Sunday, May 30, 2010
Clay Tea Caddy
Saturday, May 22, 2010
My pu erh purchase in Guangzhou
Saturday, May 15, 2010
Tea Expo News
The verdict from this year's Tea Expo is that quality and prices are both on the up. Ye Jun and Li Yingqing report
The mission of Gao Yuan, a licensed tea brewer, at the 5th China Yunnan International Pu'er Tea Expo, was to find good teas.
The 32-year-old opened her own tea store in Kunming, capital city of the province, in 2003, and she now provides tailor-made teas to big companies in Yunnan and Hong Kong.
Gao only deals with Pu'er tea, not least because she finds it the most interesting.
"There is always so much to talk about Pu'er. The quality varies depending on the altitude the mountain where the tea grows, the year of production, and the way it is processed," she says.
This year's Pu'er Expo, an annual event organized by the Chinese Ministry of Agriculture and Yunnan provincial government, ran from April 12-15, amid concerns about the severe drought.
According to the government, production is down by 50 percent and the purchase price of the fresh leaves has doubled.
And both the price and quality of tea were Gao's main concerns.
"What I'm look for are good-quality, reasonably priced teas, instead of the already famous teas that are soaring in price," she says.
According to Zhu Yongchang, owner of Purple Jade Tea Factory, while the drought has made the leaves thinner, weaker and less attractive, it has also made the quality better, as the picking was delayed, and therefore the spring tea had time to gather more strength.
The teas of Yunnan are characteristically big-leaf teas produced on tall tea trees - as compared to tea shrubs in other parts of China - and 95 percent of the province's teas are planted on mountainous areas.
While terrace teas are heavily influenced by the drought, ancient tea trees on high-altitude mountains, which vary in age from 100- to 2,000-years-old, are less affected.
Pix is a 2003 ripe pu erh.
The whole chain of the tea industry is represented at the tea expo: tea farmers, tea factories, small and big tea companies, teapot makers, even packaging, and tea utilities.
At the display station of the Purple Jade Tea Factory from Lincang's Yongde county, roughly processed teas cost from 60-70 yuan (S$12-S$14) per kilo, with the best quality tea 120 yuan ($18) per kilo.
Owner Zhu Yongchang said they would cost another 20 per cent more after they are pressed into cakes.
Zhu's company was established in 1986, and provides middle to high quality teas from five tea mountains with ancient tea trees.
Many China tea companies complain that European quality checks are too strict, but Zhu exported 250 tons of black tea to the European Union last year.
"People here need to be practical, and not always expect high profits from exports," he says.
This year, he had to turn down a request for 50 tons from the EU for spring tea, because of the demand from the domestic market.
"The market is becoming relatively stable, and the bubbles are gone," says Zhu.
"Pu'er tea was once mythicized, publicized as herbal medicine, promoted as antique, and speculated like stock shares. But tea is just tea."
Gao Yuan says there are still faulty business practices in the market, as some dealers mix poor teas with good ones.
To ensure the quality of her teas she spends two to three months every year visiting tea farms to see for herself how the teas are produced.
"The only thing I can do is to get there, look closely, and try as many teas as possible," she says.
However, Gao says that after 2007, most buyers are clear-minded, and will be very cautious about attempts to hype up Pu'er.
"I'm in no rush buying, and will be selling from storage for now," she says. "I believe consumers will not be affected a lot in the near future."
Still, she bought up all 30 kilos of roughly processed Plum Green Pu'er tea from Zhu Yongchang.
Sales were also strong for a newly promoted instant Pu'er tea with the brand name Deepure from Tianjin's Tasly Group.
The powdery matured Pu'er in 0.5 gram sachets can easily be prepared in just three seconds.
The group used high-tech methods and equipment to make the Pu'er swiftly soluble.
According to Luo Chunlei, Southwest China sales manager, the product has sold out, and the group expects annual sales this year to be around 800 million yuan ($117 million).
According to Yang Shanxi, director of Yunnan government's Tea Office, 227 enterprises participated at this year's Pu'er Expo, including business people from Vietnam and Sri Lanka.
There were about 20 Vietnamese dealers, the most in the Expo's history, selling wooden tea tables, decorative items, bracelets made from sandalwood, and incense from gharu wood.
The Yunnan Dianhong Black Tea Group's station at the Expo had a bartender mixing black tea with ice and strawberry, lemon, and Teh Tarik, which many young people liked.
General Manager Lou Zitian says the group's high-end Yunnan black tea has been sold out for several months.
Yunnan produced 180,800 tons of tea last year.
Spring tea takes up 25-30 percent of annual production.
But Yang believes the price of Pu'er tea will not be influenced much by the drought.
"Pu'er, unlike other teas, gets better with storage," he says. "Many big companies have big stores of Pu'er from previous years, and are not short of supply."
"However, high-end Yunnan green tea and black tea will be short of supply," Yang says. "Consumers will definitely face higher prices."
My opinion towards 2010 pu erh tea harvest is that the prices of this year's pu erh tea will be high, and the tea quality may be affected by the drought. The asking prices on ebay for this year's 7542 is about us$20 (I just checked this morning). I am of the view that chinese tea prices will generally be more expensive due to a more affluent China and greater demand from overseas but the significant price increase of this year's harvest was primarily caused by the poorer tea harvest. Caveat emptor.
Pix is a 2003 ripe cake, purchased last month for under us$20.
Saturday, May 8, 2010
Gaiwan
Monday, May 3, 2010
2007 Fu Hai Yiwu Ripe Cake
Sunday, April 25, 2010
A Visit to Guangzhou pt. 3
Saturday, April 17, 2010
Drought in Yunnan
By Yu Tianyu and Guo Anfei
Severe drought, cold front create uncertainty for crop and market
KUNMING - Li Xueli, a tea farmer in Dahuangba village of the Xishuangbanna Dai autonomous prefecture in Yunnan province, is helplessly watching his trees wither and die amid the worst drought in 50 years.
Li, 37, said he may be able to harvest only one-third the total amount of pu'er tea leaves of previous years if there is no rain by mid-April.
He is desperately praying for rain for his 0.53-hectare farm and is just one of the farmers growing the region's famous crop hit by the dry spell.
"The tea is at its best during spring, but the severe drought has delayed the harvest this year and both the quality as well as the quantity have been greatly affected," said Gao Lixia, a tea trader based in Kunming, capital of Yunnan. "For example, the price of pu'er from Banzhangshan, a tea base in Xishuangbanna, used to be 700 ($102) to 800 yuan a kilogram. It has soared to 1,100 to 1,200 per kilogram," Gao said.
The prices of different pu'er varieties have been rising, with some going up by four times, she said.
As the country's second-largest tea production base after Fujian province, Yunnan produces about 180,000 tons of tea a year and spring tea accounts for up to 30 percent of the annual amount. The ongoing drought has reportedly hit more than 260,000 hectares of tea plantations, accounting for 80 percent of the total growth area. The dry spell is also expected to halve spring tea production.
The purchase price of raw tea increased by 10 to 20 percent, to 70 to 90 yuan a kilogram this year, said Wang Bin, the vice-president of Hong Kong-listed Longrun Tea Group Co Ltd.
Still, Wang said there will not be any large increase in prices of his company's tea products. There will be steady growth in prices instead, he said.
Pu'er tea is considered to improve in quality the longer it is kept well, leading to a number of buyers purchasing large quantities of the product for investment and boosting prices, as well as creating bubbles, in the industry.
But a number of investors exited the market in the second half of 2007, creating a supply glut and big slide in prices.
Many pu'er farmers and traders, including Kunming-based wholesale dealer Tang Cuiping, are expecting prices to rebound in line with pu'er's reputed health benefits and the large decrease in production this year.
Still, wholesale prices of pu'er have been stable so far at Maliandao Tea Street of Beijing's Xuanwu district, with its more than 1,000 tea shops and the 18,000-square-meter Beijing International Tea City that is regarded as a benchmark of Chinese tea prices.
Business here has been relatively slow and vendors said they have stocks of aged pu'er that was harvested three to six years ago.
Pu'er tea is typically sold in patties that weigh 357 grams each, said Zuo Xiao,
sales manager of the Ping Yue Tea Co
Current prices range from 100 yuan to 1,000 yuan a patty, similar to last year's prices, Zuo said.
But pu'er prices have been declining in recent years and less customers are choosing the tea, said Liu Yu'ai, manager of the Zhen Long Quan Tea Shop.
Both Zuo and Liu said there will be a slight fluctuation in pu'er prices but the weak demand will rein in any significant price increase.
"You cannot see soaring prices at wholesale markets as vendors are trying to sell as much as they can because of overstock," said a tea trader surnamed Wu at the Beijing International Tea City.
But a number of tea shops in central Beijing tell a different story, with vendors adjusting prices because of consumers' anticipation of higher prices amid reports of the drought.
"They just want to profit more from it," Wu said.
Cold weather in the past two weeks has also hit more than 100,000 hectares of plantations growing the famous longjing tea in Zhejiang province.
Tea shop manager Liu Yuai said shops are still selling longjing stocks that were harvested before the drought so prices have remained stable.
But there will most certainly be a 10 to 15 percent increase in prices when the new stocks arrive in the next two weeks, Liu said.
Many tea drinkers remain unfazed by the weather's effect on crops.
Sun Mingshan, a 62-year-old tea drinker living near Maliandao Tea Street, said there are thousands of types of good tea available in the country and he will pick other kinds that are not affected by the weather."
My tea friends in Yunnan gave me this scenario "....... very dry this year in Yunnan province. Almost over 9 months without any rain. So that the price for Maocha raw material of making Pu-erh goes up a lot...Tea leaf is not good as before..." This translates to a simple equation : no rain=small harvest=smaller production=higher prices. You as a tea drinker must be aware of the most critical aspect of this equation; which implies lower quality for this year's harvest. Go easy on purchasing this year's tea. Pix shows a 07 awazon raw cake and a 09 haiwan raw brick.