Winds of change blow in Yunnan

Pu'er tea is one of the top three words used to describe Yunnan province. Since the Tang Dynasty (AD 618-907) because of its unique character - the longer it's stored, the higher value it holds - dark Pu'er tea has been revered as an "antique" beverage.

But the tea's vaunted "natural fortune" did not bring abundant fortune to Yunnan tea farmers in 2008 amid the global economic downturn.

Statistics from local government show that Yunnan's sales of tea products in 2008 were 10.52 billion yuan, only half of the 2007 figures. And, "the decline of Pu'er tea's output and sales affected the total sales of Yunnan's tea products greatly", said Yang Shanxi, director of the tea supervision bureau of Yunnan province.

According to Yang, the region's output of Pu'er products was 52,800 tons last year, 31.3 percent of Yunnan's total output of tea products and 30 percent lower than in 2007.

However, Yang maintains, "elementally, we are successful." The "success" the director claims, was for a campaign to boost the development of Yunnan's tea industry.

"About one year ago, we have found the previous low-end tea planting and processing works couldn't satisfy the increasing market demand in the long term," Yang said. "What consumers want are the high-end, value-added, high-quality tea products, also with stronger brand, especially for the 'antique Pu'er tea'."

And, "it will be a long process to readjust the traditional tea industry in Yunnan province, so the current sales downturn is normal," Yang said. He added that he was confident about the development of the local tea industry.

"Now when you come to Yunnan province and visit local tea gardens, you can find the traditional tea-planting industry transformed," said Zou Jiaju, chairman of Tea Association of Yunnan province.

In the past year, Yang pointed out, three main tasks for the Yunnan provincial government were to diversity the different kinds of local tea products (green, red and dark), to create varieties of Pu'er tea-related products, and also to strengthen of Yunnan's tea industry branding.

Zou said that in addition to its Pu'er dark tea the province is becoming a major center for green and red tea plantations.

According to local government's report, the region produced over 83,900 tons of green tea products and 25,200 tons of red tea products, accounting for 49.44 percent and 14.85 percent of the region's total tea output respectively in the past year.

Furthermore, around a third of the region's 4.89 million hectares of Pu'er tea production have been transformed to newly planted green and red tea.

"What we did has been proved right amid the current global economic crisis," an anonymous senior local official told China Business Weekly in a recent phone interview. "One product may be easier to knock down in the current market competition."

At the same time, consumers could find more unusual Pu'er-related products in Yunnan's market currently, in addition to the traditional Pu'er tea bricks.

Recently, the Yunnan Yidao Tea Plant has benefited from processing Pu'er tea noodles.

Liu Zhong, manager of Yidao Tea Plant, said since 2007 it has been difficult for him to sell Pu'er tea bricks, due to competition. "Finally, we had no other choice but to create Pu'er tea soup and Pu'er noodles," said Liu.

He said with strict supervision, control and regulation in the production, processing, packing and transportation chain, they added the value of Pu'er noodles at 24 yuan per kg. And in the past year, the consumption of the Pu'er noodles accounted for over 40 percent in Yunnan's total noodle consumption.

"Although Yunnan province can produce the best Pu'er tea products in the world, the diversified kinds of high-end products and the lack of modern business management also pose a huge challenge to us to maintain our leadership in the world's Pu'er tea market," said Liu.

So in November of last year, a national Pu'er tea supervision standard was set up by China's central government.

And lead by the tea supervision bureau of Yunnan province, Yunnan has been exploring the potential both at home and abroad to spread the Pu'er tea culture.

By integrating the numerous small and medium-sized tea producers and launching diversified Yunnan Tea Expos, the region has promoted Yunnan tea brands such as Dayi Pu'er Tea, Qicai Yunnan (colorful Yunnan) Pu'er Tea in domestic and some European markets.

And early this month, Yunnan provincial government has begun working with China Construction Bank to promote a new financing service for managing Pu'er tea products.

(China Daily 01/19/2009 page10)