Himalayan fungus Now Worth More Than Gold - The price of caterpillar fungus — or dongchong xiacao, literally meaning “winter worm summer weed” — has been climbing since May, the start of its collecting season, and skyrocketed since the first day of this month.
The fungus – grown in western regions including Qinghai, Sichuan and Tibet – is believed by practitioners of traditional Chinese medicine to give a person extra energy, though many (read: men) who take it are seeking to improve their sexual performance.
That latter use has led to the fungus being referred to in some quarters as Himalayan Viagra.
The China Association of Traditional Chinese Medicine says on its official website that the average price of major types of the fungus has risen by 30% year-on-year, with prices ranging from $ 59,660 per kilogram to $ 21,970 per kilogram for different species, a 10-year high. Varieties grown in Tibet trade at the highest prices.
The retail price of caterpillar fungus is getting even higher. Premium caterpillar fungus can be bought for 888 yuan ($139) per gram from Tongren Tang, one of China’s most prominent traditional Chinese medicine-focused pharmaceutical companies, twice the current price of gold, which is running about 338 yuan per gram.
The price of caterpillar fungus has been on a steep uphill in recent years. “I am impressed by the price miracle of caterpillar,” said Zheng Pu, a local Chinese traditional medicine dealer in Guangzhou, in an interview. “In 2004, one kilo would trade for about 25,000 yuan, but now, the cheapest in my store is sells for more than 200,000 yuan per kilo.”
“The rising demand is driven by increasing numbers of health-conscious Chinese consumers” and drug processors, said Wang Guan, investment manager of the Agricultural Industrial Development Fund of the Chinese Academy of Agricultural Sciences.
“Insect disasters in western provinces contribute to the soaring price by reducing output, and speculation is also to blame,” said Mr. Wang, adding that the current production is so small that dealers with about 100 million or 200 million yuan in hand can impact the market by holding on to supply until prices jump.
Despite the climbing price, experts say the fungus doesn’t make a good investment vehicle because storage and evaluating quality are both difficult.
“The average people are not capable of telling caterpillar’s quality, and it lacks liquidity in the market,” says Mr. Wang.
“Those speculators who store caterpillars for higher prices know little about caterpillar fungus. They may have no idea that caterpillar fungus can hardly be stored for a long time,” says Ke Chuankui, a medical professor and author of books about caterpillars fungus based in Hangzhou.
“The trend of shrinking output and increasing demand is inevitable,” says Mr. Ke. “I advocate a season off of collecting caterpillars and industrializing its cultivation to narrow this gap.”
The domestic price of caterpillar fungus has long been a rollercoaster ride. It reached a high in 2007 but dropped to less than half of the peak price in April 2009. Inflation and speculative crazes are blamed for most cases. The slump in 2009 was also caused by sales reduction stemming from cases, in which iron wires were mixed into caterpillar fungus to add more weight for selling. Caterpillar Fungus Viagra
Source:http://blogs.wsj.com/chinarealtime/2012/07/11/a-fine-fungus-himalayan-viagra-now-worth-more-than-gold/
Posts
