I attended a talk called “China’s Importance to the Future of the International Tea Industry” given by Austin Hodge, owner of Seven Cups of Tea in Tuscon, AZ. He offered many insights into the Chinese tea trade. For one, Chinese tea production is decentralized, with over four million growers and between 70 to 100 thousand producers.  Each region has its own network of growers and producers. The producers offer a broad spectrum of teas, using skilled labor at all levels of production.  Interestingly, most Chinese tea is consumed in-country. Perhaps his most compelling insight was that Chinese tea producers and growers focus on quality over quantity - making their products more valuable.

In his presentation, Hodge laid out the differences between the commodity agricultural model and the Chinese agricultural system. The former, established by the British 150 years ago in India as tea plantations, was based on cheap labor and production costs, low commodity prices, and consistent taste and appearance. The latter, begun as early as 5,000 years ago, relied on producing the finest teas on smaller farms, with an emphasis on quality, highly skilled labor and higher prices. He acknowledged the lack of efficiency in sourcing teas from China, making it a difficult place for tea buyers to operate.

Hodge believes that small tea shops in the U.S. can receive tangible benefits from tea producers in China. They must be willing to do their homework and be sensitive to its unique business culture. This means spending considerable time in China and developing relationships with not just tea producers and growers, but also with local government and business officials. This is a better fit for small tea companies compared to larger tea companies who rely on large scale production.

Written by Jake Kreilick