Coffee beans are unsalable. Canon Pan has the right to price.

One year after the release of the Yunnan Coffee Industry Development Plan (2010-2020), Pu'er, Baoshan and other cities with large coffee bean production in Yunnan appeared the situation that farmers' coffee could not be sold. Outsiders have speculated that Yunnan coffee industry has encountered major problems, and some industry insiders even suspect that the coffee planting area is too large, resulting in an oversupply of coffee in the market. However, in the view of Xiong Xiangjin, president of Yunnan Coffee Industry Association, the scale of coffee cultivation and production in Yunnan is not too large, but on the small side. Recently, Yunnan coffee has indeed encountered some effects caused by low prices, but only normal price cycle fluctuations.

Coffee beans increase production and purchase record

As Nestle, Starbucks and other international coffee giants have entered Yunnan coffee producing areas, the reputation of Yunnan coffee has also expanded, and the Yunnan provincial government has also planned the development of the coffee industry. Just when everyone thinks that the local coffee industry in Yunnan will usher in a great development, the coffee in the hands of coffee growers in Pu'er and Baoshan is unsalable. Coffee beans were slow to sell because in late March this year, Nestl é suddenly issued a notice at the purchase station of Pu'er to stop buying coffee beans, nearly half a month earlier than usual, causing panic among farmers. Many villages that rely on coffee cultivation as a source of income have fallen into a backlog of coffee beans that are difficult to sell. According to media reports, there is a backlog of more than 100 tons of coffee beans in many villages in Pu'er.

"We have made statistics that at present, more than 20,000 tons of coffee beans are still unsalable in major coffee producing areas such as Pu'er, Baoshan and Xishuangbanna." Xiong Xiangjin, president of the Yunnan Coffee Industry Association, said that after learning about the unsalable situation of coffee beans in some areas, he immediately organized manpower to conduct a survey of these areas, but not all the major producing areas were unsalable. For example, in Dehong Prefecture, all the coffee beans of Ka Nong have been acquired, and none of them is unsalable, while the coffee beans purchased in Dehong Prefecture are mainly local enterprises in Yunnan, such as Hougu and Beigui. The most unsalable is Pu'er, Nestl é 's main acquisition area. According to Nestl é, the suspension is due to limited inventory capacity. Nestl é has bought 9000 tons of coffee beans in Yunnan this year, the highest acquisition in years.

The storage of coffee beans is a more exquisite link, the storage conditions are not up to standard will seriously affect the quality of coffee. Xiong Xiangjin said that Nestl é's acquisition has actually reached the upper limit, and the suspension of the acquisition is only temporary. Recently, Nestl é's acquisition sites have been reopened to farmers, and it is expected that the acquisition volume of Nestl é alone in Yunnan will exceed 10000 tons this year. The purchase volume of Hougu Coffee, a local enterprise giant in Yunnan, has also exceeded 6000 tons this year, and the purchase volume of Aixin has also been mentioned to be 60 tons per day.

Behind the record high purchase volume of enterprises is the large-scale growth of coffee production in Yunnan. Li Gongqin, deputy secretary general of Yunnan Coffee Industry Association, said that the coffee planting area of Yunnan Province has reached more than 800,000 mu, and a total of 40,000 tons of coffee beans were collected in 2010. last year, 50,000 tons are expected to reach 60,000 tons, and coffee bean production is increasing at a rate of almost 10,000 tons per year. Li Gongqin said: this is a good thing. The 10-year plan for the coffee industry has played a significant role, and there is a certain foundation for the industry to become stronger and bigger.

Prices plummeted and farmers were reluctant to sell.

Farmers believe that the direct cause of the collapse in coffee bean prices is the increase in production, which affects supply and demand. Xiong Xiangjin said that coffee is a market-oriented and highly internationalized industry. The purchase price of coffee beans in Yunnan is mainly based on the New York futures price. According to the local situation, the global annual output of coffee beans is about 8 million tons, while that in Yunnan is only 60, 000 tons. Less than 1% of the global market, the increase in coffee cultivation and production in Yunnan will not affect the global market.

Since 2003, the price of coffee began to climb gradually, reaching a 30-year high in 2011, reaching an all-time high of 41 yuan per kilogram. However, in the 2012 harvest season, the market situation has taken a sharp turn for the worse, with Nestl é offering a maximum price of 32 yuan per kilogram. Since then, it has been getting lower and lower, falling to about 20 yuan. Xiong Xiangjin analyzed that the low purchase price of coffee this year is mainly affected by the European debt crisis, the US subprime mortgage crisis and the financial crisis that has spread to the world. Due to the consideration of market instability, intermediate buyers began to wait and see, and international coffee giants started inventory one after another, thus causing overproduction to the outside world. In fact, the consumer market for coffee has not decreased, it is this wait-and-see attitude and manufacturers use inventory, leading to a decline in prices.

Due to the asymmetry of information, the vast number of coffee growers still stayed in the scene of last year, initially sold at a price of more than 30 yuan per kilogram, but ran out of stock when they broke through the 40 yuan mark later. However, the situation this year is just the opposite. the purchase price of coffee beans offered by enterprises is high first and then low, and the farmers appear to be powerless in the face of the sudden situation. Compared with the beginning of the acquisition, the sale now has to lose more than 10 yuan per kilogram, and growers who have worked hard for a year are obviously unwilling to accept this situation. Xiong Xiangjin said that the so-called unsalable market is more caused by the hesitation of coffee farmers to sell. According to investigation and analysis, the current production cost of coffee cultivation in Yunnan is between 13 and 15 yuan per kilogram. As long as the purchase price is above 15 yuan, coffee growers still have a certain profit margin.

As for the decline in prices, some local coffee websites and Weibo in Yunnan have participated in the sales, but the effect is not ideal, and the unsalable situation of coffee beans has not changed. "there is a certain periodicity in the price of coffee in the world. There is a band every decade or so. Since 2003, the price has climbed to the present. It has come to a time of cyclical change, but the price has fallen a little fast." Xiong Xiangjin analysis, the price collapse caught farmers by surprise, and when the price will rebound in the future is still unknown.

The dishonesty of some farmers affects the acquisition.

The international coffee giant stopped receiving Yunnan coffee beans has become the focus of social attention. Although the change of the international economic situation has become the main cause of this storm, the problems existing in Yunnan coffee industry have also attracted international attention. The most obvious is that some coffee growers have integrity problems, such as inferior quality, non-performance of contracts and other reasons are also quietly affecting the image of Yunnan coffee raw materials.

"some growers are driven by interests, but do not fulfill their contracts with foreign-funded enterprises, and some even mix bad coffee beans with good ones." Jia Xiaoyi, vice president of the Yunnan Coffee Industry Association, is very angry about this. As a raw material, the quality of coffee beans directly affects the quality of coffee. If immature, moldy and deteriorated coffee beans are mixed into good ones for sale, it will not only lower the grade of coffee, but also affect the international image of Yunnan coffee, which is extremely disadvantageous to the development of the industry.

In previous years, due to the very good market for coffee beans, demand often fell short of supply. Not only good coffee beans could be sold at a good price, but even those of low grade did not worry about the market. This made some farmers eager for quick success and quick profit, and the immature fruits were also picked down and mixed with ripe fruits. Xiong Xiangjin said that not only foreign enterprises encounter this situation, local enterprises also have such problems in acquisitions, especially some export enterprises, mainly rely on quality to open foreign markets, quality problems will make it very difficult for enterprises to develop.

Not supplying goods in accordance with the contract has also become a prominent problem this year. Due to the signing of contracts with Nestle and other enterprises, it needs to be supplied on time this year, but because of the low price, some coffee growers cherish the situation of selling and fail to perform the contracts already signed. All these affect the strength of coffee enterprises in the acquisition of coffee beans. Industry insiders pointed out that the current scale of Yunnan coffee industry is largely due to the international coffee giants. Taking Nestle as an example, it first set up a purchasing station in Pu'er and provided technical guidance in planting, picking, baking and other links, thus stimulating and accelerating the development of Yunnan coffee industry. If the problem of integrity is not solved, Yunnan coffee will be extremely passive in the international market.

Fight for the right to say in pricing and take the road of intensive processing

Price control has always been a prominent feature of coffee bean cultivation and production in Yunnan, but this situation is expected to change. "although the scale of Yunnan coffee industry is not large, the quality of Yunnan coffee is not poor at home and abroad. With the expansion of the domestic consumer market, Yunnan coffee prices will not have to refer to those in the New York futures market by the end of 2015. " Xiong Xiangjin said that to achieve this goal, it needs to be based on the development of local brands and market potential, and Yunnan coffee industry already has such a foundation.

Xiong Xiangjin said that the coffee industry in Yunnan began large-scale production in the 1950s and has experienced a lot of ups and downs in more than 60 years. Especially after the market-oriented road began in the 1980s, when the planting area expanded and the price was not good, the farmers cut down the coffee trees and planted other crops. Coupled with natural disasters and other factors, Yunnan coffee industry has always been in the cycle of "hope begins, disappointment ends". Only by becoming bigger and stronger can we get out of this bad cycle. To resist risks, we need strong local brands as support, take the road of intensive processing, enhance the added value, and extend the industrial chain. According to the plan, coffee enterprises in Yunnan have started deep processing projects, in which Hougu Coffee has established the largest instant coffee production line in China, and Aixing Group has built the largest roasted coffee production line in China. It is estimated that by the end of 2014, Yunnan will have 100000 tons of deep processing space for coffee, which can be provided to the domestic consumer market.

In fact, the voice of the coffee industry in Yunnan has emerged. Xiong Xiangjin said that although coffee beans in some areas are unsalable this time, local enterprises in Yunnan have reached a consensus on the acquisition of coffee beans, by expanding the scale of deep processing, digesting coffee beans that growers have not sold, as long as the quality of coffee beans passes, the purchase price can be guaranteed to be more than 15 yuan per kilogram. If there is no support from local enterprises, according to the international market, the current purchase price is likely to fall below the cost level of 15 yuan. The annual output of coffee in Yunnan is increasing. Xiong Xiangjin believes that only by expanding the scale can there be hope. While increasing the production of Yunnan coffee, as long as it is well matched in the procedures of storage and roasting, there will be no problems in quality. Have a say in the international market prices to achieve the protection of the local industry, to ensure the interests of growers, there is no longer the phenomenon of cutting down trees to plant other crops, so as to make the coffee industry in Yunnan develop healthily.

Information

Yunnan will build

The third largest coffee futures trading center in the world

Yesterday, the relevant person in charge of the Yunnan Coffee Industry Association revealed that in order to fully realize the independent voice in coffee pricing, a global futures trading center must be established. With the gradual growth of Yunnan coffee industry, this goal has been put on the agenda. Yunnan will establish the world's third largest coffee futures trading center after Europe and the United States.

Yunnan coffee enterprises

Expand the acquisition of unsalable coffee beans

In view of the difficulties in selling coffee beans in Pu'er, Baoshan and other places, the reporter learned from a number of coffee production enterprises in Yunnan yesterday that local enterprises have increased their purchases. Among them, Hougu gave up importing cheaper coffee beans from abroad, leaving all 16000 tons of raw material purchase plan to Yunnan coffee growers. Liu Minghui, president of Aiyang Group, said on Weibo that the door of Aiyi coffee factory is always open to coffee growers, as long as the beans are of high quality. In addition, a number of foreign companies, including Japan's Shangdao Coffee, have also indicated that they will increase their purchases of Yunnan coffee beans.

Baoshan implements the local standard of small grain coffee.

Recently, Yunnan Province local standard DB/T3712012 "Baoshan small Grain Coffee", which was drafted and compiled by the relevant departments of Baoshan City, has been officially implemented. Baoshan small Grain Coffee, as a characteristic product of Baoshan City, has a unique taste and flavor, and won the protection of National Geographic indication products in 2010. This standard will play a positive supporting role in improving the cultivation and primary processing technology of Baoshan small-grain coffee, improving the product quality of small-grain coffee, and promoting the healthy and rapid development of Baoshan small-grain coffee industry. it will help to promote the long-term development of the local small-grain coffee industry and increase the income of local farmers.

Liu Shaoxuan, a reporter from Life News.

China Coffee Trading Network: www.gafei.com