Even for the neophyte tea drinker, the result of a back-to-back comparison of the taste of Taiwan's quality tea and budget supermarket imports is striking--the locally grown brew has a depth of flavor and a smoothness that are unmistakably superior. Which is not surprising, because the cultivation of tea has a long history in , dating back to the 1700s, when it was introduced to the island from mainland 's province. As entered the 20th century, tea had become the island's most valuable export. In 1903, the establishment of the Taiwan Tea Research and Extension Station (TRES) marked the beginning of more than 100 years of effort to bring out the best in tea.
After the end of World War II, the Republic of China government began to actively assist the development of the tea industry. At the time, tea accounted for a large proportion of agricultural exports, and by the beginning of the 1970s, Taiwan-grown tea was exported to 60 countries. However, tea export volume has dropped sharply over the last 25 years as labor and land costs have risen, making it difficult for Taiwanese tea products to compete on the basis of price in the international market.
The good news is that as tea exports have declined, tea consumption has risen, with the increasing prosperity of the 1980s and 1990s spurring demand for the partially fermented, high quality baozhong and oolong tea that local growers specialize in. The striking thing is that since 1990, Council of Agriculture figures show that tea production in has remained in the neighborhood of 20,000 metric tons per year, even with the declining exports and increasing imports.
This represents intelligent economic development. Instead of engaging in a cost-cutting competition in the export market, 's tea growers have turned to creating premium brands and top-flight products, which has helped the local industry remain healthy. Through TRES, the government has played an important role in this development, helping local growers propagate superior cultivars, realize consistent yields and develop environmentally sound pest control techniques.
By focusing on the domestic market, Taiwan's growers are able to offer more distinctive, better quality tea than the importers, and local tea drinkers have shown a preference for the local brew, which sells for a consistently higher price than its competitors. The average unit price per kilogram of Taiwan-grown tea is now US$9.50, two to three times higher than that for tea from , , and . Need more proof that Taiwanese tea has reached the market's highest level? Consider this--it is not uncommon for Tai-wan's high end baozhong and oolong tea to sell for the staggering sum of US$3,000 or more per kilogram.
The premium local consumers are willing to pay for tea constitutes a recognition of its quality and is a strong indicator of the industry's maturation. It also provides a good example for other industries in . As with budget teas, much of the production of other low-cost products has left the island and is unlikely to return. Even if were able to participate in this part of the market, the competition is brutal and the profit margins are small. has long passed the point where such production could lift living standards. The way forward is to aim higher, to develop distinctive, quality products that consumers will have no problem digging a bit deeper into their wallets for. Indeed, for those who have tasted the lush silkiness of Taiwan-grown oolong and baozhong tea, there is no possibility of going back to anything else.