China's coffee output will double in the next five years
Executives at Volcafe, the coffee arm of ED&F Man, the UK commodities trader, say annual coffee production in China will double in the next five years and may increase again if demand is sufficient and prices allow coffee farmers to make a profit.
Volcafe announced last month the establishment of a joint venture in China's Yunnan Province. As traditional coffee producing areas suffer from diseases and insect pests and droughts, it adds to supply concerns. Volcafe has increased its local layout because it is optimistic that Yunnan coffee is expected to become one of the most important producing areas in the world.
"A new line is coming-we can't be absent there," said Mark Furniss, director of business development for Volcafe Asia.
Furniss said that China produces 1.3 million packets of 60-kilogram Arabica coffee a year, which is equivalent to Nicaragua's estimated yield for the 2014 crop year.
If such production doubles, China's coffee production will be close to Mexico and Guatemala (Guatemala) by 2020. Mexico and Guatemala are respectively the 10th and 11th largest coffee growers in the world, with an annual output of more than 3000 packets.
Most of the Chinese coffee will still be based on commercial-grade Arabica catimor, aimed at European operators who use it as blended coffee. Volcafe will focus on improving the stability of Yunnan coffee quality, which has been alleged by several coffee manufacturers and importers in the past as a problem for Yunnan coffee.
In addition, Volcafe will focus on the quality classification of local coffee beans in Yunnan, which Furniss says is currently causing a significant loss of value.
Furniss says this will help it market Yunnan coffee to better coffee-savvy markets such as the United States.
(source: Reuters Chinese website)
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