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Slump brings top tea to ordinary buyers
By Xu Wenwen |
April 11, 2013, Thursday
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THE idea of having to promote Hangzhou's famed pre-Qingming Longjing tea would have seemed absurd to growers only a year ago.
After all, Longjing is regarded as the finest green tea in the country, with leaves picked before Qingming Festival - which falls on April 4 or 5 - the most sought-after.
These are considered to have a gentler, more subtle aroma than leaves harvested after Qingming.
Last year, the auction price hit a record 360,000 yuan (US$58,028) per kilogram - more expensive than gold.
However, this year the price of pre-Qingming Longjing tea has plummeted.
At auction last week, the premium tea went for only 14,000 yuan per kilo.
And away from the auction houses, the price tea growers received fell to around 2,500 yuan per kilo - down more than 60 percent on previous years.
This is the result of a central government campaign against extravagance, according to industry figures.
"A major reason for the drop has been the central government's crackdown on extravagance, which has led many government departments and state-owned enterprises to scale back on top-end tea," says Zhu Shaolin, tea expert.
Tea grower Sheng Yaoming from Longjing Village agrees, saying the culture of guanxi - relationship building - kept the market buoyant in the past.
"Nobody spends that much money just to drink a cup of tea. People only buy it as gifts for guanxi," says Sheng.
But with government purse strings tightened, the industry is seeking a new market among ordinary tea drinkers.
"The slump in prices lets people buy the tea for themselves," explains Sheng.
Hangzhou tea sellers and government have responded rapidly to the changing market conditions.
The slogan of the Hangzhou Dingfeng Tea Store on its website was changed to "Real Longjing tea for ordinary people" a fortnight ago.
And in many tea stores in the city, more affordable 50-gram boxes of the prized brew are on sale.
Tea growers have joined this push to target ordinary consumers, offering pre-Qingming tea to tourists to Longjing town with the promise that "it's real pre-Qingming tea" and telling them that it's "really cost-effective to buy the tea this year."
This is all in marked contrast to previous seasons, when growers only had to wait at home for old customers to come knocking. Supplies of pre-Qingming tea are very limited, and buyers did not want to miss out.
In the new climate, the municipal government has also started promoting the city's Longjing tea. It has issued a free map of places for buying authentic Longjing tea buying, available at every "Smile Pavilion" around West Lake.
Volunteers provide tourists with information and help at the distinctive green Smile Pavilion booths.
Also, the ongoing China (Hangzhou) International Tea Expo, which opened at the end of March, features numerous tea-related events and activities aimed at locals and tourists.
Promotions are continuing, even though Qingming Festival is now over, as it's the season for pre-Guyu tea.
Guyu is also a solar term and falls on April 20 this year.
Pre-Guyu is also widely regardedas an excellent brew, and pricesare decreasing.
"For people buying Longjing tea for themselves, I'd actually recommend pre-Guyu tea. It's a bit stronger than pre-Qingming tea," says tea grower Sheng.
Despite seeing prices slump, many tea growers seem philosophical, claiming that soaring prices in past years brought their own problems.
"How can the price of tea equal the price of gold? These irrational prices placed us in an awkward situation," says tea grower Wang Yingnan.
"If we tagged the price high, people couldn't afford it. Yet if we made the price low, people doubted it was authentic Longjing."
Traders agree that the move away from previous heights is better in the long run.
"An irrational price is eye-catching, yet not good for the industry," says Sun Chuancheng, deputy manager of China Tea Auction Trade and Service Company. "Only a rational price leads to a healthy industry."
For a fresh sip of authentic Longjing tea, the government recommends 27 spots, including growers' homes and tea stores listed in its map.
Also recommended are other teas produced in Zhejiang Province - including black tea from Jiande, white tea (featuring fine, silvery-white fibres) from Anji, and varieties from Lin'an, Xiaoshan and Fuyang.
Main activities during the China (Hangzhou) International Tea Expo include:
? Tea Convention at Hefang Street
Date: April 12-18
Address: Hefang Street and Wushan Square
? Everybody Drinks Tea Day
Date: April 20
Address: Wushan Square (main spot); Stations of Metro Line 1
? Free Tea Drinking
Date: April 20-27
Address: 100 tea houses around the city
? Tea Expo Closing Ceremony
Date: April 26
Address: Jingshan Town, Yuhang
? China (Hangzhou) International Famous Tea Expo
Date: May 10-12
Address: Zhejiang World Trade Exhibition Center, 15 Shuguang Rd
After all, Longjing is regarded as the finest green tea in the country, with leaves picked before Qingming Festival - which falls on April 4 or 5 - the most sought-after.
These are considered to have a gentler, more subtle aroma than leaves harvested after Qingming.
Last year, the auction price hit a record 360,000 yuan (US$58,028) per kilogram - more expensive than gold.
However, this year the price of pre-Qingming Longjing tea has plummeted.
At auction last week, the premium tea went for only 14,000 yuan per kilo.
And away from the auction houses, the price tea growers received fell to around 2,500 yuan per kilo - down more than 60 percent on previous years.
This is the result of a central government campaign against extravagance, according to industry figures.
"A major reason for the drop has been the central government's crackdown on extravagance, which has led many government departments and state-owned enterprises to scale back on top-end tea," says Zhu Shaolin, tea expert.
Tea grower Sheng Yaoming from Longjing Village agrees, saying the culture of guanxi - relationship building - kept the market buoyant in the past.
"Nobody spends that much money just to drink a cup of tea. People only buy it as gifts for guanxi," says Sheng.
But with government purse strings tightened, the industry is seeking a new market among ordinary tea drinkers.
"The slump in prices lets people buy the tea for themselves," explains Sheng.
Hangzhou tea sellers and government have responded rapidly to the changing market conditions.
The slogan of the Hangzhou Dingfeng Tea Store on its website was changed to "Real Longjing tea for ordinary people" a fortnight ago.
And in many tea stores in the city, more affordable 50-gram boxes of the prized brew are on sale.
Tea growers have joined this push to target ordinary consumers, offering pre-Qingming tea to tourists to Longjing town with the promise that "it's real pre-Qingming tea" and telling them that it's "really cost-effective to buy the tea this year."
This is all in marked contrast to previous seasons, when growers only had to wait at home for old customers to come knocking. Supplies of pre-Qingming tea are very limited, and buyers did not want to miss out.
In the new climate, the municipal government has also started promoting the city's Longjing tea. It has issued a free map of places for buying authentic Longjing tea buying, available at every "Smile Pavilion" around West Lake.
Volunteers provide tourists with information and help at the distinctive green Smile Pavilion booths.
Also, the ongoing China (Hangzhou) International Tea Expo, which opened at the end of March, features numerous tea-related events and activities aimed at locals and tourists.
Promotions are continuing, even though Qingming Festival is now over, as it's the season for pre-Guyu tea.
Guyu is also a solar term and falls on April 20 this year.
Pre-Guyu is also widely regardedas an excellent brew, and pricesare decreasing.
"For people buying Longjing tea for themselves, I'd actually recommend pre-Guyu tea. It's a bit stronger than pre-Qingming tea," says tea grower Sheng.
Despite seeing prices slump, many tea growers seem philosophical, claiming that soaring prices in past years brought their own problems.
"How can the price of tea equal the price of gold? These irrational prices placed us in an awkward situation," says tea grower Wang Yingnan.
"If we tagged the price high, people couldn't afford it. Yet if we made the price low, people doubted it was authentic Longjing."
Traders agree that the move away from previous heights is better in the long run.
"An irrational price is eye-catching, yet not good for the industry," says Sun Chuancheng, deputy manager of China Tea Auction Trade and Service Company. "Only a rational price leads to a healthy industry."
For a fresh sip of authentic Longjing tea, the government recommends 27 spots, including growers' homes and tea stores listed in its map.
Also recommended are other teas produced in Zhejiang Province - including black tea from Jiande, white tea (featuring fine, silvery-white fibres) from Anji, and varieties from Lin'an, Xiaoshan and Fuyang.
Main activities during the China (Hangzhou) International Tea Expo include:
? Tea Convention at Hefang Street
Date: April 12-18
Address: Hefang Street and Wushan Square
? Everybody Drinks Tea Day
Date: April 20
Address: Wushan Square (main spot); Stations of Metro Line 1
? Free Tea Drinking
Date: April 20-27
Address: 100 tea houses around the city
? Tea Expo Closing Ceremony
Date: April 26
Address: Jingshan Town, Yuhang
? China (Hangzhou) International Famous Tea Expo
Date: May 10-12
Address: Zhejiang World Trade Exhibition Center, 15 Shuguang Rd
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