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Optimal Harvesting Model for Mountain Ginseng (Panax ginseng) Production in South Korea WFGRS 2015, April 27- 28, 2015 Hee Han 1 , Woodam Chung 1 , Joosang Chung 2 1 Dept. of Forest Engineering, Resources, and Management, Oregon State University 2 Dept. of Forest Sciences, Seoul National University

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Page 1: Optimal Harvesting Model for Mountain Ginseng Panax ...gradsymp.forestry.oregonstate.edu/sites/gradsymp/files/Han2015.pdfOptimal Harvesting Model for Mountain Ginseng (Panax ginseng)

Optimal Harvesting Model for Mountain Ginseng (Panax ginseng) Production

in South Korea

WFGRS 2015, April 27- 28, 2015

Hee Han1 , Woodam Chung1, Joosang Chung2

1Dept. of Forest Engineering, Resources, and Management, Oregon State University 2Dept. of Forest Sciences, Seoul National University

Page 2: Optimal Harvesting Model for Mountain Ginseng Panax ...gradsymp.forestry.oregonstate.edu/sites/gradsymp/files/Han2015.pdfOptimal Harvesting Model for Mountain Ginseng (Panax ginseng)

<www.google.com/maps/>

WFGRS 2015, April 27- 28, 2015

2/22

Land area: 100,210 km2 (40% of Oregon)

Population: 51 million (13 times more than population in Oregon)

Forest area: 64,134 km2 (64% of the total land area)

South Korea

Page 3: Optimal Harvesting Model for Mountain Ginseng Panax ...gradsymp.forestry.oregonstate.edu/sites/gradsymp/files/Han2015.pdfOptimal Harvesting Model for Mountain Ginseng (Panax ginseng)

Cultivated Mountain Ginseng in South Korea

The most profitable forest product Traditional medical herb species Rapidly growing domestic market

WFGRS 2015, April 27- 28, 2015

3/22

Page 4: Optimal Harvesting Model for Mountain Ginseng Panax ...gradsymp.forestry.oregonstate.edu/sites/gradsymp/files/Han2015.pdfOptimal Harvesting Model for Mountain Ginseng (Panax ginseng)

Mountain Ginseng Production in South Korea

WFGRS 2015, April 27- 28, 2015

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

생산액(백만원) Production

Year

1,000USD

0

1,000

2,000

3,000

4,000

5,000

6,000

2006 2009

재배면적 (ha)

재배자 (명)

2012

Area (ha)

No. of Cultivator

4/22

Page 5: Optimal Harvesting Model for Mountain Ginseng Panax ...gradsymp.forestry.oregonstate.edu/sites/gradsymp/files/Han2015.pdfOptimal Harvesting Model for Mountain Ginseng (Panax ginseng)

Issues in Mountain Ginseng Management in South Korea

WFGRS 2015, April 27- 28, 2015

High profitability!!

i) Extremely sensitive to the micro-site-specific environment

ii)The extremely lower survival rate as getting older after 6

But..

5/22

When & Where & How many? 적 Mainly depends on cultivator’s subjective judgments

Needs a decision-making model

Page 6: Optimal Harvesting Model for Mountain Ginseng Panax ...gradsymp.forestry.oregonstate.edu/sites/gradsymp/files/Han2015.pdfOptimal Harvesting Model for Mountain Ginseng (Panax ginseng)

Objectives

WFGRS 2015, April 27- 28, 2015

Development of an optimal harvesting model for mountain ginseng production

6/22

1. Evaluation of site suitability 2. Spatial and temporal management planning for mountain

ginseng production

Page 7: Optimal Harvesting Model for Mountain Ginseng Panax ...gradsymp.forestry.oregonstate.edu/sites/gradsymp/files/Han2015.pdfOptimal Harvesting Model for Mountain Ginseng (Panax ginseng)

Study Site – a forest ginseng farm

Area: 20.5 ha

Study site

Seoul

250 km

WFGRS 2015, April 27- 28, 2015

7/22

Page 8: Optimal Harvesting Model for Mountain Ginseng Panax ...gradsymp.forestry.oregonstate.edu/sites/gradsymp/files/Han2015.pdfOptimal Harvesting Model for Mountain Ginseng (Panax ginseng)

Site Analysis

WFGRS 2015, April 27- 28, 2015

<Grid patches of a farm>

0.1ha

<Farm map>

8/22

Page 9: Optimal Harvesting Model for Mountain Ginseng Panax ...gradsymp.forestry.oregonstate.edu/sites/gradsymp/files/Han2015.pdfOptimal Harvesting Model for Mountain Ginseng (Panax ginseng)

WFGRS 2015, April 27- 28, 2015

Geospatial Modeling for Site Suitability Assessment

9/22

Geospatial modeling

Assess the site suitability for

mountain ginseng production

Digital terrain map

Site Suitability Assessment

Field Survey

Data Analysis Data collection

Spatial Analysis Terrain related indices

-10m grid raster map at 1:5,000 scale - Aspect: 0 – 2 (using linear transformation )

A’ = cos (45 - A) + 1

- slope, aspect, elevation

- forest vegetation data - micro temperature

- Analyzing the environ- mental conditions of cultivation sites

Soil Survey & Analysis - moisture, pH, texture

- organic matters - nitrogen, phosphorous

ArcGIS 10.1

Page 10: Optimal Harvesting Model for Mountain Ginseng Panax ...gradsymp.forestry.oregonstate.edu/sites/gradsymp/files/Han2015.pdfOptimal Harvesting Model for Mountain Ginseng (Panax ginseng)

WFGRS 2015, April 27- 28, 2015

10/22

GWR Model

Coefficients Min Median Max (Intercept) 0.6515 0.6683 0.6700

Ca -0.0007 -0.0006 -0.0005 Sand 0.0627 0.0631 0.0745

Soil moisture 0.0464 0.0471 0.0478 Solar 0.9422 0.9465 0.9509

Aspect 0.3436 0.3441 0.3445 R2 /Adjusted R2 0.56/ 0.49

AIC 99.1587

[Coefficients and Model summary]

GWR: Geographically Weighted Regression (Fotheringham et al. 2002)

Use selected variables by stepwise selection : Ca, Sand, Soil moisture, Solar, Aspect

Bandwidth: Adaptive scheme

(Han et al. 2012)

Page 11: Optimal Harvesting Model for Mountain Ginseng Panax ...gradsymp.forestry.oregonstate.edu/sites/gradsymp/files/Han2015.pdfOptimal Harvesting Model for Mountain Ginseng (Panax ginseng)

Site Suitability Analysis Using GWR

WFGRS 2015, April 27- 28, 2015

<Farm map> <Suitability map> - Han et al. 2012

11/22

Page 12: Optimal Harvesting Model for Mountain Ginseng Panax ...gradsymp.forestry.oregonstate.edu/sites/gradsymp/files/Han2015.pdfOptimal Harvesting Model for Mountain Ginseng (Panax ginseng)

부적합지

1적 적

6적 적

8적 적

적 적 적

8-year old

Suitable site

Planning Considerations

- Site specific productivity

- Production year (6 to 10 yrs)

- No continuous cropping (5 year resting after harvest)

Existing ginseng site

WFG R S 2015, April 27- 28, 2015

Sub-suitable site

6-year old

12/22

Page 13: Optimal Harvesting Model for Mountain Ginseng Panax ...gradsymp.forestry.oregonstate.edu/sites/gradsymp/files/Han2015.pdfOptimal Harvesting Model for Mountain Ginseng (Panax ginseng)

Treatment Options

WFGRS 2015, April 27- 28, 2015

Option No. Year

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 1 X – – – – – – X – – – 2 X – – – – – – – X – – 3 X – – – – – – – – X 4 X – – – – – – – – – X 5 X – – – – – – – – – – X 6 – X – – – – – – X – – 7 – X – – – – – – – X – 8 – X – – – – – – – – X 9 – X – – – – – – – – – X

10 – X – – – – – – – – – – X 11 – – X – – – – – – X – 12 – – X – – – – – – – X 13 – – X – – – – – – – – X 14 – – X – – – – – – – – – X 15 – – X – – – – – – – – – – X

41 – – – – – – X – – – – – – X 42 – – – – – – – X – – – – – – – 43 – – – – – – – – X – – – – – – 44 – – – – – – – – – X – – – – – 45 – – – – – – – – – – X – – – – 46 – – – – – – X – – – – – – X 47 – – – – – – – X – – – – – – 48 – – – – – – – – X – – – – – 49 – – – – – – – – – X – – – – 50 – – – – – – – – – – X – – –

(‘x’ implies harvest)

Resting periods Resting periods

13/22

Page 14: Optimal Harvesting Model for Mountain Ginseng Panax ...gradsymp.forestry.oregonstate.edu/sites/gradsymp/files/Han2015.pdfOptimal Harvesting Model for Mountain Ginseng (Panax ginseng)

Data

WFGRS 2015, April 27- 28, 2015

Product Price (US$/plant)

Yield (plants/ha) Suitable site Sub-suitable site

6 year-old 30 15,000 9,000 7 year-old 40 12,000 7,200 8 year-old 50 10,000 6,000 9 year-old 70 7,500 4,500 10 year-old 80 4,000 2,400

Price/ Yields

Production cost (Han et al. 2013)

Product Cost at age (US$/ha) 1 2 3 4 5 6 7 8 9 10

6 year-old 49,000 6,000 30,500 6,000 30,500 25,000 7 year-old 49,000 6,000 30,500 6,000 30,500 6,000 23,500 8 year-old 49,000 6,000 30,500 6,000 30,500 6,000 5,000 21,000 9 year-old 49,000 6,000 30,500 6,000 30,500 6,000 5,000 5,000 18,000

10 year-old 49,000 6,000 30,500 6,000 30,500 6,000 5,000 5,000 4,000 16,000 14/22

Page 15: Optimal Harvesting Model for Mountain Ginseng Panax ...gradsymp.forestry.oregonstate.edu/sites/gradsymp/files/Han2015.pdfOptimal Harvesting Model for Mountain Ginseng (Panax ginseng)

𝑀𝑀𝑀 𝑍 = ��(𝑟𝑖𝑖 − 𝑐𝑖𝑖) ∙ 𝑀𝑖 ∙ 𝑋𝑖𝑖

𝑛𝑛𝑛

𝑖=1

𝑛𝑛𝑜

𝑖=1

𝑠𝑠𝑠𝑠𝑠𝑐𝑠 𝑠𝑡

��𝑋𝑖𝑖

𝑛𝑛𝑛

𝑖=1

𝑛𝑛𝑜

𝑖=𝑖

≤ 1

��𝑟𝑖𝑖 ∙ 𝑀𝑖∙ 𝑋𝑖𝑖 − 𝑅𝑛

𝑛𝑛𝑛

𝑖=1

𝑛𝑛𝑜

𝑖=1

= 0

��𝑐𝑖𝑖 ∙ 𝑀𝑖 ∙ 𝑋𝑖𝑖 − 𝐶𝑛

𝑛𝑛𝑛

𝑖=1

𝑛𝑛𝑜

𝑖=1

= 0

� � 𝑀𝑖 ∙𝑖∈𝐻𝑛

𝑋𝑖𝑖 − 𝐻𝐻𝑛

𝑛𝑛𝑜

𝑖=1

= 0

𝑤𝑤𝑠𝑟𝑠,

𝑋𝑖𝑖

𝑅𝑛 : The present value of revenue at year t

𝐶𝑛 : The present value of cost at year t

𝐻𝐻𝑛 : Harvest area at year t

𝑟𝑖𝑖 : The present value of revenue from the j-th treatment at the i-th grid

𝑐𝑖𝑖 : The present value of cost from the j-th treatment at the i-th grid

𝑀𝑖 : Area of the i-th gird

Formulations

WFGRS 2015, April 27- 28, 2015

1 if the j-th treatment is implemented for the i-th grid 0 otherwise

15/22

Page 16: Optimal Harvesting Model for Mountain Ginseng Panax ...gradsymp.forestry.oregonstate.edu/sites/gradsymp/files/Han2015.pdfOptimal Harvesting Model for Mountain Ginseng (Panax ginseng)

� � 𝑀𝑖𝑖∈𝑆𝑛

∙ 𝑋𝑖𝑖 − 𝑆𝐻𝑛

𝑛𝑛𝑜

𝑖=1

= 0

𝐸𝐻 ≥ 𝛾 ∙ 𝑇𝐻

𝑤𝑤𝑠𝑟𝑠 (𝑐𝑡𝑐𝑠′𝑑),

𝐶𝑛 ≤ 𝐵𝐵𝑛

𝑁𝑁𝑁𝑛 − 𝑅𝑛 + 𝐶𝑛 = 0

𝑁𝑁𝑁𝑛 − (1 − 𝛼) ∙ 𝑁𝑁𝑁𝑛−1 ≥ 0

𝑁𝑁𝑁𝑛 − (1 + 𝛽) ∙ 𝑁𝑁𝑁𝑛−1 ≤ 0

𝐸𝐻 : Cultivating area at the end of the planning

𝑁𝑁𝑁𝑛 : The net present value at time t

𝐵𝐵𝑛 : Budget at time t

𝑇𝐻 : Total area of a ginseng farm

𝛼 : Allowable decreasing rate

𝛽 : Allowable increasing rate

𝛾 : Lower bound for cultivating area at the end of the planning

𝑐𝑡𝑠 : Number of treatments

𝑐𝑡𝑔 : Number of grids

𝑆𝐻𝑛 : Seedling area at year t

� � 𝑀𝑖 ∙𝑖∈𝐸𝑛

𝑋𝑖𝑖 − 𝐸𝐻𝑛𝑛𝑜

𝑖=1

= 0

0 ≤ 𝑋𝑖𝑖 ≤ 1

Subject to (𝑐𝑡𝑐𝑠′𝑑),

WFG R S 2015, April 27- 28, 2015

16/22

Page 17: Optimal Harvesting Model for Mountain Ginseng Panax ...gradsymp.forestry.oregonstate.edu/sites/gradsymp/files/Han2015.pdfOptimal Harvesting Model for Mountain Ginseng (Panax ginseng)

Solver: CPLEX

WFGRS 2015, April 27- 28, 2015

Management Scenarios

Scenario # 1 2 3 4

Objective Max. NPV

Constraints

Non-declining Yield

Budget

Ending area

17/22

Page 18: Optimal Harvesting Model for Mountain Ginseng Panax ...gradsymp.forestry.oregonstate.edu/sites/gradsymp/files/Han2015.pdfOptimal Harvesting Model for Mountain Ginseng (Panax ginseng)

WFGRS 2015, April 27- 28, 2015

Net Profit

Scenario # 1 2 3 4

Total profit (US$) 3,330,420 3,349,612 3,928,264 4,211,405

Annual profit (US$/yr) 176,521 186,463 207,703 210,570 18/22

0

50,000

100,000

150,000

200,000

250,000

300,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

S1 S2 S3 S4

US$

Years

Page 19: Optimal Harvesting Model for Mountain Ginseng Panax ...gradsymp.forestry.oregonstate.edu/sites/gradsymp/files/Han2015.pdfOptimal Harvesting Model for Mountain Ginseng (Panax ginseng)

WFGRS 2015, April 27- 28, 2015

Harvesting & Seedling Area

Years

Harvesting Area (ha)

0.50

1.00

1.50

2.00

2.50

3.00

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Seedling Area (ha)

19/22

0.400.500.600.700.800.901.001.101.20

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

S1 S2 S3 S4

Page 20: Optimal Harvesting Model for Mountain Ginseng Panax ...gradsymp.forestry.oregonstate.edu/sites/gradsymp/files/Han2015.pdfOptimal Harvesting Model for Mountain Ginseng (Panax ginseng)

① Profit fluctuation ±10% ②Budget ≤ $100,000

Scenario 1

WFG R S 2015, April 27- 28, 2015

Changes in Age Distribution

0.0

5.0

10.0

15.0

20.0

25.0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

1 yr 2 yr 3 yr 4 yr 5 yr6 yr 7 yr 8 yr 9 yr Non

Years

Area (ha)

20/22

Page 21: Optimal Harvesting Model for Mountain Ginseng Panax ...gradsymp.forestry.oregonstate.edu/sites/gradsymp/files/Han2015.pdfOptimal Harvesting Model for Mountain Ginseng (Panax ginseng)

Optimal Field Design (Present)

WFGRS 2015, April 27- 28, 2015

21/22

Page 22: Optimal Harvesting Model for Mountain Ginseng Panax ...gradsymp.forestry.oregonstate.edu/sites/gradsymp/files/Han2015.pdfOptimal Harvesting Model for Mountain Ginseng (Panax ginseng)

Optimal Field Design (T = 5 year)

WFGRS 2015, April 27- 28, 2015

21/22

Presenter
Presentation Notes
Page 23: Optimal Harvesting Model for Mountain Ginseng Panax ...gradsymp.forestry.oregonstate.edu/sites/gradsymp/files/Han2015.pdfOptimal Harvesting Model for Mountain Ginseng (Panax ginseng)

Optimal Field Design (T = 10 year)

WFGRS 2015, April 27- 28, 2015

21/22

Page 24: Optimal Harvesting Model for Mountain Ginseng Panax ...gradsymp.forestry.oregonstate.edu/sites/gradsymp/files/Han2015.pdfOptimal Harvesting Model for Mountain Ginseng (Panax ginseng)

Optimal Field Design (T = 20 year)

WFGRS 2015, April 27- 28, 2015

21/22

Page 25: Optimal Harvesting Model for Mountain Ginseng Panax ...gradsymp.forestry.oregonstate.edu/sites/gradsymp/files/Han2015.pdfOptimal Harvesting Model for Mountain Ginseng (Panax ginseng)

Optimal spatial-and-temporal field design for

Optimal solutions for maximizing the profit considering - site suitability for production

- non-continuous cropping

- selecting specific locations of harvesting & seedling sites - managing age-distribution during production

Decision-making model for supporting the intensive mountain ginseng production

Summary WFGRS 2015, April 27- 28, 2015

22/22

- sustained yield of mountain ginseng

Page 26: Optimal Harvesting Model for Mountain Ginseng Panax ...gradsymp.forestry.oregonstate.edu/sites/gradsymp/files/Han2015.pdfOptimal Harvesting Model for Mountain Ginseng (Panax ginseng)

WFGRS 2015, April 27- 28, 2015

Thank You [email protected]