Coffee review

Thoughts on the unsalable Coffee beans in Yunnan

Published: 2024-09-17 Author: World Gafei
Last Updated: 2024/09/17, For Pu'er farmers, this year's coffee beans keep them awake. In previous years, people are looking for beans, but this year they are looking for people. At the beginning of the year, there were many people who bought, but we didn't want to sell. Now there are few people who want to buy, so we can't find a buyer if we want to sell. Li Xiaozhi, a villager of Kongguang Village, Mangkuan Township, Longyang District, Baoshan City, said in an interview: 90% of the villagers in our village grow coffee beans and grow noodles.

For Pu'er farmers, this year's coffee beans keep them awake. "in previous years, people are looking for beans, but this year they are looking for people. At the beginning of the year, there were many people who bought, but we didn't want to sell. Now there are few people who want to buy, so we can't find a buyer if we want to sell. " Li Xiaozhi, a villager of Kongguang Village, Mangkuan Township, Longyang District, Baoshan City, said in an interview: "90% of the villagers in our village grow coffee beans, covering an area of nearly 50,000 mu. Coffee is the main source of income for the villagers. last year, the per capita annual income in the village could reach 5000 to 6000 yuan. I am afraid even 3000 yuan will be a problem this year. " There was an impatience in Li Xiaozhi's words.

Since March this year, the purchase price of coffee beans in Yunnan has continued to decline, from a peak of 40 yuan last year to 20 yuan. Coffee in some cities is difficult to sell. At present, there are still 20,000 tons of coffee beans "smashed" in their hands, and farmers are generally worried. By mid to late March, unsalable coffee in Yunnan attracted media attention. A series of news such as "Yunnan Coffee became a" leftover woman "," Yunnan Coffee Price fell back to three years ago "and" Yunnan Coffee Weibo Sale "made people cannot help but ask, what happened to Yunnan Coffee?

Trapped bureau

Price decline caused by intertwined multiple reasons

The output of coffee beans in Yunnan reached 50, 000 tons last year and about 60, 000 tons this year. Although production has increased this year, prices have fallen by 1/3. It is understood that at present, more than 20,000 tons of coffee beans from major coffee producing areas such as Pu'er, Baoshan and Banna are difficult to sell.

What is the reason why the price of coffee continues to decline and it is difficult to sell? Xiong Xiangjin, president of Yunnan Coffee Industry Association, analyzed: the spread of the global financial crisis has affected the coffee market, middlemen began to wait and see, coffee manufacturers began to start inventory, giving people the illusion that coffee production is overproduced and coffee consumption market is shrinking. In fact, coffee consumption has not decreased. But it is this wait-and-see attitude and the opening of inventory by coffee manufacturers that lead to a decline in prices.

In addition, there is a price cycle in the world coffee market every 10 years or so. Coffee prices began to rise gradually in 2003. Last year, global coffee prices rose to a peak in nearly 30 years. Coffee prices fell back this year, but this time the price fell too fast. Coffee growers were caught off guard, and it is inevitable to be disappointed to measure this year's income according to last year's prices. "in the past 30 years, the purchase price of coffee in Yunnan has been as low as 78 cents, equivalent to about 8 yuan, and the highest price has reached about 41 yuan."

The lack of sales of goods has also caused the sluggish sales this year. Last year, many farmers saw the price of coffee going up and misjudged the market. They wanted to keep the coffee beans and sell them at a price. Unexpectedly, the price is getting lower and lower this year. According to Yunnan net, some villages even have a backlog of 400 to 500 tons of coffee beans.

The reason is obviously more than that. This unsalable storm has exposed some deep-seated weaknesses in the development of Yunnan coffee industry. Dong Zhihua, vice president of the Yunnan Coffee Industry Association, said after visiting the producing areas on the acquisition that in recent years, governments at all levels have given great support to the development of the coffee industry. Investors at home and abroad have entered, and the enthusiasm for planting in various places is very high. Last year, statistics showed that the coffee planting area in the province was 678000 mu, which exceeded 800000 mu at the beginning of this year. However, the speed of seed expansion is too fast, and some speculators are scrambling for it, resulting in a decline in quality, which continues until this year. At the same time, there is a serious shortage of processing technology and drying space, resulting in a decline in product quality and affecting the acquisition. Xia Bing, vice president of the provincial coffee industry association, also talked about the lack of guidance and planning for large-scale seed expansion, resulting in many problems such as lack of matching and insufficient equipment. In addition, the coffee industry's lack of complete and unified production standards, lack of risk awareness, such as the lack of risk assessment of periodic price fluctuations, the lack of corporate management and other deep-seated reasons are reflected in this acquisition storm.

Hand out

Yunnan enterprises promise to accept unsalable beans

Fortunately, in this storm, Yunnan coffee enterprises do not have collective aphasia. On the morning of April 12, the Yunnan Coffee Industry Association held a media meeting in Kunming. All the leading figures of Yunnan local coffee enterprises were present to report on the current falling prices of Yunnan coffee. Coffee is difficult to sell and issued a call: Yunnan local coffee enterprises take joint action to buy more than 20,000 tons of coffee beans that are currently unsalable, so as to ensure the healthy development of Yunnan coffee industry. It will not hurt the enthusiasm of coffee growers.

According to the raw material demand of the company's 13000 tons of instant coffee production line, Hougu Coffee Company gave up importing cheap coffee beans from abroad and left all the 16000 tons of raw material acquisition plan to Yunnan coffee growers. Xiong Xiangjin, chairman of the board, said loudly at the media meeting that Hougu could win another 10,000 tons. On the day of the meeting, Liu Minghui, chairman of Aiyang Coffee, conveyed this attitude through Sina Weibo: "as long as the coffee beans that are not sold by farmers are of good quality, as long as there are no moldy and shoddy mixed beans, Aijia Coffee Company will buy all the coffee beans that have not been sold," Liu Minghui, chairman of the board, conveyed this attitude via Sina Weibo on the day of the meeting. "as long as the quality is up to standard and there are no moldy and shoddy mixed beans," Liu Minghui, chairman of the board, conveyed this attitude through Sina Weibo. " Liu Weigang, head of Kunming Manning Coffee Factory, said: "in previous years, our coffee purchase volume was 50 tons ∽ 60 tons, this year we plan to purchase 100 tons ∽ 120tons." We have booked air tickets to Baoshan on April 5 to buy coffee. We are enterprises in Yunnan, and of course we will not see farmers in Yunnan affected by the disaster. "

According to the survey, the current production cost of coffee cultivation in Yunnan is 13 ∽ 15 yuan per kilogram. When the purchase price is more than 15 yuan, coffee growers still have a certain profit margin. At the meeting, the provincial coffee industry association gave the basic purchase price: first-grade beans 22 yuan / kg, second-grade beans 20 ∽ 19 yuan / kg, third-grade beans 18 ∽ 16 yuan / kg, the average price is about 20 yuan, all more than 15 yuan, do not let farmers suffer.

The government will also help enterprises and farmers tide over the difficulties through discount loans and warehousing subsidies.

The rumors about the suspension of sales by Nestl é, a big purchaser, also received a positive response at this meeting. Xiong Xiangjin said that Nestl é stops collecting every year until April, which is the normal behavior of enterprises. Nestl é has completed its acquisition target this year, reaching 9000 tons, an increase of 1000 tons over last year. At the same time, under the coordination of the efforts of the Pu'er municipal government, Nestl é increased its purchase order by 1500 tons.

Thinking about the examination

It has become a collective consensus to improve product quality

Coffee acquisition will end in June, from the current point of view, there is no doubt to survive this storm, but the feeling of being grasped by the international market has made Yunnan enterprises learn a painful lesson. Yunnan coffee must take the road of intensive processing and brand marketing, enhance the added value and extend the industrial chain, which has become a collective consensus.

The Yunnan provincial government proposed in the 12th five-year Plan that it plans to invest 3 billion yuan to build the coffee industry, which is a major favorable policy for the development of the coffee industry. In 2008, the planting area of coffee in Yunnan Province reached 390000 mu, the output of coffee was nearly 30, 000 tons, the price of coffee was stable, Yunnan coffee factory began intensive processing, and Hougu Coffee built the largest instant coffee production line in China. Aiyi Coffee has built the largest roasted coffee production line in China. In January this year, the planting area of coffee in Yunnan Province reached 860000 mu. According to the planting plan of the main coffee producing areas in Yunnan, the planting area of coffee in Yunnan will exceed 1 million mu this year. All these make Yunnan coffee companies target more clearly-"can we have a say in the New York futures market in the United States, or even have our own pricing power?"

Xiong Xiangjin believes that winning the voice depends on the development of the brand market and China's domestic market by the Yunnan coffee industry. He said that if Yunnan can complete the deep processing of 50,000 tons, it is entirely possible to establish the world's third largest coffee futures trading center in Yunnan.

Jia Xiaoyi, vice president of the provincial coffee industry association, believes that in order to win a voice on such a fair platform as the New York Stock Exchange in the United States, the most important thing for Yunnan coffee is to improve the quality of its products.

Dong Zhihua, vice president of the provincial coffee industry association, said: "this unsalable storm forces us to think about how far Yunnan's coffee primary products used to rely heavily on cheap exports, and how to consider the extension of the industrial chain." He believes that the domestic coffee consumption market should undoubtedly be the main target market of Yunnan coffee, but at present the domestic consumer market does not agree with the quality of Yunnan coffee. In fact, Yunnan can produce good coffee, some enterprises in Yunnan spend energy to go to the base, do services, with better prices to purchase Yunnan coffee, the response is very good after putting into the market. This shows that Yunnan can produce high-quality coffee that can rank in the queue in the world, which is the development goal and direction of Yunnan coffee primary products.

Some people in the industry have also asked whether it is possible to build Yunnan's coffee industry like tobacco. With the development of Ka Lin as the "first workshop" of the industry, enterprises have closer production ties with farmers, provide standardized and standard production technical services for farmers, help farmers change the mode of production and improve product quality. In order to realize such a modern agricultural model, what is needed is the rise and support of the coffee intensive processing industry. Among them, the support of the government is particularly important.

At the same time, it is also necessary for government departments at all levels to carry out a series of optimization in the use of financial means and the promotion and implementation of agricultural insurance, to strengthen the support for the development funds and policies of various agricultural industries, and to make Yunnan coffee industry bigger and stronger. (reporter Wu Qingquan) (Yunnan Daily)

China Coffee Trading Network: www.gafei.com

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