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    Home > Medical News > Latest Medical News > The quantity of Chinese medicinal materials is small and the price is high. What impact will it have on Chinese medicine companies?

    The quantity of Chinese medicinal materials is small and the price is high. What impact will it have on Chinese medicine companies?

    • Last Update: 2022-01-03
    • Source: Internet
    • Author: User
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    In recent years, as the market's demand for traditional Chinese medicine continues to increase, as well as the country's efforts to enhance the strategic position of traditional Chinese medicine and promote traditional Chinese medicine services, it has directly and indirectly driven the continuous development of the Chinese herbal medicine market
    .
    It is worth noting that at the same time the prices of Chinese medicinal materials have also begun to rise
    .
    It is understood that the prices of Chinese medicinal materials have shown a general upward trend this year, and many of them have even exceeded 100%
    .
    For example, since October, with the exception of the price index of minerals, resins, and vegetable skin Chinese medicinal materials, the price indices of other Chinese medicinal materials have increased to varying degrees
    .
    Among them, the price index of Chinese medicinal materials for whole herbs closed at 141.
    05 points at the end of October, up 6.
    48% from the price index at the beginning of the month
    .
    Lobelia, Eclipta prostrata and Perrin are affected by the low output of new products this year.
    The supply of goods has been selling smoothly recently, and the market has been continuously adjusted upwards
    .
    Industry analysts believe that the price increase of Chinese medicinal materials is caused by the superposition of multiple factors
    .
    The first is affected by the planting area of ​​Chinese medicinal materials
    .
    Due to the high risk of planting medicinal materials, high technical requirements, and low enthusiasm of growers, the area of ​​Chinese medicinal materials planted across the country has generally declined and shrunk; secondly, the market inventory of Chinese medicinal materials has decreased, superimposed on external factors such as demand, climate, disasters, and epidemics.
    Resulting in price fluctuations
    .
    On the whole, the industry predicts that the price of Chinese medicinal materials will rise or grow
    .
    So, under the background that the price of Chinese medicinal materials has risen as normal, will the price increase be transmitted to the terminal market? How should Chinese medicine companies respond? In this regard, the industry said that price transmission requires a certain process, and the pharmaceutical terminal market also has a certain lag.
    Therefore, it seems that the price increase of Chinese medicinal materials has little effect
    .
    However, judging from the current actions of some companies, many companies have already begun to take a series of preventive measures
    .
    For example, TusHoldings has strengthened market price monitoring and analysis on the one hand, and actively carried out strategic reserve procurement of key raw and auxiliary materials to reduce procurement costs; on the other hand, it is also building a bulk raw material procurement platform to realize the concentration of some raw and auxiliary materials and packaging materials.
    Procurement; by improving the accuracy of production forecasts and optimizing resources to reduce the overall cost of the industry chain
    .
    In addition, some companies are strengthening the information sharing and coordination of the front, middle and back offices, through centralized bargaining, multi-variety centralized procurement, and advance storage, etc.
    , to smooth the fluctuation of raw material prices, control costs, and ensure normal production order
    .
    In fact, compared with pharmaceutical companies, the industry believes that the increase in the price of Chinese medicinal materials will have a greater impact on planting companies
    .
    Because the increase in the price of medicinal materials means that the income of growers is "increasing", which will increase planting intentions
    .
    In this context, the industry recommends that relevant companies avoid blindly following the trend to expand the planting area of ​​Chinese medicinal materials, scientifically guide the healthy development of the Chinese medicinal materials industry, and gradually form a localized, standardized, standardized, and intelligent integrated management system
    .
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