Clipping Board » Medical Affairs and Administration ─ Medical system, pharmaceuticals, and medical community-related reports
2011-05-16 01:31 Want Daily Reporter Zheng Huiyuan / Comprehensive Report
Since last year, the prices of Chinese herbal medicines, long known for their affordability, have begun to rise. To date, 80% of commonly used Chinese herbs have seen price increases, with the most prized ginseng soaring by 300%. Industry insiders generally attribute this surge to hoarding and speculation by middlemen.
Currently, major Chinese herb-producing regions such as Jilin Province and the Xinjiang Autonomous Region have experienced price hikes. Costs for seeds, fertilizers, and labor have all risen to varying degrees.
**Higher Prices, Poorer Quality**
Ding Hongwei, head of the Agricultural Specialty Section of the Ji'an Municipal Agricultural Committee, explained that, for example, ginseng seeds cost 150 yuan (RMB, same below) last autumn but had risen to 270-280 yuan by this spring. "When seed prices go up, everything else will follow, at least doubling in price."
Dr. Li Yanqiu, who runs a clinic in Changchun, said, "It's impossible to sell Chinese herbs now—everything has gone up in price. Even if we charge 40 yuan per prescription, we still don’t make a profit, but patients still refuse to pay."
She added, "Just think—a kilogram of ginseng now costs 300-400 yuan, up from just over 100 yuan before. Other herbs have followed suit. Patients ask the price and immediately walk away." She believes middlemen are hoarding stock, driving up prices while quality deteriorates, with some even adulterating products. "How can we sell like this?"
Xinjiang faces the same issue. A survey of pharmaceutical wholesalers such as Jiuzhoutong Medical Company, Hua'an Chinese Medicine Company, and Xinkang Medical Company revealed that 80% of commonly used Chinese herbs have seen price increases.
A representative from Xinkang Medical Company’s Chinese Medicine Department noted, "Since May, the price hikes have become even more pronounced, rising nearly 30% year-on-year, with some up by about 70%." For instance, Sichuan fritillary bulb (used for cough relief), now sells for around 2,000 yuan per kilogram, compared to 1,500-1,600 yuan last year.
**Common Herbs See Sharpest Rises**
Liu Jianghai, manager of Jiuzhoutong Medical Company’s Chinese Medicine Department, said most of the increases involve widely used ordinary herbs, with some varieties seeing absurd spikes. For example, astragalus and codonopsis, which cost 20-30 yuan per kilogram last year, now fetch 70-80 yuan for decent quality.
Liu attributed the price surges partly to the current off-season for herb harvesting and partly to farmers’ tendency to overplant popular herbs, leading to oversupply one year and shortages the next. "With reduced supply, price hikes are inevitable."
Source: http:/ / money. chinatimes. com/ ……x? id=20110516000696& cid=1208
Chinese Herbal Medicine Prices Soar, Ginseng up 300%
Since last year, the prices of Chinese herbal medicines, long known for their affordability, have begun to rise. To date, 80% of commonly used Chinese herbs have seen price increases, with the most prized ginseng soaring by 300%. Industry insiders generally attribute this surge to hoarding and speculation by middlemen.
Currently, major Chinese herb-producing regions such as Jilin Province and the Xinjiang Autonomous Region have experienced price hikes. Costs for seeds, fertilizers, and labor have all risen to varying degrees.
**Higher Prices, Poorer Quality**
Ding Hongwei, head of the Agricultural Specialty Section of the Ji'an Municipal Agricultural Committee, explained that, for example, ginseng seeds cost 150 yuan (RMB, same below) last autumn but had risen to 270-280 yuan by this spring. "When seed prices go up, everything else will follow, at least doubling in price."
Dr. Li Yanqiu, who runs a clinic in Changchun, said, "It's impossible to sell Chinese herbs now—everything has gone up in price. Even if we charge 40 yuan per prescription, we still don’t make a profit, but patients still refuse to pay."
She added, "Just think—a kilogram of ginseng now costs 300-400 yuan, up from just over 100 yuan before. Other herbs have followed suit. Patients ask the price and immediately walk away." She believes middlemen are hoarding stock, driving up prices while quality deteriorates, with some even adulterating products. "How can we sell like this?"
Xinjiang faces the same issue. A survey of pharmaceutical wholesalers such as Jiuzhoutong Medical Company, Hua'an Chinese Medicine Company, and Xinkang Medical Company revealed that 80% of commonly used Chinese herbs have seen price increases.
A representative from Xinkang Medical Company’s Chinese Medicine Department noted, "Since May, the price hikes have become even more pronounced, rising nearly 30% year-on-year, with some up by about 70%." For instance, Sichuan fritillary bulb (used for cough relief), now sells for around 2,000 yuan per kilogram, compared to 1,500-1,600 yuan last year.
**Common Herbs See Sharpest Rises**
Liu Jianghai, manager of Jiuzhoutong Medical Company’s Chinese Medicine Department, said most of the increases involve widely used ordinary herbs, with some varieties seeing absurd spikes. For example, astragalus and codonopsis, which cost 20-30 yuan per kilogram last year, now fetch 70-80 yuan for decent quality.
Liu attributed the price surges partly to the current off-season for herb harvesting and partly to farmers’ tendency to overplant popular herbs, leading to oversupply one year and shortages the next. "With reduced supply, price hikes are inevitable."
Source: http:/ / money. chinatimes. com/ ……x? id=20110516000696& cid=1208