PTT Netizen Question: I saw HuaGung tea being sold at a tea shop for only NT$1,000 per 600 g. Is this real? The owner claims it is authentic HuaGung tea and offers a friendly price directly as a tea farmer. Is this believable? I’d love to know what a reasonable price for HuaGung tea should be.
HuaGung Tea Prices from a Wholesale Perspective
HuaGung tea region is relatively small in area, but wholesale prices vary significantly between different tea gardens, ranging from NT$2,000 to NT$8,000 per 600 g. Located at a higher elevation, the HuaGung area entails relatively high costs for fertilizer, labor, and tea factory construction. The production cost for 600 g of tea is at least NT$800. Looking at costs, if we assume a production cost of NT$800 per 600 g and sell it for NT$1,000, it is actually quite a disadvantageous margin and may even lead to a loss, as expenses such as packaging, transportation, and marketing still need to be covered.
So, what is a reasonable retail price for HuaGung tea?
Let’s get back to your question. Hand-picked spring HuaGung tea sold for NT$1,000 per 600 g. Honestly, in the past 15 years, we have never encountered a wholesale price close to this range. Generally speaking, the higher the elevation, the higher the price of the tea. In recent years, the lowest wholesale price has been around NT$2,000 per 600 g. This price applies to hand-picked spring tea, and winter tea prices are even higher. If it is below NT$1,000, it is very likely autumn tea, summer tea, or even a failed batch. More likely, the tea is not produced in HuaGung, but substituted by other tea regions or blended.
Normal retail prices for HuaGung spring and winter teas range from NT$3,000 per 600 g (from the lowest-altitude HuaGung tea gardens) to NT$10,000 (from top-tier HuaGung and the water source area). Autumn tea can be purchased for NT$1,500 to NT$3,000 per 600 g. Because the weather at the very top of HuaGung is too cold, autumn tea is generally not harvested there, and only the spring and winter crops are picked each year.
