An Upswing for Oolong?

Taiwan's Oolong tea has become very well known in the last few years; in fact, its fame seems to be common knowledge these days. Nevertheless, certain people in the tea world are warning that Oolong tea producers should start preparing for a rainy day.

Luku township in Nantou County is famous for its Tunting Oolong tea; tourists to nearby Hsitou invariably make a detour to visit Luku on their way. In this township, producer of a tea that can sell for more than NT$1,000 (US$28) a pound, there's a name for the many brand-new cars that tea farmers are driving around--"Tungting specials."

The verification a few years ago by Japanese doctors that Oolong tea is beneficial to weight reduction and general health caused a certain "Oolong fever." Exports of Oolong tea to Japan grew by 40 percent from 1985 to 1986 to 4,500 metric tons. In Nantou County, the area of tea-producing land has grown threefold in the last ten years, and the production of high-quality tea has increased by a factor of ten in the same period. These promising figures have given many people the impression that growing Oolong is an easy way to big money. Is this really the case?

First, let us look at what Oolong tea is, since the name "Taiwan Oolong" actually covers two different types of tea. Tea is categorized according to its level of fermentation. The type of Oolong determined to have weight-reducing properties has a fermentation level of 60 to 70 percent. Tunting Oolong has a level of 30 to 40 percent. The latter is actually a type of Paochung tea; it is called Oolong because most of the tea produced on Tungting Mountain is Oolong tea, so the farmers call all of the tea produced there Oolong.

If both of these types of tea are so good, and selling so well, why should anyone be worried? According to some people, there is a lesson to be learned from the past.

In 1984, India reduced exports of its black tea because of political problems. The ROC, taking advantage of this decision, increased its exports of black tea by nearly one half, to 5,600 metric tons. The next year, India lifted the export restrictions, which caused ROC exports to fall suddenly to 1,600 tons. The black tea wave crashed as quickly as it had swelled.

Looking at the history of tea exports, it can be seen that the sudden massive rise in Oolong sales has its precedents. Oolong was in fact the first type of tea to be exported from Taiwan.

In the 17th century, before India and Sri Lanka (then called Ceylon) began exporting tea, China was the world's sole exporter of tea. Chinese tea at the time consisted of Paochung and green tea, both of which are of the "large leaf" variety, whereas Indian and Sri Lankan teas are of the "small leaf" variety.

In 1869, the English began exporting Oolong tea to New York under the trademark "Taiwan Tea." Eighteen ninety-three was the high point of Oolong exports from the island, with a volume of 9,000 metric tons.

At the beginning of the 20th century, Britain began making use of the extensive trade network of the East India Company to export its tea around the world, with Europe its biggest market. As the market for black tea in the United States and Europe grew, the market for Oolong tea shrank.

The Japanese, who were then occupying Taiwan, decided to follow England's example and began growing black tea for export. Production stopped during the Second World War; but after retrocession, tea, along with rice, was again grown for export. Priority was given to black and green tea, the former being exported mainly to North America and Europe, the latter to North Africa. Exports of Oolong and Paochung were very small, with most of the market being domestic. Hence the recent jump in sales to Japan came as something of a surprise.

Despite this recent increase, many people are not optimistic about future sales. "The crux of the problem," says Lin Fu of the Taiwan Tea Manufacturers Association, "lies in restrictions on production and in world tea-drinking habits." Annual world consumption of tea is about two million metric tons, whereas ROC annual production is only about 20,000 metric tons. In addition, about three quarters of the tea drunk in the United States and Europe is black tea. Again, India and Sri Lanka are the major world exporters, while the ROC must share the rest of the market. Mainland China is beginning to pose an additional threat.

Local producers are starting to get worried. According to statistics, production and sales of the island's tea are presently balanced at about 20,000 tons. Yet, says Huang Cheng-hua of the Food and Fertilizer Technology Center, "The recently opened tea plantations on Taiwan are still young. Within 10 or 20 years production should increase to 30,000 metric tons without an increase in area." In order to prevent over-production, the Council of Agriculture in the Executive Yuan announced that it will no longer provide assistance to new tea plantations. And last September, the Agriculture Bureau of Nantou County announced that tea plants of low quality will be chopped down and used for fertilizer in order to encourage growers to find substitutes for the tea crop, as well as to restrict production.

However, additional measures will also be necessary to keep the tea industry thriving. According to statistics, annual per capita tea consumption in Britain is 3.5 kilograms, whereas on Taiwan it is only 300 grams. "If that figure could be raised to 1 kilogram," says Huang, "then domestic consumption would be about 19,000 tons. Add 10,000 tons in exports, and the problem would be solved."

In the last few years, the selection of refreshments available to consumers has been expanding to suit individual tastes, with sports drinks and coffee recently gaining a competitive hold on the market. What chance does tea have in this "war of the refreshments?"

Coffee's popularity derives in part from its containing caffeine. Tea contains from 60 to 75 milligrams of caffeine per 150 cc as compared to coffee's 40 to 75 milligrams. Tea drinkers, however, still outnumber coffee drinkers by a factor of four to one, an encouraging figure for tea growers.

The head of the Taiwan Tea Experiment Station, Wu Chen-tuo, feels that the tea industry has two possible paths of development. One is promoting tea as a leisure drink; the other is promoting it as a drink for the workplace. The recent rise in the popularity of tea houses and of courses in tea growing, the tea ceremony, and so on, are steps down the former path.

The second step for promoting tea drinking is getting a foothold on the marketplace, which means winning over Taiwan's largest consumer group: young people. Instant tea powder and tea bags are two ways of increasing sales to young people. This summer a firm began marketing Oolong tea in a can, which it advertised extensively on television.

The future of Taiwan's Oolong tea, whether drunk from a porcelain tea cup or out of a brightly painted can, is still uncertain. Since many young people apparently find drinking tea from the traditional porcelain teacup to be a little old-fashioned, tea producers, it seems, had best make their product suit the change of the times.

(Florence Li/photos by Chung Yung-ho/tr. by Peter Hill)

[Picture Caption]

Tea shops are paying closer attention to their storefronts.

Overexpansion of tea fields has led to oversupply.

Tea drinking has become more popular over the past ten years. These customers are buying tea as gifts to friends as well as for their own use.

Tea bags offer added convenience, making working and drinking tea at the same time no problem.

Atmospheric teahouses have been fashionable for years, while today they are helping to popularize the "tea-taking" habit with the younger generation.

Overexpansion of tea fields has led to oversupply.

Tea drinking has become more popular over the past ten years. These customers are buying tea as gifts to friends as well as for their own use.

Tea bags offer added convenience, making working and drinking tea at the same time no problem.

Tea bags offer added convenience, making working and drinking tea at the same time no problem.

Atmospheric teahouses have been fashionable for years, while today they are helping to popularize the "tea-taking" habit with the younger generation.