More Updates on Factors Affecting the Price & Availability of Chinese Herbs
One of our most trusted suppliers of Chinese herbs has advised us that market conditions are still creating increased demand and decreased supply of many vital herbs which is causing the price of herbs to skyrocket. Some of the factors contributing to these unfavorable conditions include not only weather problems that damaged crops (severe droughts, flooding, extremely cold winters) but also economic changes such as the rising value of the Yuan (the currency used in The People’s Republic of China). In the last 6 years, the value of the U.S. Dollar compared to the Yuan has decreased by 20%. In 2004, the U.S. Dollar could be exchanged for 8.27 Yuan but today it can only be exchanged for 6.64 Yuan. In addition, fuel cost has risen significantly, causing transportation/shipping costs to rise proportionately.
In recent years, many farmers in China have left their farms to seek higher paying jobs in the cities. This has left a deficit in the number of farms growing herbs as well as a shortage in agricultural labor for those farms still active. This has resulted in a decrease of supply and an increase in labor costs. According to one English newspaper published in China, many herbal medicines have increased in cost by 700%!
Herb prices continue to fluctuate on a daily basis. As of today, Zi Zai Dermatology has no intention of raising our prices for our products. We cannot guarantee that we can avoid price changes in the future, but we will post warning here before any changes go into effect. We hope you understand our dilemma and we hope you continue to count on us for our high-quality products and our honest communication with our customers.
Publish Date: January 21, 2011 *Articles may include updates since original publishing.