2015 Leech Farming Market Analysis Report
The leech is a traditional special medicinal aquatic animal in China. Leeches contain hirudin, which can delay and hinder blood coagulation, thereby having an anticoagulant effect. After processing, their dried products are used in traditional Chinese medicine, with effects such as treating stroke, high blood pressure, clearing blood stasis, amenorrhea, and traumatic injuries. In recent years, the medical field has newly discovered that leech preparations have special efficacy in preventing and treating cardiovascular and cerebrovascular diseases and in anti-cancer applications. As leech resources continue to decrease and demand continues to increase, the market has been climbing steadily in recent years. How its future market will develop is briefly analyzed by the author for everyone's reference.
I. Good Efficacy, Surging Dosage
Before the 1980s, leeches were mostly used in prescriptions, with national annual demand between 20-30 tons. Before the founding of the People's Republic of China, usage was even less, and the damage to leech resources was negligible. However, starting in 1989, the efficacy of leeches was continuously developed, and the introduction of new drugs caused leech usage to increase 4-5 times. During the ten years up to 1999, leech usage was roughly between 100-150 tons. Each kilogram of dried adult leeches contains about 500 individuals, so over a hundred million leeches had to be captured each year for medicinal use. In 2000, leech usage increased by another 50 tons. Such enormous social demand naturally caused damage to leech resources.
Because of its good efficacy, people have been draining the pond to catch all the fish. As China's aging population increases and cardiovascular and cerebrovascular diseases become more common, leech usage has also surged continuously. As of the end of November 2014, export and domestic demand for leeches was around 800 tons, with exports mainly to Japan and South Korea, at around 200 tons annually. Representative domestic pharmaceutical companies include Youbo Pharmaceutical of Heilongjiang and Buchang Group of Shanxi. Compared with the national demand of 200 tons in 2004, current usage has more than doubled or tripled. With demand growing so rapidly, what exactly is the current state of wild leech resources? How is domestic breeding developing? The author continues the analysis.
II. National Leech Production in the Past Two Years
Although wild leeches have higher content than domesticated ones, wild production has been decreasing year by year in recent years, with output being negligible. In addition, wild leeches are generally used for breeding as seed stock, so even fewer are processed into commercial leeches. At present, domestic leech farming has begun to take shape in China, and the supply share of domesticated leeches is also increasing year by year. Currently, it is estimated that wild leeches account for 10-20% of total national production, while domesticated ones account for about 80-90%. In recent years, wild leech production has shown a declining trend year by year, with total wild production not exceeding 50 tons at most. In normal years, total production of wild and domesticated leeches is around 600-700 tons. In 2014, affected by weather, domesticated leech production dropped severely, with a conservative estimate of around 400-450 tons.
III. The Domestic Breeding Situation Is Not Optimistic
1. The core problem of transitioning from wild to domesticated breeding has not been solved
As the author mentioned above, although leeches are currently mainly domesticated, and both old and new production areas have been vigorously pursuing the trend of domestic leech farming. But looking at it now, the yield of domesticated breeding is still maintained at the cost of consuming wild resources. Truly relying on domesticated breeding to reproduce domesticated leeches is currently feasible, but the technology is not yet mature. Currently domesticated leeches can also reproduce small leeches, but the hatching rate is not as high as wild ones. Both domesticated and wild leeches lay 3 eggs, but among the eggs laid by domesticated leeches, only one will successfully hatch into small leeches, numbering around 30. For wild ones, basically all 3 eggs can hatch, numbering around 75. In other words, if the problem of domesticated leech reproduction cannot be smoothly solved, domesticated leech farming cannot be considered truly successful.
2. Weather factors have a great impact on production
The production difference between 2013 and 2014 was quite large, mainly because the weather during the farming period differed greatly between these two years. Leeches need suitable temperatures during their growth period. In 2014, during the solar terms of Minor Heat, Major Heat, Start of Autumn, End of Heat, and White Dew from July to September, the whole country basically experienced mainly overcast and rainy weather, with relatively low temperatures, which was unfavorable for leech growth, resulting in death and failure to grow. During this period, temperatures reached 38°C for only 2-3 days, seriously affecting the normal growth of leeches. Therefore, production decreased in 2014, and this situation basically occurred in domesticated leech farming across the country. In 2013, the average body weight of leeches raised by farmers could reach 31g, with smaller ones in the 20-odd grams and larger ones over 40 grams. In 2014, the average body weight was only 22g. Death and small size were the direct causes of reduced production.
3. Careful consideration is needed when selecting seed stock
Leeches have relatively strict requirements for their living environment, and generally only local seedlings can survive. For example, the leech seedlings selected in Liyang, Jiangsu, are basically all local ones. Those from other places are basically very difficult to survive due to differences in growth environment. Zhejiang can use seedlings from southern Jiangsu, but not those from northern Jiangsu. Southern Anhui can also use those from southern Jiangsu. Therefore, this also increases the difficulty of large-scale farming development, since wild resources are already very limited.
4. High investment, high risk
Leech farming is a high-investment, high-risk industry. Generally speaking, one mu of land can raise about 100,000-200,000 leeches. Seedling prices follow the market, generally 0.2 yuan per individual. Feed costs for 4 months are about 7,000-14,000 yuan. The site usage period is generally about 10 years, with costs around 400,000 yuan. Labor costs are about 20,000 yuan, water changing costs 600 yuan, medicine costs between 300-400 yuan, and site cleaning costs between 2,000-3,000 yuan. Domesticated leeches yield about 115 kg per mu, with a cost of about 700 yuan per kg. There are too many uncertain factors in leech farming, with high investment and high risk. One moment of carelessness and you lose everything. Even with the best technology, encountering weather like that of 2014 still leaves one helpless.
5. Some details of farming
a. Factors affecting the drying ratio of leeches
Domesticated leeches are generally harvested after October 25 and finish by early December. The drying ratio for early-harvested leeches is 7:1, and for later ones 6:1. When the weather is cool, leeches dry better. During the four months from June to September, the drying ratio of leeches is poor, requiring about 10 jin to dry into 1 jin, because high temperatures cause rapid moisture evaporation, and the quality of the dried goods is not very good either. Drying leeches generally takes 3-4 days. Summer and winter are the same; in summer leeches defecate and their body weight decreases, while in winter they do not, so the yield rate is higher in winter. Leeches generally begin laying eggs from May 15 to early June in spring. Those that have not laid eggs have a drying ratio of 6:1, and those that have laid eggs have a drying ratio of 8:1.
b. Suitable temperature for leech growth
Currently, farmers basically buy wild ones for breeding, using them as seedlings from April 5 to April 28. The suitable temperature for leech growth is 38-40°C; above 42°C, death occurs. The most suitable temperature for leeches to lay eggs is 18-23°C. Egg-laying basically ends during the period from May 15-25. Growth is most vigorous from July to September. If abnormally low temperatures occur during this period, it will directly affect leech growth.
IV. Price Forecast
In summary, wild leech resources are scarce, and domesticated breeding technology has yet to make a breakthrough. Current leech production is still consuming the already scarce wild resources. Before domesticated breeding technology achieves an effective breakthrough, leeches will remain in a state of insufficient supply relative to demand. Even if domesticated breeding technology achieves a good breakthrough, given the high investment costs and enormous risks, ordinary farmers without financial guarantees would find it difficult to participate. The factors affecting the leech price decline in the early period of the autumn 2014 harvest were also because leech farming costs are too high. Most farmers raise leeches with loans, and to ease loan pressure they have no choice but to sell at low prices, but never below farming cost. The reduced production of domesticated leeches in 2014, combined with most wild leeches being used as seedlings in spring 2015, directly led to a reduction in leech supply. With the promulgation of the new pharmacopoeia in 2015, alum-treated goods will face certain demand restrictions. Therefore, the author conservatively estimates that in 2015, clean-water leech goods will continue to rise and may break historical records.
Article source: http://www.shuizhi360.com/quote/hangqing/27.html
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