The China Tea Marketing Association (CTMA) released a summary report of tea harvest conditions and regional/provincial outputs as of March 2023.

 

The full article (in Chinese) can be found here: https://mp.weixin.qq.com/s/BxzHwXI5LuRGFhoXkU2hVg

 

CLIMATE

Main tea producing areas were generally warmer and drier. Several localized areas in China’s Western Belt experienced markedly drier conditions.

 

HARVEST SCHEDULE

In general, the main production areas saw harvesting take place around the usual times or slightly later.

 

PRODUCTION COSTS

Rising wages and increased costs of agricultural inputs (e.g. fertilizer and pesticides) were cited as two significant factors contributing to overall cost increases.

 

YIELDS

Reports indicate that several major tea producing regions will see spring crop reductions of 20% – 50%. Observations specifically mentioned plants that were slow to flush and some having disproportionate amounts of dead leaves.

 

QUALITY

Overall quality of tea harvests was seen as stable.

 

PRICES

Given the drops in outputs and increased labor/production costs, prices for Spring teas have understandably increased. It is, however, necessary to note two important considerations:

• The vast majority (83-85%) of China’s tea production stays in the domestic market
• Spring teas include some of the more premium and exclusive teas and not necessarily teas bound for the export market

 

Taken as a whole, the summary report suggests that China’s overall tea output is relatively stable in terms of quality and production timelines. Changes in pricing associated with rising production costs may be expected, and volumes of some teas may be reduced. Depending on the types of tea being purchased, North American tea buyers may experience various degrees of impact. Please contact your Firsd Tea representative to better understand the impacts to your business.