The Survival Logic of like shit Coffee

August 29th is a big day for Puyahong. On this day, Yunnan Zhonghe Coffee Co., Ltd., which he had operated for many years, landed in the Shanghai Stock Exchange Center and became the first Chinese coffee industry company to be successfully listed on the Shanghai Stock Exchange.

In China, agriculture is generally regarded as a weak industry. For a long time, the problems of low added value of agricultural products (000061, stock bar) and low remuneration for agricultural production have perplexed Chinese agricultural operators; on the other hand, China's traditional intensive farming does not adapt to the production mode of modern agricultural mechanization. When a large number of foreign agricultural products pour into the Chinese market, local enterprises are often helpless.

As a cash crop, the coffee industry has been hit even harder. Pu Yahong told the International Finance News that since Nestl é introduced large-scale cultivation and marketing in 1992, not a single Chinese coffee company has become bigger and stronger in the past 20 years.

However, Zhonghe Coffee, which was born in 2006, is favored by the capital market. It is understood that Zhonghe Coffee was recommended by Shanghai Shoushuo Investment Co., Ltd., and its general manager Zhao Xiaofang said that it will continue to guide the follow-up financing of Zhonghe Coffee in the future and strive to change the board to the E board with more innovative financing ability in the stock exchange center.

In an industry that is fully controlled by foreign capital, how can local small and medium-sized enterprises break through successfully? In this regard, Pu Yahong gave his own answer-only based on localization of product innovation is the way out.

suit one's measures to local conditions

Yunnan has always been the main producer of coffee in China. It was in the village of Zhukula in Yunnan that missionaries introduced coffee to China for the first time more than 100 years ago. Nowadays, coffee has become one of the daily drinks for Chinese consumers. According to the statistics of the International Coffee Organization (ICO), since 2000, China's coffee consumption has increased at an average annual rate of more than 15%, reaching more than 20% in the past three years, which is 10 times the average growth rate of global coffee consumption.

Such a huge market has attracted the interest of international coffee giants, Nestl é, Kraft, Starbucks, UCC and other foreign brands have grabbed the beach layout in China. A few years ago, a Kopi Luwak from Indonesia swept across China. In some cafes in China, a cup of Kopi Luwak usually sells for a few hundred yuan and is regarded as a symbol of luxury coffee.

The popularity of Kopi Luwak has ignited the enthusiasm of many domestic coffee manufacturers. Since 2013, many local coffee growers in Yunnan have started to produce Kopi Luwak. However, Pu Yahong chose a different path. Instead of copying the already successful Kopi Luwak, he chose to develop "elephant shit coffee" with local Yunnan characteristics.

Yunnan is located in the subtropics, and elephants are endemic to the region. Pu Yahong told reporters that two years ago, he saw that Kopi Luwak was very famous. after studying the relevant production methods, he was determined to use elephant research and development according to local conditions. "simple agricultural and sideline products export, simple rough processing does not have a higher added value, only product innovation is the way out for enterprise development," Pu Yahong judges.

In addition, Puyahong has also expanded the extension of the coffee economy. In his view, coffee is not only a simple commodity, coffee farm can also be developed as a tourism resource. "Yunnan's own tourism industry is very developed, and we plan to create a 10,000 mu coffee planting leisure experience manor. Combine coffee cultivation with tourism. " Pu Yahong told the International Finance News.

Whether it is the local "elephant shit coffee" or "coffee farm" in Yunnan, its essence lies in making use of its own advantages to carry out product innovation according to local conditions. In the course of the interview, Pu Yahong was always hesitant about the company's development plans in the future. He explained to reporters that as a small and medium-sized enterprise, only by constantly innovating its products can it survive in the market. And because of this, these ideas are so valuable. "I'm afraid that if Nestl é knows about our plan, everything will be ruined." Pu Yahong said humorously.

Unite to defend the enemy

In recent years, the coffee planting industry in Yunnan has developed rapidly, and the planting area of coffee beans has been increasing. According to official statistics, the planting area of coffee in Yunnan has exceeded 1.4 million mu in 2013, and the output is expected to be close to 100000 tons, accounting for 99% of China's coffee production and 1% of the world's coffee production.

To some extent, this reflects the change of the planting pattern of coffee beans in the world. The main producing areas of coffee beans have begun to tilt from South America to Southeast Asia and South Asia. In 2011, coffee bean production in Vietnam and Indonesia increased by leaps and bounds, reaching 1.2 million tons and 650000-700000 tons respectively, replacing Colombia, which ranked second and third in the world.

Seeing the changing trend of the world coffee bean growing industry, Puyahong believes that with the huge coffee consumption market of China, Kunming is likely to become the coffee trading center of Asia and even the world.

In such a wave, China's coffee industry is not willing to lag behind. At present, China's coffee industry is still in a decentralized state. Puyahong's idea is to join forces with other domestic suppliers to set up a coffee trade center to enhance its ability to negotiate with international coffee giants while attracting coffee growers from Southeast Asia to trade.

In fact, at the 19th Kunming Fair held in 2011, Vietnamese coffee of many brands, such as Vietnam Bian he, Wiener, G7 and so on, came to the exhibition. It can be seen that the Asian coffee industry is catching up in terms of planting, product production and marketing.

"in our industry, if we all fight alone, we will not be able to compete head-on with multinational companies." Pu Yahong told the International Finance News.