We hope that this post finds you in good health at this difficult time. We wanted to write to you directly as we believe that it’s important to share information about any changes within our business that affects you, including price adjustments and the reasons behind them.
Although costs of authentic raw herbs have been steadily increasing since 2016, we had maintained most of our prices and tried to resist market pressures over the years. Considering recent events, we have now reviewed our prices across our dry herb and concentrated herbal granule product lines, and adjusted prices to reflect current market prices. We have managed to keep over 200 herbal products at the same price, and for others, we have either decreased or increased prices.
Recent events such as Brexit and the coronavirus pandemic have put us under pressure to adjust our prices. Throughout the Brexit negotiations, we saw the value of sterling against the Chinese RMB drop significantly, which led to the cost of our herbs to become more expensive. Throughout January and February, the coronavirus outbreak caused a large majority of China’s workforce to go into lockdown. This subsequently brought China’s herb production to halt, which led to major disruptions in the herbal supply chain. Furthermore, global demand for herbs surged as there became a higher demand for herbal formulas to help prevent against COVID-19.
Moreover, there has been a growing demand for authentic Chinese herbs across the globe. More consumers are recognising the importance of buying authentic and unsulphur-treated herbs, as the impact of poor-quality herbs on health is now evident. Unfortunately, like organic produce, the production of authentic herbs without the use of sulphur can take much more time. Thus, the supply of herbs of this quality is struggling to keep up with demand. Naturally, this then drives market prices up.
To give you a few examples, we have seen prices and demand for various herbs change over the last few years. Firstly, Jin Yin Hua recently doubled in price due to the coronavirus outbreak and increased usage in formulas to prevent COVID-19 in China. Last summer, we also saw the price of Ju Hua increase as more consumable Chrysanthemum teas were arising in the Chinese market. Then, throughout autumn and winter, the price of Suan Zao Ren inflated as many consumers used the herb to improve sleep. It is clear that Chinese herbs are not only affected by healthcare demands, but also by the food and drink industry.
As one of the leading suppliers, we wish for herbal medicine to be as accessible to individuals in the UK and Europe as possible. We believe that herbs can have a profound impact, especially when used as a preventative measure and can benefit our society. Although we have resisted for a long time, we are not unaffected by market pressures so we are eventually required to make price adjustments. We will endeavour to adjust our prices again when markets ease and restore balance.
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We thank you for your continued support and for understanding the situation that we collectively face. We wish you all good health. Please stay safe.
The Phoenix Team