5-HTP Ingredient Price Surge Causes Product Manufacturers to Cut Back

(FAIRFIELD, NJ) January 18, 2010 – 5-Hydroxytryptophan (5-HTP) extracted from the seed of Griffonia simplicifolia grown in West Africa, has risen nearly 10 times in price within the past two year causing U.S. product manufacturers to cut finished product production, according to Charlie Wang, vice president of JIAHERB, Inc., the U.S. branch of Shaanxi Jiahe Phytochem Co., Ltd., a GMP herbal extract manufacturer in China.

According to JIAHERB, a recognized 5-HTP supplier, 20 metric tons of the naturally derived amino acid was sold in the U.S overall in 2009. 5-HTP has been shown in comprehensive studies to be safe for people who suffer from insomnia.

“Currently, the cost per kilo has jumped from approximately $200 for product from the 2007 harvest, to about $2,000 a kilo for the raw material from the 2009 harvest,” said Wang, who also noted that China and India are home to the largest 5-HTP ingredient producers.

“The international ingredient shrinkage of 10-20% during the 2009 harvest season is just one reason for higher costs,” notes Wang. “Many manufacturers, distributors and brokers are stockpiling materials to gain a greater price margin and this also causes the amount per kilo to increase.

“We recommend going directly to the ingredient manufacturer before the start of the annual ingredient collection season which begins every January, and lock in a price,” says Wang.

During the cost crisis, Wang says manufacturers of 5-HTP retail products have to continue to keep their customers satisfied and keep a smaller amount of finished product on store shelves. As a result, JIAHERB, the largest manufacturer of herbal ingredients with its corporate headquarters in China, is working with its finished product manufacturing customers to stabilize the margin and ingredient supply and ensure product will be available until the next harvest.

“The coming harvest season will set the price for the following year,” Wang said. “Obviously higher costs must be passed on to the end user. But just how much will consumers be willing to pay?”

JIAHERB, Inc. has a 300,000 square-foot, state-of-the-art NSF-GMP certified, ISO9001, ISO14000 and HACCP manufacturing facility plus in-house lab testing, and product extraction and purification processes through its research and development facility based in China. Maintaining the utmost in product quality, Kosher and Halal certifications and customer service, JIAHERB offers a wide-range of herbal extracts that meets Good Manufacturing Practices (GMP).

For more information about 5-HTP, contact JIAHERB, INC. at 973.439.6869 or by email at [email protected]. The Web site is www.JIAHERBinc.com.

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