The price of coffee is frozen, and industry organizations save themselves.

The Yunnan Coffee Industry Association held a media meeting in Kunming a few days ago to give a briefing on the current situation of Yunnan coffee suffering from a continuous decline in prices and the difficulty of selling coffee. At the same time, the Yunnan Coffee Industry Association issued a call: Yunnan local coffee enterprises take joint action, determined to buy more than 20,000 tons of coffee beans that are currently difficult to sell, and never let a ton of coffee beans rot in the hands of farmers, so as to ensure the healthy development of Yunnan coffee industry. do not hurt the enthusiasm of coffee growers.

The price of coffee continues to decline

Last year's harvest season, Yunnan produced 50, 000 tons of coffee beans and about 60, 000 tons this year. Production has increased while 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 that the European debt crisis, the US subprime crisis, and the financial crisis that spread to the world affected the coffee market. Middlemen began to wait and see, and coffee manufacturers began to start inventories. For a time, people had the illusion of coffee overproduction, and the coffee consumption market shrank. In fact, coffee consumption has not decreased, but it is this wait-and-see attitude and coffee manufacturers using inventory that has led to a decline in prices.

In addition, there is a price cycle in the world coffee price, which takes every decade or so as a band. Coffee prices began to rise gradually in 2003. In 2011, global coffee prices rose to the highest level in nearly 30 years, and coffee prices fell back in 2012, but the price fell too fast. Caught coffee growers by surprise.

According to the survey, the current production cost of coffee cultivation in Yunnan is 1315 yuan per kilogram. When the purchase price is more than 15 yuan, coffee growers still have a certain profit margin, but compared with investing in other planting industries, the rate of return is very low. Don't let the coffee rot in the hands of farmers.

In January 2012, 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 in 2012. However, when the development of Yunnan coffee industry is in full swing, the international coffee price suddenly plummets. Since February 2012, a wave of continuous decline in coffee prices has swept Yunnan.

On March 31, the international coffee giant stopped buying Yunnan coffee beans. Yunnan coffee is difficult to sell and the price continues to decline has become a topic of concern. At this time, Hougu Coffee Company, as the chairman of the association, is busy, and the vice-chairman units are also responding positively, looking for ways to find more sales breakthroughs and fulfilling their promise not to let a ton of coffee beans rot in the hands of farmers.

According to the raw material demand of the company's 13000 tons of instant coffee production line, Hougu Coffee Company has abandoned the import of cheap coffee beans from abroad and left all the 16000 tons of raw material acquisition plan to Yunnan coffee growers. Aigu Coffee Company's purchase site, every day, there are many vehicles full of coffee beans waiting to be acquired. Entrepreneurs have said that Yunnan local coffee enterprises work harder, Yunnan coffee beans that are currently difficult to sell are expected to be sold.

Where is the way out for Yunnan Coffee Industry

When the local coffee enterprises in Yunnan take positive actions, entrepreneurs also hope that the relevant government departments can take effective measures to support farmers to tide over the difficulties.

In an interview with reporters, some local coffee enterprises in Yunnan expressed the hope that the government can learn from some successful international cases in solving the current problem of difficult sales of coffee beans. For example, for the Brazilian government, 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, when the price of coffee continues to decline, the relevant government departments respond very quickly, arranging 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.

At the same time, as coffee is the earliest local agricultural product in Yunnan to be in line with the international market, the coffee purchase quotation has been referring to the New York futures price. When the futures price in New York is high, the price of coffee in Yunnan will rise, and when the futures price in New York is low, the price of coffee in Yunnan will fall. Xiong Xiangjin said: "the purchase price of coffee in Yunnan has always been affected by the futures price in New York. In order to resist the harm caused by falling prices and unsalable coffee, Yunnan coffee must take the road of intensive processing and brand marketing to enhance the added value of Yunnan coffee and extend the coffee industry chain."

China Coffee Trading Network: www.gafei.com