Pu'er tea a wonder cure for diabetics

By Ye Jun (China Daily)

A sip of Pu'er tea can be as helpful as drugs in lowering blood sugar and preventing diabetes, says a recent press briefing by the Pu'er city government. That is the finding of scientists at Jilin University and the Changchun Science and Technology University, after two years of studies organized by Pu'er city, Yunnan province.

The provincial government's Science and Technology Department also organized a forum for health experts to discuss the health benefits of Pu'er.

"Owing to Pu'er tea's obvious effect in restraining some enzymes related to diabetes, the experts believe drinking the right amounts of Pu'er tea can help lower blood sugar levels and prevent diabetes to some extent," says Sheng Jun, deputy mayor of Pu'er city.

The first phase of the study involved 20 genetically obese lab rats with very high blood sugar levels. Researchers fed 10 of them with regular amounts of mature Pu'er tea while the other 10 rats were not given any.

"Only two rats of the group not fed any tea, survived after 11 months. The others became infected and had sores before dying," says Sheng. "Meanwhile, all the 10 rats that drank Pu'er tea survived, and showed no trace of sores or infection."

The research team also compared Pu'er tea with Rosiglitazone, a widely used medicine to lower blood sugar levels. After two weeks, they found that the rats that were fed Rosiglitazone had 36.5 percent less blood sugar, while the figure was 42 percent for the group that was fed Pu'er tea. Also, those on Pu'er lost weight while those on the drug showed no evidence of any weight loss.

The researchers carried out a test among 120 diabetic volunteers. They were asked to drink Pu'er regularly and stop their medicines, while making no change to their dietary habits. Seventy percent reported blood sugar levels lowered to below 7 mmol/L, with an average decrease of 35 percent.

Although all teas are believed to be capable of lowering blood sugar levels, Pu'er and oolong are thought to be the most effective. In fact, they sometimes lower blood sugar level so fast that some people feel weak in the limbs, experience a faster heartbeat and even feel dizzy - all signs of too low a blood sugar level. The Chinese refer to such people as zui cha, or tea drunk.

Sheng Jun reveals that Yunnan has one of China's best longevity rates and attributes this to tea drinking. "Moreover, as Yunnan has the lowest incidence of cancer, Pu'er city has the lowest number of cancer patients in Yunnan."

The city has applied for a patent for its research into the health benefits of Pu'er, and will continue with its tests.

Puer Tea: China's Next Hot Commodity?

By EMILY RAUHALA / HONG KONG

There is Champagne, France; Tequila, Mexico; and Parma, Italy — all places turned trade names known for their unique, high-quality foods. Now, if China has its way, there could be another: Puer.

This lush corner of Yunnan province in China's south is home to one of the world's hottest teas. Puer tea may not look like much — it is typically sold in heaps resembling cow patties — but one mug of these aged leaves can fetch up to $1,000. The drink is touted for its health benefits and is loved for its light, earthy taste. It is already a hit in Hong Kong, where rare teas are a status symbol among the city's élite, and it is generating hype outside China, too. Three high-profile Silicon Valley techies recently tweeted and blogged their way through a Puer tea tour of Yunnan. Dieters, meanwhile, are buzzing about rumors that Victoria Beckham, the svelte former Spice Girl, drinks Puer to lose weight.

Making Puer tea as internationally renown as Roquefort cheese could expand China's tea exports while adding a bit of luster to a food industry infamous for its health scandals. But building a Puer brand will depend on getting control of a market riddled with imposters, financial speculation and controversies.

The need for stricter control of the Puer industry became clear two years ago, when the Puer market went on a destabilizing roller-coaster ride. Some Chinese buy tea as an investment, much like Europeans buy wines. In the early part of the decade, thousands of cash-rich urbanites poured their savings into the Puer, causing prices to double, then triple. "People were buying anything," says David Lee Hoffman, a California collector. By 2007, the finest aged Puer was — quite literally — worth its weight in gold. As demand soared, however, quality suffered, fakes flooded the market and prices fell.

That's when Beijing stepped in. In an effort to restore confidence, piracy-prone China tightened controls to define exactly what should be considered real Puer. As of December 2008, only teas produced in Yunnan province's 639 towns and 11 prefectures and cities can be labeled "Puer." Branded tea must also be made with a certain type of leaf, using specified technology. Yunnan leaves aged outside the province are no longer considered authentic. The goal, officials say, is to protect Yunnan's heritage and build an internationally viable, niche brand.

Not everyone welcomes the rules. It is unclear if other Chinese provinces will adhere to the regulations and grow different teas under new names. The new standards, for example, shut out tea producers in neighboring Guangdong province, who claim that the tea they process is as authentic — perhaps even more so — than Yunnan's. Guangdong tea makers contend that it was Pearl River traders, not Yunnan farmers, that originally perfected Puer. Zheng Mukun, a tea master from Guangdong, says the province's claim dates to the Qing dynasty, when tightly packed leaves were fermented over the course of the three-month journey, by horse, from Kunming to Guangzhou. The blackened leaves became popular in Hong Kong and industrious southerners began to experiment with fermentation. At the 1957 Canton Fair, Zheng says, local tea masters shared their recipes with colleagues from Yunnan. Ever since, the provinces competed to produce the best teas. Earlier this month, at a trade fair in Hong Kong, a table of Guangdong tea vendors called the regulations "unfair" and "ridiculous."

Experts also have doubts that Chinese regulators can get enough control over the Puer market to build a premier brand. Beijing's standards only apply to domestic producers; competitors in Vietnam, Sri Lanka and Burma can continue to grow and sell their own "Puer" tea. Hoffman, the collector, predicts that fakes will persist and urges caution. "This has always been a buyer-beware market, and it will always be thus," he says.

Still, Hoffman is confident the industry can thrive — and he's put money on it. This fall, he plans to open a luxury tea shop in California that will be a gathering place for American aficionados and a showcase for his fine, aged Puers. "There is a lot of hype and marketing, but that doesn't interest me," he says. "I am only interested in taste." People have offered to buy his collection, but he's dismissed them in turn. He wouldn't trade it now, he says, not for all the tea in China.

A County in China Sees Its Fortunes in Tea Leaves Until a Bubble Bursts

By ANDREW JACOBS
Published: January 16, 2009

MENGHAI, China — Saudi Arabia has its oil. South Africa has its diamonds. And here in China’s temperate southwest, prosperity has come from the scrubby green tea trees that blanket the mountains of fabled Menghai County.

Over the past decade, as the nation went wild for the region’s brand of tea, known as Pu’er, farmers bought minivans, manufacturers became millionaires and Chinese citizens plowed their savings into black bricks of compacted Pu’er.

But that was before the collapse of the tea market turned thousands of farmers and dealers into paupers and provided the nation with a very pungent lesson about gullibility, greed and the perils of the speculative bubble. “Most of us are ruined,” said Fu Wei, 43, one of the few tea traders to survive the implosion of the Pu’er market. “A lot of people behaved like idiots.”

A pleasantly aromatic beverage that promoters claim reduces cholesterol and cures hangovers, Pu’er became the darling of the sipping classes in recent years as this nation’s nouveaux riches embraced a distinctly Chinese way to display their wealth, and invest their savings. From 1999 to 2007, the price of Pu’er, a fermented brew invented by Tang Dynasty traders, increased tenfold, to a high of $150 a pound for the finest aged Pu’er, before tumbling far below its preboom levels.

For tens of thousands of wholesalers, farmers and other Chinese citizens who poured their money into compressed disks of tea leaves, the crash of the Pu’er market has been nothing short of disastrous. Many investors were led to believe that Pu’er prices could only go up.

“The saying around here was ‘It’s better to save Pu’er than to save money,’ ” said Wang Ruoyu, a longtime dealer in Xishuangbanna, the lush, tea-growing region of Yunnan Province that abuts the Burmese border. “Everyone thought they were going to get rich.”

Fermented tea was hardly the only caffeinated investment frenzy that swept China during its boom years. The urban middle class speculated mainly in stock and real estate, pushing prices to stratospheric levels before exports slumped, growth slowed and hundreds of billions of dollars in paper profits disappeared over the past year.

In the mountainous Pu’er belt of Yunnan, a cabal of manipulative buyers cornered the tea market and drove prices to record levels, giving some farmers and county traders a taste of the country’s bubble — and its bitter aftermath.

At least a third of the 3,000 tea manufacturers and merchants have called it quits in recent months. Farmers have begun replacing newly planted tea trees with more nourishing — and now, more lucrative — staples like corn and rice. Here in Menghai, the newly opened six-story emporium built to house hundreds of buyers and bundlers is a very lonely place.

“Very few of us survived,” said Mr. Fu, 43, among the few tea traders brave enough to open a business in the complex, which is nearly empty. He sat in the concrete hull of his shop, which he cannot afford to complete, and cobwebs covered his shelf of treasured Pu’er cakes.

All around him, sitting on unsold sacks of tea, were idled farmers and merchants who bided their time playing cards, chain smoking and, of course, drinking endless cups of tea.

The rise and fall of Pu’er partly reflects the lack of investment opportunities and government oversight in rural Yunnan, as well as the abundance of cash among connoisseurs in the big cities.

Wu Xiduan, secretary general of the China Tea Marketing Association, said many naïve investors had been taken in by the frenzied atmosphere, largely whipped up by out-of-town wholesalers who promoted Pu’er as drinkable gold and then bought up as much as they could, sometimes paying up to 30 percent more than in the previous year.

He said that as farmers planted more tea, production doubled from 2006 to 2007, to 100,000 tons. In the final free-for-all months, some producers shipped their tea to Yunnan from other provinces, labeled it Pu’er, and then enjoyed huge markups.

When values hit absurd levels last spring, the buyers unloaded their stocks and disappeared.

“The market was sensationalized on purpose,” Mr. Wu said, speaking in a telephone interview from Beijing.

With its near-mythic aura, Pu’er is well suited for hucksterism. A favorite of emperors and imbued with vague medicinal powers, Pu’er was supposedly invented by eighth-century horseback traders who compressed the tea leaves into cakes for easier transport. Unlike other types of tea, which are consumed not long after harvest, Pu’er tastes better with age. Prized vintages from the 19th century have sold for thousands of dollars a wedge.

Over the past decade, the industry has been shaped in ways that mirror the Western fetishization of wine. Sellers charge a premium for batches picked from older plants or, even better, from “wild tea” trees that have survived the deforestation that scars much of the region. Enthusiasts talk about oxidation levels, loose-leaf versus compacted and whether the tea was harvested in the spring or the summer. (Spring tea, many believe, is more flavorful.)

But with no empirical way to establish a tea’s provenance, many buyers are easily duped.

“If you study Pu’er your whole life, you still can’t recognize the differences in the teas,” said Mr. Wang, the tea buyer. “I tell people to just buy what tastes good and don’t worry about anything else.”

Among those most bruised by the crash are the farmers of Menghai County. Many had never experienced the kind of prosperity common in China’s cities. Villagers built two-story brick homes, equipped them with televisions and refrigerators and sent their children to schools in the district capital. Flush with cash, scores of elderly residents made their first trips to Beijing.

“Everyone was wearing designer labels,” said Zhelu, 22, a farmer who is a member of the region’s Hani minority and uses only one name. “A lot of people bought cars, but now we can’t afford gas so we just park them.”

Last week, dozens of vibrantly dressed women from Xinlu sat on the side of the highway hawking their excess tea. There were few takers. The going rate, about $3 a pound for medium-grade Pu’er, was less than a tenth of the peak price. The women said that during the boom years, tea traders from Guangdong Province would come to their village and buy up everyone’s harvest. But last year, they simply stopped showing up.

Back at Menghai’s forlorn “tea city,” Chen Li was surrounded by what he said was $580,000 worth of product he bought before the crash. As he served an amber-hued seven-year-old variety, he described the manic days before Pu’er went bust. Out-of-towners packed hotels and restaurants. Local banks, besieged by customers, were forced to halve the maximum withdrawal limit.

“People had to stand in line for four or five hours to get the money from the bank, and you could often see people quarreling,” he said. “Even pedicab drivers were carrying tea samples and looking for clients on the street.”

A trader who jumped into the business three years ago, Mr. Chen survives by offsetting his losses with profits from a restaurant his family owns in Alabama. He also happens to be one of the few optimists in town. Now that so many farmers have stopped picking tea, he is confident that prices will eventually rebound. As for the mounds of unsold tea that nearly enveloped him?

“The best thing about Pu’er,” he said with a showman’s smile, “is that the longer you keep it, the more valuable it gets.”

China's Tea Boom & Bust

Tea has been one of China's main cash crops for the last decade. About 23,000 tons of Pu'er tea was produced in 2007. With the advantages of being a cholesterol reducer and its overall beneficial health effects, Pu’er tea became one of the greatest investment frenzies in China's economy since 1999, according to the New York Times.

During the boom, prices rose to record levels — allowing rural farmers to buy cars, build homes and send their children to school. Chinese citizens who put most of their savings into this "liquid gold" made millions of dollars during the boom era. Wholesalers started paying up to 30 percent more than they did the previous year — while production doubled to 100,000 tons from 2006 to 2007. We posted about the rise of Pu'er tea and its impact on tea workers last April, during the height of the boom in Fortune in the Tea Leaves. About 9 months later, it's a very different story.

By mid 2008, wealthy Chinese started to feel the pinch of the global economic crisis and the tea traders that used to buy up the cash crop in mass simply stopped coming. As the tea bubble popped, there was a devastating drop in prices. The going rate for Pu'er is now $3 a pound — a tenth of its peak price. More than a third of the 3,000 tea manufacturers and merchants have left the tea trade, according to the New York Times. The worst affected have been the farmers, many of whom have switched from tea to more lucrative crops like rice and corn.

Experts are comparing China's tea market to the U.S. housing bubble — where house prices rapidly increased to unsustainable levels, followed by a rapid decline in prices, which left many homeowners owing more on their mortgage than the market value of their homes.

Yet Chen Li, a former trader in the tea market believes that prices will eventually rebound and finds optimism in the mounds of unsold tea held by farmers and manufacturers. In an interview with the New York Times he says, "The best thing about Pu’er is that the longer you keep it, the more valuable it gets.” Yet if the "tea bubble" is anything like the housing bubble in the U.S., we may not see a rebound for a long time to come.

February 10, 2009 by Manasi Sharma

Chinese Puer tea 3/3

Final part

Chinese Puer tea 2/3

Continuation

Chinese Puer tea 1/3

Nice video

普洱茶原料降价或超普洱茶原料降价或超20%

普洱出口有所下跌普洱出口有所下跌 

“几乎整个普洱茶行业的价格都明降或暗降了。”在昨日举行的2008年中国(广州)国际茶业博览会新闻发布会 上,一名广东茶商透露,今年普洱茶原料价格有20%以上的降幅,更有数据显示云南晒青毛茶价格比去年下降50% 以上。 

普洱茶出口有所下跌普洱茶出口有所下跌 在昨日举行的新闻发布会上,广东省茶叶行业协会秘书长张黎明透露了一组数据:“2008年1~9月我国茶叶出口 22.76万吨,同比增长4.97%,只有乌龙茶和普洱茶出口有所下跌,其中乌龙茶下跌2.99%,而普洱茶却下降 33.48%。” 

一名从2004年始进入普洱茶市场、主推古树茶的商家深切体会市场的变化:在2007年,整个市场的茶叶原料被 商家争相哄抬,价格不断上涨,导致普洱茶市场价格的快速上浮;而今年原料起码跌了20%~50%,导致市场价格 也相应下调。在该名商家看来,市场经过1年的沉淀,曾经存在的水分已逐渐被挤干,回到较为踏实的原地。 

不过,行内人士认为,普洱茶市场需要一段为期不短的时日才能恢复昨日风光,主要是高峰期时部分不良炒家破 坏了市场平衡,影响市场信心;另外,负面消息的传播也极大损害了普洱茶的声誉。 

也有观点认为,目前全国茶叶总产量的75%主要依靠内销,市场首先需要调动内需,令消费者重新接受普洱茶, 并对普洱茶有更深的认识;其次要树立正确的普洱茶标准,不将其视同单一的投资品种。(记者 林琳)

Newslinks (10.11.2008)

Delightful World of Puer Tea
By Brenda Koller
Special to The Korea Times

With countless coffee houses springing up everywhere in Seoul, you may be surprised to know that, second to water, tea is the most preferred beverage for the majority of people around the world.

But how often do you think about what type of tea you are drinking, where it was grown, how it was processed and what is the best way to drink it? I pondered those questions and more during a delightful afternoon at the ``World Tea Festival 2007'' held at COEX from June 27 to July 1.

About 200 booths from eight countries including world renowned tea companies exhibited everything you might want to know about tea culture from tea products such as pots and cups, tables, utensils, books, and most importantly, hundreds of different varieties and styles of tea.

Although tea has been popular for over 5,000 years, the market for tea is increasing. According to organizers of the event, sales of tea beverages in Korea have increased by 40 percent over last year with the Korean market valued at 40 billion won. 

Studies have shown that drinking tea has many health benefits such as reducing the risk of cancer and coronary heart disease, to name just two. And with more and more people following the well-being trend, it's no wonder that tea's popularity is on the rise.

All tea originates from the plant Camellia sinensis and there are four basic types _ black, green, oolong or white. The exception to this is puer tea (also spelled puerh, pu-erh, pu erh).

Tea was first discovered in China and the history of puer tea dates back centuries to ancient tea plants that still grow today in Yunnan.

I had the pleasure of discovering puer tea at the World Tea Festival when I sat down at the Jiyumyungcha puer tea store's booth. After the first sip I was enthralled; after the second sip I was hooked. Puer tea looks and tastes similar to black tea, but has a bold aroma and taste of its own, a taste that kept me lingering at the company's booth. 

It certainly helped that one of the company's servers, Jacqueline Park, spoke English and was more than willing to explain the many intricacies of puer tea to a novice drinker.

Park explained that there are two basic kinds of puer, one of China's most popular teas: Sheng Cha, which is raw, naturally fermented puer, and Shu Cha, which is cooked and undergoes an accelerated fermentation process. 

My taste tests revealed a preference for Sheng Cha, which is less woody or earthy tasting than Shu Cha. Puer is also categorized by shape and is available in a variety of shapes such as tea bags, loose-leaf, disc and bowl-shaped, which resembles little acorn-sized bowls.

In many ways, Puer tea can be compared to fine wine as it evolves as it ages and the value often increases with age. Park said that she has tasted puer tea that is much older than herself.

Puer tea purportedly helps with digestion and intestinal activities, not to mention the calming effect it imparts while savoring its unique flavor.

My interest piqued, the quest for additional knowledge of puer tea led me to David Kilburn, chairman of the Tea Museum, who suggested I visit his shop at Lotte Department Store in Myeong-dong. There, manager Choi Eun-sil (who is also fluent in English) introduced me to the company's eight styles of puer tea. Kilburn had suggested sampling two in particular.

Jinhong puer is a blend of puer from Yunnan and cinnamon from Sri Lanka, which is based on a traditional method used by the Jinuo tribes people in China. The blend imparts a delicate cinnamon taste that pleasantly enhances the flavor of the tea.

Of particular interest at the Tea Musuem was the orange puer, which not only tastes delectable but also looks lovely. It is made by removing all the fruit from the inside of a small, bitter orange native to China. 

The tea is then pressed inside the shell and allowed to dry and mature. Choi crumbled part of the orange in with the tea before allowing it to steep. The tea was most pleasant, imparting a refreshing touch of citrus.

I'll admit, I would be hard-pressed to give up my afternoon shot of espresso, but I simply cannot imagine a day without tea. And now my tea drinking has been greatly enhanced with delicious and mysterious puer tea.

Perspectives on Storing and Aging Pu'er Teas: Buying Aged Tea -- But Why?

by WARREN PELTIER

A Brief Historical Perspective

Not so long ago, aged tea could be had for pretty cheap. But all of a sudden, a lot of people in Asia got pu'er crazy, and started buying up all kinds of aged pu'er -- any pu'er -- regardless of quality or price. Let’s take a glimpse at some of the historical highlights of all of this:

Hong Kong has a long history of Pu'er drinking. Pu'er is used here for its medicinal properties, and has long been a favorite tea for consumption during dim sum meals in Hong Kong teahouses.

People’s Republic era: Hong Kong became the “tea storehouse” for pu'er tea. It was sent from Guangzhou to Hong Kong, where some was consumed locally by Hong Kong people, and some was exported to South East Asia.

1950s: one tong of good quality pu'er bing cha cost just a little over 3 HKD. By that time Guangdong people knew that the older pu'er gets, the better it is. But at that time, even old pu'er was only 1 yuan per pound more expensive than newer pu'er. 

1986: One 30-year-old aged Hong Yin (Red Label) bing was selling in Sheung Wan-area tea stores for a little over 170 HKD; some Lao Hao bings aged to 50 or 60 years were selling for 800 HKD. At that time it was already considered very expensive. But today it would be worth in the tens of thousands of HKD.

Starting in the 80s, Hong Kong’s economy started to boom, creating wealth, and a wealthy class of people. Some of these people started collecting pu'er teas as a kind of investment speculation.

In the mid and late 90s, some of the big teahouse owners went overseas -- because of uncertainty about Hong Kong’s future. But after 1997, they came back, started to clean their storehouses, and discovered that there were many kinds of good-quality aged pu'er in their stores. They then proceeded to sell off these stores to collectors in Taiwan and overseas. And two teahouses in particular -- Gam San Lau (金山樓) and Long Moon Lau (龍門樓) (see end-note) -- had stores of Tong Qing Hao Lao Yuan Cha (同慶號老圓茶), aged to almost 100 years in their possession.

Pu'er collectors, especially from Taiwan, would go to the tea farms and factories in Yunnan, sometimes buying up whole crops of tea leaves before they could reach market -- and thus securing their own private stock of tea to be privately pressed into bings for aging.

And that is what kicked off the big pu'er mania -- where everyone who was anyone had to have 100-year-old aged pu'er in their collection. And then supplies of good pu'er, even recently produced, became scarce. Of course, the likelihood of finding 100 year aged pu'er nowadays is virtually impossible.

Value Decisions

Just assume that there were some real, verifiable 100-year-old aged pu'er available for purchase to lucky you. And best of all, that you could actually afford it without going broke. Would that particular brick or bing of pu'er be worth it? That’s the question that has to be asked with any aged tea. Is it worth it to buy this tea? First of all, you probably don’t know the whole history of that tea. Sure, you can research wrappers and factories and batch codes. But that doesn’t tell you anything about how Person A, who first bought the tea, stored it. It doesn’t tell you whether the tea happened to come in contact with any extraneous odors. It doesn’t tell you that Person B stored the tea on a shelf next to a pair of his stinky shoes. It doesn’t tell you that Person C, who then bought the tea, brought it home in a rain storm, and it got all soaked. It doesn’t tell you that Person D doctored the tea by adding extraneous scents from camphor wood to the tea, just because that person thought that the tea smelled kind of like stinky shoes and mold, and thought that it would smell better (and perhaps taste better too) if it were scented with camphor wood.

Since you don’t know the exact storage methods used during the history of that tea, and since you haven’t tasted that tea, how will you know if that tea, aged 100 years is really good or not? You can’t know. And you also won’t know if it’s worth the price you paid. It just may be too big a risk to take.

So how pu'er teas are stored is important, not just for drinking, but also for resale value, if one were to ever be insane enough to sell part of his/her pu'er collection. Of course, pu'er manufacturers know how to age and store tea. And they know how to ship it. So you don’t have to be worried so much how the tea was stored in some warehouse at the factory.

But whether a tea is aged 10 years or 100 years, how the tea was stored is an important factor that will affect the quality of the tea over time. The longer the period of aging, the more important how a tea was stored during all those years becomes. And because of this, one should keep in mind that just because a tea is old doesn’t necessarily mean that it’s good. Of course, Chinese have a saying with pu'er: “the more aged, the better the tea becomes.” But that’s all relatively speaking. If the pu'er was stored improperly, or under non-ideal conditions, then it may be mediocre -- or bad -- aged tea.

In the past few years, in Mainland China, many extremely wealthy people (including many who don’t know a thing about pu'er) got into collecting pu'er as an investment. They speculate in pu'er, driving up the prices -- and driving real pu'er lovers out of the market. There are now many pu'er drinkers who are extremely negative about buying aged pu'er. And they refuse to buy any pu'er until the prices start reflecting the actual value of the tea. 

I myself refuse to buy any aged pu'er, partly because of outrageous prices, and partly because I’m not sure how that particular tea was stored; and also because there are so many fake and forged aged teas that it’s too complicated to keep up with. Now, when I buy pu'er, I visit several reputable dealers where I can sample many relatively new (aged 3 years or less) sheng pu'er bings; and compare prices. If I taste a particular sheng pu'er and I like it now, then when I take it home and store it away for say 7-10 years (or even longer), surely it will taste much better after proper storage and aging. 

Did the Pu'er Bubble Go Bust?

Pu'er prices rose dramatically in the first half of 2007, with prices of mao cha doubling. But this didn’t last long. By the end of June, prices had fallen dramatically as the following examples illustrate:

2007 Price Comparison Prices of Mao Cha

April 1, 2007

Banzhang Ancient Tea Tree: 1400 yuan/Kg

Bulang Shan Ancient Tea Tree: 600 yuan/Kg

July 1, 2007

Banzhang Ancient Tea Tree: 600 yuan/Kg

Bulang Shan Ancient Tea Tree: 300 yuan/Kg

According to market reports, in July 2007, pu'er mao cha prices remained calm, but tea farmers in Nan Nuo Shan (南糯山) and Bu Lang Shan (布朗山) were unwilling to ship their harvests because the going price was so low. And factories in Menghai stopped receiving shipments of tea; many factories reduced the production of shu pu'er. 

So overall, the market was in a bit of a turndown in 2007. No longer were consumers driving the market based on quantity: by the end of the year, they were demanding quality. And that drove prices back down. The demand just wasn’t there anymore.

Today’s Pu'er Market

At the end of June 2008, in Guangdong’s Fang Cun Tea Market, we see pu'er tea prices going down -- sometimes dramatically. A 357-gram 2008 Da Ye 0622 Sheng Bing is selling for 350 yuan per tong. With seven bings in a tong, that comes to 50 yuan per bing. Don’t take my word for it -- see for yourself at this page.

If the prices of pu'er continue to fall, that will be good for consumers. And maybe now is the time to start stocking up on pu'er. A recent trip to the Dong Pu Tea Market, in Fuzhou’s Jin An district, seems to verify suspicions. Tea vendors there say business is slow. Shu bings were selling for a mere 30 yuan. A 400-gram 2007 Meng Ku Large Tea Tree shu bing sold for 80 yuan. And that was the vendor’s asking price. I didn’t even try to bargain him down. If I had bought a tong or two, I probably could have got them for 60 or 70 yuan each. Keep in mind, Dong Pu Tea Market is a backwater tea market with only about 20 vendors. Much larger Pu'er markets, like Guangzhou or Shenzhen, or even Fuzhou’s larger Five-Mile Pavilion Tea Market, probably have stores of sheng bings at a much lower price point. Pre-2007 bings however, and the more famous brands of pu'er are still selling for a relatively high price. As the 2008 bings come onto the market, though, I suspect they will sell for relatively cheaper prices than in the past.

If you want further proof, you can check online auction sites like eachnet.com. The lowest price for a 250-gram 2000 sheng zhuan (brick) was 21.8 yuan. Shu bings are going for as low as 18 yuan. You see similar low prices on online tea vendor sites in China. And that leads to another question: with prices so low, what will the future hold for the new huge tea markets that sprouted up overnight in places like Shenzhen during the days of Pu'er Mania?

Pu'er Reality Check

What makes people go so crazy about pu'er anyway? Is it the moldy smell that people find so captivating or what? What’s all the mystique surrounding pu'er? And why would individual pu'er collectors go out of the way to buy a whole tea farm’s crop and hoard it? Why? Tea Hoarder! That’s tea insanity! And why would anyone be willing to fork over hundreds to thousands of yuan for a single bing? If you compare the quality of leaf in a bing to that of any other kind of tea (say Tieguanyin, for example), are you really getting value for money? For the most part, the pu'er leaf that is used for bings comes from the 4th to the 8th leaves on the bush (or tree). These are pretty large, coarse leaves that are used. Don’t fool yourself: those leaves aren’t big because they come from some thousand-year-old “ancient tea tree.” So why would anyone willingly spend large sums of money for teas that are made with so-called inferior quality leaves? I find it ironic that the teas I buy actually cost as much as, or even more than, the teaware I buy. It’s an expensive lifestyle.

Sensible Enjoyment

So my advice is: Wait awhile and see if cheaper prices make their way through the supply chain. And then, buy pu'er because you like the taste, not because of fame or reputation, or because of the duration of aging. Tea should be enjoyable, not an aggravation. If some of your pu'er tastes good now, then drink it now and enjoy it. Why wait to store it? But if you can wait, then store some away and see what happens. So, enjoy some now, enjoy some later. Maybe that’s the best way to buy and store pu'er.