Facing many barriers, Ngoc Linh ginseng cannot be produced for deep processing.

For a long time, Ngoc Linh ginseng businesses have mainly traded in ginseng wine and ginseng honey products. In the photo: Products of Ngoc Linh Nam Tra My Forestry and Pharmaceutical Joint Stock Company. Photo: HO QUAN

Ngoc Linh ginseng has great potential for deep processing, but currently faces many barriers. These include an unstable market, consumer confidence shaken by counterfeit goods, high investment costs, an insufficient support mechanism, and businesses being hesitant to invest...

Fear of investment risk

For many years, Ms. Ho Thi Muoi - in Tra Mai commune (Nam Tra My) has mainly developed fresh ginseng products soaked in honey, simple, self-made Ngoc Linh ginseng wine. Each year, she sells nearly 1,000 boxes of products, a not small number for an individual business, but quite modest when considered in the development potential of the ginseng market.

“When I attended ginseng fairs, OCOP fairs or supply-demand connection conferences, many customers asked if I had capsules, tea bags or ginseng essence to bring back as gifts, but I didn’t dare to invest. Making a batch of deeply processed goods requires a lot of capital, testing is difficult, labels must be standard, and stable output is not certain. If I can’t sell in time, I will lose a lot of money, and a small business like me can’t afford it,” said Ms. Muoi.

Ms. Ho Thi Muoi mainly sells fresh ginseng products and some simple processed products from Ngoc Linh ginseng. Photo: PHAN VINH

Risk-averse mentality is also common among many small and medium-sized enterprises in Nam Tra My. Despite thorough research and clear raw material areas, when starting to produce high-end products from ginseng essence, many units still choose to take short steps, making small batches to explore the market. After cooperating with research partners, Ngoc Linh Nam Tra My Forestry Pharmaceutical Joint Stock Company has completed two product lines of ginseng extract lozenges and ginseng essence microparticles, but there are still many concerns.

Ms. Ho Thi Thuy Ngan - Director of Ngoc Linh Nam Tra My Forestry Joint Stock Company shared: "We will launch these two product lines in the near future, but the first batch will only be made in small quantities to test market reactions, even though we know that the production cost will be very high. This product is suitable for modern retail channels, but our unit does not have the strength in e-commerce, and we do not have enough strength to push products into large chains."

Ngoc Linh Nam Tra My Pharmaceutical Joint Stock Company is preparing to launch a ginseng essence microparticle product. Photo: PHAN VINH

According to Mr. Tran Van Man - Vice Chairman of Nam Tra My District People's Committee, up to now, the locality has more than 20 medicinal products recognized as OCOP, however, most of them are still in the form of preliminary processing: dry tea, soaked wine, powder extract... Deeply processed products, with clear active ingredient content, transparent traceability of growing areas, and packaging meeting export standards account for a relatively small proportion.

“Although the current support policies have been expanded, they are still not enough to create a boost for businesses that dare to do big. The problem is not only capital, but also the whole support ecosystem from testing, quality declaration to trade promotion is still lacking in synchronization,” said Mr. Man.

[VIDEO] - Ms. Ho Thi Thuy Ngan - Director of Ngoc Linh Nam Tra My Forestry Pharmaceutical Joint Stock Company shared about the difficulties in processing Ngoc Linh ginseng:

Strengthening market confidence

In the value chain of Ngoc Linh ginseng, deeply processed products help medicinal herbs reach a wider range of consumers, overcoming price barriers and prejudices: "ginseng is only for the rich". However, to make a truly deeply processed product, with a quantified saponin content, traceable to the growing area, and meeting testing standards, costs a lot of money, causing many entities to hesitate.

Sam Sam Company Limited owns a chain of ginseng processing products from Ngoc Linh ginseng produced according to GMP standards and GACP-WHO growing areas. Photo: HO QUAN

Mr. Nguyen Duc Luc - Chairman of Ngoc Linh Ginseng Association of Quang Nam, Director of Sam Sam Company Limited - the owner of a chain of ginseng processed products from Ngoc Linh ginseng produced according to GMP standards and GACP-WHO growing areas, said that the development of deeply processed products today cannot be separated from the story of transparent origin and trust from consumers. Consumers cannot be allowed to judge real - fake by feeling. Each product on the market must clearly state the growing area, active ingredient content, and inspection process.

“Sam Sam Company Limited is having to pay all the testing costs for each batch of products, on average each test costs up to several tens of millions of VND, not to mention quality declaration, barcode, trademark registration…” - Mr. Luc said.

It is not easy for deeply processed products from Ngoc Linh ginseng to be consumed strongly in the traditional market. Photo: PHAN VINH

According to Mr. Tran Van Man, it is necessary to soon concretize Resolution 40 of the Provincial Party Committee with specific policies, from supporting raw material areas, standard varieties, on-site inspection facilities, to promoting the public-private partnership model in ginseng product research and development. In particular, the OCOP policy needs to be implemented more deeply with the group of deeply processed products, not only stopping at the level of recognition but also needing practical support in promotion, market connection, bringing products to large distribution systems and e-commerce platforms.

“If you want to have a national brand, you must have products that meet the standards to enter the international market. We cannot let the situation continue where one side grows real products and processes them but cannot access the market, while the other side makes fake products but sells them more easily. Without the participation of the State, it will be very difficult for businesses to turn this problem around,” said Mr. Man.

[VIDEO] - Mr. Tran Van Man - Vice Chairman of Nam Tra My District People's Committee shared about solutions to support business households, enterprises, and cooperatives to develop deeply processed products from Ngoc Linh ginseng:

Source: https://baoquangnam.vn/gap-nhieu-rao-can-sam-ngoc-linh-chua-the-san-xuat-che-bien-sau-3153337.html