China's coffee growing industry may encounter "price winter" appeal to the public to drink more "Yunnan coffee beans"!

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Yunnan Province, China's largest coffee producing region, is about to usher in the harvest season. The industry expects that China's coffee growing industry will once again encounter a "price winter" in the new season, with the industry calling on the public to "drink more Yunnan coffee beans" to help coffee growers and enterprises through the cold winter.

The current price of coffee futures in New York remains between 110 cents and 115 cents, according to a notice released by the Yunnan Coffee Industry Association. By comparison, the bid for Yunnan coffee beans is not expected to exceed $15/kg.

Coffee planting and Price in Yunnan

According to the statistics of Yunnan Coffee Industry Association, the planting area of coffee in Yunnan has exceeded 1.4 million mu in 2013, and the output of coffee in Yunnan is expected to be close to 100000 tons in the new season. Yunnan coffee acreage and output account for more than 98% of China's coffee.

In the last production season, the purchase price of coffee beans in China continued to fall due to the impact of the international market. In November last year (2012), international coffee companies quoted an opening price of 17.9 yuan per kilogram in Yunnan, a five-year low and approaching the bottom line for coffee growers.

At present, coffee from Pu'er, Dehong, Baoshan, Lincang and Xishuangbanna, the main coffee producing areas in Yunnan, is already red, and farmers are actively preparing for harvest. With favorable weather this year, Yunnan coffee is growing well as a whole, with high fruit hanging rate and fruitful results. However, unlike the bumper harvest of coffee, the continued low price of coffee has made the majority of growers anxious again.

According to coffee growers in Pu'er City, Yunnan's largest coffee producing area, the cost and rice yield of producing and processing one kilogram of fresh coffee fruit, such as land rent, labor, fertilizer, management and harvest, is about 14.7 yuan per kilogram of coffee rice.

Hu Lu, deputy secretary general of the Yunnan Coffee Association, said that $15/kg should be a low price that coffee growers can afford. "the price trough will give birth to another price peak. Coffee bean prices generally fall in a cycle of 10 years. According to the previous law, such a downturn is bound to pick up in the future."

Xiong Xiangren, chairman of Yunnan Hougu Group, suggested that according to the periodicity of the coffee market, farmers should not easily sabotage coffee cultivation when prices are low. By the year after next year, when the price of coffee beans rises, the corresponding income can be fed back, and the confidence of Yunnan's coffee industry is not slim.

At present, Yunnan Pu'er, Baoshan and other places have also developed some enterprises with intensive processing capacity, initially realizing the pattern of industry feeding agriculture, and trying to change the industrial pattern of simple raw material producing areas. However, the statistics of Yunnan Coffee Industry Association show that although the area and output are absolutely dominant in the whole country, the proportion of Yunnan coffee in domestic consumption is still very small.

Li Gongqin, secretary general of the Yunnan Coffee Industry Association, said that in the 2012-2013 production season, Yunnan produced about 82000 tons of coffee beans and exported more than 50,000 tons of coffee beans, some of which were used by Chinese local enterprises with advanced processing capacity for instant powder production. Domestic consumption of Yunnan coffee is less than 20,000 tons. In 2012, China's domestic coffee consumption was about 130000 tons.

Relevant people call on domestic cafes to use Yunnan coffee beans

"if more cafes in China start to use Yunnan coffee beans, add a single item of 'Yunnan coffee' to the consumption list, according to the current output of Yunnan coffee, even the domestic market will not be able to meet." Li Gongqin said.

"Coffee consumption in China is not yet popular, and coffee establishments will include high rent and labor wages in the cost of each cup of coffee. If more people drink coffee, the operating cost of the coffee business will be low, and the price of each cup of coffee will naturally be much lower. " Xiong Xiangren believes that developing local brands and drinking Yunnan coffee beans will help China's coffee industry survive the current "cold winter".