Coffee Industry: lack of discourse on Price in China

Coffee Industry: lack of discourse on Price in China

The direct reason for the unsalable storm of coffee in Yunnan is that the price of domestic coffee market rises and falls sharply with the changes of the international futures market, and the lack of sources of information about the price trend of farmers leads to unified cherished sale and selling, which reveals the weakness of the pricing power of China's coffee industry in the international market.

Wu Jie, an agricultural product industry analyst at the China Business Intelligence Network, said in an interview with Nandu that first of all, the coffee industry should build a standardized system that runs through production, planting, harvesting and other links to improve coffee quality. In addition, curry farmers also need to strengthen the popularization and guidance of market-related knowledge to create better and better conditions for the development of the coffee industry; secondly, government departments should formulate and issue a series of principles and policies conducive to the stability of the coffee market and price regulation, to establish a sustainable and stable coffee market environment.

Some analysts also pointed out that the coffee industry in Yunnan has been affected by the international market and lacks the right to speak in the international market. Taking the road of deep processing to compete for the right to speak will be the road for the future development of the industry. Specifically, this kind of discourse right is that when the coffee purchase price is low, Yunnan coffee enterprises can influence the international coffee futures purchase price.

The price of coffee beans in Yunnan has dropped greatly in a short period of time, which on the other hand also shows that the deep processing efforts of local enterprises are not enough, and local domestic coffee brands are still quietly making efforts in this regard.

In April, Yunnan coffee giant Hougu Coffee announced plans to invest more than 1 billion to launch a 50, 000-ton instant coffee production line in Yunnan, which is expected to be completed and put into production by the end of 2014. In January this year, the deep processing production line of Aishi coffee was officially put into production. According to its 12th five-year Plan, it will invest 1 billion yuan to implement the production project of intensive processing and supporting facilities of Pu'er coffee, so as to completely change the situation of short chain and low efficiency of Pu'er coffee industry. The project is expected to be completed and put into production in 2015. when completed, the project will achieve an annual production scale of 3000 tons of roasted coffee beans, 5000 tons of roasted coffee powder and 20, 000 tons of canned coffee beverages, with an estimated annual output value of more than 5 billion yuan. (southern Metropolis Daily)

China Coffee Trading Network: www.gafei.com