By Su Hongwen, Lei Huan, Jiao Xudong & Zhang Lingjie, Research Team on “The Importance and Countermeasures of the Transformation and Upgrading of China’s Tea Industry”, China Rural Labor Resources Development Society

Research Report, No.93, 2019 (Total 5593) 2019-6-17

Abstract: As a bridge of friendship and a messenger of peace, tea reflects the cultural confidence of the nation. China’s tea industry has shored up poverty alleviation in a targeted manner, witnessed brilliant achievements in the construction of socialism with Chinese characteristics and served as a crucial leverage to shape China’s cultural soft power. However, the industry does not have the final say in setting overseas standards and prices, and domestically, it could not give effective pricing guidance due to weak quality and brand awareness. The total growing areas, production and sales volume, export quantity and export value of China’s tea industry rank first in the world, but the export rate, per unit area output and per unit output value are much lower than other major tea producing countries in the world. The tea industry is strong in growing areas, production and sales volume, export quantity and export value, but weak in export rate, per unit area output and per unit output value. This problem is becoming increasingly prominent, and the industry is urgently needed to launch transformation and upgrading. It is advisable to establish a futures market for tea product and give full play to its price discovery and hedging function, so as to bring the tea prices down to the reasonable level and remove all hurdles hindering the development of the tea industry from various administrative levels. Moreover, we need to seek a bigger say in the international market and pursue an intensive and coordinated development at home, so as to promote the transformation and upgrading of China’s tea industry.

Key words: tea industry, futures in tea product, bring prices down to a reasonable level, site selection, Xiamen city