What are the latest prospects for Panax notoginseng cultivation in 2018?
Panax notoginseng (also known as sanqi) is an important Chinese medicinal herb with very high market demand. Ten years ago was when demand for Panax notoginseng was at its hottest. Back then, the planted area was small and demand was high, so is Panax notoginseng still worth cultivating today? Qinnong Network will give you a brief analysis based on some recent data below.
1. Is it profitable to grow Panax notoginseng?
The Panax notoginseng market is no longer as hot as it once was, and the price has dropped from the original 500 to 600 per jin to around 200 to 300 now. In 2016, the price fell all the way to rock bottom, at only a few dozen per jin. At present, the Panax notoginseng market is still relatively stable, basically stable at a starting price of 200 yuan, and recently Panax notoginseng has been heavily purchased by pharmaceutical factories, causing prices to trend upward. So growing Panax notoginseng in 2018 is still in the relatively profitable category.
2. Returns from growing Panax notoginseng
Generally, one mu produces about 300 jin of three-year dried Panax notoginseng, with a market purchase price of about 160 yuan, giving a profit of about 48,000 yuan per mu. The costs that need to be invested in seeds, fertilizer, management, and field harvesting are generally about 20,000 yuan. There will also be losses due to weather, pests and other conditions. Generally, the net profit is about 25,000 yuan per mu, averaging about 8,000 yuan per mu per year. Usually the planting scale is about 10 mu, and two people are enough to manage it, meaning the income over three years is more than 250,000.
3. Current market situation
Panax notoginseng first became popular because rumors passed from mouth to mouth caused the market price to soar. When people found that it was different from what they had imagined, and when the market supply was also large, the price immediately dropped. Later, as the pharmaceutical industry processed Panax notoginseng and its own medicinal tonic effects were indeed fairly good, the price rose a second time, but this rebound was ultimately not as hot as before, at less than half of what it once was. However, at least a balance between supply and demand is guaranteed. The current market situation is dominated by large-volume consumption by the pharmaceutical industry, supplemented by small-volume consumption of high-quality Panax notoginseng by residents.
4. Current cultivation situation
The main producing area of Panax notoginseng is Yunnan region in China. According to incomplete statistics, the output of Panax notoginseng in Yunnan region accounts for more than 80% of the country. The planted area has increased more than 4 times compared with ten years ago. At present, China's Panax notoginseng planted area is about 600,000 mu, with an annual output of about 50,000 tons. The fastest growth in planted area has occurred in recent years, with an annual increase of about 100,000 mu.
At present, the greatest profit in Panax notoginseng is still in the high-quality market. The low-quality market still has profit, but it is relatively low and the risk is greater. It is recommended that everyone must develop in the direction of high quality when growing it. At present, its overall trend still has relatively good cultivation prospects.