Clipping Board » Medical Affairs and Administration ─ Medical system, pharmaceuticals, and medical community-related reports
Southern Network, Date: 2010-11-08
As autumn and winter approach, more citizens are buying traditional Chinese herbs to make soups. However, unlike previous years, the prices of Chinese herbs have surged collectively this year, affecting over 80% of varieties. Among them, the most significant increase is seen in Pseudostellaria heterophylla (Tai Zi Shen), whose wholesale price has risen from 38 yuan/kg to 360 yuan/kg in less than a year—a nearly tenfold increase—while the retail price has reached 650 yuan/kg.
This price surge has greatly impacted pharmaceutical companies, retailers, and the public. Despite it being the herb procurement season, many pharmaceutical companies are choosing to wait and observe rather than purchase, and some retail pharmacies have seen a sharp decline in sales.
**Pseudostellaria Heterophylla Prices Rise Nearly Tenfold**
Yesterday afternoon, a reporter visited the Nanguo Supermarket under the Haiwang Star chain and found that the price of Prunella vulgaris (Xia Ku Cao) was 0.05 yuan/gram, Angelica sinensis (Dang Gui) was 0.18 yuan/gram, Poria cocos (Fu Ling) was 0.08 yuan/gram, and Pseudostellaria heterophylla (Tai Zi Shen) was 0.65 yuan/gram, equivalent to 650 yuan/kg. According to the store staff, all Chinese herbs are currently experiencing price hikes, and customer numbers have decreased compared to before. One customer remarked that they had never seen such high prices and could only buy a small amount for urgent needs this time.
The reporter learned that a recent survey by the Guangdong Price Monitoring Center showed that among the 51 monitored Chinese herbs in Guangzhou’s Qingping Herbal Medicine Market, 44 varieties (86.3%) had increased in price compared to December 7, 2009. Among these, 15 commonly used herbs, such as Fritillaria thunbergii (Zhe Bei Mu), Ophiopogon japonicus (Mai Dong), and Smilax glabra (Tu Fu Ling), saw price increases exceeding 100%. Additionally, nearly half of the herbs experienced price hikes of over 50%, such as Prunella vulgaris (up 63.6%), mulberry leaves (up 60%), Angelica sinensis (up 58.3%), and Polygonum multiflorum (He Shou Wu, up 50%). The most dramatic increase was in Pseudostellaria heterophylla, whose wholesale price soared from 38 yuan/kg on December 7 last year to 360 yuan/kg now—a nearly tenfold jump in less than a year.
**Pharmaceutical Companies Hesitate to Purchase During Procurement Season**
In this wave of price hikes, pharmaceutical manufacturers have also been significantly affected. "Prices change every few days, each time rising substantially. We can’t even make sense of this market trend," said Wang Chengwen, assistant general manager of Guangzhou Jianze Pharmaceutical Co., Ltd. He admitted that although it is the herb procurement season and the company has sufficient funds, they, like other pharmaceutical firms, have chosen to wait and observe due to the unpredictable price fluctuations, refraining from purchasing herbs for now.
Wang Chengwen noted that compared to previous years, when price increases were steady and followed predictable patterns, this year’s surge has been exceptionally sharp. "In the past, price hikes were gradual, but this year, most varieties have seen steep increases almost overnight."
He gave an example: "Take Fructus Citri Sarcodactylis (Fo Shou), for instance. Two days ago, it was 40 yuan/kg, and two days later, it jumped to 60 yuan." Wang explained that pharmaceutical companies are afraid to buy herbs now. "We’re worried that if we purchase now and prices suddenly drop, the losses would be even greater."
**Hospital Herb Prices Remain Stable for Now**
Regarding the skyrocketing prices of Chinese herbs in the market, Tang Hongmei, director of the Pharmacy Department at the First Affiliated Hospital of Guangzhou University of Chinese Medicine, told reporters that the hospital’s herb prices remain relatively stable with no significant fluctuations.
Wei Ping, chairman of Guangzhou Zhixin Pharmaceutical Co., Ltd., explained that since contracts between suppliers and hospitals are long-term, price increases are generally absorbed by the suppliers. "For example, while Pseudostellaria heterophylla is now priced at over 300 yuan in the market, we sell it to hospitals for less than 250 yuan."
However, the reporter learned that if herb prices continue to rise, major hospitals will inevitably be affected, and price adjustments will become unavoidable. Earlier, when interviewed by the media, Guangdong Provincial Hospital of Traditional Chinese Medicine stated that hospitals and herb suppliers have signed agreements based on long-term interests to ensure relatively stable herb prices.If the market prices of traditional Chinese medicinal materials rise, suppliers must absorb the costs themselves. Only when the market stabilizes and prices remain elevated will hospitals appropriately raise the prices of these varieties.
**Reasons**
Frequent Natural Disasters and Speculative Capital
"The main reasons are the reduction in cultivation areas and the impact of extreme weather, which have led to decreased yields. Additionally, the influx of speculative capital is a significant factor driving the price hikes. Some pharmaceutical companies deliberately hoarded inventory instead of selling it," Wei Ping, chairman of Guangzhou Zhixin Pharmaceutical Co., Ltd., told reporters. According to him, a major domestic pharmaceutical company profited billions by strategically releasing its stockpiled inventory during this price surge.
Wang Chengwen, assistant general manager of Guangzhou Jianze Pharmaceutical Co., Ltd., also confirmed this observation. "This is why we are hesitant to purchase more stock. Take Pseudostellaria heterophylla (Tai Zi Shen) as an example—many people actually have inventory but are holding onto it instead of selling. Buying now isn’t a wise move."
When will the excessively high prices of traditional Chinese medicinal materials return to reasonable levels? Wei Ping stated, "Due to human intervention, it’s hard to predict when prices will stabilize." Wang Chengwen shared the same view, adding, "The government should intervene to regulate the market. Given the current situation, it’s difficult to foresee when prices will drop."
By Xinkuai Bao reporters Fu Yuliang and Li Yongqi, intern Zhang Guofeng
Source: http:/ / big5. xinhuanet. com/ ga……0- 11/ 08/ content_21333833. htm
Over 80% of Guangzhou's Chinese Herbal Medicine Prices Soar, with Pseudostellariae Radix up Nearly Tenfold
As autumn and winter approach, more citizens are buying traditional Chinese herbs to make soups. However, unlike previous years, the prices of Chinese herbs have surged collectively this year, affecting over 80% of varieties. Among them, the most significant increase is seen in Pseudostellaria heterophylla (Tai Zi Shen), whose wholesale price has risen from 38 yuan/kg to 360 yuan/kg in less than a year—a nearly tenfold increase—while the retail price has reached 650 yuan/kg.
This price surge has greatly impacted pharmaceutical companies, retailers, and the public. Despite it being the herb procurement season, many pharmaceutical companies are choosing to wait and observe rather than purchase, and some retail pharmacies have seen a sharp decline in sales.
**Pseudostellaria Heterophylla Prices Rise Nearly Tenfold**
Yesterday afternoon, a reporter visited the Nanguo Supermarket under the Haiwang Star chain and found that the price of Prunella vulgaris (Xia Ku Cao) was 0.05 yuan/gram, Angelica sinensis (Dang Gui) was 0.18 yuan/gram, Poria cocos (Fu Ling) was 0.08 yuan/gram, and Pseudostellaria heterophylla (Tai Zi Shen) was 0.65 yuan/gram, equivalent to 650 yuan/kg. According to the store staff, all Chinese herbs are currently experiencing price hikes, and customer numbers have decreased compared to before. One customer remarked that they had never seen such high prices and could only buy a small amount for urgent needs this time.
The reporter learned that a recent survey by the Guangdong Price Monitoring Center showed that among the 51 monitored Chinese herbs in Guangzhou’s Qingping Herbal Medicine Market, 44 varieties (86.3%) had increased in price compared to December 7, 2009. Among these, 15 commonly used herbs, such as Fritillaria thunbergii (Zhe Bei Mu), Ophiopogon japonicus (Mai Dong), and Smilax glabra (Tu Fu Ling), saw price increases exceeding 100%. Additionally, nearly half of the herbs experienced price hikes of over 50%, such as Prunella vulgaris (up 63.6%), mulberry leaves (up 60%), Angelica sinensis (up 58.3%), and Polygonum multiflorum (He Shou Wu, up 50%). The most dramatic increase was in Pseudostellaria heterophylla, whose wholesale price soared from 38 yuan/kg on December 7 last year to 360 yuan/kg now—a nearly tenfold jump in less than a year.
**Pharmaceutical Companies Hesitate to Purchase During Procurement Season**
In this wave of price hikes, pharmaceutical manufacturers have also been significantly affected. "Prices change every few days, each time rising substantially. We can’t even make sense of this market trend," said Wang Chengwen, assistant general manager of Guangzhou Jianze Pharmaceutical Co., Ltd. He admitted that although it is the herb procurement season and the company has sufficient funds, they, like other pharmaceutical firms, have chosen to wait and observe due to the unpredictable price fluctuations, refraining from purchasing herbs for now.
Wang Chengwen noted that compared to previous years, when price increases were steady and followed predictable patterns, this year’s surge has been exceptionally sharp. "In the past, price hikes were gradual, but this year, most varieties have seen steep increases almost overnight."
He gave an example: "Take Fructus Citri Sarcodactylis (Fo Shou), for instance. Two days ago, it was 40 yuan/kg, and two days later, it jumped to 60 yuan." Wang explained that pharmaceutical companies are afraid to buy herbs now. "We’re worried that if we purchase now and prices suddenly drop, the losses would be even greater."
**Hospital Herb Prices Remain Stable for Now**
Regarding the skyrocketing prices of Chinese herbs in the market, Tang Hongmei, director of the Pharmacy Department at the First Affiliated Hospital of Guangzhou University of Chinese Medicine, told reporters that the hospital’s herb prices remain relatively stable with no significant fluctuations.
Wei Ping, chairman of Guangzhou Zhixin Pharmaceutical Co., Ltd., explained that since contracts between suppliers and hospitals are long-term, price increases are generally absorbed by the suppliers. "For example, while Pseudostellaria heterophylla is now priced at over 300 yuan in the market, we sell it to hospitals for less than 250 yuan."
However, the reporter learned that if herb prices continue to rise, major hospitals will inevitably be affected, and price adjustments will become unavoidable. Earlier, when interviewed by the media, Guangdong Provincial Hospital of Traditional Chinese Medicine stated that hospitals and herb suppliers have signed agreements based on long-term interests to ensure relatively stable herb prices.If the market prices of traditional Chinese medicinal materials rise, suppliers must absorb the costs themselves. Only when the market stabilizes and prices remain elevated will hospitals appropriately raise the prices of these varieties.
**Reasons**
Frequent Natural Disasters and Speculative Capital
"The main reasons are the reduction in cultivation areas and the impact of extreme weather, which have led to decreased yields. Additionally, the influx of speculative capital is a significant factor driving the price hikes. Some pharmaceutical companies deliberately hoarded inventory instead of selling it," Wei Ping, chairman of Guangzhou Zhixin Pharmaceutical Co., Ltd., told reporters. According to him, a major domestic pharmaceutical company profited billions by strategically releasing its stockpiled inventory during this price surge.
Wang Chengwen, assistant general manager of Guangzhou Jianze Pharmaceutical Co., Ltd., also confirmed this observation. "This is why we are hesitant to purchase more stock. Take Pseudostellaria heterophylla (Tai Zi Shen) as an example—many people actually have inventory but are holding onto it instead of selling. Buying now isn’t a wise move."
When will the excessively high prices of traditional Chinese medicinal materials return to reasonable levels? Wei Ping stated, "Due to human intervention, it’s hard to predict when prices will stabilize." Wang Chengwen shared the same view, adding, "The government should intervene to regulate the market. Given the current situation, it’s difficult to foresee when prices will drop."
By Xinkuai Bao reporters Fu Yuliang and Li Yongqi, intern Zhang Guofeng
Source: http:/ / big5. xinhuanet. com/ ga……0- 11/ 08/ content_21333833. htm