Tea has become one of the critical export agricultural products in Vietnam over the past years. However, Vietnamese tea price is not equal to its value and potential. About 90% of tea export volume is in bulk at low selling prices, while Vietnamese tea companies can manufacture various products at massive volume.
In this article, we will dig in-depth into the situation of the Vietnamese tea industry and guide you on buying high-quality products at an acceptable price.
1. The price range of tea types in Vietnam
According to statistics from Vietnam Tea Association, export prices of green tea range from 1,500 USD/MT to 4,000 USD/MT (CFR price basis), the average is 1,900 USD/MT. These prices depend on the quality of products.
Export prices of Vietnamese black tea orthodox range from 1,200 USD/MT to 4,000 USD/MT depending on the quality of products, while the average export price is just about 1,500 USD/MT.
In recent years, the export of oolong tea has increased sharply in both volume and value. The average export of Vietnamese oolong tea price is around 6000 USD/MT.
Pakistan is the biggest tea importing country from Vietnam. The mostly average price of green teas is around 1,933 USD/MT. Taiwan is the second biggest tea importer of oolong tea from Vietnam. Oolong tea with an average price of 6,000 USD/MT. The third biggest tea importer from Vietnam is Russia, black tea orthodox at an average price of 1,600 USD/MT.
The price differences come from grades of Vietnamese tea, tea areas, method, packages, services, etc. For example, Vietnamese Shan Snow tea price is higher than green tea because it comes from old tea trees in high mountainous areas. If you buy tea products from big tea companies, you will get a profitable price. Because they have huge sources of raw materials, modern machinery systems can produce and supply in large quantities, so the price is good for wholesalers’ customers.
2. Situation of Vietnamese tea export pricing
According to the Vietnamese Tea Association, Vietnam is currently ranked 5th in the world in terms of tea exports and 7th in global tea production. However, the average tea export price is low, approximately 1,664 USD/MT in 2021. This average price is just about half of the average tea price in the world (at nearly 3,000 USD/MT in 2021).
The main reason for this situation is that most of the Vietnamese tea products have been exported as raw materials in bulk. Buyers repack the raw materials in their facilities and resell at a much higher price after importing from Vietnam.
Moreover, in some areas, the tea growers have increased using pesticides and chemical fertilizers to increase yields and maximize profit. It has resulted in the uneven quality of tea products, bringing a terrible image of Vietnamese tea, and therefore drove down the selling price.
However, in recent years, Vietnam has been working hard to improve the tea quality to meet the high standards of markets such as Europe. The Vietnamese government has implemented policies in improving varieties and farming techniques to ensure food safety on tea products.
Safe production is now the orientation for sustainable tea development.
Aware of the importance of clean agriculture for sustainable tea development, tea growers have shifted the production of tea towards organic safety. For example, farmers use rotted manure, microbial organic fertilizers instead of inorganic fertilizers. They plant other trees to shade sunlight for tea trees to limit pests and diseases. These are just two of many changes in the process of growing and caring for tea trees.
Producing safe and clean tea production will protect the health of producers and consumers. The solution has helped increase the Vietnamese tea export price and create a good name for Vietnamese teas in the world.
Besides that, Vietnamese tea manufacturers and exporters have gradually professionalized the production and sales process, thereby increasing the value of tea products in the international markets.
Related post: Vietnam’s tea export: Situation and improvements
3. Buy high-quality Vietnamese tea products at a competitive price
In this article, we would like to introduce one of the best addresses for buyers who want to save cost and also look for high-quality Vietnamese teas: Future Generation Company (FGC).
FGC is proud to be the leading tea producer in Vietnam with over 20 years of expertise in tea processing and exporting. Moreover, we have the highest processing capacity and the most advanced machinery system among Vietnamese tea companies.
All of our production activities completely adhere to ISO and HACCP standards. We also have many tea gardens and 15 factories across Vietnam that adhere to VietGAP, GMP, Halal, and Rainforest Alliance standards. It is worthwhile to work with FGC, a partner who can provide a diverse choice of Vietnamese teas at consistent quality, attractive packaging, excellent service, and very competitive price.
We hope you have an overview of Vietnamese tea prices and deeply understand that we have many abilities to help your business become prosperous. Please feel free to contact us for more information about our tea products: