My energy is positive movement, my energy is positive movement, my energy is positive movement.. (Another hypnotic moment, brought to you courtesy of AOML.)
Just when you thought it was safe to open my blog without hearing about the Beijing Air quality, think again…….
Remember how Chinese officials shut down their coal-fired plants prior to the Olympics in order to improve the air of Beijing? Guess, what, folks. This included Vitamin C factories, and now there is a shortage of precious C—which means higher prices for you and me.
Speaking of which, Chris and I received a notice from Highland Labs (makers of our private vitamin line) telling us that Vitamin C is almost nonexistent due to Chinese factory shutdown, and the price of C is sky rocketing. In plain language, Linus Pauling is rolling in his grave.
Here’s a little known fact: The Chinese cornered the market on Vitamin C production way back in 2005. How did they do that, you ask? By using ancient, capitalist strategy, or undercutting everyone else to put them out of business, then raising prices. After China dominated the manufacturing sector, it was as simple as fortune cookie.
Check out this historic tidbit, dated 20-Oct-2005: “China’s dominance of the vitamin C market was confirmed last week as DSM halted all production of the bulk vitamin in the US, making its Dalry plant in Scotland the only remaining major plant outside of Asia.”
Vitamin C prices have spiked. China controls 80 percent of the market.
Two years later July, 2007 the news (Christian Science Monitor) gets more grim: “A sharp rise in the international price of vitamin C is focusing fresh attention on the risks of the world’s growing dependence on China for essential food supplies and additives.”
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“China, which exports more than 80 percent of the world’s ascorbic acid – also known as vitamin C and a key food preservative – appears to have cut production over the past several months, pushing prices up by more than 200 percent to a four-year high. ” Vitamin C Imports from China to US: Historic Prices (kilograms).”
Notice how far the prices dipped only to rise:
year 2000: $5.00
year 2001: $3.25
year 2003: $3.50 to $6.75
year 2005: $3.50
2007: (Jan-June):$3.40 to $11
Leo Hepner, a London-based management consultant to the food and pharmaceutical industry, says, “The Chinese have virtually captured the lot, unbeknown to most people. It puts us in a very difficult situation if, say, they stopped making it.”
Leo Hepner, the soothsayer, is what we should call him. Beause that’s exactly what the Chinese did—Stop making it: They halted factories during the Olympics, including the Paralympics which will run through mid September.
August 4, 2008 Desert News, Salt Lake City: “The only remaining producer of Vitamin C (ascorbic acid) outside China is Netherlands-based DSM. Its plant in Scotland is running at capacity and still cannot meet world demand, said DSM’s Martijn Adorf.
“China’s near-monopoly opened the door to huge price increases,” Her Hepner added, “and sparked an ongoing antitrust lawsuit. Much like a pole vaulter, ascorbic acid prices shot up from $3.50 a kilogram last year to $22 today.”
Hepner, the London-based food and nutrition soothsayer, went on to remind us that the Chinese in recent years had dumped ascorbic acid on the world market, and sold it for much less than it had cost to produce, which, in turn drove out most of the competition. He blames Western producers for taking advantage of China’s bargain-basement prices.
Why didn’t Western producers of Vitamin C see this coming? Weren’t they taking enough Vitamin C for normal brain function?
I don’t know, folks, but they weren’t the only dull ones.
According to Hispanicbusiness.com, factories in Beijing produce 70 percent of the world’s umbrellas, 60 percent of all buttons, 72 percent of shoes worn in the United States and 80 percent of U.S. toys.
But, but, but, how will we keep warm? Stay dry? What happens when all our shoes wear out? Will Santa have enough toys for the good little girls and boys?
These are questions we should think about now, folks. Check your clothing labels, your electronics devices, your furniture your anything….we don’t need a soothsayer to see the handwriting on the Great Wall.
Come to think of it, why not let me be your soothsayer? There’s a window right now, folks. For more information about sendoutcards and other marketing opportunities, call Chris (530 925-2845).
Happy tales,
Laura signing off.