Pu'er Produces Half of China’s Coffee; Nestlé Buys a Third

When you think of global coffee origins, Ethiopia, Colombia, and Brazil likely come to mind—but China? Over the past few decades, Yunnan province has quietly become a significant player in the global coffee supply chain, with one region doing the heavy lifting: Pu'er. If you've ever sipped a cup of Chinese-grown coffee, there's a strong chance it came from here.

In short: Pu'er now grows half of China’s coffee, covering 42,500 acres with 100,000 coffee farmers involved. Last year alone, the region produced 23,400 metric tons of green coffee beans, and Nestlé purchased approximately 8,000 tons—roughly a third of the total output.

The Rise of Coffee in Pu'er

Coffee hasn’t always been a staple crop in Pu'er. As recently as the early 1990s, local agriculture was dominated by tea. But as farmers noticed the higher and more stable returns from coffee, many switched over. “When we grew tea, we could only harvest when it rained—it was exhausting,” said Chen Jiahua, an elderly farmer in the region. “With coffee, the harvest season runs from October to mid-February, and it’s steadier work.” Today, in areas like Dakaihe, it’s rare to find a household that doesn’t grow coffee, typically on farms of 30 to 40 acres.

How a Smallholder Farm Operates

Take the example of Zhang Kui, a farmer from Simao District. His family has been growing coffee since 1998, and today manages 60 acres—half of which are currently bearing fruit, with the other half expected to follow soon. In 2023, his farm yielded 40 tons of coffee cherries. After processing (sun-drying, hulling, and milling), that translated to 8.5 tons of green coffee beans—or “commercial coffee meters” as they’re referred to locally. Of that, 5 tons were sold to Nestlé, earning the family over 200,000 yuan (approximately $27,000) for the year.

Why Pu'er Is Ideal for Coffee

According to the Pu'er Coffee Industry Federation, the region’s altitude—between 800 and 1,600 meters—is perfect for cultivating coffee, specifically the Arabica variety known in China as (literally “small-bean variety,” analogous to Typica or Bourbon lineage). This elevation provides ideal temperature ranges and sunlight conditions for high-quality coffee production. Currently, the city administers coffee cultivation across 54 towns in all nine counties and one district. The crop has become a key economic driver, supporting farmer incomes, local businesses, and government revenue alike.

The Role of Nestlé in Pu'er’s Coffee Economy

Nestlé is the single largest buyer of Pu'er’s commercial coffee output. A company spokesperson confirmed that the vast majority of their smallholder-sourced Arabica in Yunnan comes from Pu'er. In 2023, Nestlé purchased around 8,000 tons of green beans from the region, making up roughly one-third of Pu'er’s total production. This long-term relationship was further formalized when the Pu'er Municipal Government signed a cooperation memorandum with Nestlé, marking a new phase in their partnership.

Frequently Asked Questions

Where is Pu'er and why is it important for coffee?

Pu'er is a city in Yunnan Province, southern China. It has become China’s dominant coffee-growing region, with 42,500 acres under cultivation and producing 23,400 tons of green coffee in 2023—about half of China’s total output.

How much coffee does Nestlé buy from Pu'er?

Nestlé purchased approximately 8,000 tons of green coffee beans from Pu'er in 2023, which is around one-third of the region’s total annual production.

What kind of coffee is grown in Pu'er?

Pu'er primarily grows Arabica coffee, specifically a variety referred to locally as , which corresponds to classic small-bean Arabica types such as Typica or Bourbon. The crop thrives at elevations between 800 and 1,600 meters.

Do local farmers make a good income from coffee?

Yes. For example, one farmer reported earning over 200,000 yuan (around $27,000) in a single year from selling 5 tons of green coffee beans to Nestlé. Many have shifted from tea to coffee due to its higher and more stable returns.

Is coffee a new crop in Pu'er?

While tea was historically dominant, coffee farming took off in the 1990s. By the late 1990s, many farmers had transitioned due to better income potential, and today coffee is a major part of Pu'er’s agricultural economy.

How is coffee processed in Pu'er?

After harvesting, the coffee cherries are sun-dried, hulled, fermented, rinsed, and milled to produce green coffee beans (“commercial coffee meters”). This processed form is what farmers sell to buyers like Nestlé.

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