Up to 200% CCTV exposed the price increase of Chinese medicinal materials

An increase of 200%, can't get the goods even if you have money?

01 Increase of 200%

The price of Chinese medicinal materials has gone up again
.

Image source: CCTV Finance

According to the news, in fact, starting from the second half of 2020, Chinese medicinal materials have entered a rising channel.
For example, the annual price increase of Maqianzi is as high as 228%, the annual price increase of Alisma orientalis is 203%, Baiziren, Dafengzi, Perilla, Yu The annual growth rate of these varieties of gold exceeds 150%
.

Regarding this situation, Cyberlan Consulting, a person with five years of experience in the sales and procurement of first-line Chinese medicinal materials, said, "Recently, there are indeed more varieties with price increases, and 50%-60% of the varieties are increasing
.

Different varieties have different growth rates, among which wild jujube kernels are the more "fierce" one
.

According to the Bozhou market reviews of the Chinese herbal medicine world network in August, the Chinese herbal medicine market is currently shifting from the off-season to the traditional peak sales season.
The transaction has gradually improved, and the general trend of market increase and decrease is still continuing
.

Statistical Table of Changes in Some Products in Bozhou Pharmaceutical City

Image source: Chinese Herbal Medicine World Net

The price increase phenomenon is not limited to the Bozhou medicinal material market
.

Statistical Table of Changes in Some Products in Yulin Pharmaceutical City

Image source: Chinese Herbal Medicine World Net

Statistics on the rise and fall of some varieties of Anguo Pharmaceutical City

Image source: Chinese Herbal Medicine World Net

Although the peak season for Chinese medicinal materials sales has not yet arrived, price increases in the Anguo medicinal materials market are the mainstream market
.

02 A variety of factors lead to

Regarding the reasons behind the price increase of Chinese medicinal materials, Cyberlan recently released the article "Price increase of Chinese medicinal materials, it is difficult for manufacturers" (click to read) to make a detailed analysis and interpretation
.

Image source: CCTV Finance

Cyberlane consulted Wang Nanjing, Chairman of Bozhou Wangyihao Pharmaceutical Co.
, Ltd.
on related issues, "For example, the planting cycle of the white peony species is 4-6 years, and the fastest is 4 years.
Previously, the price was low for 6 or 7 consecutive years.
Slowly, the planting area is getting less and less, which eventually leads to almost no stock in the market, and prices rise
.

Regarding the influencing factor of the epidemic, Wang Nanjing believes that the impact of the epidemic on the prices of Chinese medicinal materials is mostly concentrated on a few key varieties of related prescriptions, and as everyone’s awareness of Chinese medicine increases, this time there is almost no price increase caused by the epidemic.
For example, honeysuckle, the most commonly used variety during the epidemic, has faced a price drop recently
.
"The main reason is that the planting area is relatively large, and the planting volume is expanding
.
"

It is worth noting that the price of Chinese medicinal materials is affected by many factors and requires comprehensive analysis
.

The first-line purchasers of Chinese medicinal materials mentioned above said to Cyperan, “For example, due to the epidemic, raw materials in Hebei were not available some time ago, and mountain farmers were unable to enter the mountains to pick wild dates.
The price of wild jujube kernels rose
.
Usually three or four yuan .
The money has risen to more than a dozen yuan per kilogram, which has doubled several times
.
” It can be seen that the direct impact of the epidemic on the medicinal material market may be weakening, but its indirect impact cannot be ignored
.

"However, the price increase of wild jujube seeds should be lowered as the control is gradually liberalized
.
" The professional added, "There are many factors that affect the price of Chinese medicinal materials, and they are more complicated.
This factor may only be one aspect
.
"

In addition to the above-mentioned factors, the severity of the disaster this year is also one of the factors that led to the price increase of some Chinese medicinal materials.
For example, the price of Angelica dahurica rose due to the flood in the production area, and the price of Codonopsis Angelica sinensis rose in the drought production area
.
In addition, the new version of the Pharmacopoeia requires higher quality of medicinal materials, which is accompanied by higher costs, which also increases the price of Chinese medicinal materials
.

The aforementioned professionals told Cyberlan, “The new version of the Pharmacopoeia has a certain impact on the cost of medicinal materials
.
For example, Atractylodes macrocephala, because the pesticides and fertilizers used throughout the year may remain in the fields for many years.
After the pesticide residue requirements are increased, there are ten batches of goods.
Nine batches of unqualified, only one batch may happen to be qualified, and the cost is naturally different
.
"

03 The price rises, but the sales volume of decoction pieces is good?

As the source of the traditional Chinese medicine industry chain, Chinese medicinal materials have more influence from price changes
.

From the perspective of the decoction piece factory, the cost of the decoction piece factory will increase firstly when the price of medicinal materials increases
.
However, according to CCTV Finance and Economics, although the price increase of Chinese herbal medicines has affected the profits of decoction pieces factories, it has driven the sales of Chinese medicine decoction pieces.
The market has not been weak in the off-season, and the order volume of some decoction pieces factories has increased by about 12% compared with last year.
Ten
.

Image source: CCTV Finance

The two interviewed experts believe that although the prices have risen, the profits of the pharmaceutical companies have not improved.
This is mainly because the high requirements of the new version of the pharmacopoeia have also increased the production costs of decoction pieces
.

Wang Nanjing mentioned: After the implementation of the "2020 New Pharmacopoeia", the quality of Chinese medicine decoction pieces has been improved
.
In the past, the processing cost was low when the requirements for the properties of medicinal materials, sulfur, and pesticide residues were not so strict
.
It was originally dried with coal or dried in natural weather, but now it all needs to be dried with electricity, otherwise there will be mildew and aflatoxin, which will increase a series of costs
.
In addition, the slicing requirements are more stringent, the production technology content is higher, the loss produced is also different, and the cost is higher
.

Regarding the increase in prices, while sales of decoction pieces are still very good, Wang Nanjing believes that this may be a natural result of the improvement in the quality of decoction pieces
.
Another interviewee mentioned that in the early stage of the price increase of Chinese medicinal materials, manufacturers would often "grab the goods" to avoid the fact that there is no medicine to buy when the price is too high
.

The professional told Cybelan, “This year the Chinese medicinal material industry is in a big bull market, and most varieties are rising, but the value of some products may not reach the corresponding level
.
For example, the normal price of Chuanqiong is around 15 yuan, starting from the end of last year.
Rising, the price remained high in June-July, around 34-35
.
However, the actual consumption demand for this product may not be enough to support this price level.
Recently, the price of this product has fallen again
.
"

The interviewed expert mentioned that the price of Chinese medicinal materials fluctuates, and that companies buying them at the right time will also help patients use medicines at moderate prices
.

Fluctuations in the price of Chinese medicinal materials also have a certain impact on Chinese patent medicine companies
.
In fact, many Chinese patent medicine companies also mention the impact of medicinal material prices on company profits in their annual reports
.

In order to reduce the degree of influence of this factor, and at the same time as the country's requirements for the quality of Chinese medicinal materials increase, it has become a trend for pharmaceutical companies to build their own planting bases
.

However, even pharmaceutical companies that build their own planting bases will be affected by market conditions
.
The above interviewed experts told Cyberlan that although the management cost of the planting base is fixed, the company will also consider operating and selling after the output of the base meets its own production needs
.