Chen Zongmao: Deep processing is a crucial pathway for China's tea industry to achieve leapfrog development.

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2014-02-21

Chen Zongmao’s report, "Deep Processing: A Key Path for China’s Tea Industry to Achieve Leapfrog Development," highlights the following key points: In 2009, China produced 1.35 million tons of tea, cultivated on 28 million mu of tea gardens, with an output value of 96 billion yuan. Of this, 980,000 tons were sold domestically, while 304,000 tons were exported. Deep-processing activities accounted for 50,000–60,000 tons of tea products. The primary, secondary, and tertiary industries were distributed in a ratio of 42:44:14. In recent years, China’s tea garden area has been expanding at a steady pace of 1 million mu annually. By 2015, the 4.5 million mu of tea plantations developed by 2005 had entered their peak harvesting period. Based on an average yield of 40 kg per mu, China’s total tea production in 2015 was projected to reach 1.7 to 1.8 million tons, with domestic consumption expected to account for approximately 1.2 million tons.

　　The main points of Chen Zongmao's report, "Deep Processing: A Key Path for China's Tea Industry to Achieve Leapfrog Development":

　　In 2009, China's tea production reached 1.35 million tons, with tea gardens covering 28 million mu and generating an output value of 96 billion yuan. Of this, 980,000 tons were sold domestically, while 304,000 tons were exported. An additional 50,000 to 60,000 tons underwent deep processing. The proportion of the primary, secondary, and tertiary industries in tea-related activities was 42:44:14.

　　In recent years, China's tea garden area has been expanding at a rate of 1 million mu annually. The 4.5 million mu of tea gardens developed by 2005 entered their peak harvesting period in 2015. Based on an average yield of 40 kg per mu, China's total tea production in 2015 reached 1.7 to 1.8 million tons—of which 1.2 to 1.3 million tons were consumed domestically, while exports accounted for 325,000 to 330,000 tons. Additionally, about 120,000 to 150,000 tons underwent deep processing, resulting in production exceeding sales.

　　What should I do?

　　1. Stabilize the area, 2. Boost consumption, 3. Increase exports, 4. Expand and deepen processing activities.

　　Deep processing is a crucial pathway for China's tea industry to achieve leapfrog development. By enhancing the depth of processing, output value can increase by 10 to 100 times. In 2009, China produced 8 million tons of tea beverages using 80,000 tons of tea (based on a tea-to-water ratio of 1:100), accounting for 6% of total tea production—but contributing as much as 45% of the overall tea industry's output value.

　　The direction of China's tea industry development over the next five years:

　　1. Developing tea products aimed at promoting health

　　2. Develop tea products aimed at deepening the functional benefits of tea

　　3. Develop tea products aimed at expanding the uses of tea

　　4. Develop tea products aimed at expanding tea consumption patterns

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