The price of Star Anise has changed dramatically in recent years. From 2017 to 2018, the price fluctuated between US$3.00/kg and US$3.50/kg But by November 2020, the price has risen sharply. Around US$13.60/kg and even climbed to around US$15.90/kg in April 2021. The current price is around US$11.40 / kg.
Why does the price of Star Anise change so much? What has happened in recent years?
Star anise is mainly grown in Guangxi, Yunnan, Guizhou, Guangdong, Hunan, and a small amount in Taiwan. Star anise is mainly produced in Teng County, Longzhou, Ningming, Pingxiang, Shanglin Fangcheng, Shangsipu, North Debao, Jingxi Napo, Baise Lingyun, Leye, Yulin, Beiliu, Rongxian, Guiping, Cangwu, Cenxi, Zhaoping of Guangxi Zhuang Autonomous Region, Guangnan and Funing counties in Yunnan Province, Xinyi counties in Guangdong Province.
Historically, the Star Anise market has fluctuated frequently, and each price fluctuation is related to production reduction and bumper harvest. The size of Star Anise production, in addition to weather factors, is related to the size of the year. According to the growth law of Star Anise, there is a bumper harvest year every 3 to 4 years, commonly known as the Big Harvest Year. According to historical market records, 2012 was a bumper harvest of Star Anise, with a total output of about 90,000 tons. 2013 to 2016 was a normal year, and the average annual output was about 40,000 to 50,000 tons. 2017 is a minor bumper harvest year for Star Anise, with an annual output of about 80000 tons, while 2018 is a small harvest year for star anise, with an estimated output of only 30,000 tons. However, the annual demand for star anise in the market is about 40,000 tons. A large amount of inventory is needed to replenish the star anise production in 2019. The backlog of inventory for many years has been well digested. According to the operators, the inventory of star anise has bottomed out in 2019. In 2020, the output of the star anise in the spring and autumn seasons was not large. After the new products were launched, the processing households actively snapped up the fresh fruit and raised the price step by step.in 2001, the high price of Star Anise was more than US$15.10/kg. It was that high price that stimulated the large-scale development of production areas and led to the bad market from 2004 to 2009. From 2005 to 2006, the lowest price fell to as low as about US$1.00/Kg.
The star anise begins to bear fruit 3 to 4 years after planting, enters the prolific period after 10 years, and declines year by year after 25 years. According to the calculation of the first round of mass planting in 1993, some plants have entered the senescence stage in advance in 2018, and the yield will decrease year by year. In the second round of mass planting in 2001, the output will also begin to decrease after 2026.
In 2022, the yield of Star Aniseed spring crop is still not high, thus supporting the high price. After the price rose to US$15.00/kg, why did it not continue to rise? Some people say that the high price has suppressed the actual demand in the market and reduced the demand. Naturally, it is difficult for the price to rise again.
As the price of Star Anise rises, growers are bound to strengthen plant management. Whether the output of Star Anise Autumn Crop can increase substantially needs to continue to be observed. However, due to the severely weak inventory of Star Anise, it is difficult for the price to continue to decline in the short term. However, it has shown insufficient motivation for the price of Star Anise to return to the previous high level. If there is neither major natural disaster nor substantial production reduction, the price will not rise too high in the short term.
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Contact Person: Michael
Post time: Jun-13-2022