Where will Yunnan Coffee Industry go?

Recently, coffee industry in Yunnan Province has become a hot topic that people pay close attention to. On the one hand, the coffee planting area in Yunnan Province reached a new high of 1.3 million mu; on the other hand, the coffee purchase price of Nestl é in Yunnan fell to nearly 17 yuan / kg, a five-year low.

Where will Yunnan coffee industry go? In view of the above, the Yunnan Coffee Association recently held a media meeting to outline the future development path of Yunnan coffee industry.

Coffee production may be in short supply

Although the cities suitable for growing coffee in Yunnan are carrying out the Great Leap forward expansion of the planting area of curry beans, which has now reached a scale of 1.3 million mu, according to people in the coffee industry in Yunnan Province, with the rapid growth of global coffee consumption, even if the scale of coffee cultivation in Yunnan reaches 1.5 million mu, the whole market will still be in short supply.

In view of the current rise and fall of coffee prices, Li Gongqin, secretary general of the Yunnan Coffee Industry Association, believes that this is the law of the market economy, and it is not surprising that there has been a substantial increase in production in major coffee producing countries and a rise in the price of small-grain coffee. factors such as international roasting companies in order to reduce costs and reduce use are the main reasons for the low coffee prices at the present stage.

Data show that Brazil and Vietnam, the two major coffee producing countries do not want the market price to decline again, within a certain period of time, they have begun to hesitate to sell. Li Gongqin said that with the continuous strengthening of trade and cultural exchanges between non-traditional coffee consuming countries and traditional consuming countries, coffee has become a fashionable drink for young people. At the same time, with the investment of international coffee giants in many non-traditional consumer countries, coffee culture will be vigorously promoted in non-traditional countries. If all non-traditional consumer countries grow at the same rate as Indonesia, a traditional consumer country 10 years ago (consumption grew by 50% in five years), coffee will be in short supply in the next five years with limited planting resources and unlimited consumption potential.

The coffee market is in the ascendant

According to the statistics of the International Coffee Organization, the total global coffee production in 2011 is 8.82 million tons, and the global consumption in 2010 and 2011 is 8.226 million tons and 8.34 million tons respectively. The growth rate in traditional markets is about 2.5%, while that in emerging markets is between 15% and 20%. Among emerging markets, Chinese consumption is growing particularly fast, growing at a rate of 25 per cent a year.

Xiong Xiangjin, chairman of Hougu Coffee, a local company in Yunnan and president of the Yunnan Coffee Industry Association, said that at this growth rate, China's coffee market, including the entire industry chain, will reach $1 trillion around 2020, compared with only $150 billion at present. In his view, the reason for daring to build this confidence is that the growth rate of China's home appliances, cars and real estate can prove that with the improvement of people's living standards and the pursuit of quality of life, the beverage market is bound to see a blowout.

Up to now, the planting area of coffee in Pu'er City, Yunnan Province has reached 600000 mu, with an output of 36500 tons and an output value of 900 million yuan. Pu'er City has become the coffee production area with the largest planting area, the highest yield and the best quality in the country. The happy life of many farmers has been closely linked with coffee cultivation.

In Dehong Prefecture, Hougu coffee has been exported to more than 30 countries, Southeast Asia, South Asian countries except India, Myanmar, other countries have exports. South Korea has the largest export volume, with an annual export of 2000 tons, and Hougu coffee is also exported to Indonesia and Malaysia. 6000 tons of coffee beans and coffee powder products are exported from Hougu coffee to Southeast Asia and South Asia every year.

In Baoshan City, the government has made great efforts to integrate 15 coffee companies. it is estimated that the export of small grains of coffee will reach 15000 tons this year, earning nearly 200 million yuan in foreign exchange, and the domestic sales plan is about 6000 tons. While supporting processing enterprises, the association actively does a good job in the protection of intellectual property rights of small-grain coffee. Last year, "Baoshan small Coffee Geographic indication products" was examined by the General Administration of quality Supervision, Inspection and Quarantine, and the protected areas of geographical indication products covered 25 townships in 5 counties, providing a guarantee for the industrial development of Baoshan small grain coffee.

The reporter learned from relevant departments that in the Yunnan Coffee Industry Development Plan (2010-2020), Yunnan Province has listed Baoshan as one of the coffee bean production bases in the province, and the coffee planting area in Baoshan has grown to 200000 mu by 2015 and 300000 mu by 2020. Baoshan will seize the favorable opportunity and make use of 10 years to turn small-grain coffee into an outstanding characteristic foreign exchange-earning agricultural product.

Coffee cultivation in Lincang City has emerged as a new force. At present, the planting area of coffee in the city has reached 270000 mu, ranking second in Yunnan province. Coffee has been listed as one of the ten key characteristic industries in Lincang City during the 12th five-year Plan period. Lincang will take 3 to 5 years to cultivate coffee into a landmark industry for the adjustment of agricultural industrial structure in Lincang. Build Lincang into an important coffee production base in Yunnan and even in China.

Local enterprises actively prepare for war

In the face of the low price of coffee beans, Xiong Xiangjin said: "if the price of coffee beans falls below 15 yuan / kg, Hougu will start stockpiling." "Coffee beans are like agricultural products, and the market has a cycle of ups and downs, which is about 10 years." Xiong Xiangjin believes that the rise and fall of prices is the inevitable law of the development of market economy, and measures should be taken to deal with the decline-- improving the level of planting management, increasing coffee output, grasping coffee quality, and waiting for the time for coffee prices to rise. "at present, of course, the larger the planting area, the better." Xiong Xiangjin said: "even if millions of mu of acreage are put into production, Yunnan coffee production only accounts for 2% of the global market, and our voice is not strong enough."

Under the influence of the international market, Yunnan coffee has encountered sales difficulties, and the purchase price of coffee beans once hit a new low in recent years. From this point of view, the establishment of discourse power is an imperative road of development.

Yunnan coffee price is not only affected by the international coffee futures purchase price, Yunnan coffee enterprises and industries also need to invest a lot in the industrial chain.

"Coffee enterprises in Yunnan must take a road of branding and industrial chain." Xiong Xiangjin pointed out: "taking the road of deep processing to compete for the right to speak will be the road for the future development of the industry, that is, when the coffee purchase price is low, Yunnan coffee enterprises can influence the international coffee futures purchase price."

Hu Lu, deputy secretary general of Yunnan Coffee Industry Association, said: "if Yunnan Coffee wants to gain pricing power and voice in the world, it needs Yunnan Coffee to follow the path of Blue Mountain Coffee, build its own brand, and improve Yunnan Coffee quality and popularity." At the same time, the voice of Yunnan coffee will also face challenges from international giants.

Breakthrough path: brand cultivation

According to the Yunnan Coffee Industry Development Plan (2010-2020), the coffee planting area in Yunnan will reach 1 million mu in 2015 and 1.5 million mu in 2020. The government and the industry are optimistic about the prospect of Yunnan coffee industry, but Yunnan coffee still has hidden worries under its reputation.

Yunnan coffee industry began to produce on a large scale in the 1950s. After 1980, Yunnan coffee industry embarked on the road of marketization. When the market was good, Yunnan coffee planting area expanded; when the price was bad, farmers reduced the planting area of curry beans. This other crops, coupled with natural disasters and other factors, Yunnan coffee industry has always been in the cycle of "hope begins, disappointment ends".

Hu Lu, deputy secretary general of Yunnan Coffee Industry Association, said in an interview with reporters that the price of Yunnan coffee beans is obviously affected by the international market. Through the observation of nearly ten years, the world coffee price has a price cycle, which is a band every ten years.

How can we fundamentally avoid such reincarnation? In the view of some local coffee enterprises in Yunnan, the government has a way to "save the market". In Brazil, for example, when the price of coffee continues to decline, the government coordinates and supports enterprises to purchase and preserve it, and then sell it when the price of coffee goes up, so as to ensure the enthusiasm of coffee cultivation; at the same time, the relevant government departments quickly reflect the arrangement of discount loans to local coffee enterprises to encourage enterprises to actively buy coffee so as not to let coffee rot in the hands of farmers.

In addition to the large price fluctuations, the lack of coffee leading enterprises in most parts of Yunnan is also one of the reasons restricting the strength and expansion of this industry.

People in the coffee industry believe that in order to resist the risk of continuous decline in prices and difficulties in selling coffee, Yunnan coffee must take the road of intensive processing and brand marketing, enhance the added value of Yunnan coffee, and extend the coffee industry chain; at the same time, it is necessary for various government departments to carry out a series of optimization to strengthen support for various agricultural industry development funds and policies, so as to create better and better conditions for farmers to increase their income and become rich.

Li Gongqin said: the rise and fall of prices is the inevitable law of the development of the market economy, and the vast number of farmers must be treated with a normal mindset, and when prices are falling, they should practice their internal skills and make efforts to improve the level of planting management, increase coffee output, and do a good job in coffee quality. do all the preparatory work to meet the rise in coffee prices and wait for the opportunity to rise in coffee prices.

(responsible Editor: Leo)