A woman carries freshly picked tea leaves in Longjing village in Hangzhou, Zhejiang province. The early batch of spring green tea is considered the best and most expensive kind of green tea. Photos provided to China Daily
Yang Guiquan, a tea grower in Hangzhou, has experienced ups and downs in his Longjing tea business since last summer.
The extreme heat and drought in July and August killed nearly 20 percent of his tea trees. But thanks to a joint effort of the local government, the tea industry association and his family, the total estimated output this spring will not decrease compared with last year.
However, with the picking of the early batch of spring tea coming soon, Yang is worried that his tea might not be as welcomed as it used to be.
Yang said that in 2012, more than half of his early-batch spring Longjing tea was booked at this time of year. However, the figure was no more than 20 percent this year.
"More than 60 percent of my clients for early-batch spring tea were purchasing for governmental bodies. Since the central government required
thriftiness among governments of all levels, I don't think these regular clients will come to purchase my tea this year," Yang said.
The early batch of spring green tea is considered the best and most expensive kind of green tea, given its special fragrance and ta
ste. It is usually picked before Tomb Sweeping Festival, which falls from April 4 to April 6. In ancient China, there is a saying that spring tea is as expensive as gold, and this tradition has been unchanged since ancient times.
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The early batch of Longjing tea is usually picked before Tomb Sweeping Festival, which falls from April 4 to April 6. |
Compared to regular green tea, the price of the early batch of spring tea is usually at least 30 percent higher than usual, said Shang Jiannong, president of the Hangzhou Xihu District Longjing Tea Industry Association.
"The top Longjing tea used to sell for 360,000 yuan ($58,000) per kilogram, but business is tougher and tougher since last year," Shang said.
Shang said that many tea growers in the district have been complaining to the association about the price drop this year.
"In 2012, the price offered by tea trading companies was 6,000 yuan per kilogram. Last year, the price dropped to 3,000 yu
an. It is predicted that the price will continue to drop this year to about 2,000 to 2,500 yuan," Shang said.
Shang said that 70 percent of tea growers from the association sell their tea to trading companies, which are becoming increasingly reluctant to place orders.
"In previous years, the Meijiawu area, one of the main growing areas of Longjing tea, will be filled with purchasing cars. This year, the number of such cars decreased sharply because those companies are aware that the market demand will not be as large as it was before," he said.
Ma Lianchen, general manager of Zhejiang Tianhong Trading Co, said that tea trading companies like his are now very cautious about placing orders with tea growers.
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Each kilogram of Longjing tea comes from at least 2 kg of fresh tea leaves. |
"The early batch of spring Longjing tea is mostly purchased at government expense as gifts or to entertain guests. The national policy does not allow them to purchase such high-end products, so we won't store much from tea growers," he said.
Ma said his company booked a very small amount of early batch of spring tea this year.
"We do not plan to go on purchasing the tea unless there are orders from our clients," he said, adding that it is common practice among most tea trading companies in the city.
The decrease of demand and its collateral consequences have led to disappointment among tea growers.
Fang Chaxiang, a tea grower in Meijiawu, said all her year's expectations was the sales season of early batch of spring tea.
"It is the most important season for us tea growers, and our yearlong efforts count on it. As the market shrinks, profit becomes thinner," she said.
Fang said each kilogram of Longjing tea comes from at least 2 kg of fresh tea leaves. It takes one worker three days to pick 2 kg, and the wage of a worker is at least 250 yuan a day, or 750 yuan for three days. Other costs like fertilizer add up to 350 additional yuan per kg.
"If the price remains around 2,500 yuan per kilogram, the profit of each kilogram is only 1,400 yuan. My whole family is working on growing tea and the income of this season is supposed to account for at least 70 percent of our annual income," she said.
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A farmer dries Longjing tea leaves, which used to sell for as much as 360,000 yuan ($58,000) per kilogram.
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Fang said that normally, she would have sold 100 to 150 kg of early batch of spring tea by this time, but this year, only 35 kg were sold.
Longjing tea from Hangzhou is not the only kind of green tea suffering from shrinking market demand for its high-end early spring batch.
In the Maliandao tea market, one of the largest tea trading markets in Beijing, spring green tea from Sichuan, Fujian and Yunnan provinces are seeing price declines as well.
Green tea from Yibin of Sichuan province, for example, sells at 1,200 yuan per kg, while the price last year was 6,000 yuan.
Zheng Li, a saleswoman at Xinghua Tea Shop inside the market, said the high-end green tea is no longer a hot seller in the store.
"Years ago, people were after high-priced early-spring tea. With the decreased spending from officials, green tea with good quality but reasonable prices are more welcomed," she said.
Zheng said that although there are various kinds of green teas from different provinces, it is a common trend that prices have dropped at least 30 percent for each kind. Gift-wrapped tea boxes that are above 1,000 yuan are difficult to find in the market this year.
"Tea boxes priced 200 yuan to 500 yuan are the most welcome ones," Zheng said.
Prior to the government austerity campaign, Longjing tea was mostly purchased at government expense as gifts or to entertain guests.
A monk performs a traditional tea ceremony using Longjing tea in Hangzhou, Zhejiang province.