Paprika Oleoresin price will not fall in 2017
date:2016-07-11
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By Kevin Pang,  Editor of Herbridge Media

China cultivated area &yield of Paprika in 2015
The Major varieties used for color extraction are Sweet paprika and Jinta pepper and other large peppers, main cultivated area are in Korla, Kashgar, Akesu and Shihezi etc., districts of Xinjiang province.
According Herbrdige Media,The total cultivated areain Xinjiang Province is about 620,000Mu ( 1 Ha= 15 Mu) in 2015, including sweet paprikaabout 380,000Mu, JINTA pepper and Cayenne pepper about 240,000 Mu. In the early harvest season of 2015, because of the speculation of overall crop yield increasing, buyers are sitting on the sidelines, purchases started late. However, the actual crop yields did not come out as expected because of the weather effect, which brought to the results of panic buying when purchases started, market stock decreasing very fast. Therefor purchases season are concentrated in 1 to 2 months and 1-2 months shorter than previous season. In the entire purchasing season, it was starting at low price, but increasing gradually.
Crop yield statistic and Price forecasting of paprikain 2016
Chenguang Biotech Group told Herbridge Media, The total cultivated areain Xinjiang Province is about 700,000Mu ( 1 Ha= 15 Mu) in 2016, including sweet paprika about 430,000Mu, JINTA pepper and Cayenne pepper about 270,000 Mu. However, the color value is lower than last year from the early harvest stock, one reason is early harvesting result in not fully accumulation of color value for Paprikaitself; moreover, more than one week continuous raining ,with lower temperature, in the last growing stage of Paprikaaffects its final growing progress. Althoughlater the color values were increased when massive stock come to the market, but still not as good as last year, it is estimated about 10% lower than last year. In addition, the final crop yields were affected by weather, although the cultivated area increased but overall production yield is almost the same with last year.
In October, when Xinjiang dry paprika come to the market, panic buying appear again, most buyers are oleoresin producers, paprika power producers, dry paprika pods exporters, and middle traders. So the new season prices are keeping on increasing. Most of Xinjiang paprika was sold in Oct, the remaining materials are with high moisture and low color value, but still the price is not decreasing, which caused high production cost of paprika oleoresin.

Market stock and price trend of paprika oleoresin in 2015

According Herbrdige Media,In the paprika season beginning of 2015, because of high crop yields expectation, also raw materials were at low price at season beginning, which lead the price of paprika oleoresin at very low level. But which the changing of raw material market, paprika oleoresin prices were slightly increasing, but the real price increasing started from March and April with appearance of supply-demand imbalance, oleoresin producers started to restrict or postpone the supplies. Market shows critical stock shortage of paprika oleoresin with high market demand. Prices of paprika oleoresin were increasing a lot. 
The prices of paprika oleoresin show huge increase this year, prices were increased about 40%. The reason caused this situation is that since 2012, some small producers either stepped out the market or reduce the production volume because of continuously in loss, the market stock became less and less. Currently, there are only 4 or 5 substantial producers,although total production volume increased compare to previous years but still cannot meet the market demands. .

Market stock and price trend of paprika oleoresin in 2016

In 2016, paprika raw material prices are about 30% higher than last year pushed the price of paprika oleoresin keep on increasing, which is unexpected.
However, the pricesof paprika oleoresin are not only affected by raw material in China, but also associated with quantity from China producers, India crop situation and volume of paprika oleoresin produced, and market supply-demand relation, and even though the prices are expected with slow increasing trend but the final price will depends on market supply and demand

Crop cultivation area, market price trend of paprika oleoresin in 2017

Because of goods market prices and sales of paprika pods in 2016, farmers are willing to plant more paprika, in addition, corns and other agricultural products’ prices are keeping on decreasing,it will have better earning from paprika crops, it is forecasted the cultivation area will increase in 2017, with good weather condition, next year should have good harvest. There is large chance that price of paprika will decrease, and the paprika oleoresin prices could be adjusted accordingly.

Suggestions to the international buyers, e.g. budget adjusting etc.,

Itis a very special year for paprika oleoresin in 2015, because of shortage of paprika oleoresin; some oleoresin buyers could not get enough material last season. Therefore, we suggest oleoresin buyer make purchase planin advance and look for reliable suppliers to guarantee the goods supply.

Chenguang Biotech Group Co., Ltd as the leading enterprise of paprika oleoresin, devoted to maintain stable market, build long term stable cooperation with customers, guarantee the supply with goods quality and competitive price.
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