Yunnan Coffee suffers from the embarrassment of increasing production but not increasing income of Coffee beans grown in China

At present, Yunnan coffee harvest season 2015-2016, according to Yunnan Province Coffee Industry Association estimates, this year Yunnan Province coffee production will reach about 130,000 tons. As the recent New York futures price continues to fall, if we continue to follow the past purchase price generally in New York futures price minus 10-20 cents on the basis of the acquisition practice, Yunnan coffee will once again encounter the embarrassment of increasing production without increasing income.

It is understood that since foreign coffee enterprises entered Yunnan in 1988, the purchase price is generally based on the New York futures price minus 10-20 cents acquisition practice.

According to Li Gongqin, secretary-general of Yunnan Province Coffee Industry Association, Vietnam coffee purchase price is generally higher than London Futures Exchange 70-100 US dollars/ton quotation, Colombia quotation is basically higher than New York futures price 40-50 cents/pound, Brazil is quoted according to New York futures price. At present, only Yunnan coffee prices in the world are lower than New York futures prices, and such a quotation system has been maintained in Yunnan for 27 years. Based on the average annual coffee production of 60,000 tons in Yunnan in the past 27 years, Yunnan coffee farmers lost at least 3.4 billion yuan in these years.

Based on this, recently, Hougu Company, a leading coffee enterprise in Yunnan Province, took the lead in making harvest quotation, which was converted into RMB according to the coffee futures price in New York, and the quotation of Yunnan coffee harvest was obtained by subtracting the transportation cost slightly. According to this calculation, in this harvest season, Hougu Coffee will increase the harvest quotation of Yunnan coffee by about 1500 yuan per ton, and enterprises will pay hundreds of millions of yuan more, but this hundreds of millions of yuan will directly benefit Yunnan coffee farmers.

Xiong Xiangren, chairman of Hougu Coffee, said in an interview with our reporter,"Hougu promises that the first-class Yunnan coffee beans will never be purchased below 15,000 yuan/ton, and the enterprise will do its best to protect the interests of Yunnan coffee growers and never allow Yunnan coffee farmers to lose money."

A private enterprise has such background, because Hougu Coffee is the only coffee enterprise with the whole industry chain in China. The new 20,000 tons production line of Hougu Coffee is expected to be completed and debugged before the end of this year. At that time, Hougu Coffee will have 33,000 tons of coffee intensive processing capacity every year. According to this calculation, Hougu Coffee Factory will be able to digest 70,000 - 80,000 tons of Yunnan coffee every year.

According to the statistical data of Coffee Industry Association of Yunnan Province, up to now, Yunnan coffee planting area is more than 1.8 million mu, and it is estimated that the output of the new season will be about 130,000 tons. Yunnan coffee planting area and output account for about 99% of the total coffee planting area and output in China. Yunnan coffee imports and exports account for about 80% of China's total coffee imports and exports. In addition to Hougu Coffee, which accounts for half of China's coffee import and export, other coffee enterprises in Yunnan Province have also completed 30% of China's coffee import and export tasks.

Yunnan Province Coffee Industry Association predicts that in the next 10 years, China will become the world's largest coffee consumer, Yunnan coffee future can be described as "unlimited money."

Li Gongqin, who has just returned from foreign research, told reporters that the world's major coffee producing countries have their own procurement protection mechanisms to stabilize their coffee production. For example, Africa is an auction type, and you must hold an auction license to participate in the auction and have the qualification to purchase coffee; in Vietnam, the government designates several coffee enterprises with acquisition qualifications to purchase coffee in Vietnam to maximize the protection of coffee growers 'interests. However, in Yunnan, foreign-funded enterprises, local enterprises and traders can buy directly from farmers, and farmers 'interests cannot be fundamentally guaranteed.

In order to cope with the rising and falling cycle of coffee price, Yunnan Province Coffee Industry Association suggests establishing Yunnan coffee storage system, subsidizing storage fees and providing discount loans to support coffee enterprises to carry out protective price collection and storage when the sales price of coffee beans is close to or lower than the planting cost. The government and enterprises work together to make Yunnan coffee no longer increase production and income, and protect the interests of coffee farmers from being damaged.

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