THERE is a phrase Westerners use that says they won’t do an unsavoury task “for all the tea in China.” The phrase originated in the 1880s, when British coffers were drained due to massive tea imports from China.
That period was the zenith of the tea trade in China. Today, tea exports are a minor share of the country’s total export, and the sector is faced with many challenges to growth.
With 1.3 million hectares of tea plantations, the output of tea in China was 870,000 tonnes in 2005, of which about 570,000 tonnes were sold domestically for 16.6 billion yuan (US$2.1bil). Only 286,700 tonnes were sold for export at a value of US$484mil.
“China has the largest area of tea plantations, the second largest output, the third largest export, and ranks fourth in total export value,” says Shao Shuguang, general secretary of the China Tea Friendship Association.
He indicates that China is a big player in the world tea market, but not a strong one.
“One of the main problems in the tea industry in China is pesticide residue,” says Sun Yuehua, general manager of Zhongcha, or China Tea Co, the largest tea exporter in China.
That problem has become more serious as trading countries raise the standards for tea.
These regulations have created a downward trend in exports of tea from China. The industry now lags far behind the industrial development of the country in general.
Meanwhile, China Tea Co is expanding the planting of organic tea. It has selected tea gardens with suitable environments throughout the country and has built organic tea gardens in Hunan, Fujian, Zhejiang and Yunan.
Despite the hurdles, China Tea Co is expanding its marketing system abroad.
“We already have had our sales team in Japan and Germany. Two more platforms in North-western Africa and Russia are under way,” Sun says.
Due to barriers and hurdles in the overseas market, the future domestic market seems more attractive. “The Chinese market is incomparable with any other country,” Sun says.
“We have the largest population, the fastest developing economy, and more people will turn to tea as they become conscious of their health.”
By DIAO YING
(The Star, 2006-11-13)