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Shanghai Baoxing Biological Equipment Engineering Co., Ltd

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Fermentation tank enterprises face problems and future development
Date: 2014-11-04Read: 18

Fermentation tank companies in China have experienced rapid price declines and fierce bottom price competition in less than 2 years. Companies that were once enthusiastic about launching fermentation tank projects are now lamenting the meager profits and fierce market competition. Like all products, facing the impact of overcapacity, some fermentation tank companies have begun to shut down and enter a "dormant period". I can't help but ponder: What kind of yesterday did the fermentation tank market experience? What is the market situation for fermentation tanks today? What is the future of fermentation tanks?
  
Short term rapid expansion of fermentation tank capacity
  
Every product, without exception, is undergoing cyclical changes in the industry. In the feed industry, such examples are also abundant, relying heavily on amino acid products and vitamin C products, and recently on methionine products. And the fermentation tank products we mentioned here are just an example of the industry experiencing rapid changes in the industry cycle .....
  
In just 2 years, the price of fermentation tanks has been halved
  
From the beginning of 2012 to the end of 2013, the price of fermentation tanks has halved in just two years .....
  
Fermentation tank enterprises bid farewell to skim profit and enter the era of low profit
  
Since 2012, the production capacity of fermentation tanks has exceeded demand, leading to fierce competition among manufacturers and a rapid decline in market prices. Sales personnel of a listed company in China have reported that the prices of domestic fermentation tank manufacturers are basically at the bottom. According to different cost controls, profit margins are limited, and even many fermentation tank manufacturers are losing money. The past era is now a thing of the past .....
  
Enterprises are unable to bear the burden and are closing down one after another
  
Since 2012, with severe supply-demand imbalance and meager corporate profits, some fermentation tank companies have expressed the intention of "retiring". Currently, domestic enterprises mainly focus on digesting inventory, and even many companies have started planning to seek alternative livelihoods .....
  
Fermentation tank enterprises face problems and future development
  
As a life science industry, the application of fermentation tanks is still in the promotion stage. Currently, there is still great room for improvement in the application of fermentation tanks in the Chinese market, and with the decline in prices, many companies have begun to attach importance to the addition of fermentation tanks in recent years.