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It is difficult for China's coffee industry to break through

Published: 2026-08-25 Author: World Gafei

Last Updated: 2026/08/25, Data released by the Yunnan Coffee Association show that due to the impact of drought, about 30,000 mu of coffee in Baoshan and other places has been affected, which may lead to a 5% to 10% reduction in coffee production in the province, with an estimated economic loss of tens of millions of yuan.

Since the beginning of this year, due to the sharp decrease in precipitation and the generally high temperature, most areas of Yunnan have suffered drought, resulting in the interruption of 134 small and medium-sized rivers and the drying up of 138 small reservoirs in the province, resulting in the disaster of 8.043 million mu of crops in Yunnan, the loss of 830,000 mu, and the direct economic loss of 2.55 billion yuan due to drought. In fact, as early as 2010, Yunnan coffee planting also suffered heavy drought, at that time only Baoshan City had 125,000 mu affected, the cumulative output loss of 56.2 million tons. Coffee bean prices in Yunnan are also falling as drought reduces production. This means that after several years of expansion, Yunnan coffee industry may suffer double blows of production reduction and price reduction. According to statistics from Yunnan Coffee Industry Association, in 2012, the province's coffee planting area reached 1.34 million mu and the output reached 82,000 tons, up 45.6% and 26.1% respectively. Coffee planting area and production have accounted for more than 98% of the country. In addition, the coffee export volume of Yunnan Province in 2012 was about 1.4 billion yuan, which continued to maintain its position as the largest coffee planting and export base in China. Behind this, coffee cultivation in Yunnan experienced rapid expansion. A Coffee Industry Development Plan of Yunnan Province (2010-2020)(hereinafter referred to as the Plan) jointly prepared by the Development and Reform Commission of Yunnan Province and the Department of Agriculture predicts that by 2015, the coffee planting area of Yunnan Province will develop to 1 million mu, and by 2020, the coffee planting area will be stable at about 1.5 million mu. The reporter noticed that since 2008, the coffee planting area in Yunnan Province has grown from 390,000 mu to 1.34 million mu. At this rate, the planting area of 1.5 million mu will be realized several years ahead of schedule. It is worth mentioning that while coffee cultivation area continues to expand, coffee bean prices have entered a downward cycle. "The purchase price of coffee beans is now about 12.76 yuan/kg." Fan Deming said. On November 20, 2012, Nestle opened at 17.9 yuan/kg, which is lower than the same period last year. In other words, the purchase price of coffee beans has dropped by 28.7% in the past four months. At the same time, Hu Lu, deputy secretary-general of Yunnan Province Coffee Association, said that Yunnan coffee is currently in the production and rest period, but is about to enter the flowering period. If precipitation continues to be less, it will not only be unfavorable to the growth of coffee trees, but also affect coffee flowering and fruit hanging, resulting in coffee bean yield reduction. Hu Lu said that drought has caused about 30,000 mu of coffee disaster in Baoshan and other high-altitude areas. If the drought continues, it will lead to a 5% to 10% reduction in coffee production and a direct economic loss of 10 million yuan. But he stressed that overall coffee is better this year than in 2010, when the drought was worst. In 2010, Yunnan coffee planting suffered heavy losses due to drought. Among them, 125,000 mu of coffee planting area was affected in Baoshan City alone, with a total loss of 56.2 million tons. In view of the current drought situation, coffee farmers in Baoshan, Dehong, Pu 'er and other major coffee producing areas in Yunnan Province are making efforts to accumulate water and water, and in combination with the drought resistance experience in the past few years, carry out seedling protection and tree protection work, and do a good job in caring for coffee trees that have blossomed sporadically to ensure that losses caused by drought are reduced.

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