After the drought in Yunnan affected the production of 30,000 mu of coffee for many years, the price went down again.

The continuous drought in Yunnan Province has had a great impact on the important local coffee industry. Data released by the Yunnan Coffee Association show that due to the impact of drought, about 30,000 mu of coffee in Baoshan and other places has been affected, which may lead to a 5% to 10% reduction in coffee production in the province, with an estimated economic loss of tens of millions of yuan.

Fan Deming, head of the Simao Munai River factory of Weibo Coffee (Yunnan) Co., Ltd. (hereinafter referred to as Starbucks Coffee), told the Daily Economic News (Starbucks) that the drought did have a little impact on coffee production, but as the coffee planting area in Yunnan Province has been expanding every year in recent years, it will not have much impact on the overall production.

Yesterday (March 18), the reporter also learned that although Starbucks, Nestl é and other international coffee giants have entered Yunnan to buy coffee beans, the price of coffee beans has been on a downward trend with international prices. This also means that the coffee industry in Yunnan is not only facing the possibility of production reduction, but also suffering from the impact of falling prices.

Coffee production in the province has been reduced by 5% to 10%.

Recently, Hu Lu, deputy secretary general of the Yunnan Coffee Association, told the media that the drought has affected about 30,000 mu of coffee in higher altitude areas such as Baoshan, and if the drought continues, it will reduce coffee production by 5% to 10% in the province, resulting in a direct economic loss of 10 million yuan.

In fact, as early as 2010, coffee cultivation in Yunnan was also hit hard by drought. At that time, 125000 mu of coffee in Baoshan City was affected, with a cumulative loss of 56.2 million tons.

It is understood that Aixing Coffee was established in early 2012 as a joint venture between Starbucks and Yunnan Aiyi Group. Fan Deming, head of the Simao Munai River factory under Aichi Coffee, said in an interview with the Daily Business News that the persistent drought may affect coffee production. Because coffee is about to blossom, the lack of Rain Water will lead to a reduction in production, and drought will also have an impact on the rice yield of coffee.

Another official surnamed Yang also said that the drought may also have an impact on the quality of coffee.

"drought can make coffee thin and immature as it grows." Jian Longsheng, head of Lianxing Coffee, which mainly manages foreign trade, said, "but now, when many multinational companies buy, they have higher requirements for the quality of coffee beans."

The reporter learned in the interview that although drought will have a certain impact on coffee production, due to the continuous expansion of coffee planting area in Yunnan Province in recent years, on the whole, the supply of coffee beans is still not a problem.

The price of coffee beans has entered a downward cycle.

While the production has been reduced by drought, the price of coffee beans in Yunnan has also been falling. This means that after several years of production expansion, Yunnan coffee industry may suffer the double blow of production reduction and price reduction.

According to the statistics of Yunnan Coffee Industry Association, in 2012, the planting area of coffee in the province reached 1.34 million mu, with an output of 82000 tons, an increase of 45.6% and 26.1% respectively over the same period last year. The planting area and output of coffee have accounted for more than 98% of the country. In addition, the coffee export volume of Yunnan Province in 2012 was about 1.4 billion yuan, continuing to maintain the status of the country's largest coffee cultivation and export base.

Behind this, coffee cultivation in Yunnan has experienced rapid expansion. A "Yunnan Coffee Industry Development Plan (2010-2020)" (hereinafter referred to as "the Plan") jointly compiled by the Yunnan Provincial Development and Reform Commission and the Department of Agriculture estimates that by 2015, the coffee planting area in Yunnan will increase to 1 million mu. By 2020, the coffee planting area will be stable at about 1.5 million mu.

The reporter noted that since 2008, the coffee planting area in Yunnan Province has grown from 390000 mu to 1.34 million mu. At this rate, the planting area of 1.5 million mu will be realized several years ahead of schedule. It is worth mentioning that while the planting area of coffee continues to expand, the price of coffee beans has entered a downward cycle.

"now the purchase price of coffee beans is about 12.76 yuan / kg." Van Deming said. On November 20, 2012, Nestl é, as the weather vane of Yunnan coffee purchase price, opened at 17.9 yuan / kg, which is lower than the same period last year. In other words, the purchase price of coffee beans has fallen by 28.7% in the past four months. "now the global production of coffee has increased, and the price is much lower than before." Said a person in the coffee industry in Yunnan. Data show that the price of coffee in Yunnan reached 41 yuan / kg in 2010, a record high. "the price of coffee in Yunnan mainly refers to the price of coffee futures in New York, but now the overall price of coffee is relatively low, so the price has been depressed." Jian Longsheng, head of Lianxing Coffee, told the Daily Economic News. But what is even more troubling for people in the industry is that with the continuous increase in production and falling prices, the wait-and-see mentality of buyers is very heavy, resulting in not exuberant demand. If the price is too low, it may hurt the farmers.

Jian Longsheng said that there is a saying in the coffee industry that "catch up and watch the fall." now many foreign buyers are not doing anything and are in a wait-and-see state. although production has increased, the buyer's market is very weak, and prices will fall even more. At the same time, buyers have higher and higher requirements for quality, and the export situation is not good.

(responsible Editor: Leo)