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SunSirs: Production Reduction and Less Qualified Supply of Pesticide Residues, Angelica Market Rises

June 11 2021 08:40:39     SunSirs (Linda)

1. Price trend

The price of angelica is strong this month. The current price of angelica in Gansu is 28-30 yuan/kg, a slight increase of 0.69% compared with the previous month.

Bozhou Market: Recently, the incoming volume of the market has increased, the actual demand and consumption of the supply has not changed much, the purchase and sales are stable, and the market is temporarily stable. At present, the price of Angelica grass on the market is 27 yuan, the price of bulk goods is around 29 yuan, and the total price is 30 yuan. Up and down, Angelica head 45 yuan up and down.

Anguo Market: In the early stage, due to the “non-grain-oriented” policy in the production area, the price rose rapidly. As the price rose to a higher level, the market entered the stage of actual sales, and the price showed weakness again. Nowadays, the off-season of medication is approaching, and the sales are not fast. The price is 26-28 yuan, which is not high. The recent market is mainly stable.

Danggui City, Min County: Angelica finished products and washed goods are still less available, and there are 15 vehicles for sale. The flow of people in the market has picked up. There are foreign buyers purchasing, local business households demand goods, and the transaction of angelica pharmaceutical products is fast, and the transaction price is about 26-27 yuan/kg. The main cargo price is firm, and the price space is small. The trading volume of Angelica sinensis is around 28-32 yuan/kg. The overall transaction went faster, and the transaction price rose 0.5-1.0 yuan/kg. The transaction price of Angelica medicine factory goods is about 26-27 yuan/kg, and the price of second-hand goods is about 24-25.5 yuan; the transaction price of Angelica small strips is about 27-28 yuan/kg; the transaction price of Angelica Zhongtiao is about 28-29.5 yuan/kg; The transaction price of large pieces of angelica (good bars) is about 30-34 yuan/kg.

2. Analysis of influencing factors

Angelica planting area decreased

From 2016 to 2018, the price of angelica fluctuated around 40 yuan. Planting angelica is still more profitable than planting corn. Potatoes are still more profitable, and the enthusiasm of the growers is unabated. In recent years, the planting area of ​​Angelica has not been reduced, but due to government subsidies in the production area, the planting area has increased a lot.

According to industry insiders, the planting area of ​​angelica in 2016 was about 280,000 mu, and the planting area in 2017 was no less than 300,000 mu. In 2018, the planting area of ​​angelica was about 480,000 mu. In 2019, the planting area of ​​angelica in Gansu was about 400,000 mu. There are about 45,000 tons, and the inventory is about 11,000 tons. In addition, the output of angelica in Qinghai and Yunnan provinces is about 20,000 tons, and the total annual demand for angelica in the market is about 40,000 tons, and the fact that supply exceeds demand exists.

The planting area of ​​Angelica in 2020 has decreased compared with the previous year, and the planting area is about 360,000 mu, mainly because large households have reduced their planting. According to statistics, the output of angelica in 2020 is 42,490 tons.

Angelica pesticide residues are less qualified

Pesticide residues: 33 kinds of national pesticide residues, these 33 kinds of pesticides are the types banned by the country. For those plots in old production areas that have been planted for many years, the pesticide residues of the planted medicinal materials will basically exceed the standard due to the long-term use of pesticides and excessive pesticide residues.

As a new production area, "Qinghai Province," the angelica planted is relatively better, but it is very unstable, and even failed to pass the test after mining and processing the finished product. And Angelica itself, as a large variety, has a huge market usage and a very limited yield per mu; large quantities of goods are drawn to the market, "a mix of fish and dragons", and the mixture of qualified and unqualified sources will become all unqualified.

In terms of the current market situation, according to the feedback from the place of origin, the qualified rate of pesticide residues in Angelica is less than 10%; and most of the so-called qualified sources are traders who try their luck, and there is no guarantee that they are 100% qualified. Once a certain batch is qualified, it is reluctant to sell it immediately; the market for qualified sources is more than 30% higher than that of unqualified sources, and mass supply of qualified sources cannot be guaranteed.

There are very few qualified sources of Angelica in the market, and the emergence of pesticide residues has also become an important factor restricting the rise in the market of Angelica.

Angelica consumption reduced

Angelica is one of the three major varieties of authentic medicinal materials in Northwest China. It is also one of the bulk Chinese medicinal materials and the homologous varieties of medicine and food with a large range of output, dosage and use in the country. It is known as the "Holy Medicine for Gynecology" and the "Ten Fang Jigui". According to the report, it is widely used in Chinese herbal medicines, Chinese patent medicines, health products, food additives, spices and seasonings, animal feed additives, exports and other fields.

Due to the impact of the epidemic in 2020, the overall terminal sales in the domestic market will not be prosperous, and foreign exports will also be blocked. In addition to the varieties needed for the epidemic, major pharmaceutical companies and medical institutions have also reduced their purchases, which will result in a significant decline in sales. According to statistics, the amount of angelica in 2020 will be around 37,500 tons.

In terms of proprietary Chinese medicines, according to statistics, 502 Chinese patent medicines currently on the market contain angelica. Among them, the Chinese patent medicines that are in high demand for Angelica are Yiqi Yangxue Oral Liquid, Shenbao Syrup and Yixue Ointment. The top Chinese patent medicine companies in demand are Jiangxi Jimin Trusted Pharmaceutical Co., Ltd., Li Shizhen Pharmaceutical Group Co., Ltd., and Modified Pharmaceutical Group Co., Ltd.

3. Market outlook

In general, although the output of angelica has decreased, the inventory of the production area is still not small. Although the planting area has been reduced, the oversupply situation has not been actually alleviated. Due to repeated planting, the cultivation land of Northwestern major varieties such as Angelica, Astragalus and Codonopsis has degraded, and farmers have used excessive pesticides, making it difficult to pass the pesticide residue test of these varieties. If the problem of pesticide residues is not resolved and most of the supply sources are unqualified, it is equivalent to a substantial reduction in inventory, and eventually there may be a situation of "high quality and better price" price differentiation. Business agency analysis believes that the market for Angelica may hardly rise sharply in the short term.

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