The Market for Bovine Gallstones: China, Latin America and the Question of Stabilisation
Bovine gallstones – often referred to as cow bezoar or Calculus bovis / niu huang – are tiny in volume but gigantic in value. Formed in the gallbladder or bile ducts of cattle, they are used as a key ingredient in certain medicines of traditional Chinese pharmacopoeia, notably Angong Niuhuang Wan, an emblematic pill used in the treatment of strokes and severe febrile states.
During the 2020s, this small slaughterhouse by-product moved from being a curiosity to becoming “brown gold”: in some Asian markets, the best lots of natural niu huang reached extraordinary values. This surge attracted speculators, intermediaries and illicit trade, while pushing China to secure its supplies.
Today, with the opening of new import channels in Latin America – particularly in Uruguay and Argentina – the dynamics are changing. Many collectors feel they are facing a market that is still trending down compared to recent peaks. The central question then becomes: will the market stabilise, and at what level?
1. A Chinese Market Structurally Short of Supply
Final demand for bovine gallstones is overwhelmingly driven by mainland China and Hong Kong. Yet the local production of genuine natural niu huang in China remains very limited, while annual demand is estimated in several tonnes. The gap between domestic production and the needs of the pharmaceutical industry is measured in tons.
This structural deficit is covered by two main levers: on the one hand imports (directly or via Hong Kong), and on the other hand substitutes, notably cultivated gallstones and synthetic products. It is this scarcity of the natural product that explains the price surge observed from 2017–2018 onwards, with a spectacular peak in the years following the Covid-19 pandemic.
2. From Speculative Boom to a Correction Phase
2.1. The Bull Phase up to 2023–2024
During this period, Chinese media described a genuine “niu huang fever”. Prices soared as demand increased and volumes remained limited. Some peak transactions reached levels far above the price of gold, which fed speculation.
Manufacturers of traditional medicines based on niu huang saw their raw material costs skyrocket. At the same time, sales of Angong Niuhuang Wan and related products continued to grow, supported by the expansion of the domestic Chinese market, population ageing and the growing role of traditional pharmacopoeia in the healthcare system.
2.2. Turning Point in 2024: Opening Imports and the Start of a Correction
Faced with this extreme tension, the Chinese authorities began reorganising supply channels. On one side, better-structured import programmes were put in place to secure volumes while easing the price squeeze. On the other, substitutes – cultivated gallstones and synthetic products – started to occupy a significant place in the industry.
In concrete terms, the signals observed since 2024 are those of a market in correction:
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a decline in peak prices after levels that many market participants considered unsustainable;
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buyers becoming more selective on quality, with wider price spreads between premium lots and standard lots;
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the rise of substitutes, which act as a safety valve on demand for natural niu huang.
From the point of view of slaughterhouses and collectors, this phase translates into a feeling of a market that is still moving downward: prices offered in 2025 remain high in absolute terms, but are well below the peaks reached at the height of the speculative phase.
3. Opening to Latin America: Uruguay, Argentina… and Beyond
One of the major recent turning points in the market is China’s growing openness to bovine gallstones from Latin America. Uruguay has been one of the first countries in the region to structure this flow, with agreements allowing the export of bovine gallstones to China as a high value-added pharmaceutical raw material.
Around this move, a planned Chinese-funded plant in Uruguay aims to collect, sort and process gallstones from across the region (Uruguay, Argentina, Brazil) for export to China. Such a regional platform plays a key role:
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consolidating supply from an area with a vast cattle herd;
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harmonising quality and traceability standards;
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facilitating logistics and sanitary compliance with the Chinese authorities.
For Argentina, the signing of specific sanitary protocols opened the way for direct exports of bovine gallstones to China. Given the weight of the Argentine cattle sector and its already strong ties with the Chinese beef market, this new outlet is an additional source of value for an extremely rare but highly sought-after by-product.
Taken together, these Latin American openings are added to existing flows from Brazil, Australia, the United States and certain European countries. They significantly strengthen China’s capacity to secure supplies of natural niu huang.
4. A Market “Still Trending Down”: A Correction Rather Than a Collapse
Saying that the market is still trending downward accurately reflects the perception of upstream players, but it must be placed in context. The decline is from exceptionally high levels reached at the peak of the speculative bubble.
Three points are worth highlighting:
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The correction starts from an abnormally high peak:
the prices of some premium lots reached levels that were difficult for the industry to sustain, before easing under the combined effect of increased imports and substitutes. -
Pressure is concentrated on farm-gate and slaughterhouse prices:
purchase bids are less aggressive, quality criteria are stricter, and mid-quality lots are more often downgraded. -
Competition between origins and substitute products is intensifying:
Latin America, Oceania and Europe now compete with each other, while cultivated gallstones and synthetic products offer credible alternatives for certain uses.
Thus, the market remains in a phase of correction and normalisation. For slaughterhouses and collectors, it is logical to observe a downward-oriented market, even though the profitability of good-quality lots remains very high compared with most other bovine by-products.
5. Will Latin American Opening Stabilise the Market?
5.1. Stabilising Forces
Several factors support the prospect of a gradual stabilisation of the bovine gallstone market:
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Diversification of supply:
structured access to Uruguayan and Argentine gallstones, alongside other origins, gives China several levers of supply over a very large Latin American cattle herd. -
Better-controlled official channels:
sanitary protocols, traceability requirements and export/import controls reduce the room left for informal channels, which tended to fuel speculative spikes linked to perceived scarcity. -
Clearer market segmentation:
premium natural niu huang, standard gallstones, cultivated and synthetic products now form distinct categories with different price levels. This segmentation allows the highest prices to be reserved for truly exceptional lots. -
More moderate demand growth:
after years of strong expansion, demand for products containing niu huang continues to grow, but from a larger base and at a less explosive pace, favouring a plateau scenario rather than a new surge.
5.2. Sources of Volatility
In parallel, certain factors will continue to sustain significant volatility:
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The intrinsic rarity of natural niu huang:
only a few cattle out of a large number develop medicinal-grade gallstones. The market will therefore remain exposed to climatic, health and cyclical shocks that affect slaughter numbers. -
Regulatory and reputational risk:
growing sensitivity around animal-derived products used in traditional medicine may lead to rapid changes in regulation or public acceptance. -
Speculation on an opaque market:
information on actual prices paid for premium lots remains limited, leaving the door open to speculative moves whenever a rumour of shortage circulates.
5.3. A Medium-Term Base-Case Scenario
Bringing these elements together, a plausible base-case scenario for the next three to five years would be:
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An average price below the peaks but stabilised at a historically high level:
the market leaves the euphoric phase but does not return to the prices of ten years ago. -
A wider gap between premium and standard lots:
very high-quality, well-traceable and highly sought-after gallstones will keep exceptional prices, while ordinary lots will be more exposed to competitive pressure. -
A growing role for regional hubs such as Uruguay:
these platforms, able to centralise Latin American supply and deal with major Chinese buyers, become key actors in stabilising the global market.
6. Conclusion: A Less Euphoric but Durably Lucrative Market
The market for bovine gallstones is currently in a transition phase. After a spectacular price surge driven by Chinese demand and extremely limited supply, the trend is now towards correction. The market remains oriented downward compared with the 2023–2024 peaks, but it is moving towards a form of normalisation at a high level.
For slaughterhouses, collectors and traders, the challenge is no longer to bet on endless price increases, but to adapt to this new configuration: securing lot quality and traceability, understanding the market segmentation between natural, cultivated and synthetic products, and building strong relationships with Chinese buyers, who are now better supplied and more demanding.
In this context, the opening of the Uruguayan and Argentine markets, as well as the broader integration of Latin America into the value chain, should contribute to a gradual stabilisation of the sector. Natural niu huang will remain a rare and expensive product, but the time of speculative fever seems to be gradually receding, giving way to a market that is more structured, more segmented, and durably lucrative for players able to meet the quality and compliance requirements of the Chinese market.