MORE
ECONOMY-RELATED
% NEWS
AND A
TRADE
VISIT
T
O
% WISCONSIN
BY VICE
PRESIDENT MIKE
% PENCE.
% THE VICE PRESIDENT APPEARED
AT
% U-LINE, A DISTRIBUTOR OF
% PACKAGING MATERIALS
IN
PLEASANT
% PRAIRIE.
% HE
USED
THE
OCCASION
TO
% ENCOURAGE SUPPORT
FOR
THE
% U.S./MEXICO/CANADA TRADE%AGRE
EMENT.
% THE
PLAN
AWAITS
CONGRESSIONAL
% APPROVAL.
% MEANWHILE, THE
U.S.
TRADE
WAR
% WITH
CHINA
IS
HITTING
WISCONSIN% GINSENG
PRODUCERS
IN A BIG
WAY.
% TONIGHT, HOW
CHINA'S
RETALIATORY
% TARIFFS
AND VALUE-ADDED
TAXES
% HAVE
ROCKETED
TO A
41%
ADDED
% FEE,
MAKING
THE
COVETED
PRODUCT
% MORE
EXPENSIVE FOR
BUYERS,
MANY
% OF
WHOM
SAY
THE
FARMERS
SHOULD
% ABSORB THE
INCREASED COST.
% SO WHERE
DOES
THIS
LEAVE
% WISCONSIN GINSENG
GROWERS
WHO
% EXPORT
85
BERS
!
%
OF
THEIR
CROP
TO
% CHINA.
% WE
CHECK
IN
WITH
WILL
HSU
WHO
% OPERATES A
GINSENG
FARM
NORTH
OF
% WAUSAU.
% SO
WHAT HAS BEEN
THE
EFFECT OF
% THE
U.S.
TRADE
WAR
WITH
CHINA
ON
% YOUR
GINSENG
FARM?
% >>
WELL,
I
THINK
FOR
THE
OVERALL
% INDUSTRY, WHAT
IT'S
MEANT
IS
THE
% PROCESSORS AND
PURCHASERS IN
% CHINA
HAVE
REALLY ASKED
THOSE
OF
% US HERE
IN
CENTRAL
WISCONSIN
TO
% ABSORB
THE
BRUNT OF THE
TARIFF,
% MEANING THE
PRICES
THAT
FARMERS
% ARE RECEIVING HERE
ARE
ABOUT
30%
% TO
40%
LOWER
THAN THEY
WERE
THE
% LAST
COUPLE
YEARS.
% >>
SO
WHAT
KIND
OF
LOSSES
DOES
% THAT
REPRESENT?
% >>
FOR
OUR
INDUSTRY, A
30%
TO
% 40%
PRICE
DECREASE
PROBABLY
% MEANS
THAT
THE
LOCAL
ECONOMY
% HERE IS
LOSING
SOMEWHERE
BETWEEN
% $10
AND
$15
MILLION
THAT'S
% INFUSED
DIRECTLY TO
THE
FARMERS.
% AND
THOSE
FARMERS
BUY A
LOT
OF
% THEIR
EQUIPMENT LOCALLY.
% WE
BUY
VEHICLES,
TRUCKS,
% TRACTORS
AND
WE
EMPLOY A LOT
OF
% PEOPLE HERE
IN
CENTRAL
% WISCONSIN.
% AND
SO
IT
DOES
MEAN
THAT
WE'VE
% HAD TO
FIND
WAYS
TO
MAYBE
TRIM
% COSTS AND
NOT
USE
AS
MUCH
LABOR
% OR NOT
HIRE
AS
MANY
PEOPLE.% >>
WHAT DO YOU
THINK OF
THE
U.S.
% TRADE
POLICIES THAT
BROUGHT
YOU
% TO
THIS
PLACE?
% >>
I
THINK
MOST OF
THE
FARMERS% HERE
IN
CENTRAL
WISCONSIN,
% REGARDLESS IF YOU'RE
T
ALKING
% ABOUT
GINSENG
FARMERS
OR
OTHER
% PRODUCERS, UNDERSTAND THE
NEED% TO
HAVE
FAIR
TRADE,
AND
THEY
MAY
% SUPPORT
THE
REPUBLICAN% ADMINISTRATION IN TER
MS
OF
WHAT
% THEY'RE TRYING
TO
DO
TO
LEVEL% THE
PLAYING FIELD
WITH
CHINA.
% I
THINK THE DIFFICULT
PART
OF
% THAT
IS
HOW IT
IS
IMPACTING
US
% PERSONALLY AND
FINANCIALLY.
% I
THINK A
LOT
OF
FARMERS
FEEL
% THAT PINCH.
% THEY
FEEL
THE
BRUNT OF
THE
TRADE
% WAR.
% AND
THEY'RE
HAVING TO
TAKE
IT
IN
% THE
POCKETBOOK BECAUSE
OF
OUR
% BROADER NATIONAL
POLICY
AND
% TRADE
STRATEGY.% >>
NOW, PRESIDENT
TRUMP
% ANNOUNCED A TRADE
DEAL
WITH
% CHINA
EARLIER
THIS
MONTH.
% HOW
OPTIMISTIC ARE
YOU
THAT
% MIGHT BRING SOME
RELIEF
HERE?
% >>
I
GUESS
IT'S
HOPEFUL
% OPTIMISM.
% WE'VE
HEARD
IT
BEFORE.
% I DON'T KNOW IF
I
CAN
% NECESSARILY COUNT
ON
IT
AND
BANK% ON IT.
% I
THINK, YOU
KNOW, YOU
HAVE A
% DIFFERENCE IN
REGIME.
% YOU
HAVE
CHINESE
PREMIERE,
WHO
% FOR
LACK
OF
BETTER
WORD
DOESN'T
% HAVE
TO
FACE
REELECTION AND YOU
% HAVE A PRESIDENT
THAT'S
GOING TO
% HAVE
TO
FACE
REELECTION NEXT% YEAR.
% SO IF
YOU LOOK
AT
THE SHORT TERM
% VERIZON
!
SHORT
TERM
VERSUS
THE LONG TERM
WE'RE
% LOOKING
AT
TWO
DIFFERENT
GAMES.
% >> HOW
DOES
THE
CROP
LOOK?
% >> THIS
YEAR
BECAUSE OF THE
% WEATHER, WHICH NO ONE
CAN
% CONTROL,
THE
CROP
YIELD
IS
NOT
% AS
GOOD
AS
IT HAS
BEEN
IN
RECENT
% YEARS.
% THE
OVERALL
POUNDAGE
MAY
BE
DOWN% A
LITTLE
BIT.
% YOU'RE
SEEING
MORE
FARMERS
SAVE
% ROOTS
FOR AN
ADDITIONAL
ROOT,
% MEANING
SAVING
THREE-YEAR-OLD
% ROOTS
YOU
WOULD
NORMALLY
% HARVEST, WITH THE
HOPE
THAT A
% TRADE
DEAL
IS
DONE
AND
THAT
% PRICES
ARE
BETTER
AND
RECOVER
% NEXT
YEAR.% >>
HAVE
YOU
SOLD
YOU
R
GINSENG
% CROP?%>>
MOST OF
THE
CROP
THAT
WE
% HARVEST
OURSELVES
IS
USED
% INTERNALLY WITHIN
OUR
OWN
% OPERATION FOR
OUR
OWN
CUSTOMERS.
% I
WOULD
SAY
THAT THERE
ARE A
FEW
% FARMERS
THAT
STILL
HAVE
CROP
% LEFT
OVER
FROM
LAST
HARVEST,
SO
% 2018
HARVEST,
AND
SOME OF
THE
% NEW CROP
IS
JUST
STARTING TO
% COME ON THE
MARKET.
% AND WE ARE
SEEING SOME
SOFTNESS
% AND
WEAKNESS
IN
PRICE
AS
THE
% TRADE WAR
DRAGS
ON
AND
IT
% CONTINUES TO
HAVE A
DOWNWARD
% PRESSURE ON THE
OVERALL MARKET
% PRICE FOR
GINSENG, ES
PECIAL
LYL
% FOR
!
ESPECIALLY
FOR
THE
NEW
2019
CROP.% >>
I
KNOW
FOXCONN
SIGNED AN
% AGREEMENT WITH
THE
GINSENG BOARD
% AND
YOURSELF
TO
PROMOTE
% WISCONSIN GINSENG
I
N
FOREIGN
% MARKETS AND
PRODUCE
THE
% COMPANY'S OWN
BRAND
OF
GINSENG.
% WHAT HAS
BEEN THE
OUTCOME
OF
% THAT
AGREEMENT?% >>
SO
I
THINK
IN
SOME
REGARDS TO
% THE TRADE
WAR,
WHAT
WE'RE
SEEING
% WITH
FOXCONN
IS
THAT THEY ARE
% DOING
THAT
AGREEMENT IN
TAIWAN.
% SO THEY ARE
PURCHASING PRODUCT
% FROM
US,
EITHER HERE
IN
% WISCONSIN
OR
FROM
OUR
OPERATIONS
% IN
TAIWAN,
AND
MARKETING AND
% SELLING THAT ROOT
IN
TAIWAN.
% BUT BECAUSE OF
THE
IMPACT OF THE% TARIFFS ON ON
ON
!
IMPORTS
INTO
CHAIN
% THAT,
THEY
AREN'T
PURSUING
IT
IN
% CHINA,
ONE OF
THE
BIGGEST
% MARKETS.
% SO IT
IS A
MISSED
OPPORTUNITY
% WITH
THAT
TRADE
AGREEMENT
WITH
% FOXCONN BECAUSE OF
THE
TRADE
% WAR.
% BUT
IT'S A
SIDE EFFECT
OF
WHAT'S
% GOING
ON
NATIONALLY.% >>
DID
FOXCONN
END
UP
INVESTING
% IN HIGH-END
INSPECTION% TECHNOLOGY AT
YOUR
FARM
TO
% PRODUCE
ITS
GINSENG?
% >>
NO.
% THEY
HAVE
NOT.
% TO
DATE, THEY HAVE NOT.
%
AND
I
THINK
PART
OF IT
IS
JUST
% BECAUSE
THE
VOLUME THAT
THEY
% NEED TO
SATISFY
THE
TAIWAN
% MARKET
IS
VERY
SMALL
VERSUS
HOW
% BIG
THEY
EXPECTED
THE
CHINESE
% MARKET TO BE.
% >>
JUST
VERY
BRIEFLY,
SHOULD
THE
% TRADE
DEAL
WITH
CHINA
BE
% REALIZED,
CAN
YOUR
LOSSES
AND
% MARKETS BE
RECOVERED?
% >>
I
THINK
SOME OF
THE
MARKET
% LOSSES WILL BE
RECOVERED
% IMMEDIATELY, BUT
THE
LONG-TERM
% EFFECT
IS
PRETTY
DAMAGING.
% IT
TOOK
US
20
YEARS
TO
DEVELOP
% THE
CHINA
MARKET.
% THEY
ARE
STILL
OUR
PRIMARY
%
CONSUMER.
% THEY
WILL
STILL
COME
BACK.
% BUT WHAT
IT HAS
ALLOWED IS
THE
% PRODUCERS
OF
AMERICAN
GINSENG
IN
% CHINA
AND
CANADA
TO
REALLY
STEP
% IN
WITH
WHAT
ISN'T
NECESSARILY
% LOWER
COST,
BUT
IT'S
LOWER COST
% TO
THE
CONSUMER.
% MEANING
!
MEANING
BECAUSE OF
THE
% ADDITIONAL
40%
TARIFF
I
T
GIVES
% THEM A
MARKET
TO
OPERATE
BECAUSE
% THEY DO
NOT
HAVE
TO
PRICE
% COMPETE
WITH
US.
% >> ALL
RIGHT.
% WE
NEED
TO
LEAVE
IT
THERE.
% WILL
HSU,
THANKS
VERY
MUCH
AND
% GOOD