The Dutch tea trade, and why it is left out

The Dutch were shipping tea to Europe before the English were drinking it, and remained the second force at Canton for most of the eighteenth century. Their trade supplied much of the tea smuggled into Britain, which is one reason English-language accounts pass over it.

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The Dutch were first into Europe

Documented

Attested in the historical record, and sourced to it.

The Oxford case study on the English East India Company records that the Dutch East India Company delivered the first batch of tea leaves to Amsterdam in 1610, with semi-regular shipments following from the 1640s. That places a Dutch cargo in northern Europe roughly half a century before tea is being advertised in London, and it means that the earliest European experience of tea is Dutch, Portuguese and Jesuit rather than English. Reading the general histories, a reader could be forgiven for thinking tea arrived in Europe when it arrived in England. It did not, and the sequence matters, because the Dutch had already established supply arrangements, a re-export trade and a consuming public before the English trade became significant, and the English trade grew partly by taking that business. There is a second reason the Dutch precedence is easy to lose. English-language tea history is largely written from British sources about British institutions, and it regards the point at which tea becomes commercially significant in London as the point at which it becomes significant in Europe. Those are different events roughly half a century apart, and the confusion between them is a straightforward artefact of which archives get read.

Two Dutch trades, not one

TeaHQ synthesis

TeaHQ's own reading of well-attested general knowledge, with no single source behind it.

The Company’s tea reached Europe by two quite different routes and the distinction matters. For a long period it was acquired indirectly, at the Company’s Asian entrepôt, from Chinese junk traders who brought tea south — a system in which the Dutch did not choose the tea, did not deal with the Chinese producing trade and had no control over grade or timing. Later the Company traded directly to Canton on its own account, which placed it inside the same arrangements the English were operating under and gave it the same problems and the same leverage. The shift from indirect to direct acquisition is the central structural event in the Dutch tea trade, and it is the reason the Company reorganised its China business in the middle of the eighteenth century. The distinction also determines what could be known about the product. Buying from junk traders at an entrepôt means accepting whatever assortment arrives and having no counterpart to complain to about quality; trading directly at Canton means contracts, advances, musters and a named merchant who can be held to a specification. The move to direct trade is therefore an information decision as much as a commercial one.

The China Committee, and what it was for

Documented

Attested in the historical record, and sourced to it.

Liu Yong’s Leiden thesis on the Company’s China tea trade records that a China Committee was established at Amsterdam in 1756 with absolute authority over decisions concerning the China trade; that a fixed number of China ships was thereafter fitted out annually by the Chambers of Amsterdam and Zeeland, with the smaller chambers allotted a share from the 1763 to 1765 season; and that this policy ensured the Company remained second only to the English East India Company, the largest of the East India companies, in the tea trade at Canton. It further records that the Amsterdam director Cornelis van der Oudermeulen, analysing the accounts of 1785, attributed the improved results of the period from 1760 to 1780 to the direct China trade. That is an unusually clear case of an administrative reorganisation being credited, by a participant, with a commercial outcome. What makes the Committee interesting beyond the Dutch case is its shape. A single body with absolute authority over one commodity’s trade, a fixed annual fitting-out, and an allocation formula between constituent chambers is a planned procurement system operating inside a chartered company, and it is closer to a twentieth-century marketing board than to anything a modern reader associates with early modern merchant capitalism.

Where the tea went, and why Britain cared

TeaHQ synthesis

TeaHQ's own reading of well-attested general knowledge, with no single source behind it.

A large part of the tea landed in the Dutch Republic was not drunk there. It was re-exported, and a substantial share of it reached Britain outside the customs, because British duty was high enough to make the continental price irresistible and the coastline was long. That connection is the reason the Dutch trade is a British problem as well as a Dutch business: the smuggling economy described in `guide-tea-taxation-and-smuggling` was supplied from continental warehouses, and the Danish, Swedish and French companies were in the same business for the same reason. When Britain cut its tea duty sharply in the 1780s, it was not only reforming its own excise; it was removing the margin that had kept several foreign companies’ tea businesses profitable. The re-export business also explains why so many small European trading companies existed at Canton at all. A Danish, Swedish or Ostend company with no domestic tea market of consequence could still run a profitable China trade, because its cargo was destined for the British consumer by way of a beach. Those companies were, in commercial substance, subcontractors to the British smuggling economy.

The colonial afterword

TeaHQ synthesis

TeaHQ's own reading of well-attested general knowledge, with no single source behind it.

The Dutch tea story does not end with the Company. Dutch colonial administration in Java established tea planting in the nineteenth century, and Indonesia became and remains a significant producer, with an industry whose structure — large estates established under colonial rule, later nationalised, alongside smallholders — parallels the South Asian pattern more closely than it parallels anything Chinese. So the Dutch appear at both ends of European tea history: first into Europe with a Chinese product, and then among the builders of a plantation industry designed to replace Chinese supply. That symmetry is a reasonable summary of what European tea commerce did over three centuries, and it is easier to see in the Dutch case than in the British one because the British case is cluttered with a much better-known set of stories. Java also supplied one of the more consequential pieces of plant material in the industry’s history, since seed and plants moved between the Dutch and British colonial establishments in both directions during the nineteenth century, and the assamica and hybrid material that reached Indonesia reshaped what it produced. Colonial tea agriculture was a connected network of botanical gardens and experiment stations, not a set of separate national projects.

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