Ginseng Growers Company Business Plan

Ginseng Business Plan

Ginseng Growers Company

Business Overview

Ginseng Growers Company was incorporated May 21, 2012. The company is wholly owned and operated by John Doe. The company owns twenty acres of farmland used to grow North American ginseng, also known as Panax quinquefolium. The ginseng is to be planted in September 2012, as ginseng must grow a minimum of four years prior to being harvested, product sales will not begin until the year 2016.

Vision and Mission Statement

Ginseng Growers Company seeks to establish and maintain a position among North American ginseng growers as a provider of raw ginseng products of high quality and further intends to become a member of the North American B.C. Ginseng Farmer’s Cooperative and sell its products on the Asian market.


The primary objectives of the company over the first three years of business operations include:

(1) Obtain memberships in the North American Ginseng Grower’s Farmer’s Cooperative in order to establish distribution and export channels in addition to making the provision of updated information on new technologies and other factors impacting ginseng producers.

(2) Buy seeds and plant crop.

(3) The existing ginseng crop will be maintained until the year 2012. Secured operating loan of $32,000 will be used to cover operating expenses in years 2013, 2014 and 2015.

(4) Sell the harvested crop to a ginseng broker.

Location and Facilities

The company plans to purchase 20 acres of land in the Appalachia foothills area of Tennessee. Four acres will be used for planting and the remaining acre houses the planting equipment and facilities for maintaining and drying the crop.

Description of Products and Services

Ginseng is “a fleshy rooted, herbaceous perennial plant with five whorled leaves, or leaves arranged in a circle around the stem, on mature plants. The root texture is similar to that of parsnip. When mature, ginseng roots are approximately 30 centimeters long. After the ginseng is harvested, the root can be dried and is then used whole, in powder form or in the form of an extract. The leaves can be used for tea. Ginseng root is also used in products that include soup, candies, tea, and in capsule and tablet form.

Key Features of the Products and Services

American ginseng is slightly different from Asian ginseng and grows in a shady environment requiring at least 70% shade cover for effective growth. Ginseng requires four years to reach maturity although ginseng can be harvested after the second and fourth years of growth. Ginseng was first introduced into the eastern United States in 1982.

Production of Products

Ginseng grows best on a slight slope or in raised beds that have proper drainage of the soil and grows best in at least 30 centimeters of nutrient rich top soil. The best root is produced in sandy soils or silt. The company has had a local agricultural consulting firm test the soil and conduct plant analysis on the property, which indicated that the site is excellent for ginseng farming. The farm will mimic the plant’s natural habitat or that of a thick forest canopy through use of a screen that provides 70% of more shade along with straw mulch to replace the natural littering of leaves in the plant’s natural forest habitat. The average yield per acre is approximately 3,000 pounds or 1,364 kilograms of dried ginseng root. With a 20 acre ginseng crop the yield should total 60,000 pounds of dried ginseng for a total of $180,000.00. The following chart lists a comparison of three methods of ginseng growing and the net profit per 1/2 acre in each growing method.

Figure 1 — Three Methods of Growing Ginseng and Estimation of Profits Per 1/2 Acre


Artificial Shade

Woods Cultivated

Wild Simulated

Time till first harvest

3 to 4 years

6 to 8 years

6 to 12 years

Seeds planted per ? acre

50 lbs

24 lbs

10 lbs

Total Labor per 1/2 acre

1,500 Hours

1,950 Hours

825 Hours

Total Costs per 1/2 Acre




Root yield per 1/2 acre

1,125 lbs

300 lbs

80 lbs

Root price per pound




Gross Income per 1/2 acre




Net Profit per 1/2 acre




Source: Ohio State University Fact Sheet (2004)

Comparative Advantages in Production

Land located in the Appalachia foothills of Tennessee is conducive to growing ginseng. The land on which the company intends to grow ginseng has been determined as optimal ginseng growing land.

Business Start-up Expenses

Purchase of 20 acres of land at $1,500.00 per acre $30,000.00

Ginseng Seed (110 pounds per acre X 20 acres @ $40.00 per pound) $88,000.00

Equipment and facilities $30,000.00

Total $148,000.00

The land has been carefully chosen as land that is too dry will kill the roots and land that is too wet will result in rotting of the ginseng roots.

Industry Overview

Ginseng has been used as an herbal remedy for more than 5,000 years in Asia and more than 400 years in North America. Western culture is beginning to acknowledge the medicinal properties of ginseng and this has resulted in an increase in research of the health benefits of ginseng. Domestic output in Asian countries has been unable to meet the current demand for ginseng products making imports of North American ginseng more profitable and they have increased steadily since 1986 and report state that these imports of North American ginseng into Asia will continue to increase. The average price of ginseng is $30.00 per pound wholesale, which has fallen from the 1992 price of $50.00 per pound.

Marketing Strategy

The primary target markets are those of Hong Kong and Asia since these countries are the largest consistent consumers of ginseng. Secondary markets include other South Asian countries such as Malaysia, Singapore and Taiwan. A secondary market will be that of Japan.

Projected Annual Cash Flow Statement

For the Years Ending Dec

2016 2017 2018

Cash Inflows

Cash Receipts 180,000 180,000 180,000

Operating Loan 0-0 0

Funding 0-0 0

Owner Investment 0-0 0

Operating Loan 0-0 0

Advances 0-0 0

Term Loan Advances 180,000 180,000 180,000

Cash Outflows:

Payment of:

Cost of Sales Items 800.00-800.00-800.00

Sales & Marketing Items 1200.00 1200.00 1200.00

Property and Utilities Items 1100.00 1100.00 1100.00

Operations Items 0-0 0

Banking and Other Items 30,000 30,000 30,000

Other Wages 0-0 0

Sale of Fixed Assets 0-0 0

Other Assets 0-0 0

Total Cash Inflows 145,900 145,900 145,900


Growing American Ginseng in Ohio (2004) Ohio State University Fact Sheet. School of Natural Resources. F-56-04. Retrieved from:

Get Professional Assignment Help Cheaply

Buy Custom Essay

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Why Choose Our Academic Writing Service?

  • Plagiarism free papers
  • Timely delivery
  • Any deadline
  • Skilled, Experienced Native English Writers
  • Subject-relevant academic writer
  • Adherence to paper instructions
  • Ability to tackle bulk assignments
  • Reasonable prices
  • 24/7 Customer Support
  • Get superb grades consistently

Online Academic Help With Different Subjects


Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.


Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.

Computer science

Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!


While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.


Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.


In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.


Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.


We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!


We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.


Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

  • When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
  • We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

  • The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
  • We will have a different writer write the paper from scratch.
  • Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment  Help Service Works

1.      Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2.      Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3.      Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4.      Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

smile and order essaysmile and order essay PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!

order custom essay paper