ABSTRACT
Herb supplies can become unstable because of climate change and the economic development of herb exporters. In this paper, in order to increase the self-sufficiency of herbal resources we examined the possibil ity of changing to herb crop production from tobacco, for which demand is declining. Firstly, we considered demand, quality and the price of raw herb materials to make recommendations for corrections, and selected <i>Angelica </i>(A. ) <i>acutiloba </i>and <i>Bupleurum </i>(B. ) <i>falcatum </i>Linne. Next, we compared the profitability of tobacco and the herbs. Profit margins for <i>A. acutiloba </i>were less than for tobacco. It was thought that the profitability of <i>A. acutiloba </i>could become equivalent to tobacco if an adjustment subsidy were provided. The self-sufficiency rate for <i>A. acutiloba </i>would be one hundred percent with 35 million yen in every year. Although the profitabil ity of <i>B. falcatum </i>has exceeded tobacco, its selling price was about 3 times that of imports, while the price of medical <i>B. falcatum </i>was lower than its selling price. It was thought that the price competitiveness problem of <i>B. falcatum </i>can be covered if a production subsidy is provided, and to reach a 50 percent B. falcatum self sufficiency rate with 660 million yen per year.