Fortune in the Tea Leaves
There's at least one commodity in the world whose rising price is benefiting rural families rather than bankrupting them.
Tea farmers in China's Yunnan Province are prospering thanks to rising popularity of Pu'er tea in Shanghai, Beijing and Hong Kong. A few decades ago, the ancient tea was widely unknown, but recently has become fashionable for its celebrated health benefits. Some Chinese believe the tea can help you lose weight and even cure cancer.
The price of Pu'er tea has risen dramatically in recent years. In 2004, a kilo of Pu'er sold for about $1. By last year the price of that same one kilo had risen to $800, although it still varies widely depending on where it's grown and how it's aged. (Last year, for example, 17.5 ounces of Pu'er tea from the 1940s sold for $125,000, according to the International Herald Tribune.) Chinese investors are saying aged Pu'er tea is a better investment than stocks or gold.
Thankfully, the wealth from Pu'er is trickling down to the tea farmers and pickers. The New York Times reports that in the hilltop village of Manmai, the unexpected fortune has permitted villagers to build their homes using concrete rather than sticks and reeds. In peak tea-picking season, young workers can earn up to $1000 a month, which is more than their peers are making in Beijing's factories — a rare rural wage advantage in today's industrialized China.
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