• China Tea Price Watch – April 21, 2023

    China Tasters: Delicate, Balanced, Aromatic Teas

    Spring harvest tea quality is stable in China. Tasters say that aroma and delicateness are more balanced, and the freshness of the tea has improved. Overall, the quality is better than in previous years, but quantities are reduced, and prices have increased.

    In March, China swept away the haze of the previous epidemic as events and business exchanges were active, and the trade of fresh tea leaves and crude tea was booming. Green tea prices continued an upward trend in February, rising by 5-15% compared to last year. Crude tea prices rose by 10%-30% year-on-year. In Guizhou, the price of fresh tea leaves and crude tea increased by 5-10% compared with last year; in Jiangsu province, the price increased by 15-30%; in Zhejiang province, prices increased by more than 10%. The average price of fresh leaves and finished crude tea, such as Dongting Mountain Biluochun and other famous green teas, has increased by about 40%.

    • Domestic prices for Westlake Dragonwell in Hangzhou, Zhejiang, ranged from US$145.90 to $364.76 for 500 grams.
    • Biluochun (Spiral Spring Green) in Suzhou, Jiangsu, ranged from a low of $291.80 to $1,235.58 for 500 grams.
    • And Huangshan Maofeng harvested in Huangshan, Anhui averaged $87.54 to $233.44 per 500 grams.

    Higher prices are attributed to lower yields. The detrimental influence of high temperatures and drought in the summer and autumn of 2022 and a dry spring in early 2023 in the Southwest Tea Region, Jiangbei Tea Region, and South China Tea Region combined to slow early spring growth and germination of tea trees. Tea enterprises and tea gardens in various production areas are actively doing their best to minimize tea loss. Still, spring tea production is expected to decrease by about 20% this year, and output in some severely affected tea areas will likely decrease by more than 50% year-on-year. This is Si Chen reporting from Beijing, China. ???????

    Listen to the Report

    China Price Watch 21 April 2023 | Si Chen
    Hand-picking farmers spread on rows of manicured tea gardens.

    Overview of Climate Conditions

    In March, China’s climate was generally warm and dry. The national average temperature was 6.7°C, which is 1.9°C higher than normal and the third highest since 1961. The average precipitation across China was 26.4 millimeters, 10.3% less than the same period of normal years, released to the China Meteorological Administration.

    There are two challenges for this Spring Harvest in China. First, the temperature fluctuates widely. In early and mid-March, the temperature rose steadily; in late March, there was a cold wave, and some tea areas in Henan, Jiangsu, and other regions experienced frost, which affected the yield and quality of tea to a certain extent.

    Then, precipitation is “distributed” unevenly. Tea areas along the river systems would benefit from more rain. This year, March ended; some tea areas in Shandong, Henan, Anhui, Sichuan, Guizhou, and most tea growing areas in Yunnan experienced moderate to severe meteorological and local extreme drought. On top of that, Fujian and Northwest Guizhou have experienced severe hailstorms. This affects the timely picking and timely tea processing to a certain extent.

    Beautiful and Mysterious tea mountains. Photo by Xuejing ZHANG.

    Overview of the Harvest

    Since March, the temperature has risen steadily. Spring Harvest started the same or slightly later than in previous years in most areas. The scope of early spring tea harvest (Pre-QingMing) in Zhejiang, Sichuan, Guizhou, Hunan, Chongqing, Guangxi, and other early spring tea areas has been further expanded. Tea gardens in Jiangxi, Jiangsu, Hubei, and Guangdong entered the intensive harvest period in March; The core production areas of other provinces also commenced on a large scale in the middle and late March; tea gardens in Shandong Province, the “northeast” province that grows tea in China, have also entered the preparation period, and it is expected to start picking in mid-April.

    A hard-working Chinese woman is picking spring teas.

    Increased Production Costs

    On the one hand, Spring Harvest still mainly relies on labor, and labor costs have continued to rise in recent years by an average of 10-20%; in addition, the cost of related agricultural materials has also risen, affected by the international trade situation. The increase in different ranges is 8-10% year-on-year; in addition, the renovation of some tea gardens, the replacement of processing equipment, and the increase in management costs have also made the production costs of most large-scale processing enterprises high this year.

    Spring Puer leaves lay on bamboo trays during the withering process. Photo by Liulu PAN.

    Yield drops significantly

    According to the feedback from various production areas: the detrimental influence of high temperatures and drought in the summer and autumn of 2022 and a dry spring in early 2023 in the Southwest Tea Region, Jiangbei Tea Region, and South China Tea Region combined to slow early spring growth and germination of tea trees.

    Although tea enterprises and tea gardens in various production areas are actively carrying out their best to minimize tea loss, it is expected that spring tea production will decrease by about 20% this year, and production in some severely affected tea areas is expected to decrease by more than 50% year-on-year.

    Quality remains stable

    Although the output of spring tea has declined due to unfavorable weather conditions, thanks to the temperature conditions suitable for the growth of tea trees in most tea areas and the proper management and protection measures for tea gardens in various regions last winter, under the guidance of science, various enterprises actively carried out production. Self-rescue, timely irrigation, coupled with the improvement of production and processing technology and industrial standardization, the overall quality of tea this spring has remained stable.

    Delicate premium green tea. Photo by Xuejing ZHANG.

    Overview of Spring Tea Domestic Market

    In March, the spring tea trade in various places swept away the haze of the previous epidemic. Tea events and business exchanges were active, and the trade of fresh tea leaves and crude tea was booming. The trading price of green tea continued the trend in February, generally rising by 5%-15% compared with the same period last year, and the price of crude tea rose by 10%-30% year-on-year. For example, the price of fresh tea leaves and crude tea in Guizhou increased by 5-10% compared with last year; in Jiangsu, the price has generally increased by 15%-30%; in Zhejiang province, it has increased by more than 10%; The average price of fresh leaves and finished crude tea such as Dongting Mountain Biluochun and other famous green teas has increased by about 40%.

    The quality is stable, quantities are reduced, and prices have increased. According to feedback from consumers, the appearance of spring tea this year is ordinary, but the aroma and delicateness are more balanced, especially the freshness of the tea has improved. The overall quality is better than in previous years.

    Mid-range tea (150-600 yuan/catty) becomes the main force. Consumers tend to be more rational in the consumption of spring tea; teas perceived as reasonably priced and “friendly to the people” are more popular among consumers.

    The calendar date of Guyu (Grain Rain), the solar term after Spring Equinox and QingMing, will be April 20, 2023. Many spring teas are expected to be on the market around Guyu. Spring tea will soon usher in the peak of production and sales. All tea regions organize production in an orderly manner to ensure stable quality, actively expand sales channels, and extend the sales cycle and chain of spring tea.

    Fresh tea leaves.

    Post-QingMing Price Drop

    We saw a significant price drop post-QingMing. Domestic prices for Westlake Dragonwell in Hangzhou, Zhejiang, ranged from $145.90 to $364.76 for 500 grams, an average $280 drop per catty over two weeks.

    Biluochun (Spiral Spring Green) in Suzhou, Jiangsu, ranged from a low of $291.80 to $875.41 for 500 grams, an average $320 drop per catty over two weeks.

    And Huangshan Maofeng harvested in Huangshan, Anhui averaged $158.36 to $175.08 per 500 grams, an average $70 drop per catty over two weeks.

    Biluochun Ends Spring Harvest

    Biluochun kicked off its Spring Harvest on March 12. According to the national standard, the picking standard for Biluochun can only be one bud and two leaves, which dictates availability. The picking period of Biluochun in Dongting Mountain in 2023 will end on April 10th. As of April 11th, Taihu Dongting East and West Mountains in Suzhou, Jiangsu, have fully entered the processing season. Therefore, after this report, the 2023 China Spring Tea Picking Index, published by China Tea Circulation Association, will no longer update Biluochun’s prices.

    Taiping Houkui was scheduled to start harvest on April 14th, and we will have its price shown for the first time on the next China Price Watch.

    The harvest of Wuyi Wulong has not started.

    Taiping Houkui. Photo by Xuejing ZHANG.

    Click to see the complete China Tea Circulation Association’s April 11th Price Update

    April 11th, 2023

    Average Domestic Prices for Finished Tea
    USD per catty** [500 grams] 
    LowHigh
    Westlake Dragonwell | Hangzhou, Zhejiang$145.90$364.76
    Biluochun (Spiral Spring Green) | Suzhou, Jiangsu291.801,235.58
    Huangshan Maofeng | Huangshan, Anhui58.36175.08
    Xinyang Maojian | Xinyang, Henan87.54233.44
    Lu’an Guapian | Lu’an, Anhui43.77116.72
    Meitan Cuiya | Zunyi, Guizhou72.95102.13
    Dafo Dragonwell | Xinchang, Zhejiang58.36175.08
    Wuyi Rock Tea | Wuyishan, FujianN/AN/A
    N/A indicates insufficient quantities to establish a reliable price range.

    Tea Price Report

    The Tea Biz Price Report tracks average prices at major tea auctions and lists prices for specific types of specialty tea, drawing on many sources, including the China Tea Circulation Association, which provides a benchmark for the ten famous teas from the world’s largest tea exporting country. Listen free to the weekly summaries on the Tea Biz Podcast and select China Price Watch or India Price Watch for a full report analyzing trends with additional data sets and graphs from past years. Si Chen compiles the China Price Watch from March through May in Beijing. Aravinda Anantharaman in Bengaluru compiles the weekly India Price Watch year-round.

    China Price Watch
    Prices are reported by tea type in representative growing regions. Price calculations are local, reflecting domestic prices averaged from many farms to determine a range.* In general, the lower range describes teas available in quantity. The high range is influenced by scarcity, but many desirable, high-value teas are grown in large quantities in China. Averages are calculated in Yuan (RMB) and converted to USD. Export prices vary greatly from the domestic averages listed above.
    Source: China Tea Circulation Association
    *Weekly averages are a joint effort of the Shanxi Tea Society, Liaoning Tea Industry Association, Jiangsu Tea Association, Zhejiang Tea Industry Association, Anhui Tea Industry Association, Henan Tea Association, Henan Tea Chamber of Commerce Hubei Tea Association, Hunan Tea Industry Association, Guangdong Tea Industry Association, Guangxi Tea Industry Association, Hainan Tea Association, Chongqing Tea Chamber of Commerce, Sichuan Tea Circulation Association, Guizhou Green Tea Brand Development Promotion Association, Yunnan Tea Circulation Association, Shaanxi Tea Industry Association
    **The catty, Kati, read as jin in Chinese, is a traditional Chinese unit of mass used for weighing food and other groceries in some wet markets, street markets, and shops. Related units include the picul, equal to 100 catties or 50 kilos of tea.
    Copyright 2023 Tea Biz Tea Price Report www.tea-biz.com
  • China Tea Price Watch – April 7, 2023

    Tea Price Report

    The Tea Biz Price Report tracks average prices at major tea auctions and lists prices for specific types of specialty tea, drawing on many sources, including the China Tea Circulation Association, which provides a benchmark for the ten famous teas from the world’s largest tea exporting country. Listen free to the weekly summaries on the Tea Biz Podcast and select China Price Watch or India Price Watch for a full report analyzing trends with additional data sets and graphs from past years. Si Chen compiles the China Price Watch from March through May in Beijing. Aravinda Anantharaman in Bengaluru compiles the weekly India Price Watch year-round.

    Listen to the report
    China Price Watch 7 April | Si Chen
    New buds in Fuding growing upwards after the hailstorm, by Hulinqing Tea Company ?????
    New buds in Fuding grow upwards after the hailstorm. Photo Hulinqing Tea Company


    China Price Watch

    Qingming is around the corner, and China is marching into full production this Spring tea season, with most regions now harvesting tea. Cooler weather is a factor, with unusually intense thunderstorms in Fuding and Zunyi that damaged white tea. The full spring harvest began on March 28 in Huangshan Maofeng (in Huangshan, Anhui Province) and was delayed by six days compared with last year. This year we saw a significant increase in fresh tea prices for traders and tea processors for Huangshan Maofeng, about 40-60%. Lu’an Guapian reached the “Second Level” of the picking period on April 3, meaning “a small amount of picking.”

    Nationwide the number of tea pickers almost meets the demand for tea picking, except in Xinchang, where labor scarcity is slightly insufficient.

    Domestic prices for Westlake Dragonwell in Hangzhou, Zhejiang, ranged from $450.62 to $595.98 for 500 grams.

    Biluochun (Spiral Spring Green) in Suzhou and Jiangsu ranged from a low of $581.45 to $1,235.58 for 500 grams.

    And Huangshan Maofeng harvested in Huangshan, Anhui averaged $130.86 to $261.72 per 500 grams.

    The price of tea is affected by many factors — region, variety, and quality, to name a few. Prices vary by sales channel and fluctuate due to supply, consumer demand, and merchant stocks.

    Fuding and Zunyi Hailstorm

    On the afternoon of March 23, 2023, Fuding City, Fujian Province, encountered a rare hailstorm, causing considerable damage to the tea trees. Fuding is the most famous white tea production area in China, with a vast area of tea gardens, and the production process of white tea determines its high-quality requirements for raw tea leaves. Tea production this year was seriously affected.

    According to local tea farmers, the hailstorm came so suddenly that everyone was unprepared. Although it didn’t last long, the hail stones were large, and the storm was intense.  According to the local meteorological department, the hailstorm was caused by strong convective weather. There was heavy rainfall at that time, and the diameter of the hailstone averaged about 1.5 centimeters, with big ones reaching about 5 centimeters.

    On April 2, Zunyi, Guizhou Province, where Meitan Cuiya originated, experienced a heavy hailstorm, which caused similar harm to tea plants.

    Clumps of hail as big as eggs, by Hulinqing Tea Company ?????
    Clumps of hail as big as eggs. Photo by Hulinqing Tea Company

    Hail Harms Tea Production

    Large hailstones strip leaves and crush branches

    Hail directly impacts the tea tree crown, shoots down large quantities of buds and leaves, breaks branches, cracks, and damages leaf surfaces, and increases the “broken rate” of fresh tea leaves, directly affecting the yield, quality, and economic benefits of tea.

    Severe hailstorms indirectly affect the root growth of tea trees in several ways.

    As the hail melts, the ice water enters the soil, the soil temperature drops sharply, and the roots’ fibrous roots and root tips are suddenly stimulated by abnormally low temperatures, resulting in freezing damage. The vitality of the root system decreases.

    The photosynthetic physiology of tea trees is also impacted. The thawing of hail grains absorbs the heat in the soil and atmosphere, coupled with the continuous rainy weather accompanied by hail, and the temperature in the hail area plummets. This discourages the germination of new buds.

    In addition, the biochemical quality of tea trees is harmed by reducing the content of some biochemical components, such as water, tea polyphenols, amino acids, and caffeine.

    The buds and leaves of the tea trees fell to the ground after the hailstorm, by Hulinqing Tea Company ?????
    The buds and leaves of the tea trees fell to the ground after the hailstorm.
    Photo by Hulinqing Tea Company

    No matter how severe, small shoots are still working hard to grow. The tea tree is strong, swaying in the breeze, facing the sun, and growing upward. Hailstorms are a test for all tea farmers and tea enterprises. The Chinese tea industry is tiding over the difficulties together, doing a good job managing to produce the best tea.

    A good cup of tea is hard to come by
    It benefits from the nourishment of nature
    Also endured the tempering of nature

    Fuding White Tea: Outlook

    The current market price of fresh tea leaves is CNY 180-220 per catty, and the finished price is expected to be CNY 780-1100 per catty. Compared with last year, the price has not changed much.

    In 2022, Fuding’s tea gardens will have a pickable area of about 305,000 mu, with a total output of 31,000 metric tons of tea, including 23,000 tons of white tea. The comprehensive output value of the city’s tea industry was 13.891 billion yuan, an increase of 1.2%. The city’s tea enterprises paid a tax of 166 million yuan, an increase of 28.7%.

    Fuding currently has more than 2,800 tea-processing enterprises. A total of 627 tea production and processing enterprises have obtained SC licenses, and 405 tea enterprises have obtained the authorization to use the Fuding white tea certification trademark. There are 167 leading tea enterprises at the national, provincial, city, and county levels, including three at the national level, 51 at the provincial level, 35 at the municipal level in Ningde, and 78 at the municipal level in Fuding. The Top Six taxpayers, aka brands to watch for, are Pinpin Xiang, Tian Hu, Liu Miao, Tai Mu Mount Famous Tea, Lv Xueya, and Ding Bai.

    The economic benefits of the tea industry have risen steadily, providing more than 100,000 jobs. Fuding white tea is sold at over 10,000 outlets across China, providing jobs for 380,000 tea people.

    New Region on sale

    Most other tea regions in China have a suitable climate for healthy growth. On March 28, Huangshan Maofeng (in Huangshan, Anhui Province) entered a full spring harvest with a regional tea culture festival. It was delayed by six days compared with last year. This year we saw a significant increase in fresh tea prices for traders and tea processors for Huangshan Maofeng, about 40-60%.

    On April 2, Xinyang Maojian (in Xinyang, Henan Province) entered a full spring harvest with a similar regional festival at Wenxin Tea Village. Wenxin is the most famous domestic brand for this tea. The festival marks the full-scale picking of 2 million mu of tea gardens of Xinyang Maojian. On April 3, Lu’an Guapian reached the “Second Level” of the picking period, meaning “a small amount of picking.”

    The number of tea pickers available can almost meet the demand for tea picking, except in the Xinchang area being slightly insufficient.

    Regarding the “readiness” condition for the tea buds for picking, West Lake Dragonwell, Dongting Mountain Biluochun, and Meitan Cuiya in Guizhou Province have entered the fifth level (all can be picked).  Huangshan Maofeng is in the fourth level (most can be picked). Dafo Dragonwell and Xinyang Maojian are in the third level (some can be picked). Lu’an Guapian is in the second level (a small amount can be picked). Taiping Houkui, Wuyi Rock Wulong, Anxi Tieguanyin Wulong, etc., have not yet started harvesting. It’s worth noting that, since this report, Anxi Tieguanyin, the most famous Wulong tea, has officially been included in the Spring Tea Picking Index by China Tea Circulation Association.

    Meitan Cuiya Garden in Guizhou Province, by Xiaoxi XIA ???
    Meitan Cuiya Garden in Guizhou Province. Photo by Xiaoxi XIA

    Regions to watch: Southern Anhui

    We earlier mentioned the regional tea culture festival for Huangshan Maofeng, hosted by Xie Yuda Tea Museum. This museum is in the Huizhou District, Huangshan City, Anhui Province. Xie Yuda is the most famous domestic brand for this type of tea.

    Huizhou is in the south of Anhui, and southern Anhui is where good tea is produced. Among China’s top ten famous teas, four kinds are from Anhui Province: Huangshan Maofeng, Taiping Houkui, Keemun Black Tea, and Lu’an Guapian. Except Lu’an Guapian, are all from Huizhou. Huizhou has always been an important tea production area in Anhui.

    Related: Tea from the Clouded Mist of Huangshan – Tea Journey

    Fresh Spring buds, by Ruoyu LI ???
    Fresh Spring Buds. Photo by Ruoyu LI

    Click to see the complete China Tea Circulation Association’s April 3rd Price Update

    April 3rd, 2023

    Average Domestic Prices for Finished Tea
    Reported in USD per catty** [500 grams] 
    LowHigh
    Westlake Dragonwell | Hangzhou, Zhejiang$450.62$595.98
    Biluochun (Spiral Spring Green) | Suzhou, Jiangsu581.451,235.58
    Dafuo Dragonwell | Xinchang, Zhejiang72.68232.58
    Meitan Cuiya | Zunyi, Guizhou94.49130.83
    Lu’an Guapian | Lu’an, Anhui72.68116.29
    Taiping Houkui | Huangshan, AnhuiN/AN/A
    Xinyang Maojian | Xinyang, Henan174.48363.50
    Wuyi Rock Tea | Wuyishan, FujianN/AN/A
    Huangshan Maofeng | Huangshan, Anhui130.86261.72
    Wufeng Green | Wufeng, HubeiN/AN/A
    N/A indicates insufficient quantities to establish a reliable price range.
    China Price Watch
    China Price Watch
    Prices are reported by tea type in representative growing regions. Price calculations are local, reflecting domestic prices averaged from many farms to determine a range.* In general, the lower range describes teas available in quantity. The high range is influenced by scarcity, but many desirable, high-value teas are grown in large quantities in China. Averages are calculated in Yuan (RMB) and converted to USD. Export prices vary greatly from the domestic averages listed above.
    Source: China Tea Circulation Association
    *Weekly averages are a joint effort of the Shanxi Tea Society, Liaoning Tea Industry Association, Jiangsu Tea Association, Zhejiang Tea Industry Association, Anhui Tea Industry Association, Henan Tea Association, Henan Tea Chamber of Commerce Hubei Tea Association, Hunan Tea Industry Association, Guangdong Tea Industry Association, Guangxi Tea Industry Association, Hainan Tea Association, Chongqing Tea Chamber of Commerce, Sichuan Tea Circulation Association, Guizhou Green Tea Brand Development Promotion Association, Yunnan Tea Circulation Association, Shaanxi Tea Industry Association
    **The catty, Kati, read as jin in Chinese, is a traditional Chinese unit of mass used for weighing food and other groceries in some wet markets, street markets, and shops. Related units include the picul, equal to 100 catties or 50 kilos of tea.
    Copyright 2023 Tea Biz Tea Price Report www.tea-biz.com
  • Rain Brings Relief to Tea Regions

    Sale 14 | Episode 112 | Week Ending 8 April 2023

    With the arrival of rains in Assam and West Bengal, the first flush for 2023 looks good regarding production. However, the markets have remained sluggish. Rains in Himachal Pradesh, too, were welcomed by tea farmers in Kangra who can expect an average harvest. Kangra was also in the news as Kangra tea received the European GI tag last week. Although Kangra Tea has had a GI tag since 2005, with this recognition by the EU, farmers hope their tea will fetch better prices in the European market. 

    In West Bengal, the government has issued notifications for regularizing unauthorized small tea plantations. Those that came up before 2001 were authorized, but this new notification will aid most of the 43,000 small plantations that emerged between 2001 and 2017 in North Bengal.

    The United Planters Association of South India (UPASI) has begun screening entries for the 18th edition of The Golden Leaf India Awards (TGLIA) at Coonoor.

    • Notifications issued towards regularisation of unauthorized North Bengal STGs
    • Kangra tea origin awarded European GI (geographical indicator)
    • The Bharat auction rolled out in north India.

    Listen

    SALE14 | 8Apr2023
    Sale 14 | Episode 112 | Week ending 8 April 2023

    India Tea Price Watch

    By Aravinda Anantharaman

    With the arrival of rains in Assam and West Bengal, the first flush for 2023 looks good regarding production. However, the markets have remained sluggish. Rains in Himachal Pradesh, too, were welcomed by tea farmers in Kangra who can expect an average harvest. Kangra was also in the news as Kangra tea received the European GI tag last week. Although Kangra Tea has had a GI tag since 2005, with this recognition by the EU, farmers hope their tea will fetch better prices in the European market. 

    In West Bengal, the government has issued notifications for regularizing unauthorized small tea plantations. Those that came up before 2001 were authorized, but this new notification will aid most of the 43,000 small plantations that emerged between 2001 and 2017 in North Bengal.

    The United Planters Association of South India (UPASI) has begun screening entries for the 18th edition of The Golden Leaf India Awards (TGLIA) at Coonoor.

    Tea Price Report

    North India saw its first auction of the season with Sale 14. Two thousand three hundred twenty-six tonnes were offered with a cumulative sale percentage of 69%. About 450 tonnes were on offer in Kolkata. In Guwahati, 7 tonnes of Orthodox tea were offered, with 78% sold, averaging Rs 289 per kilo. North India CTC offerings were higher compared to the same sale week last year, although prices were lower than in 2022. 

    North India 2023 Sale 14 vs 2022 Sale 14
    North India SAle 14 2023 vs. 2022

    In the south, Kochi auctions were closed for the Holy Week. Coonoor saw good demand for leaf grades with exporters, major blenders, and regional packeteers active. Dust grades did exceptionally well. One hundred nine kilos of green tea from Pascoe’s Woodlands sold at Rs 307/ kilo. 

    Tea Price charts, courtesy TSigma Consultancy

    Crop & Weather

    The Met department predicts primarily clear skies in Darjeeling. Partly cloudy sky with some rain expected in Upper Assam. In Kangra, some rain is expected over the weekend and later. In the south, overcast skies with showers are also predicted in the Nilgiris and Munnar.  

    Source: India Meteorological Department

    Toklai Tea Research Institute, Jorhat, India

    The Tea Research Association of India sponsors the Tea Biz weather report. Click to download the Tea Planters Calendar 2023.


    Link to share this post with your colleagues


    Signup and receive Tea Biz weekly in your inbox.


  • China’s Tea Harvest Begins in Early March

    March 24, 2023 | Ep 109 |

    The Tea Biz Price Report tracks average prices at major tea auctions and lists prices for specific types of specialty tea, drawing on many sources, including the China Tea Circulation Association, which provides a benchmark for the ten famous teas from the world’s largest tea exporting country. Listen free to the weekly summaries on the Tea Biz Podcast and select China Price Watch or India Price Watch for a complete report to analyze trends using additional data sets and graphs from past years. Si Chen compiles the China Price Watch from March through May in Beijing. Aravinda Anantharaman in Bengaluru compiles the weekly India Price Watch year-round.

    China Price Watch | March 24, 2023
    Photo of tea harvest underway, China

    Subscribe to access all Tea Price Reports & Tea Journey articles


    China Price Watch

    China’s tea mountains are richly green, with the trees sprouting new shoots. The harvest began a few days early this year as tea farmers could be seen carrying bamboo baskets along the ridges and terraces, skillfully picking pre-Qingming in early March. Prices for newly plucked dragonwell were reported at $1,250 per kilo.

    This year’s spring tea picking began on March 10 and is expected to last until May. Tea in many regions was affected by the high temperature and drought in the summer and autumn of 2022 and the cold wave at the beginning of 2023. Tea production is expected to decrease compared with previous years. Still, the recent temperature trend is stable, which is conducive to tea plants absorbing nutrients and improving the quality of spring tea.

    Currently, there are sufficient workers to meet production demand. Wages for workers have increased between 5% and 20% depending on location. In China, workers are paid by the day or for the total kilos harvested, about 40 yuan/catty [a catty equals 500 grams]. The overall range for the day rate is 100-300 yuan/person (about USD $14.52 to $43.56)

    Female worker carrying her harvest in Huangshan region, photo by Xuejing Zhang

    Zheng Xueju, secretary of the party branch of Datun Village in Shanmen Town, in Pingyang County, Zhejiang Province, introduced that nearly 100 villagers in Datun and surrounding villages are arranged to pick teas daily, with an average daily fresh tea picking volume of 100 kilos. The current price of green tea is 130 yuan per kilo. As the temperature gradually rises, it is expected to enter “mass production” in 10 days.

    “I picked tea leaves from this tea plantation last year.” Grandma Zheng, a villager in Datun Village, told reporters with a smile that she was a little older but a journeyman. “It’s very happy to earn more than 100 yuan here daily.”

    Newly plucked tea. Photo by Xuejing Zhang

    Domestic Tea Prices

    China harvested 3.35 million metric tons of tea in 2022, an increase of 5.7% compared to 2021, according to the National Bureau of Statistics of China’s Statistical Communiqué on 2022 National Economic and Social Development.

    From January to February 2023, China’s cumulative tea exports were 51,208.3 tons, with a cumulative export value of US$251.829 million, according to the statistics from China Customs, a 19.4% decrease in volume and a 28.4% decrease in value compared to last year.

    The domestic wholesale price for 2023 Spring Tea has risen 10-30%, according to an interview done by the Tea Industry Committee of China Association for the Promotion of International Agricultural Cooperation (TIC short). As the domestic demand for supreme fresh tea leaves remains high, tea processors and factories must pay a higher premium for the “raw materials”.

    West Lake Dragonwell

    The official first harvest of Dragonwell 43 was on March 13, five days earlier than last year. Plucking of most Dragonwell cultivars will start in late March. Hangzhou endured extended, unusually hot, and dry conditions from June to September. The intense heat damaged tea plants. Tea growers are curious as to how it will affect the quality of this year’s dragonwell, more specifically, whether the leaves will be slim, dry, and not as glowing due to insufficient nutrients compared to previous years.

    According to the Department of Agriculture from Hangzhou Municipality, last summer’s drought coincided with the second pruning of West Lake Dragonwell tea, resulting in leaf discoloration, scorching, and other phenomena but did not damage the root system. Timely irrigation, shading, covering, and other technical measures, coupled with this year’s suitable climate, “it is expected that the total output of West Lake Dragonwell tea on the market this year will remain stable, and the quality will also remain stable and good.”

    Biluochun tea (Spiral Spring Green)

    Since March this year, there has been no precipitation around the Biluochun tea production area of Dongting Mountain, and the sunshine is significantly more, which is conducive to the growth of tea. Since March 4, the temperature has risen rapidly, and the maximum temperature on March 10 reached 27.6 °C. The daily average temperature passed 10.0 °C, and tea buds grew rapidly. The production of Biluochun tea in Dongting Mountain is expected to increase by about 10% year-on-year this year.

    Click to see the complete China Tea Circulation Association’s March 20th Price Update

    White tea in Fuding county, Fujian. Photo by Shijuezhongguo(CVG)

    March 20th, 2023

    Average Domestic Prices
    Finished Tea in USD per catty** [500 grams] 
    LowHigh
    Westlake Dragonwell | Hangzhou, Zhejiang$581.20$624.79
    Biluochun (Spiral Spring Green) | Suzhou, Jiangsu508.551,089.75
    Dafuo Dragonwell | Xinchang, Zhejiang84.27200.51
    Meitan Cuiya | Zunyi, Guizhou101.71145.30
    Lu’an Guapian | Lu’an, AnhuiN/AN/A
    Taiping Houkui | Huangshan, AnhuiN/AN/A
    Xinyang Maojian | Xinyang, HenanN/AN/A
    Wuyi Rock Tea | Wuyishan, FujianN/AN/A
    Huangshan Maofeng | Huangshan, AnhuiN/AN/A
    Wufeng Green | Wufeng, HubeiN/AN/A
    N/A insufficient quantities harvested to establish a reliable price range.  
    Prices are reported by tea type in representative growing regions. Price calculations are local, reflecting domestic prices averaged from many farms to determine a range.* In general, the lower range describes teas available in quantity. The high range is influenced by scarcity, but many desirable, high-value teas are grown in large quantities in China. Averages are calculated in Yuan (RMB) and converted to USD. Export prices vary greatly from the domestic averages listed above.
    Source: China Tea Circulation Association
    *Weekly averages are a joint effort of the Shanxi Tea Society, Liaoning Tea Industry Association, Jiangsu Tea Association, Zhejiang Tea Industry Association, Anhui Tea Industry Association, Henan Tea Association, Henan Tea Chamber of Commerce Hubei Tea Association, Hunan Tea Industry Association, Guangdong Tea Industry Association, Guangxi Tea Industry Association, Hainan Tea Association, Chongqing Tea Chamber of Commerce, Sichuan Tea Circulation Association, Guizhou Green Tea Brand Development Promotion Association, Yunnan Tea Circulation Association, Shaanxi Tea Industry Association
    **The catty or Kati reads as jin in Chinese. It is a traditional Chinese unit of mass used for weighing food and other groceries in some wet markets, street markets, and shops. Related units include the picul, equal to 100 catties or 50 kilos of tea.
    Copyright 2023 Tea Biz Tea Price Report www.tea-biz.com
    Send comments and suggestions on how to improve this report to Dan Bolton ([email protected])
  • Tourism Projects Proposed in West Bengal

    Sale 10 | Ep 108 | 11 March 2023

    This week, tourism came into focus. The Telegraph reported that 16 proposals were received from estates in the Darjeeling, Terai, and Dooars region, of which 12 were related to tourism. Darjeeling first flush EX invoices have begun indicating a promising first flush. Estates including Jungpana, Giddapahar, Sourenee, Rohini, Upper Fagu, Risheehat, Selim Hill, Puttabong, and Tukvar are now available at retail prices were upwards of Rs 10,000/kilo (USD120). South India saw Sale 10 with nearly 3,000 tonnes of tea on offer, with a sale volume of 80%. CTC averaged Rs 128/ kilo, while orthodox grades did better, with a sale volume of 90% at an average price of Rs 157/ kilo. The prices are similar to the previous week.

    • West Bengal government receives proposals for tourism-related projects from garden owners in Darjeeling, Dooars, and the Terai.
    • Rainfall expected in tea regions across India
    • No Sale was conducted in North India
    Sale 10 – India Price Watch by Aravinda Anantharaman

    India Price Watch

    By Aravinda Anantharaman

    This week, tourism has come into focus. The Telegraph reported that 16 proposals were received from estates in the Darjeeling, Terai, and Dooars region, of which 12 were related to tourism. Two proposals were from Darjeeling, where Luxmi Tea already has a luxury hotel in partnership with the Taj Hotels at Makaibari tea estate. Upper Fagu is also considering developing a resort on 50 acres of its property. The non-tourism-related proposals included pepper and medicinal plant cultivation and a food processing unit. Tourism development draws a mixed reaction from planters and industry stakeholders who are divided on how it will impact the tea sector. 

    Assam continues to develop its tea programs, the latest being opening a tea stall at the Guwahati Railway Station that members of the transgender community will completely man. 

    Tea Price Report

    South India saw Sale 10 with nearly 3,000 tonnes of tea on offer, with a sale volume of 80%. CTC averaged Rs 128/ kilo, while orthodox grades did better, with a sale volume of 90% at an average price of Rs 157/ kilo. The prices are similar to the previous week.

    Tea Price charts, courtesy TSigma Consultancy

    South India Sale 10 vs. Sale 9

    There was no sale in North India.

    Darjeeling first flush EX invoices have begun indicating a promising first flush. Estates including Jungpana, Giddapahar, Sourenee, Rohini, Upper Fagu, Risheehat, Selim Hill, Puttabong, and Tukvar are now available at retail prices were upwards of Rs 10,000/kilo (USD120).

    Crop & Weather

    Rain arrives in Darjeeling with hailstones in some estates, such as Chamong and Sungma. Upper Assam is predicted to see below-normal maximum and minimum temperatures with light to moderate rainfall—thunderstorms and lightning warning till the 17th of March. Himachal Pradesh and Uttarakhand are expected to see thunderstorms with hail and lightning in isolated places. Rain is predicted in the Nilgiris and Munnar as well.  

    Source: India Meteorological Department

Verified by MonsterInsights