Tuesday April 24, 2012 | 5 comments
The Dan Cong tea market may now be experiencing an economic bubble like the Puerh tea bubble that burst in 2007 and damaged the Puerh tea industry. Two years ago, you could buy a very nice Dan Cong variety for $20 dollars/kilogram. In today’s market, you may expect to pay more than five times that much. Last year, a variety called Jiang Huang Xiang sold for $30,000/kilogram.
Dan Cong is an oolong tea that means single bush; farmers pick and process this unique tea bush-by-bush. Its home is the Guangdong province of China, and the Dan Cong tea from Feng Huang (Phoenix) mountain is the most famous. Dan Cong includes over 30 varieties, of which Mi Lan Xiang is the most popular and the earliest to be harvested.
Because the Dan Cong output is not as large as that of Tieguanyin or Puerh, I doubt that its bubble will be as large. Dan Cong is not yet a nationally known tea in China. And although the Dan Cong market gathers in Chaozhou city and Shantou city, there is no specific Dan Cong tea-packing market.
So, what are the factors stimulating the Dan Cong market bubble?
- Dan Cong is an amazing tea with an attractive, strong flavor and unforgettable sweet aftertaste.
- In its drive to make money, the local government does not have a serious plan for the Dan Cong tea industry. A lot of the mountain is burned for tea planting.
- “Hot money” (also known as “refugee capital”) is everywhere in China. In the past, hot money has driven up real estate, garlic, and Puerh tea prices. Now that hot money is pouring into the Dan Cong tea market, I fear this movement will hurt the Dan Cong tea industry.
If you are a brave investor, you may want to ride the Dan Cong bubble, but be careful. I’m sure this bubble will burst soon. However, as a tea lover and exporter, I still recommend you try this fantastic tea.