How to reduce the fluctuation risk of raw material prices fo

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Here are some methods to reduce the risk of price fluctuations in biodegradable bag raw materials:

From a supply perspective

Expand the sources of raw materials:

Developing new biomass resources: In addition to common corn starch, sugarcane, etc., exploring the use of other abundant biomass resources to produce biodegradable materials. For example, researching the use of agricultural waste such as wheat straw and rice husk to extract relevant components for manufacturing raw materials can expand the supply channels of raw materials and reduce dependence on a single or a few biomass resources.

Utilizing microbial synthesis: synthesizing monomers or polymers of biodegradable materials through microbial fermentation technology. Some microorganisms can produce biodegradable materials such as polyhydroxyalkanoates (PHA) under specific conditions, which can avoid dependence on traditional biomass cultivation and the production process is relatively controllable.

Improve the efficiency of raw material production:

Optimize production process: Continuously improve and optimize the production process of biodegradable materials. For example, in the production process of polylactic acid (PLA), by improving the lactic acid fermentation process and increasing the conversion rate of polymerization reactions, more raw materials can be produced with the same equipment and time investment, thereby increasing supply and stabilizing prices.

Expand production scale: Encourage enterprises to invest in building larger scale raw material production factories. Taking poly (adipic acid/butylene terephthalate) (PBAT) as an example, large-scale production can achieve economies of scale and reduce unit costs. Meanwhile, large-scale production can also improve the stability of raw material production and reduce price instability caused by fluctuations in small-scale production.

From a demand perspective

Promote market diversification:

Expanding application areas: In addition to the traditional packaging field, actively expanding the application of biodegradable bags in other fields. For example, promoting biodegradable seed bags, pesticide bags, etc. in the agricultural field; Develop biodegradable bags in the field of construction that can be used for building protection and temporary packaging. By expanding the scope of market demand and avoiding excessive concentration of demand in certain industries, the impact of demand fluctuations in these industries on raw material prices can be reduced.

Develop multifunctional products: Develop biodegradable bags with multiple functions, such as bags with preservation, antibacterial, waterproof and other functions. This can attract more consumers and industries with different needs, increase the added value and market competitiveness of products, and make market demand more stable.

Strengthen demand forecasting and management:

Establish a market monitoring mechanism: By establishing a comprehensive market monitoring system, timely tracking of supply and demand changes, price fluctuations, and other information in the biodegradable bag raw material market. By utilizing big data analysis and market research methods, predict market trends and understand changes in market demand in advance, so that enterprises can adjust their production and procurement strategies in a timely manner.

Signing long-term contracts: Enterprises producing biodegradable bags can sign long-term supply contracts with raw material suppliers, agreeing to supply raw materials at relatively stable prices for a certain period of time. This can avoid the impact of short-term market price fluctuations on enterprise costs, and also help suppliers arrange production plans reasonably to ensure stable supply of raw materials.

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