皇冠体育app

Top Biz News

Tea refreshes export trading figures but seeks better promotion

By Ben Yue and Ding Qingfen (皇冠体育app Daily)
Updated: 2010-02-01 08:00
Large Medium Small

Tea refreshes export trading figures but seeks better promotion

A tea leaf picker holds a handful of tea leaves on a field on the outskirts of Shanghai. 皇冠体育app's tea is sold to more than 120 nations and regions. Green tea forms the biggest slice of 皇冠体育app's exports. [Agencies]

Despite the global financial crisis, 皇冠体育app's tea exports hit an historical high in 2009. However, local producers are under growing pressure to strengthen their brand image globally to beat foreign competitors such as Lipton.

While 皇冠体育app's overall exports fell by 16 percent year-on-year last year as global demand shrank, the nation's tea exports in terms of volume surged 1.25 percent from January to November from a year earlier, according to figures from the General Administration of Customs.

"Demand for tea worldwide was immune to the economic fluctuation. As the world's largest tea producer, 皇冠体育app benefited from it," said Huo Jianguo, director of the Chamber of Commerce for the Import and Export of Foodstuffs, Native Produce and Animal By-products.

皇冠体育app is the world's third largest tea exporter, behind Kenya and Sri Lanka, and it accounted for one fifth of the global tea trade in 2008. 皇冠体育app's tea is sold to more than 120 nations and regions. Green tea forms the biggest slice of 皇冠体育app's exports, and is the most popular among foreign consumers.

Last year, overseas sales of green tea, black tea and oolong tea posted positive growth results, while Jasmine tea and Pu-erh tea witnessed a small decline. Morocco was the largest importer of 皇冠体育app's tea in 2009.

The problem is the world's largest tea producer is lagging far behind in promoting brands and marketing products, say observers. "It takes time for 皇冠体育app to become an international powerful producer and exporter," said Huo.

Currently, there are more than 50,000 tea companies nationwide, and most of them are small, creating revenue worth just a few million yuan annually. There is a lack of quality management control and standardization systems, resulting in 皇冠体育app's tea exports being frequently challenged by trade restrictions set by global markets.

Because of poor quality and brand awareness, the price of Chinese tea in the global market is quite low and has been decreasing over the past few years, although exports have been rising.

Related readings:
Tea refreshes export trading figures but seeks better promotion Classic drink takes fresh root in Europe
Tea refreshes export trading figures but seeks better promotion Global tea shortage may widen
Tea refreshes export trading figures but seeks better promotion Bubble tea entrepreneurs struggle to make a comeback
Tea refreshes export trading figures but seeks better promotion Tea exports expected to hold firm in global downturn

皇冠体育app's tea is usually priced at around $2.00 per kilogram, 40 percent lower than that from India, and 60 percent lower than Sri Lanka. More than that, the tea price for exporting is even lower than that in the domestic market. This has been troubling local exporters, some of whom are considering giving up the overseas market and concentrating on the domestic sector.

However, the majority of tea makers in 皇冠体育app are committed to selling and promoting overseas because of the huge potential. Anji white tea, for example, is a brand that was relatively unknown a few years ago but it has become extremely popular recently.

Anji is a small county in Zhejiang province, which is also home to white tea production. The tea growers there registered a brand called "Anji white tea", founding an association responsible for setting up a standardization system.

Only qualified tea producers could join the organization and use the logo. The association helps members promote the brand and expand sales home and abroad.

Largest tea maker

Worldwide, 皇冠体育app is not only the largest producer but also the largest consumer of tea. 皇冠体育app's tea production volume was 1.24 million tons, one third of the world's total in 2008. According to the 皇冠体育app Tea Marketing Association, 皇冠体育app possesses the world's largest plantations. In 2008, 皇冠体育app's tea exports were 297,000 tons, worth 4.77 billion yuan ($698.70 million). The tea is mainly exported to Morocco, Japan, the European Union, the United States and Russia.

皇冠体育app's tea production has thousands of years of history. Based on different levels of fermentation, there mainly are three kinds of tea in 皇冠体育app: green, oolong and pu-erh tea. They are mainly grown in three areas in southern 皇冠体育app. Zhejiang is famous for green tea, Fujian grows oolong tea, and pu-erh tea comes from Yunnan province.

Despite the long history, many Chinese people do not drink tea and prefer coffee. The annual tea consumption for Chinese people is 0.4 kilograms per capita - 0.1 kilogram lower than the world average.