Tea Over-Packaging Faces Legislative Curbs as Selling Tea of Unknown Origin Draws Fines of Up to 20,000 Yuan

[ppzhan abstract]

] From now on, tea businesses that fail to establish a purchase inspection and record system and sell tea of "unknown origin" will face fines of 2,000 to 20,000 yuan. As of the 1st of this month, a local legislative project on the development of the tea industry — the Regulations of Fujian Province on Promoting the Development of the Tea Industry — officially came into force. The Regulations set out provisions on implementing a tea quality traceability system, standardizing the use of tea fertilizers and pesticides, and carrying out the evaluation of famous and high-quality tea products, and they also put a "straitjacket" on the small tea dealerships that have "sprung up everywhere" on the streets.

No Records of Tea Purchases, Fines up to 20,000 Yuan

It is understood that, in light of the province's actual conditions, the Regulations propose implementing a tea quality traceability system, using a traceability platform to capture information on the entire process of tea cultivation, processing and marketing, and regulating enterprises' responsibility requirements with respect to tea quality and safety. Tea production enterprises and specialized farmer cooperative economic organizations shall establish a tea production record system and may not sell tea products that do not meet tea quality and safety standards; tea trading enterprises shall establish a purchase inspection and record system for the tea products they sell, truthfully recording the name, specifications, quantity, supplier, date of purchase and other particulars of the tea. Those who violate the above provisions will be subject to a maximum fine of 2,000 yuan for tea farmers and up to 20,000 yuan for tea trading enterprises. Those who use highly toxic, highly hazardous or high-residue pesticides will be fined up to 30,000 yuan depending on the harm caused.

In addition, the Regulations contain many provisions safeguarding the legitimate rights and interests of tea farmers and tea enterprises. For example, the evaluation of famous and high-quality tea products may not force tea enterprises to participate, nor may it be conducted for profit-making purposes. Furthermore, in response to the current problem of tea being passed off as superior through excessive packaging, it is stipulated that the packaging of finished tea shall be reasonable, and that the material, structure and cost of the packaging shall match the quality, specifications and cost of the tea contained.

Small Tea Shops Under Great Pressure to Survive

"If the new rules are strictly enforced, many small tea retail shops may face delisting." A relevant person from the industry and commerce department told reporters yesterday.

It is understood that currently about 60% to 70% of tea operators on the market have no tea plantations or tea planting bases of their own and mainly rely on purchasing tea from individual tea farmers for resale. These operators generally have major loopholes in purchase inspection, because tea farmers mostly grow tea on a scattered basis, and the quality of the harvested tea is difficult to control uniformly. If they do not change their business model, they will inevitably fail to meet the requirements of the new regulations and in the end can only be gradually phased out.

Yesterday, an industry insider who declined to be named told reporters in an interview. In Anxi, some small tea farmers have only a dozen or so mu of land, with seasonal output of less than ten jin at the lowest, yet having tea tested once costs at least two to three thousand yuan. "Even if they really do send it for testing, the increased cost will inevitably be passed on to consumers, and in this way small tea shops will lose their advantage for survival."

"After the new regulations take effect, small tea farmers can only continue to gain a foothold in the market by establishing specialized farmer cooperatives and transforming production and operation toward intensification, while cooperating with brand tea enterprises," a person in charge of the Kaiyuan Industry and Commerce Office also pointed out. For small tea dealerships, "joining" a brand tea enterprise through franchising may be an option worth considering. It is understood that Xiamen Zhenshan Tea recently signed a cooperation agreement with a specialized farmer cooperative established by tea farmers in Zhenshan Village, Xianghua, Anxi, under which Zhenshan provides the fertilizers and pesticides needed for tea planting, exercises unified management over the planting process, and uniformly controls tea quality.

Taking into account the impact that enforcement of the Regulations may have on the current tea market, the industry and commerce department also said that it will first conduct a preliminary survey of the market and at the same time encourage enterprises that are able to do so to operate first in accordance with the norms and standards of the new Regulations.

— This article is reposted from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-362070.html