Issue link: https://read.dmtmag.com/i/716988
STiR coffee and tea 17 NEWS include Dazhangshan Xianzhi, Chunyun, Ming Mei, Jian Feng, Yun Cui, Extra grade, 1-5 grade, green fannings, gunpow- der, half gunpowder, jasmine tea, Sencha tea, and black tea. He said that the company also exports organic herbs, dried flowers and dried mushrooms. STiR: In 2000, the company established the Dazhangshan Organic Farmers Association, and in 2001, the association joined the Fair Trade Label Organization (FLO), becoming the first Chinese member. Chinese tea laborers are well-paid by international standards and Chinese tea sells at high prices in both the domestic and overseas markets, why then seek Fair Trade price support at levels far below that paid for fine teas? Hong: Our farms are small. They range from 20 to 100 hectares each, and average 30 to 40 hectares. All are at elevations above 600 meters. They are still family farms. We realized that a cooperative system was very similar to a fair trade model. It is not just about profit. There is democracy and transparency. They can decide as a group where [profit proceeds] can be used. There has been a big change in living and working conditions. For example, the association has helped build schools, and offered partial scholarships to more than 5,000 children. Since adopting the fair trade guidelines, the company refunds some of proceeds realized to improve education, production and living conditions for its member farmers. Fair trade practices are being adhered to both on the farms and in the tea processing plants. Implementation of Fair Trade is possibly also having an influence on whether the new generation chooses to stay on their family farms. In addition to maintaining centuries-old traditions, "there is the possibility of much more income," he said. "Fair Trade is still a new concept in China." STiR: Where will future growth come from? Hong: In the European and American markets I believe that increasing consumer sophistication about different types of teas, the subtleties of flavor, and correct preparation will help drive increased consumption. Currently, the most popular teas for Dazhangshan in both markets are its gunpowder and jasmine tea varieties. People are now being exposed to many more choices which means they will buy more tea. Hong was skeptical about the future of pu-erh teas in these markets, indicating he felt it was more of a fad than a long-term trend, and calling some of the teas over-valued. However, he commented, The market can change. STiR: As you've explained that China's domestic tea market will remain only a minor percentage of JWDOFC's business, what will it take to expand consumption in overseas markets? Hong: Marketing is currently dependent on exposure at tea shows and from media coverage, which has boosted tourism. In 2013, the Chinese government announced an initiative popularly referred to as 'One Belt, One Road' (OBOR). Proposed by leader Xi Jinping, its two components, the Silk Road Economic Belt and the Maritime Silk Road, would combine to increase trade between China and the rest of Eurasia, Oceania and perhaps parts of Africa. It is primarily a political initiative. This road still exists, and [the OBOR] could potentially result in reopening markets. The direction I will lead the company is west, to please the palates of Europe and the US. Dazhangshan tea is described as having a "strong fragrance, delicious taste and thick soup." Clients from the European Union visiting the tea field.