85 



management program, the propagation of medicinal plants can provide similar economic 

 incentives for preserving what is left of our own old-growth timber, wet-lands, forests and 

 prairies. Consequently, such a new and diverse industry could potentially create tens-of- 

 thousands of additional jobs just in the propagation, harvesting, processing and distributing of 

 such products. Millions of additional jobs could be provided through the development of new 

 markets. Until the U.S. takes an active role in developing such markets, we will be at a distinct 

 disadvantage with regards to the trade and commerce of bulk medicinal plant supplies and 

 finished medicinal plant products which detracts from our society's physical and economic 

 well-being. 



Economic Impact of Medicinal Plants 



In 1980, the active constituents of medicinal plants used in the manufacture of 

 pharmaceutical drugs accounted for more than $8 billion in the U.S. Similarly, enormous 

 economic value is to be found in the commerce of traditional herbal medicines complementary 

 to the conventional drug market. In a 1993 survey, it was estimated that the retail sales for 

 herbal products in the U.S. exceeded $1.5 billion, and the majority of herbal companies have 

 been experiencing an annual growth of 20%-35% for the past four years. This is extremely 

 significant as this growth has occurred during one of the worst economic recessions in decades, 

 and during a time when federal regulations have been antagonistic toward the commerce of 

 herbal products. As public demand continues to increase, and legislative barriers against such 

 medicines are modified, the potential for growth will increase exponentially. 



The international market has similar potential. For example, in Germany, 

 approximately 1/3 of the medicines available on the market are plant-based, and approximately 

 609c of all physicians dispense herbal medicines, contributing to a medicinal plants market in 

 excess of $1 billion per year. Until 1991, the German traditional herb market had been 

 imponing as much as 45,000 pounds of the herb Echinacea angustifolia/pallida from America 

 each year. However, due to inconsistent availability, the Germans have begun large-scale 

 cultivation of the plant themselves. Thus America loses out on a cash crop of an herb that is 

 only indigenous to .North America. 



In Longhua Hospital in China, four tons of herbs are dispensed in the pharmacies on a 

 daily basis . This is only one of four such hospitals in Beijing. In Japan, herbal medicines are 

 used by the majority of the population and there is a strong consumer demand for American 

 products, including herbal products due to a belief that there is an inherent superiority in 

 "Western" prepared products. In short, America is missing out on a multi-million, multi-billion 

 dollar domestic and international market by not encouraging and subsidizing large-scale 

 production of medicinal plant crops in the same way that other agricultural crops are. Organic 



