Upgrading of coffee industry in Yunnan

But at present, international coffee futures prices are continuing to fall. Earlier, on November 23, the price of coffee futures in New York was only 107 cents per pound, equivalent to 14.3 yuan per kilogram. This is slightly lower than the current planting cost of Yunnan farmers about 14.67 yuan / kg.

"although the price of coffee is relatively low now, it should be planted anyway. You can't switch to other crops as soon as the purchase price falls. Don't be too hasty. " Wang Zhongxue, a farmer from Pu'er, said. In the face of the falling purchase price, the veteran coffee farmer, who has 20 years of coffee growing experience, reveals a positive attitude in his words.

Farmers are optimistic to respond, and the industry is also actively carrying out self-help. Li Rongfu, director of the Tea and Coffee Research Institute of the Yunnan Academy of Agricultural Sciences, believes that in view of the impact of farmers and price fluctuations, it is necessary to establish a corresponding agricultural insurance mechanism, while the Yunnan coffee industry needs to upgrade from its place of origin, form and start its own industrial brand in order to gain the right to say the price. Industry insiders also believe that farmers must improve their ability to cope with the impact of changes in the market for agricultural products such as coffee and have a clear understanding. High price and high return, low price and low return is a common phenomenon. Therefore, farmers are encouraged to avoid planting a single plant as far as possible and reduce the market risk.

Ka Nong responded optimistically

Pu'er at the end of November is comparable to the warmth of early summer. At about 4: 00 p.m. on the 26th, Wang Zhongxue, a 74-year-old farmer from Dakaihe Village, Nanping Town, was shirtless, picking up peeled green coffee beans in his yard dam. Around the courtyard is his family's tens of acres of coffee garden, hanging a string of red or green fresh fruit, really attractive.

It is another year's harvest season, Yunnan coffee is generally a bumper harvest. However, due to lower international coffee prices, Yunnan farmers like Wang Zhongxue have encountered the problem of low purchase price expectations.

The futures price of coffee beans in New York on November 23 is equivalent to 14.3 yuan / kg, according to information released by the Yunnan Coffee Industry Association. It is understood that the main reason for the decline in international coffee prices this year is that coffee production in large coffee-growing countries such as Brazil, Colombia, Vietnam and Indonesia has generally increased significantly last year.

This is slightly lower than the current planting cost of Yunnan curry farmers. "the cost price of (coffee beans) is between 14 yuan and 15 yuan per kilogram. Now we can't start the price, but we still have to plant it." Wang Zhongxue said. Today, his persistence and optimism stems from his conviction after the ups and downs of the industry since he started growing coffee in 1992.

"this is the second big price reduction since 1999," the old farmer said. In 1999, the coffee industry in Yunnan suffered a setback because of the serious frost disaster. The old farmer recalled, "the disaster reduced the purchase price of coffee to about 6 yuan, and since then, the purchase price has not been raised for two consecutive years, and many people in our village have cut down coffee trees to grow other crops. I clenched my teeth and stuck to it at that time. You see, I'm still doing well."

Perseverance was finally rewarded. In 2003, the rebound of global coffee prices led to the rise of coffee purchase prices in Yunnan. This rise has been a good time in the past decade.

Wang Zhongxue represents the group of farmers who are actively responding. Chen Jiahua, who lives in the same village with Wang, has grown coffee for more than 10 years, and he has also tasted a lot of sweetness in previous years. "especially in 2008 and 2009, the price of coffee reached 380.39 yuan / kg." In recent years, he has also increased the planting area of coffee. at present, the planting area of coffee has reached 170 mu, some of which were replanted at the peak a few years ago, and have just been put into production this year, and "the output is not high yet."

The price of coffee has fallen in the past two years. When asked whether he would cut down coffee trees and plant other crops, Chen Jiahua, who loves to laugh, replied, "will it be better by 2015?" Even if it is difficult to predict when prices will pick up, he says he will not cut down coffee trees.

The road to scale

Nowadays, coffee is expected to become another sign that people are familiar with Yunnan after tobacco, tea and so on.

As the largest coffee producing area in China, Yunnan currently accounts for more than 98% of China's coffee planting area and output.

"the large-scale development of Yunnan coffee industry began in the late 1980s and early 1990s." Dong Zhihua, vice president of Yunnan Coffee Industry Association, which witnessed the development of Yunnan coffee, once said that Nestle Coffee entered Pu'er City (then known as "Simao area") in the late 1980s, which contributed to the development of the coffee industry in the region.

In 1988, the world coffee giant Nestl é came to China and, with the help of the government, began to promote the cultivation of small-grain coffee in Yunnan. Nestl é launched the agricultural technical assistance service project in 1992, opened a pilot and demonstration farm with a total area of 60 hectares in 1997, and stationed agronomic personnel in Pu'er for a long time. In 2011, Nestl é distributed the China Coffee planting Handbook free of charge to coffee growers in Yunnan. In 2012, Nestl é began providing 4C training for local coffee growers.

"at present, the total output of coffee beans in Yunnan is as high as 150 kg / mu, which is much higher than that of other countries and regions and ranks first in the world." Hou Jiazhi, an agronomist at Nestl é Pu'er Coffee purchase Station, said.

Through the coffee purchasing station set up in Pu'er City, Nestl é has increased the number of coffee beans purchased from Pu'er City from 8000 tons in the previous two years to 11000 tons in the last purchase season, supplying not only Nestl é factories in China, but also overseas markets. The person in charge of the Nestle Pu'er purchasing station even said that the amount of coffee beans purchased locally in Yunnan is increasing year by year.

Today, Yunnan coffee industry has a certain scale in terms of planting area and output. Statistics from the Yunnan Coffee Industry Association show that in the 2012-2013 season, Yunnan produced about 82000 tons of coffee beans. Its production is expected to be close to 100000 tons in the 2013-2014 production season.

However, due to the low international coffee prices, curry farmers are facing losses, which may bring some damage to the newly developed coffee industry in Yunnan.

The good news is that in order to solve this problem, Yunnan local governments and associations are also looking for solutions and taking some measures. It is reported that for example, the Pu'er government has also allocated more than 10 million yuan to support enterprises to collect storage fees and discount loans, and actively promote coffee at home and abroad; at present, the Yunnan provincial party committee and provincial government have given more than 10 million yuan to the construction of coffee farms in major coffee producing areas in Yunnan Province.

Industry needs sustainable development

As the saying goes, "if a person is not far-sighted, there must be immediate worries." So, how should Yunnan coffee industry establish a corresponding mechanism for more long-term development? This is one of the issues that the stakeholders of the whole industry chain are thinking about at present.

In the view of Li Rongfu, who has long been concerned about the development of the coffee industry in Yunnan, at present, due to the adverse effects of lower international coffee prices, first of all, aiming at farmers' planting links, we should establish a corresponding insurance system. He suggested that in coffee-growing areas with good financial conditions, local governments should first replenish certain premiums and gradually establish a commercial insurance system, so as to more effectively control and solve similar risks.

According to Hute, a coffee expert at Nestl é Pu'er purchase Station, on the one hand, his team focuses on helping farmers manage cash flow and save costs. For example, helping farmers to do soil analysis to reduce the excess expenditure on fertilizer; on the other hand, carrying out 4C training to reduce the environmental footprint is conducive to the sustainable development of the coffee industry.