This year, the acquisition of fresh ginseng is nearing completion. In 2009, the purchase price of less than 20 yuan/kg of fresh ginseng has risen to 80 yuan/kg or more here!

Where does the skyrocketing power come from?

In addition to the implementation of "natural forest resource conservation projects" by the State, strict approval of forest lands has reduced the output of ginseng to a certain extent, and "consistency in medicine and food" has brought about a certain increase in market prices. The enterprises represented by Zixin Pharmaceutical have continued to Big buyouts and “stockings” are also considered to be the “drivers” for the skyrocketing price of ginseng. One side is compressed sales, and the cash flow is drastically reduced. On the other hand, a large number of debts are being used, and inventory is climbing steadily. For companies such as Zixin Pharmaceutical, this is a high financial leverage gambling. While promoting the increase in the price of ginseng, the bet is that the amount of deep processing of the ginseng industry will increase. However, the current progress of deep processing of ginseng is very slow, and even ginseng products are rare in the market, and higher and higher stocks are like “barrier lakes” pushing the top.

Can current high prices continue? Will Zixin Pharmaceutical bet on success and where will China's ginseng industry eventually go?

The reporter conducted an interview and investigation.

With the price of ginseng soaring, Zixin Pharmaceuticals, which is rushing through the stock price, is taking a heavy load.

Jilin is the main producing area of ​​ginseng in our country. In the field of ginseng in Jilin, Zixin Pharmaceutical is a resounding name. “Fighting is very fierce” is the most direct feeling of ginseng brokers and farmers.

In 2009, the purchase price of ginseng in the main producing areas of Jilin Province was less than RMB 20/kg, and now the purchase price of local ginseng has reached RMB 80/kg. Behind the rise in the price of ginseng, the locals believe that Zixin Pharmaceutical has played an extremely important role.

"Purple Shine Pharmaceuticals came in and the price of ginseng rose." In an exchange with the "Daily Economic News" reporter, the local participating farmer Sun Yuguo expressed such an intuitive feeling. "It (Zixin Pharmaceutical) would not be able to catch the goods on this land. (Ginseng purchase price) would have to lose two dollars on the same day."

Zixin Pharmaceutical not only "grabbed" fierce, but also reduced the sales of ginseng products, which led to the stock of Zixin Pharmaceutical soared from 3,000 million yuan in 2009 to 1.42 billion yuan last year. Behind the huge inventories, Zixin Pharmaceutical constantly raises funds in various ways. In addition to financing RMB 1 billion in 2010 to invest in ginseng business and a large number of bank loans, the shareholder’s equity pledges and the temporary replenishment of liquidity with raised funds are also Appeared. In August last year, Zixin Pharmaceutical also pledged 989 tons of dried ginseng in its inventory to Jilin Bank Changchun Ruixiang Branch with a total of 200 million yuan.

At the same time, Zixin Pharmaceutical ginseng series products did not bring sufficient revenue to the company. This is reflected in the growth of the company's inventories. In the first half of this year, the gross profit of Zixin Pharmaceutical's ginseng products was only 31.38% of the company’s loan interest expense.

How to digest huge stocks? How does the tight capital chain save itself? How long does it take to borrow money to engage in such a seemingly unprofitable business? The reporter contacted Zixin Pharmaceutical and sent an interview on relevant issues. Outline, but the company secretaries disclosed that the reporter did not accept interviews in the three quarterly reports, and the other party did not respond in the SMS communication.

The price of fresh ginseng on site was quadrupled in four years. Jilin's autumn ambition in early October was strong. After the first frost, Changbai Mountain’s maple leaves looked like fire. However, for Du Shicheng, he had no time to enjoy such a beautiful scene, because the acquisition of local fresh ginseng was nearing the end. From the end of August to the beginning of October, he came to Wanliang Town of Fusong County, Baishan City every day to purchase ginseng—this is hidden in the mountains. Deep in the town, known as the world's largest ginseng transaction center.

Four years ago, the participating farmers here were also sad because of the low price of ginseng. Today, four years later, one of Wanliang’s farmers joined a reporter of the “Daily Economic News” and said, “This thing has to earn money, but it must be planted.” In Wanliang market, the price of fresh ginseng in 2009 was less than 20 yuan. It has now surpassed 80 yuan and has quadrupled in four years.

At 6:00 pm on October 3, the reporter went to the ginseng trading market in Wanliang Town. He saw only a few cars in the fresh ginseng trading hall. A vehicle full of fresh ginseng was waiting in an orderly manner.

Because the ginseng farmers are busy with ginseng during the daytime, the evening is the most lively time in the trading hall. Therefore, it is called by the local people as “ghost city”. That night, the town of Wanliang, located in the northeast, was turbulent, but the trading hall was still bustling. The farmers ran around their own bunch of ginseng and waited for buyers to come and talk.

The lobby of this big iron sheet was dimly lit. Buyers had a flashlight and carefully collected their own "prey." Because of the cold weather, they even wore military coats or wrapped up in scarves.

Du Shicheng said that the acquisition of the Wanliang fresh ginseng trade market is mainly an artificially cultivated ginseng, and there is a very small amount of ginseng ginseng. It is understood that the so-called ginseng of the forest is planted in mountain forests and allowed to grow in the wild. The price is higher than that of ginseng.

For local ginsengs, the prices of fresh ginseng have been “breaking through history” this year, reaching an average of 85-90 yuan per catty, twice the amount of last year.

This is unthinkable in 2009. "The price of ginseng was a few bucks at the time, just like potatoes." Said ginseng buyer Zhao Hongmei when talking about the 2009 market.

An assistant secretary-general of the Tonghua City Ginseng Industry Association told the reporter that from 1989 to 2009, it was the 20-year trough of Jilin ginseng prices, and 2010 was a year of reversal. According to Guan Jinlong, general manager of Tonghua Kaiyuan Ginseng Trading Co., Ltd. Ginseng Department, he received a minimum of 18 yuan per kg of fresh ginseng in 2010, but it rose to 35 yuan/kg by 2011.

"The level of awareness of ginseng has gone up. There is relatively more ginseng and the output is less." Guan Jinlong said that last year, fresh ginseng rose to about 45 yuan per catty, and the price started to reach 55 yuan at the beginning of this year. With the acquisition, prices rose to 65 yuan more than 10 days later, and then rose to 80-90 yuan.

According to Cao Zhiqiang, a research fellow at the Jilin Provincial Ginseng Research Institute, the price of ginseng has risen to 100 yuan per catty after the purchase season.

As the price of ginseng goes up, there is still the price of dried ginseng. The reporter learned that because of the bad storage of fresh ginseng, the ginseng acquired is generally quickly processed into dried ginseng, mainly sold by dry ginseng or entered into deep processing, and about 3.5 jin of fresh ginseng can be processed into one kilos of dried ginseng. After rising, the price of dried ginseng also rose. In Dunhua City, one of the major producing areas of Jilin ginseng, many ginseng shops visited by the reporter generally reflected that the price of ginseng has recently risen too high.

The owner of a ginseng shop calculated this account for reporters. The profit margin of ginseng has always been ten to twenty yuan. In previous years, the price per kilogram of ginseng (dry) was about 40 to 50 yuan/kg, and now To 360 ~ 370 yuan / kg, compared to the cost terms, the profit margin has been greatly reduced, the risk will also increase, before they are generally a few pounds of purchase, and now the purchase volume has shrunk to a few hundred pounds.

In one of the largest Chinese herbal medicine wholesale markets, Ms. Li, a ginseng herbal medicine supplier in Hebei Anguo Market, told reporters that American ginseng can be sold for the whole year, but local ginseng generally enters the sales season in the second half of the year. Few ginseng is purchased in the first half of the year. At present, the wholesale price of dried ginseng is about four or five hundred yuan per catty.

After the skyrocketing, Zixin Pharmaceuticals "does not bargain at all"

In the eyes of people in the industry, the skyrocketing price of ginseng is mainly due to changes in supply and demand.

A deputy secretary-general of the Tonghua City Ginseng Association said that after the country implemented the "natural forest resources conservation project," the approval of forest lands became strict, which, to a certain extent, reduced the output of ginseng and controlled the output of ginseng.

At the same time, Jilin Province issued several documents to strictly control the use of forested land for planting ginseng. In addition, the government's strict control over pesticide residues and the improvement of ginseng quality are also important reasons for the rise in ginseng prices in recent years. In the notice issued by Jilin Province in 2010 on the “Opinions on Revitalizing the Ginseng Industry”, a green organic standard was specifically proposed.

This opinion also proposes that by 2012, the industrial output value will reach 20 billion yuan. In 2015, the industrial output value will be 40 billion yuan, and the amount of intensive processing will account for more than 70% of the total; by 2020, the industrial output value will reach 100 billion yuan. .

In September last year, the original Ministry of Health approved ginseng (artificial planting) as a new resource food, which means that ginseng can be sold as an ordinary food in addition to medicines and health products. This has become another favorable stimulus for ginseng prices.

It is worth noting that, in addition to the above objective reasons, the large number of corporate acquisitions is also considered to be the main reason for the skyrocketing price of ginseng. The above-mentioned Deputy Secretary-General told the Daily Economic News reporter that large-scale acquisitions and hoardings of large enterprises represented by Zixin Pharmaceuticals have also pushed up the price of ginseng to some extent.

In 2010, Zixin Pharmaceutical aggressively entered the field of ginseng. The annual report shows that the company invested 620 million yuan in the procurement and processing of ginseng raw materials.

Du Shicheng told reporters that in the past few years, Zixin Pharmaceutical will launch a large-scale "grabbing" operation every August through the beginning of October. The so-called "grabbing" is to purchase fresh ginseng from the market or participating farmers. He has already bought fresh ginseng valued at RMB 10,000 this year for Zixin Pharmaceuticals. He earned a difference of RMB 1/kg, and fresh ginseng was directly taken by Zixin Pharmaceutical.

In order to allow farmers to rest assured, such transactions are often direct cash payments. “It's millions and millions.” Guan Jinlong told reporters that he had also received ginseng in Zixin Pharmaceutical in 2010 and 2011, but the lowest price was only 35 yuan/kg, which was less than the average price of this year. 1/4.

Guan Jinlong said that the ginseng purchase system of Zixin Pharmaceutical is a huge organization. In order to avoid processing, the Zixin Pharmaceutical Group has established cooperation with a number of newly added workshops. When the new ginseng is produced, they will drive through the car in large villages deep in the mountains with a large amount of cash. When they meet with the farmers, they will hand over the money to deliver the goods.

A person familiar with Zixin Pharmaceutical's acquisition of inside information told the reporter that, unlike ordinary ginseng dealers, Zixin Pharmaceutical's acquisitions do not bargain at all, and they directly take the Senate away and do not pick and choose.

"21st Century Business Herald" reported in September this year that in 2010, Zixin Pharmaceutical acquired 7,000 tons of ginseng. According to public information, Jilin Province has annual output of 20,000 tons of fresh ginseng, and only Zixin Pharmaceutical has purchased one-third of the annual output of ginseng in Jilin Province that year. 2010 has also become a year when the price of ginseng has bottomed out after a 20-year low.

In 2011 and 2012, Zixin Pharmaceutical continued to purchase ginseng. According to the above report, the purchasing volume of Zixin Pharmaceutical in the past two years reached 5,773 tons and 5,784 tons, respectively.

“Zhuangzhuang” suspect Yun Zixin stopped accepting prices and fell Zixin Pharmaceutical Chairman Cao Enhui said in an interview with “Securities Times” in September last year that from 2009 to 2011, the total amount of ginseng purchased by Zixin Pharmaceutical reached 2,000 tons. (Dry ginseng), and Jilin Province has about 7,000 tons of dry ginseng annually. In other words, not only in 2010, Zixin Pharmaceutical acquired 30% of the annual output of Jilin Province.

It is worth noting that, while continuing to make large-scale acquisitions, Zixin Pharmaceutical seems to be still "reluctant to sell", further tightening the market's parameters and increasing prices.

According to the annual report, in 2010, the inventory of Zixin Pharmaceutical, which first entered the ginseng market, rose sharply from RMB 30 million in 2009 to RMB 170 million; in 2011, the inventory value of ginseng has doubled its inventory value to 8.5. Billion; 2012, the amount of its inventory has soared to a high of 1.42 billion yuan, close to 10 times in 2010.

At the same time, Zixin Pharmaceutical's main business income in 2012 was sharply reduced from the high of 928 million yuan in 2011 to 419 million yuan, which is almost halved.

According to the “China Business” report, it is estimated that the amount of dry parameters currently stored in Zixin Pharmaceutical may exceed 3,700 tons, accounting for more than half of the total output of Jilin Province last year.

In 2013, Zixin Pharmaceutical "reluctant to sell" continues. In the 2013 semi-annual report, the company estimated that the ginseng business revenue in the first three quarters is expected to decrease by 49.2% year-on-year, and the net profit attributable to listed companies will decline by 52.29% to 59.74%. The reduction in sales of ginseng products is still main reason.

It is worth noting that in such a generous purchase and “reluctant sellers,” every move of Zixin Pharmaceutical has become a benchmark in the market.

"If it (Zixin Pharmaceutical) does not catch the goods on this land, it will have to lose two dollars on the same day. Because Zixin Pharmaceutical does not catch the goods, the local dealers will lower their prices." News reporter, according to his estimation, Zixin Pharmaceuticals has purchased 80% of the people's parameters in Tonghua. According to statistics, ginseng production in Tonghua City accounts for 31% of Jilin Province, 26% of the country, and 15% of the world.

In 2011, Zixin Pharmaceutical was exposed by the media because of concealing related transactions. Some people consulted on the website of the Jilin Provincial Government. Recently, Zixin Pharmaceutical made a lot of noises. Participating farmers in this year's ginseng reproduction is indecisive. Please ask the government department for advice. Some farmers also worried that Zixin Pharmaceutical did not purchase, and the price dropped to more than 50 yuan. However, after Zixin Pharmaceutical continued to purchase, the price will soon rise to over 70 yuan. Zixin Pharmaceutical's influence on the price of ginseng is evident.

Zixin Pharmaceutical has been called by some insiders as the “largest bookmaker” for ginseng prices soaring. “The most important thing for Zhuang is the economic strength. They spent hundreds of millions or even billions of dollars to invest.” An analyst who does not want to be named said that the most important thing is to artificially increase ginseng. A large number of acquisitions by large companies caused tight supply of ginseng.

It is not without cost that the capital quagmire pledges the ginseng to receive a huge ginseng inventory.

According to the statistics of the Securities Daily Market Research Center on March 26, 61 pharmaceutical bio-listed companies achieved a total operating revenue of 139.987 billion yuan in 2012, an increase of 20.45% year-on-year; and the total net cash flow from operating activities was 127.35. Billion yuan, an increase of 110.40% over the previous year.

In the pharmaceutical listed companies that are not bad for money, Zixin Pharmaceutical is an alternative. The data shows that in 2010, 2011, and 2012, Zixin Pharmaceutical earned 173 million yuan, 217 million yuan, and 86.31 million yuan; but the net cash flow from operating activities was -215 million yuan, - 559 million yuan, respectively. - 195 million yuan.

“The reason for the large difference between the cash flow and net profit of the company's operating activities was due to the fact that during the reporting period, the company used money products formed by selling products and purchased dry goods and fresh ginseng for loans.” In the annual report, Zixin Pharmaceutical explained .

The breakdown of Zixin Pharmaceutical's spending in recent years has indeed been related to the savage market. Reporter's financial report found that in 2010, Zixin Pharmaceutical's cash for purchasing goods and accepting labor services increased from 51.24 million yuan to 732 million yuan, an increase of 681 million yuan (of which 620 million yuan was used to purchase and process ginseng raw materials); This expenditure increased by 203 million yuan to 935 million yuan. In 2012, sales of ginseng business decreased, but the amount of this amount was still 836 million yuan.

When Cao Enhui was interviewed by the “21st Century Business Herald”, he disclosed that Zixin Pharmaceuticals has spent more than RMB 1 billion cumulatively, promoting the steady rise of ginseng prices.

Such high investment seems to have brought pressure to Zixin Pharmaceutical. Along with the development of ginseng business, “borrowing money” has become the normal state of Zixin Pharmaceutical.

The reporter found that in the three years from 2010 to 2012, the cash received by Zixin Pharmaceutical in obtaining loans increased from 228 million yuan in 2009 to 1.42 billion yuan in 2012.

In addition to bank loans, shareholder pledges and raised funds for temporary liquidity supplementation have also occurred frequently.

Purple Xin Pharmaceutical announced on October 11th that Zixin Pharmaceutical temporarily raised 40 million yuan of raised funds to temporarily replenish liquidity; the next day announced that the purple Xin Pharmaceutical major shareholder Kangping Investment Co., Ltd. The 26 million shares of the limited liability company were pledged again after the pledge was lifted. As of October 12 this year, the pledged equity has reached 95.61% of the total shares held by it. In August of this year, Zixin Pharmaceutical also pledged 989 tons of dried ginseng in its inventory to Jilin Bank’s Changchun Ruixiang Sub-branch for RMB 200 million for “ginseng purchase”.

At the same time, a large number of acquired ginseng has not brought a perfect return to Zixin Pharmaceutical in terms of profits.

The annual report shows that in 2011, after the gross profit rate of the ginseng series products reached 45.57%, the gross profit margin of the business went down all the way; in 2012, the income of its ginseng business plummeted to 112 million yuan, and the gross profit rate dropped sharply to 26.09%; During the same period, the company's drug gross margin reached 77.25%.

In the first half of this year, Zixin Pharmaceutical’s revenue from ginseng business was 56.675 million yuan, accounting for 27.38% of revenue. The gross profit rate of the ginseng products dropped by 3 percentage points to 23.03%, while the gross profit margin of the pharmaceutical products was still at a high of 77.40%.

As a result, the company’s gross profit for the ginseng business has been much lower than the loan interest expense for two years. The annual report shows that in 2012, the gross profit of the ginseng series products was less than 30 million yuan, while the company’s interest expenses for the year amounted to 70.20 million yuan; in the first half of this year, the gross profit of ginseng products was 11.505 million yuan, and the interest expenditure in the first half of the year was 41.59 million yuan. .

In the 2012 annual report, Zixin Pharmaceutical stated that in order to ensure the supply of raw materials after the investment projects were put into production and to ease the cost pressures caused by the rise in ginseng prices, Zixin Pharmaceutical significantly reduced the sales of ginseng. Under the circumstances that the funds are still tight this year, is there any plan to sell part of the ginseng to ease its financial pressure? Zixin Pharmaceutical's secretaries of directors disclosed the reason for the disclosure in the third quarter and did not accept interviews by reporters.

Gamble deep processing: high inventory or still difficult to digest one side is compressed sales, cash flow sharply reduced, on the other hand is a lot of debt, inventory climbed steadily. Some observers believe that Zixin Pharmaceutical is conducting a highly financially leveraged gamble, betting on the future development of the ginseng industry.

In September 2012, the former Ministry of Health approved ginseng (artificial planting) as a new resource food, and artificially grown ginseng can enter thousands of households as ordinary food. Prior to this, Jilin has become a pilot province of ginseng food and medicine.

Some brokers issued a research report saying that the dual use of ginseng medicine and food will increase the market's rigid demand for ginseng, and the price increase in the future will be a major trend. According to reports, in the international market, especially in Korea, more than 80% of the ginseng is eaten as food each year. The total population of South Korea is 49 million. It consumes 25,000 tons of ginseng every year, and it is 1.32 grams per person per day, which is 20 times that of China. The future development space is huge.

However, the reporter visited the field and found that the current progress of the ginseng deep processing industry in China is very slow. In particular, food is still at the initial stage, and there are not many ginseng products on the market.

“It is more fragmented and not scaled.” Liu Zanrun, president of the Qinghe Town Ginseng Chamber of Commerce in Ji’an, Jilin, told reporters that Chinese ginseng has not yet formed a real industrial chain.

From October 4th to October 9th, a reporter visited the field and discovered that at present deep processing of ginseng, especially food, is still at the initial stage. At the same time, there are not many ginseng products on the market.

Dunhua is the location of the major shareholder of Zixin Pharmaceutical. Dunhua Jidong Industrial Park is located in the Dunhua Economic Development Zone. The wall outside the two-story pink building in front of the development government has already begun to fall off, but the ginseng logo has been removed. The wording of the industrial incubator is still clearly visible.

The person in charge of the information center of the Dunhua Economic Development Zone told the reporter that according to his understanding, in the economic development zone, there is not much deep processing of ginseng. Currently only Jidong has just begun. The ginseng industry incubator was registered by a company several years ago. Not done already.

In Dunhua City, close to the city center, the reporter visited 8 ginseng shops. The reporter found that the products sold in these ginseng shops are still mainly dry ginseng, and the processed foods include only ginseng sugar and ginseng honey tablets. One of the ginseng stores indicated that the sale was mainly based on ginseng, and ginseng was only sold as a gift for customers to purchase ginseng and other products, and was rarely sold separately.

On October 10th, the reporter learned from Jixin Zixin Ginseng Sales Co., Ltd., a wholly-owned subsidiary of Zixin Pharmaceuticals, that it raised RMB 1 billion in funds to prepare itself for deep processing of ginseng and Zixin Pharmaceutical Co., Ltd. to ginseng products. Processing business has just started. According to the staff responsible for sales of ginseng sold by Jilin Zixin Ginseng Sales Co., Ltd., Zixin Pharmaceutical previously sold rough ginseng and made dry ginseng sales. In September this year, they just launched three new products, namely Ginseng enzymes, ginseng honey slices and red ginseng gelatin cake, in addition to ginseng enzyme price is 800 yuan, the price of the other two products is more than 200 yuan.

The reporter has received a promotion notice that Zixin Pharmaceutical now has a variety of sales platforms such as flagship stores and online direct sales stores. However, the reporter searched for Zixin Pharmaceutical's flagship store on Taobao. Its main products are mainly dried ginseng and ginseng slices, and none of the above three new products are available. The flagship store is only displayed at counters in Changchun Airport.

In addition, according to an assistant secretary-general of the Tonghua City Ginseng Industry Association, Jilin Province is building the “Changbai Mountain Ginseng” brand of Jilin in China. As a main body, each company’s individual brand is assisted, just like a combination boxing, “a whole Fight out."

It is understood that the “Changbai Mountain Ginseng” brand product is printed with the certification trademark logo on the packaging, and there is the words “Produced by the Jilin Provincial Participating Industry Association”. However, the products provided by the sales manager of Jilin Zixin Ginseng Sales Co., Ltd. show that Zixin Pharmaceutical's ginseng deep processing products are sold under the brand name “Zixin”. The sales manager explained that Zixin Pharmaceutical is a large company and does not need to rely on the “Changbai Mountain Ginseng” brand to build the “Xixin” brand.

The above-mentioned deputy secretary-general revealed that Zixin Pharmaceutical's ginseng tea series had entrusted the Tonghua Agriculture Committee twice to apply for the “Changbai Mountain Ginseng” brand from Jilin Ginseng Office, but none of them had been approved.

It is understood that in the "medicine and food homologous" pilot period, Zixin Pharmaceutical has done a lot of research and development work, with three series of ginseng food, ginseng cosmetics, and ginseng medicine. Among them, ginseng foods include ginseng tea, ginseng wine, and ginseng soft candy, among which ginseng enzyme beverage has been awarded national patents; the company has developed more than 100 varieties of ginseng foods in 16 categories, 41 of which have obtained production licenses.

"(But) there is no product that hits people now, but there is no fist product." The above-mentioned deputy secretary-general said with anxiously that the Zixin Pharmaceutical industry is doing a lot of virtual things, and the real thing is doing less. He agrees with Zixin Pharmaceutical in the culture. The contribution made in the promotion, but think it is not ideal in the industry.

No significant progress has been made in the field of deep processing. The huge inventory of ginseng in Zixin Pharmaceutical also has to face the risk of possible price declines.

After the price of ginseng has risen for a period of time, the profits of the peasants have been high. However, the continued high-level operation has left them full of confusion and worries.

According to a reporter’s on-site interview, with the high price of ginseng, the cost of the ginseng has gone up. The price of each ginseng has increased from 300,000 yuan in 2011 to more than 600,000 yuan this year, but ginseng has 5-6 years. The growth cycle, ginseng planted at high cost this year, is still hard to say after five to six years.

"Don't dare to plant it," said Sun Yuguo, a peasant farmer, saying that the risk is too high. If it does not emerge, it will be several thousand dollars.

As for the trend of late prices, Analyst Duan Hua, an analyst of “Chinese Herbal Medicine”, predicts that the price of ginseng may continue to rise for a year in the future. The reason is that the financial strength of large pharmaceutical companies such as Zixin Pharmaceutical should not be underestimated. However, considering the growth cycle of ginseng, he believes that after a large number of ginsengs are listed, prices will fall, but they will not fall as much as before, nor will they fall below the cost of production. "When farmers reach the balance point for planting, big companies will support the city."

Tonghua City Ginseng Industry Association, Deputy Secretary-General believes that this year should be the peak of the price of ginseng, and many farmers participate in preparing the ginseng. Two years later, many ginseng cultivated on the plains will be listed, and the total amount of ginseng will surely increase. However, it is hard to say whether the demand for downstream deep processing will come up.

"If the follow-up deep processing or ginseng food is done well, the demand will increase, and the price of ginseng may rise. If the follow-up deep processing does not keep up, so there is still concern." The above-mentioned Deputy Secretary-General said.

"Chinese herbal medicine world network" also conducted research on 113 growers. Growers' expectations for the future of the ginseng market are polarized. They believe that the price of ginseng is flat or rising in the future, and each of the ginseng farmers is half the number. The participation of farmers in the price is also divided into two poles.

Industry Analysis: The 20 years of ginseng production in a big country is a big country with a large production output. This has always been the personal pain of the Chinese ginseng industry. According to the “People’s Daily Overseas Edition”, the export volume of ginseng in Jilin Province is more than 20 times that of South Korea, and the amount of foreign exchange earned through exports is only 1/20 of that of South Korea. Even the phenomenon of “circling around” between China and South Korea’s ginseng is still present: Koreans buy raw materials for ginseng from China and sell them to Europe, the United States, Southeast Asia at a cost ten times or even several times after processing, and even sell back to China.

Since 2006, the Jilin provincial government has issued many documents to rejuvenate the local ginseng industry. In recent years, due to the participation of Zixin Pharmaceutical and other enterprises in the ginseng industry, its price has only come out of the low point for many years, reaching the current high price of 200 yuan per kilogram. However, after ginseng climbed to a high price, the reporter interviewed people in the industry and said that it will take some time before the difficulties of unraveling the Chinese ginseng industry are solved.

According to Liu Zanrun, President of the Ginseng Chamber of Commerce in Qinghe Town, Ji’an City, Jilin Province, the quality of fresh Chinese ginseng is not lower than that of South Korea. However, due to the lack of a complete industrial chain, its price is difficult to compare with South Korea.

According to calculations, only South Korea's "Zhengguanzhuang" (Korea ginseng brand old brand name) revenue in 2010 reached 12 billion yuan. The number of companies in China and ginseng is about 5,000, but the benefits are very limited.

According to “China Economic Weekly”, for 30% of the raw materials of Korean ginseng products came from Changbai Mountain ginseng for a long period of time, after being processed, some of them were marketed to Europe and America, but some of them were sold back to China at ten times the price.

Prior to this, many people in the industry blamed the bottleneck of the development of the Chinese ginseng industry on the fact that ginseng could not be used as food. In Korea, two-thirds of the ginseng is consumed as food.

On September 4, last year, the website of China's former Ministry of Health announced that according to the "Food Safety Law" and "Administrative Measures for New Resource Foods," the approval of ginseng (artificial planting) as a new resource food. Although the current industry threshold has been released, but the deep processing of enterprises is still very limited, most of Jilin is still small and medium-sized ginseng primary processing enterprises.

"It is more fragmented and not scaled." Liu Zanrun told reporters that Chinese ginseng has not yet formed a real industrial chain.

In the early days of the establishment of the ginseng brand in our country, many companies only referred to people as cash crops and fell behind Korea in packaging and processing. There are more than 30 registered ginseng brands in Jilin Province, but the output of each brand is not high, and the market coverage is narrow. What makes people feel slightly gratified is that the Jilin government has decided to revitalize the ginseng industry and is building the “Changbai Mountain Ginseng” brand of China Jilin, in order to open up markets both at home and abroad.