The increasing cost of pollution control in China is one of the reasons behind the decision by Shenzhou Biology and Technology to increase the price of its CoenzymeQ10 by 10%, starting next month.
Shenzhou Bio is yet to make a profit on CoQ10, which although witnessing growing demand, has yet to make any money for the company, according to Wang Qingiun, its general manager.
CoQ10 is an oil-soluble, vitamin-like substance present in most eukaryotic cells, primarily in the mitochondria, with greatest concentrations in the heart, liver and kidney. The estimated daily intake in the developed world of the molecule has been determined at 3-6mg per day, derived primarily from meat. Aside from supplements like Shenzhou Bio’s product, levels over 50mg/kg can be found in beef, pork, chicken heart and chicken liver.
"We have seen a decisive upward trend in the price of CoQ10 over the past two years,” Wang said. “Our selling price over the last few years has been less than our costs and Shenzhou Bio is not making profit but losing money.
“Although Shenzhou Bio regrets any increase in price to its customers, mounting stressors on margin and supply have necessitated that we follow the market up.”
Wang added that the product would disappear from the company’s inventory if Shenzhou Bio could not make it profitable.