Expand the market demand of coffee beans in Yunnan

A few days ago, Nestl é announced that it would invest in the coffee industry in Pu'er City, Yunnan Province, provide training and infrastructure for local farmers through a large-scale Nestle Coffee Center project, and enhance the brand influence of Pu'er coffee. Earlier, Nestl é said it would start using 100% Pu'er small grains to grow coffee beans in 2013, and promote a new coffee product named after Pu'er as the origin of coffee beans.

Su Bo, president of Nestl é Greater China Food and Beverage Division, revealed that the coffee center is expected to invest 100 million yuan. Su Bo also said that Nestl é's coffee purchases in Yunnan have increased by 300% in the past three years, which further makes Yunnan a larger and more important part of Nestl é's global coffee supply. At present, the coffee purchasing season is gradually coming to an end. In the past two years, Nestl é has purchased a total of about 22000 tons of coffee in Yunnan. Nestl é will continue to expand its storage capacity in Yunnan, and plans to build new storage facilities with a capacity of 15000 tons, an increase of 50 per cent over existing facilities. According to the data, Yunnan's total coffee production in 2012 was about 70,000 tons, of which 15% or 20% was supplied to Nestle, making Nestl é the largest buyer of coffee beans in the region. In 2012, Nestl é purchased 265 million yuan worth of Pu'er coffee beans, equivalent to 20 percent of local production. A reporter from the Daily Business News learned that the Nestle Coffee Center to be established with Pu'er City, Yunnan Province, is mainly composed of three parts: coffee planting and training center, consumer experience center, and modern integrated warehousing and testing facilities.

In fact, the Nestle Coffee Center project is part of the long-term strategy of the Nestle Coffee Plan. The Nestle Coffee Project, launched in 2010, plans to invest 2.6 billion yuan to launch coffee projects around the world by 2020. In the view of Xiang Jianjun, a consultant researcher at CIC, Nestle's boost is conducive to the entry of Pu'er small-grain coffee into the global market, and in particular, it may have a certain impact on the European coffee market, which imports a large number of raw coffee beans. The cost of Yunnan coffee is lower than that of coffee beans from other producing areas of the same quality, and the establishment of Nestl é Coffee Center has undoubtedly rapidly expanded the market demand for Yunnan coffee beans. It is worth noting that before announcing the establishment of a Nestle coffee center in Pu'er, Nestl é said in January 2013 that it had officially launched the research and development of new Pu'er coffee products.