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    Home > Medical News > Latest Medical News > How should the relevant companies respond to the long-term trend of rising prices of Chinese medicinal materials?

    How should the relevant companies respond to the long-term trend of rising prices of Chinese medicinal materials?

    • Last Update: 2021-10-01
    • Source: Internet
    • Author: User
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    Since the beginning of this year, the prices of Chinese medicinal materials have begun to continue to rise, and many varieties have risen by more than 100%
    .
    Specifically, there are data showing that starting from the second half of 2020, the price of Maqianzi has increased by 228% in one year, while the prices of Mimenghua, Gecko, Bozi Yangxin Wanren, Dafengzi, Perilla Seed, and Turmeric have increased annually.
    More than 150%
    .
    In addition, since August, the growth rates of chrysanthemums and imported jujube seeds have all exceeded 50%
    .
    The long-term trend of rising prices of Chinese medicinal materials (picture source: Pharmaceutical Network) In response to the continued price increase of Chinese medicinal materials, a large number of pharmaceutical companies are making efforts to understand the reasons for the price increase of Chinese medicinal materials.
    It is caused by factors such as large weather changes and import restrictions
    .
    But in fact, regardless of whether the price of Chinese medicinal materials increases or decreases, the industry believes that this is the norm in the market
    .
    It should be noted that, in the context of the continuous price increase of Chinese medicinal materials, downstream industries are continuing to be under pressure
    .
    It is understood that since the beginning of this year, of the 70 listed companies involved in the concept of traditional Chinese medicine, more than 80% of the total operating costs of the companies in the first half of 2021 have increased year-on-year, and the total operating costs of nearly 50% of the companies have increased by more than 20%
    .
    Among them, many companies have bluntly stated that they are facing greater pressure as the prices of Chinese medicinal materials continue to rise
    .
    At the same time, a group of companies have also disclosed risk warnings due to the price increase of Chinese medicinal materials: due to the scarcity of wild resources of Chinese medicinal materials, artificial planting is affected by factors such as the climate environment and planting area, the company may face the risk of insufficient supply of raw materials.
    ; At the same time, with the large fluctuations in the purchase price of raw materials, the company's procurement costs and the risk of losses in the trade of Chinese medicinal materials will also increase
    .
    So, in this context, how should Chinese medicine companies guarantee the normal production and supply of their products? It is understood that many companies have already begun to take a series of measures
    .
    For example, Tus-Holdings has strengthened market price monitoring and analysis on the one hand, and actively carried out strategic reserve procurement of key raw materials to reduce procurement costs
    .
    On the other hand, through the establishment of a bulk raw material procurement platform, the centralized procurement of some raw and auxiliary materials and packaging materials was realized; and by improving the accuracy of production forecasts, resources were optimized and the overall cost of the industry chain was reduced.

    .
    In addition, pharmaceutical companies such as China Traditional Chinese Medicine, Tasly, Zhendong Pharmaceutical, Yunnan Baiyao, and Taiji Group have established their own raw material production bases, which can calmly cope with price increases
    .
    Although corporate planting will also be affected by factors such as weather, at least the supply will be guaranteed and the price will not be too high
    .
    To help Chinese medicine companies deal with the price increase crisis, pharmaceutical companies have a lot to do
    .
    Of course, in the face of the pressure of rising prices of Chinese medicinal materials, in addition to the continuous exploration of solutions by Chinese medicine companies themselves, many other industries are also working hard .
    Among them, the pharmaceutical equipment industry is worth mentioning
    .
    You must know that the harvesting and processing of Chinese medicinal materials are inseparable from the assistance of pharmaceutical equipment
    .
    And efficient and intelligent equipment can increase production capacity for pharmaceutical companies and reduce the loss of raw materials
    .
    It is reported that in order to help Chinese medicine companies reduce costs and increase efficiency and reduce cost pressure, many pharmaceutical companies are accelerating innovation and upgrading equipment
    .
    Taking drying equipment as an example, the traditional drying methods for traditional Chinese medicinal materials in the past are generally divided into natural drying and heating drying.
    However, traditional methods have certain limitations and irregularities due to the greater influence of the region, climate, and weather
    .
    Now, with the rapid development of modern technology and the application of microwave drying, vacuum freeze drying, heat pump drying and other modern drying technologies, domestic drying equipment has been able to carry out more high-quality and efficient drying on the basis of further retaining effective medicinal ingredients.
    System; At the same time, it can reduce labor costs and reduce pollution
    .
    The industry believes that in fact, whether the price of Chinese medicinal materials is increased or decreased, it is the norm in the market
    .
    From a long-term perspective, as the market's demand for traditional Chinese medicine continues to increase, and the country vigorously enhances the strategic position of traditional Chinese medicine and promotes traditional Chinese medicine services, China's traditional Chinese medicine market will continue to develop continuously
    .
    In this context, in order to promote the high-quality development of the Chinese medicine industry, relevant equipment companies need to seize development opportunities, as well as new market needs and trends; continue to increase R&D investment, continuously improve the quality of equipment, and better meet the needs of traditional Chinese medicine.
    Enterprise production needs
    .
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