Ginseng prices rise nearly 5 times in 5 years

From 2007 26 yuan/kg to 120 yuan/kg in 2012, the price of ginseng in Jilin market has been rising. Under the good conditions, farmers in Jilin Province want to expand their crops and increase production, but this is not so easy now.

In recent years, the government has strictly controlled the area of ​​planting forests. At the same time, a large number of market funds are keen to compete for land resources and quotas. The “threshold” for ginseng planting is gradually elevated and it is getting more and more difficult to “squeeze in”.

It is understood that China is a large producer of ginseng that accounts for 70% to 80% of global production. However, the total output value created by the country is less than 4% of the world's total. The export price of ginseng in our country is a difference of 9 times compared with South Korea. A few years ago, the price of ginseng fell to the so-called "radio price."

Li Wei, Green Food Office of Jilin Province stated that in order to prevent the “roller coaster type” price from reappearing, Jilin Province, China’s largest ginseng producer, issued the 19th “Opinions on Revitalizing the Ginseng Industry” in 2010, which will control the area of ​​new land acquisitions each year. 1,000 is about, and previously developed area is generally more than 3,000 hectares.

The planting requirements for the participating lands are that they can no longer plant ginseng for at least 30 years after completing a ginseng. How can we get quotas and land resources? Zhang Hui, director of the Jilin Provincial Agriculture Committee's Ginseng Office, said in an interview with the media that, in order to increase the benefits of ginseng planting, the quota resources will tend to grow stronger and larger-scale planting enterprises or large planters to some extent.

Like many industries have experienced, ginseng planting industry also seems to usher in a "staking their own time" period. In view of the status quo of China's ginseng industry, increasing the added value of ginseng products and releasing the potential market space for ginseng is almost the only way.

This also allows sensitive market funds to sniff out hidden investment opportunities.

In view of the geographical environment and the special nature of planting and cultivation, ginseng has always had its scarce value. In history, ginseng can be grown in a wide range and even in Shandong and Shanxi. With the evolution of the climate and geographical environment, the scope of ginseng cultivation has continued to shrink to Changbai Mountain and Tianchi, and even the scope of South Korea's participation in the area is also to the 38th Line. Gradually moving north - which also means that not only ginseng, but also a scarce resource.

As mentioned above, the “Opinions on Revitalizing the Ginseng Industry” promulgated by Jilin Province will play a role in planning and regulating the output of ginseng. At the same time, the ginseng's purchasing and storage mechanism has basically taken shape. The growth period of ginseng is generally around 5-6 years, and adjustments in output adjustments have a lag period for the adjustment of price information.

As the price of ginseng has risen rapidly in the past two years, quotas for cutting forests along the Changbai Mountain have become scarce resources. Almost everyone wants to fight through various channels of relations. This year, the cost of such "relationships" will cost at least 100,000 yuan per hectare. But even so, as long as the quota is in hand, according to the current price, planting for six years will yield considerable profits.

At present, the major A-share listed companies with large ginseng business are Zixin Pharmaceutical, Yisheng Pharmaceutical and Guangdong Kangmei Pharmaceutical. In addition to the aforementioned companies, the giants of Amended Pharmaceuticals, Yatai Group, and China Pharmaceuticals have entered the Changbai Mountain area one after another. Many companies are looking for ginseng planting bases or acquiring companies that own ginseng planting bases.

On November 27, China Pharmaceutical announced that the company’s holding subsidiary, General Mecon, had participated in Jilin Jiayi Native Products Co., Ltd. All parties involved in the cooperation will conduct in-depth cooperation in ginseng planting, acquisition and primary processing.

According to the announcement, Jiayi Company started organic ginseng planting in 2001. It has built more than 3300 mu ginseng planting bases in its own and cooperative way in Malugou Town, Badaogou Town and Changbai Town in Changbai County, Jilin Province, 2013. The new planting area is 43 hectares.

"The government allows leading enterprises to collect a large amount of storage. The ginseng's shelf life is very long. It can be kept in cold storage for more than 15 years. Some varieties have no problem for hundreds of years and quality will not change." Cao Enhui, chairman of Zixin Pharmaceutical, said .

After 2009, many leading companies in Jilin Province participated in the purchase and storage of ginseng. The current situation is that the supply of ginseng is actually in a controlled state. If ginseng products can effectively expand the demand in the future, the price of ginseng may be in an upward trend for a long time. It will even become a cyclical investment.

In terms of expanding market demand for ginseng products, the outlook seems to have been expected.

In September 2012, the Health Planning Commission approved the artificial cultivation of ginseng as a new resource food. Ginseng, which has long been regarded as a valuable medicinal material, was allowed to enter the food market, achieving homology between medicines and foodstuffs, and the demand for ginseng for food and beverages was greatly increased. The demand for ginseng in the future market may be very considerable.

Perhaps it is because of this that market funds have flocked to open up and squeeze into the door of ginseng plantation. The journey to change the industrial situation of China’s ginseng “a country with a large output and a small output value” has just taken the first step.