Whether Yunnan Coffee needs Storage system how to improve Yunnan Coffee Industry

On November 18, Dehong Hougu Coffee Co., Ltd., the largest coffee enterprise in Yunnan Province, announced to the outside world that Hougu would take the lead in harvesting quotation, i.e., convert it into RMB according to the coffee futures price in New York, subtract the transportation cost slightly, and purchase Yunnan coffee at a price of no less than 15,000 yuan/ton, so that Yunnan coffee would no longer be sold at a low price.

Over the past 27 years, Yunnan farmers have lost at least 3.4 billion yuan

Yunnan coffee acreage and output account for about 99% of China's coffee. At present, Yunnan has formed Pu 'er, Baoshan and Dehong three major coffee producing areas, with a coffee planting area of more than 1.8 million mu. According to information provided by the Coffee Industry Association of Yunnan Province, Yunnan coffee production is expected to reach about 130,000 tons this year.

"However, due to the recent decline in New York futures prices, Yunnan coffee will face a situation of increasing production but not increasing income." Xiong Xiangren, chairman of Hougu Coffee Company, said.

Why is this happening? China Youth Daily reporter learned in an interview that Yunnan coffee exports account for about 80% of China's coffee exports. However, unlike other coffee producing countries, foreign-funded enterprises, local enterprises and traders can purchase coffee directly from Yunnan coffee farmers. International coffee giants such as Nestle and Starbucks are the largest coffee bean buyers in the region. Pu 'er City Tea and Coffee Industry Bureau officials said that Nestle last year purchased about 10,000 tons of coffee in Pu' er, Starbucks for about 8000 tons.

However, these coffee giants set Yunnan's coffee purchase price according to the daily fluctuation of international coffee futures price, that is to say, Yunnan coffee beans are supplied to multinational companies in the form of non-graded goods, and their prices are subject to the price of international coffee futures.

"Since foreign coffee companies entered Yunnan in 1988, there has been a buying convention, that is, the purchase price is generally 10 - 20 cents less than the New York futures price." Xiong Xiangren said that the cost of farmers planting a catty of coffee is 13 yuan to 14 yuan, and the cost of the company is 17 yuan to 18 yuan. However, the quotation system of foreign-funded coffee enterprises does not guarantee the interests of farmers. This quotation system has been maintained in Yunnan for 27 years. Based on the average annual output of 60,000 tons, Yunnan farmers have lost at least 3.4 billion yuan in the past 27 years.

Direct procurement by enterprises damages the interests of farmers?

Li Gongqin, secretary-general of Yunnan Province Coffee Industry Association, said: "Yunnan has almost become the only coffee producing area in the world where foreign businessmen can buy coffee beans directly from coffee farmers at low prices and for many years lower than international coffee futures prices."

He pointed out that in all coffee producing areas of the world, there is direct government control, especially in large coffee producing countries, the government absolutely does not allow foreign businessmen to purchase their own coffee directly.

Colombia, a major coffee producer, has set up a National Coffee Producers Association, which manages coffee exports and offers prices 40 - 50 cents per pound higher than New York futures prices; when coffee prices fall, the association will use a large amount of money to reserve coffee and buy coffee beans at protective prices to ensure that coffee growers do not lose money, thus stabilizing the coffee industry base.

Brazil adopts an auction-style protection mechanism, designated by the government for unified purchase, quoted according to New York futures prices, foreign-funded enterprises are not allowed to purchase coffee beans directly from farmers.

Africa is an auction type. You must have an auction license to participate in the auction and have the qualification to buy coffee.

Vietnam, on the other hand, is designated by the government to purchase coffee from several qualified coffee companies at a price generally higher than the London Futures Exchange's quoted price of 70 - 100 US dollars/ton.

Coffee is an important source of income in Costa Rica, with one-third of the country's population engaged in coffee-related industries. Its coffee farmers only grow coffee and provide fresh fruit. Sales are monitored by Costa Rica's National Coffee Center. 75.8% of sales proceeds go to coffee farmers. Coffee farmers live a prosperous life.

"Low prices hurt farmers, and farmers will destroy coffee trees." It is the peasants who will suffer in the end." Xiong Xiangren said, Hougu coffee first quotation, According to this calculation, Hougu coffee in this year's harvest season will be per ton Yunnan coffee harvest quotation increased by about 1500 yuan, Enterprises will pay hundreds of millions of yuan more funds, Will directly benefit Yunnan coffee farmers.

"To help coffee farmers through the 'winter' and stabilize the foundation of Yunnan coffee industry with the meager efforts of enterprises is to appeal to more coffee enterprises to join in and get the support of more enterprises and relevant departments, so that Yunnan coffee will no longer be sold at a low price from now on." he said.

Does Coffee Need a Storage System?

Xiong Xiangren pointed out that Yunnan coffee prices are low, one is that there is no local protection price, the other is also related to the low quality of coffee. "Some coffee farmers buy a machine to process coffee for more than 1000 yuan, turning first-class beans into second-class beans."

Hougu Coffee has such a strong offer this time, because it is the only coffee enterprise with the whole industry chain in China, and the new 20,000-ton production line will be completed and commissioned 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 the calculation of production capacity, Hougu Coffee Factory will be able to digest 70,000 ~ 80,000 tons of Yunnan coffee.

"As of November 15 this year, with the attention of the government and the support of some financial institutions, the import and export volume of Hougu coffee has exceeded 300 million US dollars, which exceeds 50% of China's total coffee import and export volume last year." Xiong Xiangren said.

Yunnan Province Coffee Industry Association believes that "relying only on one enterprise, the strength is limited." The association suggested that in order to cope with the rising and falling cycle of coffee prices, Yunnan coffee storage system should be established to support coffee enterprises to carry out protective price storage when the sales price of coffee beans is close to or lower than the planting cost by means of subsidizing storage fees and providing discount loans.

It is reported that Yunnan coffee enterprises are also aware of this problem. In recent years, more and more Yunnan coffee enterprises have tried to go out and cooperate with Shanghai, Chongqing and Chengdu to build coffee trading platforms.

"Government support, coffee enterprises unity, Yunnan coffee can no longer sell cheap." Li Gongqin said.