{"id":2925,"date":"2023-12-19T02:33:45","date_gmt":"2023-12-19T02:33:45","guid":{"rendered":"http:\/\/en.ctma.com.cn\/?p=2925"},"modified":"2024-01-09T02:37:41","modified_gmt":"2024-01-09T02:37:41","slug":"tea-from-xiaogan-c-chinas-hubei-enjoys-popularity-along-belt-and-road","status":"publish","type":"post","link":"https:\/\/en.ctma.com.cn\/index.php\/2023\/12\/19\/tea-from-xiaogan-c-chinas-hubei-enjoys-popularity-along-belt-and-road\/","title":{"rendered":"Tea from Xiaogan, C China’s Hubei enjoys popularity along Belt and Road"},"content":{"rendered":"\n

From People’s Daily Online<\/a><\/p>\n\n\n\n

On Dec. 1, a China-Europe\nfreight train loaded with 200 tonnes of tea produced by Hubei Xiaoganhong\nTribute Tea Co., Ltd. (Xiaoganhong) departed for Russia.<\/p>\n\n\n\n

During the Third Belt and\nRoad Forum for International Cooperation in Beijing in October, Xiaoganhong,\nwhich is based in central China\u2019s Hubei Province, signed a contract with a\nRussian enterprise to sell 5,205 tonnes of tea worth $61.3 million. Taking advantage\nof the Belt and Road Initiative, the fragrance of Xiaogan tea is further\nexpanding overseas.<\/p>\n\n\n\n

Xiaogan city is a major\ntea-producing area in Hubei Province, with a tea planting area of 413,000 mu\n(27,533 hectares) in 2016.<\/p>\n\n\n\n

In the past, Xiaogan\nencountered challenges like sluggish domestic tea sales and high manual picking\ncosts. These issues resulted in the wastage of around 250,000 tonnes of summer\nand autumn tea leaves in the tea gardens annually.<\/p>\n\n\n\n

In 2016, officials from the\nRussian Ministry of Agriculture and Russian tea buyers visited Xiaogan. They\nconsidered summer and autumn tea as the finest raw material for producing black\ntea.<\/p>\n\n\n\n

At the end of 2016,\nXiaoganhong was established in Xiaogan through the joint efforts of seven tea\ncompanies and the local government. In early 2017, the company conducted market\nresearch in Russia and secured three black tea purchase contracts.<\/p>\n\n\n\n

To meet these orders, it\nswiftly introduced a digital production line and achieved mass production in\nthe same year under the guidance of the Fruit and Tea Institute of the Hubei\nAcademy of Agricultural Sciences.<\/p>\n\n\n\n

In early 2018, Xiaoganhong\nexported its first batch of 80 tonnes of black tea to Russia, where the tea was\ndirectly sold in Auchan, the largest chain supermarket in the country. Sales\nfrom this shipment was worth over $1.45 million.<\/p>\n\n\n\n

In March 2018, it expanded\nits operations by establishing a tea company in Moscow. It closely collaborated\nwith the Russian Association of Tea and Coffee Producers, with the support of\nthe Chinese Embassy in Russia.<\/p>\n\n\n\n

By participating in events such as the embassy’s annual Spring Festival gathering, the annual meeting of the Russian Association of Tea and Coffee Producers, and tasting sessions, the company effectively promoted Chinese tea culture and showcased Xiaogan’s rich cultural heritage. <\/p>\n\n\n\n

Guided by experts from the Tea Research Institute of the Chinese Academy of Agricultural Sciences, it developed a blended black tea that catered to the preferences of Russian consumers. <\/p>\n\n\n\n

\"\"
Photo shows a tea plantation in Xiaogan city, central China’s Hubei Province. <\/figcaption><\/figure><\/div>\n\n\n\n

Xiaoganhong’s seven\nshareholders transformed the tea gardens into standard tea gardens suitable for\nmechanized harvesting. They replaced manual tea picking with machine\nharvesting, and introduced a fully automated black tea production line to\nimprove efficiency and reduce costs.<\/p>\n\n\n\n

In June 2019, Xiaoganhong\nopened a Chinese tea exhibition and sales center in Moscow. The center provides\nspecialized and international one-stop services, including business support,\nlegal assistance, customs clearance, and foreign exchange settlements, to\nfacilitate the participation of Chinese tea companies in the Russian market.<\/p>\n\n\n\n

This strategic move not only\nprovides the company a significant presence in the market but also allows it to\ninfluence pricing. In 2019, the price of its tribute tea products increased by\n20 percent and more than 1,600 tonnes of tribute tea products were sold. The\ncenter has attracted 306 tea companies from China. Last year, the center’s\ntotal transactions were worth over $97 million.<\/p>\n\n\n\n

The company has started to establish chain tea shops by collaborating with locals in Russian cities with a population of over 500,000 since 2021. By the end of that year, more than 30 tea shops were established. <\/p>\n\n\n\n

\"\"
Photo shows a tea shop of Xiaoganghong in a shopping center in St. Petersburg, Russia. (Photo courtesy of Xiaoganghong) <\/figcaption><\/figure><\/div>\n\n\n\n

“Currently, the Chinese\ntea’s market share in Russia has increased from 7.1 percent to 13 percent, and\nwe have played a significant role in this,” said Tu Zhigang, general\nmanager of Xiaoganhong.<\/p>\n\n\n\n

The success of the tea\nexhibition and sales center in Moscow has strengthened the company’s confidence\nin further expanding overseas markets.<\/p>\n\n\n\n

Xiaoganhong has identified\nDubai as its next market.<\/p>\n\n\n\n

According to Le Zihua,\nXiaoganhong’s chairman, green tea is the primary tea product on Dubai’s tea\nmarket, and this aligns well with the structure of Hubei’s tea industry. Dubai\nalso serves as a crucial transit trade center for countries in the Middle East\nand Gulf region, extending its reach to the Americas, Europe, Central Asia,\nAfrica, and the Middle East and Gulf region.<\/p>\n\n\n\n

Le added that the company\nhas not only established a demonstration tea garden in Dubai but is also\nbuilding an exhibition and sales center, as well as an overseas warehouse.<\/p>\n\n\n\n

It is partnering with local\nenterprises to construct a Chinese tea exhibition and sales center in Dubai.\nThis project is nearing completion and has attracted interest from over 400 tea\ncompanies. The center is expected to commence operations in January 2024.<\/p>\n","protected":false},"excerpt":{"rendered":"

From People’s Daily Online On Dec. 1, a China-Europe freight train loaded with 200 tonnes of tea produced by Hubei Xiaoganhong Tribute Tea Co., Ltd. (Xiaoganhong) departed for Russia. During the Third Belt and Road Forum for International Cooperation in Beijing in October, Xiaoganhong, which is based in central China\u2019s Hubei Province, signed a contract<\/p>\n

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