The price of coffee in Yunnan is at a low ebb

Yunnan coffee has ushered in a new round of harvest season. 17.9 yuan / kg this is the opening price offered by international coffee companies to buy coffee beans locally in Yunnan at the end of November. It is reported that this price in the 2012-2013 Yunnan coffee bean purchasing season, hit a new low in Yunnan coffee bean acquisition in the past five years.

Just recently, this price has been broken again, it is understood that the latest offer of an international coffee company is 17.16 yuan / kg, that is to say, the purchase price of coffee beans is approaching the cost line of farmers.

"the tipping point should be 15 yuan / kg. If it falls to this price, it will be a great blow to the coffee industry in Yunnan." Analysis of Yunnan Coffee Industry Association.

Throughout the past 20 years, Yunnan coffee price trend: almost every 10-year price cycle, in 2010, Yunnan coffee price reached 41 yuan / kg, a record high; however, two years later, about 17 yuan / kg, with the increase in planting costs, although it is impossible to have a price of 7-8 yuan / kg, but the price of 17 yuan / kg has made farmers anxious.

Or establish a collection and storage system for the protective price of coffee beans.

"this year is a key year for the development of coffee in Yunnan. If the purchase price continues to approach the planting cost, it will be very difficult for farmers to survive, and it is seriously possible to cut down coffee trees to plant other cash crops. That will affect the healthy development of Yunnan coffee industry." Yunnan Coffee Industry Association said a few days ago.

Under the influence of many factors, the price of coffee beans in Yunnan Province is all the way low. under such circumstances, how to protect the interests and enthusiasm of coffee farmers and cope with the rising and falling cycle of coffee bean prices, Yunnan Coffee Industry Association proposes to establish a coffee storage system, by subsidizing storage fees and providing discounted loans to support coffee enterprises to collect and store coffee beans when the selling price is close to the planting cost.

Xiong Xiangjin, president of the Yunnan Coffee Industry Association, said: "when the coffee futures price is low to a certain extent, the Yunnan Coffee Association will certainly join hands with the government and enterprises to actively carry out the collection and storage of coffee protection prices, so that the interests of farmers will not be lost."

There is no surplus of coffee production.

Xiong Xiangjin, director of the Yunnan Coffee Industry Association, believes that the European debt crisis, the US subprime crisis, and the global financial crisis have affected the coffee market. Middlemen began to wait and see, and coffee manufacturers began to start inventories. All of a sudden, people have the illusion of coffee overproduction, and the coffee consumption market has shrunk. 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.

"under the influence of the economic crisis, although consumers' demand for coffee has not decreased, the pattern of consumption has changed." Xiong Xiangjin said that drinking coffee in a coffee shop may now be changed to buy low-quality coffee to drink at home, or switch to instant coffee, while low-quality coffee and instant coffee are usually made from medium-grain coffee and non-washed small-grain coffee.

On the other hand, because the international market price fluctuation of small-grain coffee is relatively larger than that of medium-grain coffee, the price difference between small-grain coffee and small-grain coffee is too large when the price of small-grain coffee rises in the past 10 years. In order to reduce the cost, comply with the development of the market and meet the needs of the market, foreign roasting enterprises have changed the formula one after another. Adjust the proportion of medium-grain and small-grain coffee. Now the price of small-grain coffee has fallen, and the price gap between medium-and small-grain coffee is not big, basically flat, close to the bottom line.