[MARKETING.]
The commercial grower of drug plants can not give too much attention to the problem of securing a satisfactory market for his product. Growers who live near the cities in which dealers in crude drugs are located or in sections where wild medicinal plants are collected may be able to find a local market, but in many situations the local marketing of crude drugs in quantity will not be possible. In such cases the grower should send samples of his product to dealers in crude drugs or to manufacturers of pharmaceutical preparations and request them to name a price at which they would purchase his crop. The material for the samples should not be specially selected or so prepared as to represent a quality higher than that of the whole lot, since this would give the purchaser just cause for making a reduction in price on delivery or for rejecting the whole shipment. It is well to send samples to a number of dealers, since their prices will be found to vary with the stock on hand and trade prospects. Before selling, the state of the wholesale drug market should be learned. The prices to producers are, of course, always lower than the wholesale price; nevertheless, the grower who is informed in respect to the wholesale market will be in a position to judge of the fairness of the prices offered for his crop by dealers.
Under special conditions some crude drugs can be sold at a material advance over the prevailing market price. By always supplying a well-prepared, carefully selected drug of high quality some growers have built up a trade in their particular product for which they secure extra good prices. Dealers and manufacturers also sometimes make contracts with reliable growers to take the entire crop of a particular drug, thus insuring to the grower a definite market and good prices for the product.
[COMMERCIAL PROSPECTS.]
At the close of the year 1919 there existed a general and widespread shortage in botanical crude drugs, and prices in consequence had reached unusually high levels. The demand in other lines for unskilled labor at high wages has attracted elsewhere many persons who were formerly engaged in the collection or production of botanic drugs in this country. It is therefore probable that prices for most crude drugs will remain at a high level until the prices of other commodities undergo a general reduction and the present supply of labor greatly increases.
Although the average value of crude drugs, expressed in terms of money, has more than doubled since 1913, it does not follow that their production offers a corresponding increase in profit to the producer. The prices of food and clothing, labor, and supplies of all kinds have for the most part more than doubled in the same time and the prospective producer of crude drugs will do well to consider carefully the comparative prices of the necessities of life which he must purchase before he engages in this enterprise. The unusually high prices now offered for many crude drugs are due to the underproduction, which has resulted largely from labor conditions and do not necessarily indicate any large increase in the demand for consumption. In view of the present disturbed economic conditions and the uncertainty as to the future course of prices, the general stimulation of drug growing in this country does not appear to be the best policy at this time.
However desirable it may be to increase the available supply of crude drugs or to diminish the amount of money now sent to foreign countries for these products, the most important consideration for the American farmer who would grow drug plants is the probable profit to be derived from such an enterprise. Many statements to the contrary notwithstanding, the commercial production of crude drugs does not normally present unusual opportunities for quick returns and large profits. Knowledge respecting the cultivation and handling of medicinal-plant crops is far less widespread than in the case of such generally distributed crops as fruits, vegetables, and cereals, and certain individuals have taken advantage of this lack of information to lead the public to believe that extraordinary profits may be realized from growing medicinal plants, even in a situation no more promising than the average city back yard. Such persons are interested usually only in the sale of the plants and seeds for propagation or the questionable directions for their cultivation, and the extravagant claims often set forth in their alluring advertisements are not only misleading, but frequently have little basis in fact.
The market demand for any given crude drug is naturally a large factor in determining the prospects for its commercial production under cultivation. The demand for a number of drugs is quite variable or exceedingly limited, and hence insufficient to make it advisable to raise them on a large scale. In the case of other drugs, although the demand is fairly constant and steady, it could probably be fully satisfied by the product of a very few acres of good land. It is evident that the cultivation of any considerable acreage might easily result in overproduction, with a consequent decline in market price to a point where production would not be profitable.