Tea times with Jing - Xia Guan tea factory history

The History of Xiaguan Tea Factory and Compressed Tea Production

by Fang Yan Pei

 

Who is Feng Yan Pei

With over 50 years of experience in the Pu’er tea industry, Feng Yan Pei is arguably the most influential figure in shaping the Xia Guan Tea Factory into what it is today. Joining the renowned factory in 1952, he dedicated 30 years to working across all levels of the organization before assuming its highest position of responsibility in 1982. Feng Yanpei served as the factory superintendent until the early 2000s, leaving an enduring legacy.

At that time, he was chosen to write the piece about the history of compressed tea production at Xia Guan Tea Factory in “云南省首届普洱茶国际研讨会论文集”(Proceedings of the first international symposium on puerh tea in Yunnan province) and below is what I read in it.

 

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Early Significance

Xiaguan, located in Dali, Yunnan, has long served as a vital transportation hub and commercial center in western Yunnan. Its strategic position made it a tea distribution hub and a key site for processing compressed tea, facilitating trade along the Ancient Tea Horse Road. It also played a significant role in the Bonan Ancient Road, fostering material, cultural, and religious exchanges with the outside world.

 

Early 20th Century: Establishing a Tea Hub

In the early 20th century, banditry, warlord skirmishes in Zhen Nan, and the prevalence of disease made it increasingly difficult for Tibetan traders and merchants to travel further. This led to Xiaguan becoming a central hub for tea trading. Over time, tea shops and processing factories proliferated, numbering in the dozens.

 

1941: Founding of Kangzang Tea Factory

To meet the growing demand for tea among Tibetan communities, the Mongolian and Tibetan Commission and the Yunnan China Tea Trade Corporation jointly invested in establishing the Kangzang Tea Factory. Officially founded in 1941, the factory operated out of rented temples and homes in Hehua Village. It processed compressed tea under the trademark “Baoyan,” which was transported to Lijiang and resold to Tibet, Sichuan, and Yunnan’s ethnic regions.

Tea times with Jing - Xia Guan puerh tea factory

 

1945: Sole Operation by Yunnan China Tea Trade Corporation

In 1945, the Mongolian and Tibetan Commission withdrew its shares, leaving the Yunnan China Tea Trade Corporation as the sole operator. However, the factory faced challenges due to political instability, resulting in sporadic production.

 

1950s: Transition Under New Leadership

In 1950, following the Liberation, the Yunnan Tea Company assigned Li Zonggui to oversee operations. The factory was renamed “China Tea Corporation Xiaguan Tea Factory.” Production innovations soon followed. In 1952, trial production of Fangzhuan (square brick tea) began, and the factory adopted the unified “Zhongcha” (China Tea) trademark for national markets while retaining the “Baoyan” trademark for ethnic markets.

 

1953–1960s: Technological Advancements and Product Development

From 1953, the factory transitioned from cloth bag molds to aluminum molds for pressing tea cakes, improving production efficiency and reducing costs. In 1955, a new “zhuanxing” (turned-shaped) compressed tea was introduced but was rejected by Tibetan consumers. The factory reverted to producing the familiar “heart-shaped” format. By 1963, through promotional efforts and demonstrations in Tibetan regions, the “zhuanxing” tea gained acceptance.

 

1966–1968: Cultural and Product Changes

During the “Destroy the Four Olds” campaign in 1966, the “Baoyan” trademark was deemed unsuitable for its perceived superstitious connotations. It was replaced with the “Unity” (Tuanjie) trademark. In 1967, the factory transitioned from “heart-shaped” to “brick-shaped” compressed tea, which has remained in production since. In response to market demand, production of “heart-shaped” tea resumed in 1968 with modernized packaging using kraft paper and plastic ribbons.

 

1968: Visit of the Panchen Lama

In October 1968, the Panchen Lama visited Xiaguan Tea Factory during his tour of Yunnan. The factory prepared a special batch of high-quality “heart-shaped” gift tea, meticulously crafted and presented in silk-lined boxes. The Lama expressed deep appreciation for the factory’s contributions to Tibetan communities and national unity. He ordered 15 tons of “heart-shaped” compressed tea for annual supply, cementing the factory’s reputation.

 

1970s and Beyond: Experimentation and Challenges

Throughout the 1970s, the factory conducted further experiments with aluminum molds for “heart-shaped” tea, though challenges with design and demolding persisted. In recent decades, Xiaguan’s tea industry has flourished, introducing innovative products with sophisticated packaging. However, the rise of counterfeit products, such as falsely marketed “Panchen Compressed Tea,” has raised concerns about historical accuracy and market regulation.

 

Restoring Historical Integrity

Despite these challenges, Xiaguan Tea Factory’s legacy remains foundational to the history of compressed tea production and trade. Its role in serving Tibetan communities, advancing production techniques, and navigating socio-political changes highlights its enduring significance in Yunnan’s tea industry.

 

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