At present, the soaring price of medicinal herbs has become a big pressure on the top of proprietary Chinese medicine companies, and the drought situation has stimulated prices of Chinese herbal medicines that were originally in the fourth wave of rising prices. However, there are also industry experts predict that due to factors such as production increase and new mining, after the autumn of this year, the price of bulk medicines is expected to fall as a whole. At the same time, 102 Chinese patent medicines for essential medicines are also expected to undergo price adjustments in the second half of the year. Medicinal crop yield cut due to drought The planting and production of medicinal herbs are directly affected by the climate. Dr. Cui Xiuming, president of the Wensan Sanqi Research Institute of Yunnan, told the “First Financial Daily†that last year’s severe drought in the southwestern region led to a dramatic increase in the price of medicinal herbs such as Panax notoginseng and Fritillaria cirrhosa. The pressure on raw material costs has risen dramatically for the proprietary Chinese medicine industry. Since the spring of this year, precipitation in the middle and lower reaches of the Yangtze River has been unusually low, with an average precipitation of 193.9 millimeters, which is 52.8% less than the same period in the normal year. The industry began to worry that the new drought will also adversely affect the cultivation of medicinal herbs such as Hubei, Jiangxi and Anhui. Wang Guihua, secretary-general of the Chinese Medicine Association, told the newspaper that the authentic Chinese herbal medicine is greatly affected by the climate. The drought in the middle and lower reaches of the Yangtze River will inevitably lead to a decline in the production of medicinal herbs. According to Jiang Erguo, the deputy general manager of Chinese herbal medicines, Tianzi Wang said that Xunzi is a genuine medicinal material produced in Jiangxi. Last year, due to severe weather such as late spring, heavy rain, and heavy drought in Jiangxi Province, the output was reduced by 70% to 80%. The drought in Jiangxi is still continuing this year. . The decline in the yield of medicinal herbs is inevitably caused by rising prices. According to the monitoring data of Chinese herbal medicines, World Wide Web, the recent move of the Chinese wolfberry has accelerated, and the market price has risen again, which is an increase of 3-4 yuan from a month ago. Scorpions are used every year from April to October as the peak period, and now it has just entered the peak season, its price began to rise. “In addition, the production of medicinal materials in Jiangxi Province, such as Citrus aurantium and Citrus aurantium, has begun to decline, and its impact on prices will be reflected after July and August.†Jiang Erguo said without hesitation. In response, Ma Xingtian, chairman of Kangmei Pharmaceutical, the largest herbal tablet supplier in China, told reporters that the drought in the middle and lower reaches of the Yangtze River will have an impact on the production of medicinal herbs, but it will not affect the company itself. “The company has 3 major varieties of commonly used herbs. A reasonable inventory from months to six months is enough for the company to use." Large companies began to work on climate monitoring to cope with the impact of abnormal climate on the supply of raw materials and price fluctuations. Herbal medicine prices are expected to fall after autumn At present, Chinese herbal medicines are in the fourth wave of rising prices. According to data from the Ministry of Commerce on May 31, last week (May 23-29), the price index for Chengdu Chinese herbal medicines was 128.37 points, up 4.4% from the previous week. Most of the pharmaceutical pricing right is not in pharmaceutical companies. Traditional Chinese medicine companies cannot increase the pressure of rising raw materials through price increases. Wang Guihua told reporters that in 2010 the total output value of the Chinese medicine industry reached more than 317 billion, but the profit was only about 30 billion yuan, and the gross margin of the entire industry was only about 10%. Under the background of declining gross margins, large listed Chinese medicine companies are looking for ways to break through. Such as the GP Group, Yunnan Baiyao, and Kunming Pharmaceuticals chose to go upstream and build their own medicine bases to reduce the impact of cost increases. The Chinese herbal medicine companies such as Yunnan Baiyao, Tasly, Pien Tze Huang, and Connbay have chosen diversified development in their corporate strategy, and have explored new profit growth points by entering into areas such as drugstores and daily chemicals with independent pricing power. Jiang Erguo believes that the price of Chinese herbal medicines has now risen to a peak, but with the stabilization of production and the acquisition of new ones, the contradiction between supply and demand in the market for bulk medicinal materials has been further eased, and their prices are expected to fall in the autumn. Take the example of Panzhihua with the largest price volatility. Cui Xiuming told this reporter that the Panax notoginseng, which was affected by the drought last year, is still maintaining a high price of 60 heads and 350 yuan. "But this year's 37 production will reach 5.5 million kilograms, and it is approaching the market demand of 7.5 million kilograms per year. After the new production in September, the price is expected to fall back to a reasonable price of 200 yuan per kilogram." Cui Xiuming believes that due to the high price of Panax notoginseng has stimulated the expansion of planting area. The area harvested next year may double, and the output will increase exponentially. "The price will fall on March 37 next year and enter a new round of price adjustment cycle." Wang Guihua revealed that the price of raw materials in the Chinese medicine industry continued to rise, and the prices of preparations continued to decline. The National Development and Reform Commission has already noticed this contradiction and will start the investigation of the prices of Chinese herbal medicines in the near future and formulate scientific pricing mechanisms for Chinese patent medicines. After completing the research, 102 kinds of proprietary Chinese medicines in essential medicines are expected to usher in price adjustments. “However, the price adjustment of proprietary Chinese medicines is not yet as fast. The National Development and Reform Commission decided to turn to proprietary Chinese medicine after adjusting for chemical drugs,†said Wang Guihua.
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