China’s Nine-Month Tea Trade Shows Why Volume And Unit Value Need Separate Reading

What changed

January–September exports were 294,500 tonnes, down 3.91%; value rose 3.21% to US$1.155 billion. Average unit value increased 7.41% to US$3.92/kg.

HOUTU TEA market reading

A stronger aggregate unit value can coexist with weaker physical trade. For procurement, the key question is whether the change reflects the tea being quoted or a different mix of destinations, grades and packaging. HOUTU TEA would not use the headline average as a ceiling or floor for an individual offer. A commercial comparison needs the same product, terms and service scope.

Limits and risk

Customs unit values are weighted statistics, not live FOB quotations or a measure of supplier profit.

Procurement decision

Create a like-for-like sheet covering reference sample, net weight, bag or carton construction, inspection requirements and payment timing. Ask suppliers to identify which cost components changed since the previous order. For small retail packs, translate the offer into cost per correctly filled saleable unit. Then compare expected gross contribution using the distributor's own selling price and actual logistics quotation.

Buyer action checklist

• Equalise specifications
• Separate tea and packing costs
• Calculate saleable-pack cost
• Keep payment terms comparable

Illustrative order scenario - not an actual transaction

Two offers may have similar kilogram prices but different carton strength and filling loss. A trial packing run can show which offer produces the better cost per saleable pack before the buyer commits to a large reorder.