According to the price monitoring of SunSirs, in 2022, the overall market of Angelica will rise in a volatile trend. At the beginning of the year, the unified price of Angelica will be 40.60 RMB/kg. As of December 19, the average price of Angelica will be 58.40 RMB/kg, an increase of 43.84% in the year.
The first half of the year: the overall market is running smoothly
In the first half of the year, the overall market of Angelica was relatively stable, the price did not fluctuate much, and the price basically remained at 40-44 RMB/kg. The stock of Angelica is relatively sufficient, and the low qualification rate of pesticide residues leads to the buyer's attitude is not positive, the supply of goods is not moving fast, and the price runs smoothly.
In the second half of the year, the price of Angelica increased due to high temperature, drought and little rain
Stimulated by the recovery of Angelica market last year, farmers in the production areas began to rush to buy seedlings, and there was a large amount of seed expansion in the production areas. At the same time, affected by the continuous high temperature and drought in Gansu production areas in July and August, the death rate of Angelica was high, driving the market popularity to rise rapidly. The Angelica market continued to rise, and by the end of September, the Angelica market rose to 57.20 RMB/kg, or 38.83%. In October, Angelica entered the mining season. In addition to the impact of the epidemic situation in the production area, travel was restricted. The supply of goods did not move fast, and the market was stable.
The output of Angelica decreased this year
The growth of Angelica, due to its high requirements for altitude, temperature and humidity, climate conditions, etc., has the characteristics of more concentrated origin and significant natural geographical and climatic characteristics compared with most other varieties.
It is mainly produced in the southeast of Gansu Province. In addition, the northwest of Yunnan and the west of Sichuan are also its traditional production areas. Driven by the introduction, expansion and economic benefits in the past decade, Hehuang Valley, with Xining as the center in Qinghai Province, has developed into the second largest production area after Gansu, which has played a decisive role in the overall market. The area of Yunnan and Sichuan, the secondary production areas, has been shrinking in recent years, which has little impact on the overall market.
In Gansu, the largest production area, the planting area of Angelica has been decreasing year by year in recent years. Due to the limited use of land resources in the old production areas, most of them have not implemented rotation farming, which has led to the intensification of plant diseases and insect pests in recent years. The rotten roots and seedlings are very serious. In addition, the low temperature in spring and the high temperature and drought in summer have further affected the yield of Angelica. This year, the rate of dead seedlings is high (the plant growth is not good), and the per unit yield has declined, Its total output in 2022 will continue to decrease compared with last year.
Qinghai, the second largest producing area, has been required by the government to "return medicine to grain" since 2020 in order to stabilize grain production, which has restricted the expansion of the scale of planting medicinal materials. As a result, the planting area of Angelica has decreased significantly in the same year, and the output has still declined in the past two years. It has been learned that light to moderate drought has occurred in most areas of Qinghai this year, and severe drought has occurred in some areas, which has had a certain impact on the output of new Angelica products.
The third production area, Yunnan, is stimulated by the soaring price of Angelica in 2021. The planting enthusiasm of the planting people is high, and they have followed the planting. The planting area has increased sharply in the past two years. However, due to the abnormal climate this year, the rainfall in Yunnan is generally more than that in previous years. In addition, the hot weather lasts for more than a month, and the unit yield will decline.
The fresh price of angelica has risen this year
Angelica is easily affected by weather. This spring, the temperature is low, and the summer is also affected by high temperature and drought. Some growers said that according to the situation of fresh food collection this year, the yield per mu was only 100 kg.
The fresh price of Angelica last year was 8-10 RMB/kg, and this year the fresh price has doubled to 16-20 RMB/kg, which has also virtually increased the processing cost of Angelica. According to the 3.5:1 dry rate, plus other related expenses, the current dry cost price is more than 60 yuan.
The demand of Angelica increased significantly in multiple channels
Angelica has the functions of tonifying blood, regulating menstruation, relieving pain, moistening dryness, smoothing intestines, anti-cancer, anti-aging, etc. In recent years, in addition to the obvious growth in demand for medical channels, consumption in the food field, health products field and extract field has also increased significantly.
According to statistics, the consumption of Angelica in China will be about 36,600 tons in 2020 and 37,300 tons in 2021. Among them, according to the data monitoring of Chinese patent medicines currently in circulation, there are 1,656 kinds of Chinese patent medicines containing angelica in their ingredients, such as donkey hide gelatin and angelica granules, gynaecological Qianjin series, donkey hide gelatin and angelica mixture, Xiaoyao pill, Baizi Yangxin pill, etc.
The enterprises with the highest demand for Angelica are Hunan Warner Pharmaceutical Co., Ltd., Zhuzhou Qianjin Pharmaceutical Co., Ltd., Jiangxi Huiren Pharmaceutical Co., Ltd., Lanzhou Foci Pharmaceutical Co., Ltd., Guangzhou Baiyunshan Jingxiu Hall Pharmaceutical Co., Ltd., etc.
Few qualified agricultural residues
Pesticide residues: 33 national pesticide residues, which are prohibited by the state. For those plots in the 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 excessive pesticide residues.
As a new production area, the Angelica planted in "Qinghai Province" is relatively better, but it is very unstable, and it even fails to pass the inspection after mining and processing finished products. As a bulk variety, Angelica has a huge market demand and a very limited yield per mu; When large quantities of goods are brought to the market, "fish and dragons are mixed", the mixture of qualified and unqualified goods will become all unqualified.
Due to the continuous decline in the production capacity of Angelica, the inventory has been partially digested. The inventory of unqualified goods is still available, while the supply of qualified goods is in short supply. It is not only the actual demand of the market, but also the reinforcement of some businesses' hoarding of goods that aggravates the contradiction between supply and demand in the market, leading to the continuous rise in the prices of qualified goods and unqualified goods.
To sum up, in April this year, the temperature in Gansu began to rise rapidly and continued to September; At the same time, the rainfall decreased by about 50% compared with 2021, which had a great impact on the production of Angelica, and the situation of dead seedlings and wilting continued to intensify. Under the influence of popularity and capital, the market of Angelica ushered in a jump up. The current price is very profitable for growers. In addition, there is still a large amount of social inventory in recent years. SunSirs expects that the market will still fluctuate at a high level in the short term. If drought or serious diseases and insect pests occur again in 2023, the market of Angelica is expected to rise to another level.
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