Shawano and a leader in dairy and beef genetics and herd management, and Flying Crane, one of China’s leading producers and distributors of infant formula and milk powder. CRI will work with Flying Crane as it builds 10 new 10,000-cow farms.