There has been a recent surge of Pu-erh tea prices in China, 36%-150% over the last 12 months. Pu-erh tea is a tea class of its own, similar to premium wine in many aspects, it value increases with age. Its unique post –fermentation nature enhances its aroma and texture with time. The market value of aged Pu-erh tea generally increase by 10%-20% every year depending on the tea variety and original quality.
The following reasons are believed to have contributed to the recent surge of Pu-erh tea market prices:
- The inflation in China is high, especially in foods.
- The basic labour cost in the Yun-Nan Province has gone up significantly – reported to have doubled since last year. Tea making is a labour intensive process, from leaves picking to the final processing.
- Due to the radiation concerns about Japanese tea products after last year tsunami, many tea retailers have switched to products such as Pu-erh tea. Most of Pu-erh teas are high altitude forest wild gown with low risk of industrial pollution.
- Financial value: some investors use Pu-erh collection as investments. Many have tried share market and property investments during the last a couple decades. Property market in China now is considered to be overvalued and share market has been unstable. Pu-erh tea value increase is considered to be relatively steady.
- Personal value: Pu-erh tea is also believed to have many potent health benefits including reducing cholesterol and weight, and assist digestion.
- Pu-erh tea is still considered to be relatively cheap compared to other premium Chinse teas. There is therefore a bit of catching up happening.
In summary, the current demand of Pu-erh tea is high and the tea prices in China are largely driven by the balance of demand and supply. Similar to share market, we cannot predict at this point where the direction the Pu-erh tea price is pointing at. It is however the tea producer’s believe that it is unlikely to go down.
The founder and owner of Valley Green Tea
I grew up in the Fu-Jian Province – the tea country of China. Tea drinking has been part of our daily life for as long as I can remember.
While I was working as a public health researcher a few years ago, I read many research reports conducted over the last 30 years about the health benefits of green tea in fighting certain life style related challenges such as cancer, obesity, cardio-vascular and inflammatory diseases etc.
From my research, I realised there is a significant gap between what people consume (i.e. commercial tea bags) for assumed health benefits and the actual benefits that have been enjoyed by the Chinese for a long history from the premium loose leaf teas.
As well as being potentially beneficial to health, the premium loose teas (green tea being the biggest group) are most enjoyable beverages with a fascinating history, colourful culture and holistically dynamic in every aspect.
It is my passion to share, not only the products, but also the whole culture dynamics around the premium teas with the tea enthusiasts, here in Australia and around the world.
Valley Green Tea currently supplis a diverse range of premium loose teas to the tea drinking community that suit all tastes and all cultures and to pass on a deep understanding of the history and benefits of this wonder beverage.Website: https://www.valleygreentea.com.au
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- The age of a Pu-erh when there is not a production date
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- The transformation of Chinese tea from a local produce to a modern luxury