Which Chinese medicinal herbs are rising in price in 2017?
After several years in the doldrums, the Chinese medicinal herbs market has recently shown a clear recovery. Which Chinese medicinal herbs are rising in price in 2017? According to statistical analysis by Chinese medicinal herb experts on several commonly used varieties, 77 varieties rose in price year-on-year, while 26 declined. Through a summary and analysis of 2015 and 2016, the Chinese medicinal herbs that rose in price in 2017 include:
Taizishen (Pseudostellaria heterophylla) performed impressively in 2016, with a relatively large price increase. In May the price was still fluctuating around 65-66 yuan (Guizhou production, medium-grade unified goods), and entering June the price accelerated upward, breaking through the 100-yuan high in a short time and rising to around 120 yuan. Later, as holders took profits and sold off, and with the approach of New Year's Day and the Spring Festival, the movement of goods slowed somewhat, and the price continued to pull back, dropping to around 80 yuan by year-end and remaining there until now.
The reason for the Taizishen price increase was also disaster-related reduced production, with human factors playing no small role in driving it. From 2014 to 2016, Taizishen output was not large for three consecutive years, and the inventory accumulated at high prices was well digested, which also laid the foundation for the price increase.
Although Taizishen is temporarily not moving very quickly, as market demand pulls it along, the future market trend will still see small fluctuations.
Baizhu (Atractylodes macrocephala); because the market had not improved in previous years, especially after new Baizhu came onto the market in 2015, the market slumped further, with the lowest dropping to around 12 yuan (Bozhou-produced two-year Baizhu unified goods), and it hovered at this price level for as long as half a year. Before the 2016 harvest, many merchants actively bought in, seeing the low price, thereby driving the price steadily upward. By August the unified goods price had risen to around 20 yuan, and after the harvest the price continued to rise to 22 yuan, 23 yuan, and 25 yuan, reaching a high of around 28 yuan before the New Year.
This round of price increase could be described as ten years of grinding to make one sword. Because the market had risen and fallen rapidly in previous years, many participating operators as well as large contracted-land growers and large seedling-raising and seed-retaining households mostly lost money, and everyone was like a bird startled by the mere twang of a bow, turning pale at the mention of 'Baizhu'. When Baizhu was planted in the winter of 2015, Baizhu sprouts dropped to as low as 1.2 yuan per kilogram, and many large seedling-raising households lost all their capital, some even losing everything they had; when Baizhu seedlings were raised in the spring of 2016, Baizhu seeds dropped to as low as 10 yuan per kilogram, fully demonstrating the reduction in Baizhu seedling raising.
Because of the reduction in seedling raising, when Baizhu was planted in the winter of 2016, the price of Baizhu sprouts climbed continuously, rising to as high as 10 yuan/kg. The rise in sprout prices increased the planting cost of Baizhu. Affected by the limited supply of Baizhu sprouts, this year's Baizhu planted area decreased again compared with last year, and it is estimated that the national reduction in planting area compared with 2016 will be no less than 30%.
The disastrous plunge in Baizhu seeds caused heavy losses for many large specialized seed producers and farmers, who swore never to engage in the seed production business again. Therefore, Baizhu seeds are scarce in 2017, and currently the price of high-quality pure new Baizhu seeds has risen to around 300 yuan.
Although last year's profits from Baizhu seedling raising were relatively considerable, because high-quality pure new seeds are relatively scarce, it is estimated that this year's Baizhu seedling-raising area will still not be large, and may even be smaller than last year.
A comprehensive analysis shows that, affected by the difficulty of increasing both the planting area and the seedling-raising area, the new supply of Baizhu in 2017 will still not be large, and when Baizhu is planted in autumn, the area will also be hard to expand. Therefore, it is judged that 2017 and 2018 will still be glorious years for Baizhu, and the price is expected to continue climbing steadily.
Banlangen (Isatis indigotica root), affected by some varieties whose prices rose, attracted some merchants' attention and active purchasing, driving Banlangen upward. The price of Northeast-produced unified goods rose from around 8 yuan in the first half of the year to 11-12 yuan before the new harvest. After the Spring Festival, avian influenza outbreaks appeared in many places, and market discussion increased, but merchants mostly treated it rationally, and the market has not yet shown obvious fluctuations. The movement of goods has remained smooth. Currently the newly marketed goods are not dry enough, with unified goods at 11-11.5 yuan and goods that can be processed into slices at around 12 yuan.
Because Banlangen's market was unsatisfactory in previous years, the planting areas in Northeast China, Gansu and the interior all shrank to varying degrees. This year's new supply will be noticeably less than in previous years, but affected by the price increase, it is estimated that this year's planting area will increase noticeably, and the output at year-end harvest will also increase substantially. Therefore, it is judged that Banlangen's market will remain favorable in the short term.
Huangqin (Scutellaria baicalensis); has long been one of the hot varieties followed by many merchants. In previous years, because the market looked good and farmers profited, the planting area expanded, and the price therefore fell step by step, with Shanxi-produced whole roots dropping to around 8 yuan and Gansu-produced whole roots to around 7 yuan. Farmers' enthusiasm for planting was once again hit, and the area therefore shrank noticeably.
In 2016, some merchants were bullish and continuously bought goods, and combined with the small new harvest, after the new harvest in the second half of the year the price kept rising, with Shanxi goods climbing to around 18 yuan and Gansu goods to around 13 yuan. After the Spring Festival, although the movement of goods was not very fast, because the available supply was not large and the planted area was shrinking, the market still remained firm.
Huangqin has a growth cycle of 2-3 years. Even if farmers start planting now, they must still wait 2 years before digging. Moreover, the area of Huangqin that can be dug in 2017 is even smaller than in 2016, and this year's new supply will be noticeably less than last year. Old inventory is also gradually thinning as the market continuously consumes it. It is estimated that the Huangqin market may continue to climb.
Sanqi (Panax notoginseng); in 2015 it dropped to its lowest point in recent years, with relatively few merchants paying attention. In the second half of 2016, movement clearly accelerated, and the market once again began soaring, rising to around 280 yuan (120-head) before New Year's Day. Later, due to the arrival of New Year's Day and the Spring Festival, movement slowed somewhat and the price fell slightly, with 120-head Sanqi at around 270 yuan.
After the Spring Festival, the number of merchants paying attention to Sanqi gradually increased again, movement was clearly better than in the previous period, and the price also quickly recovered. Currently in the Bozhou market, cut-end goods are around 380 yuan; 40-head goods around 400 yuan; 120-head goods around 280 yuan; and countless-head goods around 230 yuan, with operators full of confidence.
It is obvious to all that Sanqi demand increases year after year, but it is also an indisputable fact that the supply produced in the production areas can fully meet market demand. The main factor in the market rise is that many merchants are bullish and actively taking goods. How the future market plays out is directly related to the psychology of large holders.
Liao Wuwei (Schisandra chinensis); in 2016 it created a market miracle of recent years. In the first half of the year it still hovered around 60-70 yuan, but after the new harvest, because many merchants bought in, the market soared continuously, rising to around 140 yuan in October, more than doubling compared with the first half of the year, and merchants who bought early were beaming.
Because some old inventory still stood in the way, and with the approach of New Year's Day and the Spring Festival, during the year-end closing period movement of Schisandra clearly slowed, and the price pulled back step by step to around 125 yuan. After the Spring Festival, this product showed no obvious change, and the market was basically the same as before the Spring Festival.
Because Liao Wuwei's market was relatively low in previous years, farmers' planting was unprofitable and the production chain was damaged, and recovery requires 3-4 years. Therefore, high prices will still be maintained for some time, but because the favorable market has already been released in advance, it is estimated that it will be difficult for another soaring market to appear in the short term. Although there is still a certain amount of old inventory, it is mostly in the hands of a few people, so a large price pullback is also unlikely.
Besides these, how are other Chinese medicinal herb markets doing? Can they be planted? Let's take a look below.
1. Varieties with favorable price trends, rising prices, high per-mu returns, and worth developing through planting include: Jiegeng (Platycodon grandiflorus), Fangfeng (Saposhnikovia divaricata), Huangqi (Astragalus membranaceus), Baizhu (Atractylodes macrocephala), Huangqin (Scutellaria baicalensis), Beishashen (Glehnia littoralis), Dangshen (Codonopsis pilosula), Niuxi (Achyranthes bidentata), Hanbanxia (Pinellia ternata), Tiannanxing (Arisaema erubescens), Shegan (Belamcanda chinensis), Chaihu (Bupleurum chinense), Baizhi (Angelica dahurica), Banlangen (Isatis indigotica root), Xuchangqing (Cynanchum paniculatum), Kushen (Sophora flavescens), Honghua (Carthamus tinctorius), Danggui (Angelica sinensis), Yuanzhi (Polygala tenuifolia), Chuanxiong (Ligusticum chuanxiong), black goji, Jingjie (Schizonepeta tenuifolia), Jixingzi (Impatiens balsamina seed), Gualou (Trichosanthes kirilowii), Tianhuafen (Trichosanthes kirilowii root), Kudiding (Corydalis bungeana), Zhimu (Anemarrhena asphodeloides), Banzhilian (Scutellaria barbata), Bei Wuweizi (Schisandra chinensis), Sanqi (Panax notoginseng), Taizishen (Pseudostellaria heterophylla), Juhua (chrysanthemum), Beimu species, etc.
2. Varieties with stable price trends that can be developed in appropriate amounts: Shanyao (Chinese yam), Jinyinhua (Lonicera japonica), goji, Zisu (Perilla frutescens), Pugongying (dandelion), Shedangzi (Cnidium monnieri), Jiguanhua (Celosia cristata), Xuanshen (Scrophularia ningpoensis), Danshen (Salvia miltiorrhiza), Fuzi (Aconitum carmichaelii), Dahuang (Rheum officinale), Chuanshanlong (Dioscorea nipponica), Muxiang (Aucklandia lappa), Wangbulin (Vaccaria hispanica), Zaojiao (Gleditsia sinensis), Huoxiang (Agastache rugosa), Shayuanzi (Astragalus complanatus), Nanshashen (Adenophora stricta), Yuzhu (Polygonatum odoratum), Ziyuan (Aster tataricus), Gancao (licorice), Baijiezi (Sinapis alba seed), Qianhu (Peucedanum praeruptorum), Meiguihua (rose), Jinlongdeng (Physalis alkekengi), Cheqianzi (Plantago asiatica seed), Lianqiao (Forsythia suspensa), Zicao (Arnebia euchroma), Baihuacaizi (Cleome gynandra seed), Maidong (Ophiopogon japonicus), Tianma (Gastrodia elata), Dalizi (Arctium lappa), Baishao (Paeonia lactiflora), Fuling (Poria cocos), Lubazi (Trigonella foenum-graecum), Xiaheqiu (Prunella vulgaris), Yimi (coix seed), Duzhong (Eucommia ulmoides), Shanyurou (Cornus officinalis), Donghua (Tussilago farfara), Bohe (mint), Danpi (Moutan cortex), etc.
3. Wild medicinal herb supplies are tight and prices continue to rise, such as Guanfangfeng and Cangzhu in the north, and Qianghuo, Chuanbei, Baiji, Chonglou, and Maozhaocao in the south. For more than ten years these have consistently been high-priced, rising in price, low in output, and slow to develop. Newcomers should develop varieties cautiously, such as Shihu (Dendrobium), Xihonghua (saffron), artificial cordyceps, Tianma (Gastrodia elata), Sanqi (Panax notoginseng), Huanglian (Coptis chinensis), ginseng, American ginseng, Chuanbei, etc., which have climate restrictions and too much advertising.
4. Wild resources of animal-derived medicinal materials are becoming scarcer and scarcer, and those whose prices have risen steadily for many years include: Jiuxiangchong (Aspongopus chinensis), shuizhi (leech), Tianlong (gecko), scorpion, Dilong (earthworm), hedgehog skin, Wugong (centipede), Fengfang (wasp nest), Dajiangjun (dung beetle), Sangpiaoxiao (mantis egg case), Chantui (cicada slough), lizard, Shetui (snake slough), Guiban (turtle shell), Niuhuang (cow bezoar), etc. Successful breeding is rare, and wild collection is common.
It is worth reminding that Chinese medicinal herb planting must also select good varieties according to local conditions, buy seeds carefully, apply techniques conscientiously, manage water and fertilizer, avoid pesticide residues, and only with high output and high quality can there be high returns.