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New production tracking: Can the "high price" of cat's claw grass be sustained?

Cat's claw grass is a small variety that does not lack attention in the new production period, and this year is no exception, because of the popularity of merchants, the price ushered in a sharp rise, its market from about 90 yuan before the production of the highest rise to between 140-150 yuan, the market unified goods from 95-100 yuan to the highest shout price up to 160-170 yuan ranged, wash quotation between 180-190 yuan, each specification per kilogram generally rose between 50-70 yuan. So, what is the reason for this round of price increases, and how has the production of cat's claw grass been in recent years? How much is produced this year? Will the market continue to improve in the later stage? Through multiple investigations, the author analyzes the new situation of cat's claw production, and analyzes it as follows.

First, cat's claw grass has historically been overpriced

New production tracking: Can the "high price" of cat's claw grass be sustained?

As can be seen from the historical price chart, the last high price of cat's claw grass appeared in 2011-2013, which is the highest period in history since monitoring, when the price of domestic cat's claw grass reached 180-190 yuan. Later, the planting area of the production area was stimulated by the high price, and then ushered in a period of low prices, until the price of domestic seeds fell to about 50 yuan in 2015, so the planting area that year was greatly reduced.

In the second half of 2016, the price of cat's claw began to rise again, and the highest rose to about 110 yuan in 2017, but in 2018 the price has been declining, after 2019 due to the large production, coupled with the remaining inventory, resulting in a further increase in supply, the overall price still continues to fall, in 2020 the price reached a low of about 45 yuan in recent years, and then the price remained at the bottom of the shock.

During 2021-2022, even if the market of cat's claw rose slightly, it was still in a period of shock and decline before the new production in 2022, but due to rumors of reduced production after the new production, coupled with some farmers reducing the planting area and paying attention to the increase in merchants, the price rose to about 80 yuan that year.

This year's production area continues to report the news of the reduction of cat's claw grass production and with the digestion of the origin and market inventory in recent years, the price of cat's claw grass continues to rise sharply, the highest market price to about 150 yuan, the highest market situation to the highest between 160-170 yuan, and the price of washing goods as high as about 190 yuan.

Second, the new production of cat's claw in 2023

In order to further understand the new production of cat's claw in 2023, the author contacted Xinyang Huaibin in Henan and Funan, Anhui, and the following are the feedback of relevant merchants on site visits and visits:

Cat's claw has a short growth cycle, generally planted around October of the first year, and can be harvested around May of the following year, it is an annual herb with a new harvesting time of only about 20 days. At present, the mining of cat's claw grass has ended, but due to the rainy weather in the production area around May 1, the number of new goods on the market is small, and the circulation of old goods is not large, which makes the production area merchants and market operators immediately pay more attention, and also makes some investment merchants realize the opportunity of cat's claw again, resulting in an increase in merchants and soaring prices.

Cat's claw grass according to this year's general mu of dry products 100-130 kg, the purchase price of new production areas is basically 125-140 yuan / kg calculation, the average income per mu between 12500-18200 yuan, planing cost input, mu income can reach about 10000-15000 yuan (last year deduction of cost per mu income can reach about 6000-7000 yuan), the origin means that this year's cat's claw growers' income is much higher than in previous years, the benefits are better.

New production tracking: Can the "high price" of cat's claw grass be sustained?

Pictured: The production area produces newly dug cat's claw grass this year

Origin merchants also feedback that even if the price of the first two or three years continues to pullback, the income of pharmaceutical farmers per mu is reduced, but there are still profits to be made, so in 2020, 2021, 2022 the planting area of the production area has not been significantly reduced, but some pharmaceutical farmers have reduced the planting area, some franchisees estimate that this year's new goods production will be flat compared with last year, the current new goods in the production area has gone out of half, and there are still some unprocessed sources to be listed.

New production tracking: Can the "high price" of cat's claw grass be sustained?

Pictured: Cat's claw grass in the production area is being processed

Third, cat's claw stocks are gradually depleting

From a number of origin merchants and market operators to understand that the current annual demand for cat's claw grass is about 700-800 tons, of which domestic seeds account for the mainstream, some merchants count the output of about 1,000 tons in 2019, 800-900 tons in 2020, supply and demand in 2021-2022 are basically balanced, these two years have digested part of the inventory, the inventory has indeed declined.

Fourth, summarize the reasons for the "high price" of cat's claw grass

4.1) In the past two years, the inventory origin and market inventory have been digested.

4.2) The concentrated purchase of pre-production origin traders and market merchants diverts the supply of cat's claw grass, resulting in a decrease in circulation.

4.3) Entering the new production period, due to rumors of reduced yield, the popularity is high.

4.4) After new production, new goods from the production area cannot come up, and the supply in the hands of market operators is weak.

4.5) There are many buyers, not only the growers and traders in the production area show a reluctance to sell, but the asking price of market merchants is generally rising rapidly.

5. Aftermarket analysis

In general, cat's claw grass inventory this year is indeed low, and by the improvement of the market environment and the influx of hot money and other factors, once again created the current high price, but for the future market, according to the situation over the years, short-term stability, the future market wants to continue to rise, not only depends on actual demand, but also the further blessing of popularity and capital is also critical.

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