Is it difficult for manufacturers of Chinese medicinal materials to increase prices?

The general rise of Chinese medicinal materials puts pressure on manufacturers
.

At present, the prices of Chinese patent medicine raw materials and Chinese medicinal materials have seen a "full-scale rise", which has aroused public attention
.

01 The occurrence of bargaining

Speaking of the current phenomenon of "general rise" in the prices of Chinese medicinal materials, one of the reasons is to start from 2018-2020
.

It can be said that 2018-2020 is the three years with the largest and largest planting area of ​​Chinese medicinal materials in history
.

However, some Chinese medicinal materials industry information websites surveyed and released higher numbers of planting areas.
In 2020, the number of planting areas of Chinese medicinal materials is as high as 89.
39 million acres (including woodland medicinal materials)
.

However, no matter which survey or released figure is the standard, it contains a problem: Although there are currently as many as 12,807 varieties of Chinese medicinal materials, only about 2,200 are actually circulating in the market
.

Such a large plant volume has been increasing year after year, but it is concentrated in hundreds of varieties.
It goes without saying that some varieties will definitely fall in price due to the large amount of goods
.

E.
g:

In previous years, the price of 30 yuan per kilogram of Moutan bark fell to 10-14 yuan per kilogram in 2018-2020.
Also, because of the large amount of planting, the varieties that have suffered price drops in the past two years include Atractylodes Rhizome, White Peony Root, Angelica dahurica, Bletilla striata, Angelica, Codonopsis, Astragalus, and so on
.

The price is too low and even the planting cost is not enough.
Farmers will definitely give up planting, and farmers will give up planting varieties.
Through the continuous digestion of the market, the price will rise year by year over time.
If dealers or speculators follow suit in the later period Adding to the flames, some varieties on the market will rapidly skyrocket in a short period of time
.

It is precisely because of the 2018-2020 year that the prices of many Chinese medicinal materials have fallen to the "floor price" due to excessive planting.
During this period, it has also attracted the attention of the industry, and the phenomenon of excessive market hunting began
.

02 The new crown epidemic drives the market of medicinal materials

In the early spring of 2020, the new crown epidemic began to raging.
With the emergence of the No.
1 and No.
2 prescriptions for anti-epidemic prevention, prices of some anti-viral medicinal materials have risen to varying degrees.
For example, honeysuckle is a medicinal material.
The market will soon be unified.
It climbed from 140 yuan per kilogram to 270 yuan per kilogram
.

It should be said that during the epidemic, the relevant administrative departments of the industry and the market have done a very good job.
For those merchants who intend to drive up market prices or maliciously increase prices, they have quickly given timely warnings and suppression
.

And many business businesses also performed very rationally.
"If you don't make a fortune," became the strongest voice for mutual supervision and exhortation among the public in the Chinese herbal medicine industry at that time
.

However, due to the closure of villages and roads in many Chinese medicinal materials production areas during the epidemic period, transportation was blocked, causing the market to bottom out or out of stalls, and the prices of some varieties still rose
.

Later, although the rural road closures were gradually lifted, and the market and production area purchases and sales resumed smoothly, some heat-clearing and detoxifying medicinal materials were consumed greatly with the evolution of the epidemic, and the situation of oversupply quickly turned into short supply or bottomed inventory
.

03 Blocked imports of medicinal materials

Affected by the new coronavirus, in order to prevent and control imported risks, many countries in the world have conducted strict inspections on bilateral trade.
During this period, some countries have even adopted "interrupted flights" in passenger transportation in order to strictly prevent the import of the virus.
"The measures have brought great losses to the entire society and economy
.

As a result, the import of medicinal materials has also been greatly affected.
For medicinal materials such as Caulis spatholobi, dog spine, red peony root, atractylodes, and Wei Lingxian, which need to be imported to supplement the market, the source of border trade volume is blocked, and the domestic market is affected.
Prices have risen to varying degrees, and the prices of some medicinal materials have even doubled
.

In this regard, the most representative variety is white cardamom
.

In 2019, the market price of white cardamom was only about 55 yuan kg.
Entering 2020, due to the lack of inventory of this variety due to the lack of stocks in foreign origins, and the new crown epidemic which has blocked the source of port cargo, its price quickly soared to 300.
More than yuan per kilogram
.

04 Wildlife protection

As far as the ecological balance of nature is concerned, the promulgation of every regulation for the protection of wild animals and plants has important and long-term significance and deserves wide appreciation and support from the society
.

In order to strictly prevent the new crown epidemic and block possible sources of infection and transmission channels, on January 26, 2020, the General Administration of Market Supervision, the Ministry of Agriculture and Rural Affairs, and the National Forestry and Grass Administration issued an announcement prohibiting wildlife trading activities
.

On February 24, 2020, the National People’s Congress passed the “Decision on the Total Banning of Illegal Wild Animal Trade, Elimination of the Bad Habits of Wild Animals, and Effectively Protecting the People’s Life, Health and Safety”

On March 1, 2020, Yiyuan County, Shandong Province issued an announcement: Capture of more than 20 scorpions will be held criminally responsible!

Affected by this, the wild animal medicinal materials related to the Chinese herbal medicine industry were removed from the shelves for a while, and the phenomenon of "prices but no market" appeared:

The scorpion rapidly soared hundreds of yuan per kilogram on the basis of the original price; the price of medicine materials such as Tianlong and black snake climbed from the original 500 yuan per kilogram to nearly 1,000 yuan per kilogram, and more wild animal medicinal materials and insect species also followed.
Follow up price increases.
.
.

05 The result of anti-inflation

The housing market is cold, the stock market is sluggish, and the printing and release of money in many countries around the world has attracted the attention of the public.
Anti-inflation has become a topic of most concern to the common people.

.

The traditional Chinese medicinal materials industry is not big.
I have already said: It seems that there are as many as 12,807 medicinal materials, but there are about 2,200 varieties (including cold back medicinal materials) in circulation on the market, and the commonly used varieties do not exceed 600.
The annual consumption There are only 238 varieties above the 1,000-ton level
.

In other words, in the current market of Chinese medicinal materials with an annual output of about 5 million tons and a scale of more than 100 billion yuan, more than 70% of the consumption comes from family-grown varieties
.

The home-grown varieties are only a few hundred.
Once there is a storm, drought, flood, or flu, the prices of related varieties will change immediately
.

In particular, this new crown epidemic has lasted for a long time, coupled with the occurrence of droughts and floods in some medicinal material real estate areas.
In the case of many countries in the world printing money and water, and the people’s awareness of anti-inflation has increased, the cognitive sentiment of "saving money is not as good as inventory" Therefore, the prices of Chinese medicinal materials have risen one after another, and the tide of "general rise", "complementary rise" and even "random rise" will come
.

As for the funds entering this industry, although it is relatively loose at present, it has a steady flow, and the follow-up force is very resilient, both within the industry and outside the industry
.

In view of the above factors, it can be seen that many Chinese medicinal materials have risen sharply at present.
Although the market seems to be "excessive", it is difficult for prices to plummet in the short term
.

06 The disaster triggered an increase in the price of medicinal materials

The price increase of certain varieties of Chinese medicinal materials is often related to factors or phenomena such as drought, waterlogging, wind, frost, rain and snow, epidemics, and supply and demand
.

For many years, there have been droughts and floods in many domestic Chinese medicinal materials real estate areas, and it is not uncommon for medicinal materials to rise in prices in this place
.

Drought occurred in some areas of Yunnan this spring, and the prices of various medicinal materials in this region were collectively increased; in late summer, when the flood occurred in Zhengzhou, Henan, the prices of medicinal materials in this region also rose accordingly
.

07 Delta is Coming

At present, in the traditional Chinese medicine industry, there are some embarrassing phenomena: the pharmacopoeia standards have improved, the supervision level has become stricter, and manufacturers are working hard to improve the quality of their products.
From a trend point of view, this is a great thing
.

However, the source of the planting market and the industry professional market raw material suppliers do not seem to buy it, regardless of your variety, whether your content is enough, whether your pesticide residue exceeds the standard, everyone just buys and buys, the price increase is still coming!

It is true that the volume of many Chinese medicinal materials has indeed been digested a lot under the effect of normal consumption or the epidemic.
However, the market of most varieties is not triggered by the real contradiction between supply and demand.
It has a lot to do with the storage and release of business households
.

Especially since this spring, in some production areas or markets of Chinese medicinal materials, many cold storages used for storing and storing Chinese medicinal materials have reached the phenomenon that a large number of medicinal materials is concentrated, and it is difficult to find a warehouse and need to queue up for storage! It can be seen that the price increase of a large number of medicinal materials and many varieties is inseparable from this phenomenon of crazy panic buying and hoarding
.

Recently, when many informants or think tank experts in the field of Chinese medicinal materials believe that as time goes by and the benefits are exhausted, the topic and craze about the price increase of Chinese medicinal materials will begin to fade.
Delta mutated from the new coronavirus Here comes
.

For example, varieties such as Fangfeng and Banlangen are currently on the road to increase prices impatiently, and some medicinal materials that have already increased in price, whether they are in oversupply or in short supply, are also starting to enter during this time.
"compensatory growth" status, such as heterophylla, forsythia
.

At the same time, more Chinese medicinal materials considered by the industry to be still “low-priced”-such as Codonopsis, Angelica, Astragalus, Atractylodes, Radix Paeoniae Rubra, Angelica dahurica, Bergamot, Schisandra, and other medicinal materials have a "herd effect" as a result.
The price increase took advantage of the trend and caught many Chinese medicine manufacturers off guard!

Some people often say: the price of Chinese medicine rises, and the company makes money!

In fact, on the one hand, the prices of production raw materials are frequently increased, and on the other hand, the policy of centralized procurement of finished medicines is ready to squeeze profits.
According to the current situation: the most difficult production enterprises are encountering "two-side blockage"!