Gehua’s situation is also becoming increasingly clear

The business club reported on November 4th that Ge Huayuan was a small three species of Chinese herbal medicine, mainly distributed in Guangxi, Hunan, Henan, Guangdong, Zhejiang, Sichuan, and Anhui. At present, the production areas where the product has the habit of harvesting are mainly concentrated in Pingnan, Guilin, Yinzhou, Guangxi, Guangdong, Guangdong, Guangdong, Hunan, South Hunan area, over the years the output stabilized at 150 tons to 250 tons. In recent years, with the increase in health care and food demand, the output of this product has increased significantly since its production in 2008, once reaching nearly 300 tons.

Recently, with the end of Gehua production in various producing areas, the situation in which Gehua’s production in 2010 decreased compared to previous years has become increasingly clear. The acquisition prices in several major producing areas have increased slightly. At present, the purchase price of large flower and small flowers in Guangxi producing areas is about 12 yuan (kilogram price, the same below), and the price of high quality goods is 13 yuan to 14 yuan, causing market concern.

Ge Huayuan what new price rise? Will the product market reproduce the high price of 70 yuan in 2008?

As we all know, in addition to medicine, Gehua is also the "first drug" for hangover and liver protection (there is no substitute for this effect). At present, there are dozens of medicines and health care products processed with Gehua as the main ingredients, and Gehua Capsules, Neptunus Goldfish, etc. are more famous. In recent years, researchers have discovered that Gehua has both antihypertensive and hypolipidemic effects. And prevent fatty liver and other effects. Gehua has no side effects, is comfortable and easy to use and is favored by middle and old-aged friends. It can be foreseen that, with the concept of “green health” being deeply rooted in people’s minds, Ge Hua’s demand market will continue to grow steadily.

At present, Gehua is mainly supplied with wild resources. Although the production areas are widely distributed, many production areas do not have the habit of harvesting. However, Gehua's flowering period is short and new production is concentrated. Once the harvest period has passed, high prices will not be received. As a flower variety, nearly 10 kilograms of fresh produce can process 1 kilogram of dried flowers. A worker only has about 2 kilograms of finished product output per day (according to the pre-production price, the worker's income is about 20 yuan/day, while in the production area, the construction worker's income is about 70 yuan to 80 yuan/day). In recent years, with the outflow of rural labor force and the increase of income channels, the enthusiasm of farmers for harvesting Gehua declined significantly. Although the purchase price has risen to more than RMB 12 in the near future, it is reported that farmers in producing areas such as Pingnan in Guangxi still lack enthusiasm for Gehua harvesting.

Referring to the trend of Gehua in the figure, we can clearly see that the current price of Gehua is at historically low levels. Prior to 2006, the product market had been hovering below the low of $10. With the increase in demand in 2006, the price rose to about 14 yuan. However, this price still failed to stimulate the enthusiasm of the farmers in the producing areas. In 2007, the price of this product rose steadily and reached the historical high of over 70 yuan in 2008. Stimulated by high prices, when the amount of new harvests rose sharply, prices also fell steadily. Ge Hua became one of the top ten “diving” varieties of the year. From the end of 2008 to the new production of 2009, the purchase price was once as low as RMB 6.8. Farmers do not want to pick up the mountain, when the new production is less than 100 tons. As a small category of three species, the company has no inventory habits, demand can only rely on the origin of the old stock and market support, to the new production of stocks in September this year, basic bottoming out. In September this year, Guangxi, Guangdong, and other major Gehua producing areas were hit by typhoons and heavy rains. The flowers were significantly affected. In addition, the new opening price was only around 8.5 yuan, and it was difficult to receive new goods. This was also the reason for the new prices this year. The higher and higher direct cause.

The prices of domestic medicinal herbs have generally risen for more than a year. There are not many varieties such as Ge Hua, which uses the supply of wild resources and the price is lower than the labor cost. With several rounds of home-grown breeds or hot-spot varieties rising in price, market operators have gradually turned their attention to low-risk varieties, cold-backed varieties or wild varieties that are at lower risk, such as early Haijinsha and Cassia prices. A rapid rise is enough to illustrate this trend. Gehua between the small varieties and moderate use of varieties, but also has the characteristics of new production, small disk, etc., began to receive market attention is normal.

From the above analysis, we can see that in 2006 Gehua rose to 14 yuan when the new production volume is still shrinking, and directly led to the occurrence of Gehua in 2008 sky-high prices. In today's inflation, labor costs, and the general increase in the price of Chinese herbal medicines, Ge Hua's current price of 12 yuan can not truly reflect its worth. With the end of the new production, the outlook for the market is a reasonable return to its price. As the popularity gathers, the market outlook can be expected. Only relatively large varieties of medicinal materials, the demand for the product is still limited, and the experience of the high jump in the Gehua market in 2008 also made previous participants have a hard time. Therefore, it can be inferred that although Ge Hua is optimistic about the market outlook, it is not difficult to reproduce the glory of 2008.