Forsythia ginseng prices soared

In the third quarter, the price of ginseng soared from 350 yuan/kg to 500 yuan/kg. Recently, the prices of bulk Chinese herbal medicines have continued to soar, and the trend of short-term price increases will not change. Analysts said that the increase in prices of large quantities of Chinese herbal medicines was mainly due to the decrease in production of medicinal materials caused by extreme weather and the country’s crackdown on counterfeit and inferior Chinese herbal medicines.

Although October is the new season for ginseng production, the trend of price increases will not change. According to forecast, this year, Jilin ginseng production is only about 3,000 tons, compared with the same period last year, down 30% to 50%, "Ginseng prices will also rise by 20% to 30% by the end of the year." Some analysts.

The same is true for forsythia prices. According to media reports, in the past month, the price of forsythia has risen more than 1 times, from the original 24 yuan/kg to 50 yuan/kg.

Why are the prices of Chinese herbal medicines soaring in the near future? Analysts said that some regions have experienced extreme weather since the beginning of this year, resulting in reduced production due to the disaster. Taking ginseng as an example, on August 16th, Jilin Province suffered the worst storm of the year and affected the production of ginseng. According to the announcement of Yisheng Pharmaceutical, the 9,000-mu damaged area of ​​the company's non-forested ginseng planting base, although accounting for only 0.04% of the total area, has increased from 3.71 acres in 2010 to 5.99 acres in 2011.

In addition, since the beginning of this year, the state’s increased efforts to crack down on fake and inferior Chinese herbal medicines and the rising cost of rural labor have also led to an increase in the prices of Chinese herbal medicines this year.

In the short term, many companies with large reserves of Chinese herbal medicines are expected to benefit. Among them, Zixin Pharmaceutical currently has 2,700 tons of dry ginseng inventories. According to the average price of 600 yuan/kg, the market value is about 1.6 billion yuan, which is a substantial increase from last year. Affected by the above news, Zixin Pharmaceutical has recently gained momentum. Yisheng Pharmaceutical, which harvested the first batch of 150 mu ginseng in October, is no exception. In addition, Renhe Pharmaceuticals, Jinling Pharmaceuticals, and Dongcheng Biochemical Co., Ltd. saw a large increase, with an increase of more than 5%.