Can the Market Continue To Go Higher As The Cost Of Planting Huang Lian Increases?

In 2022, the lack of actual consumption of Huanglian has led to price weakness, how will the market run in the future?

　

　　First, The market and production areas of Huanglian are in motion

　　Bozhou market: Recently, the market is not as active as the origin of Huang Lian, the market is weak. At present, the Bozhou market chicken claw even more asking price in 140-145 yuan (kg price, the same below) ranging, single branch even selling price in 150-155 yuan ranging, the market is still more business concern.

　　Anguo Market: After a small decline in the market, the price has basically stabilized recently, affected by the epidemic, the export situation is not good, generally for the purchase and sale of small quantities. The market price of chicken claw even more in 140-145 yuan ranging, single branch even selling price in 150-155 yuan ranging; old goods selling price is relatively low, quoted at about 130 yuan.

　　Yulin Market: The market is well-stocked with Huanglian, the recent market sources move in general, merchants sell actively, the market does not have big fluctuations. Now the price of a single branch of Lian is around 155 yuan, chicken claw Lian shouting price of 145 yuan, the price of Huang Lian tablets in 170-175 yuan ranging.

　　Chongqing Shizhu Huanglian dealers introduced, the recent production area listed in each set of 20 tons up and down, each set of transactions in more than 90% of the next, but the overall concern is general, belong to the normal digestion. The average price of the production of Huanglian transactions in the 140 yuan up and down, the price fluctuations in the short term is not significant.

　　Second, in the past five years, Huanglian price fluctuations frequently

　　In 2016, the planting area and production of Huanglian have been reduced, the second half of that year, Huanglian market slowly recovered; 2017 throughout the year, Huanglian prices rose, popularity burst, the price reached 145 yuan in September, and the price hovered above 140 yuan for half a year to the end of May 2018, the market has declined, after the market has been hovering around 100 yuan.

　　After November 2020, the market recovered, mainly due to the opening of the trend of the general price increase of Chinese herbs, a large influx of funds, the price of Huanglian also rose from 105 yuan all the way to 155 yuan in October 2021, after the source of goods into the actual digestion phase, the market appeared a small decline.

　　Third, the production cycle is long, production remains stable

　　Huanglian has a long growth cycle, about 5-6 years, from spring until the end of summer can be planted, harvesting from September, lasting until around the Spring Festival.

　　There are three types of Yellow Lian, namely Flavour Lian, Yalian and Yun Lian, and they are divided into Chicken Claw Yellow Lian and Single Branch Yellow Lian according to their specifications. It is mainly produced in Shizhu County in Chongqing, Lichuan County in Hubei, Hongya County and Ya'an City in Sichuan and northwestern Yunnan. This species has a long production cycle and high planting technology requirements, so the migration out of the production area is not obvious.

　　The current planting area of Huanglian in Shizhu is shrinking, and with the death of the disease, Huanglian yields have dropped significantly and overall production has declined. However, in recent years, the market is at a higher price, concern merchants more.

The planting area of Huanglian in Hubei has grown significantly, and the total production of Huanglian in and around Lichuan, Hubei has exceeded that of various other production areas.