Dispute over the construction of Yunnan Coffee Trading Center

In recent years, the coffee industry in Yunnan has developed rapidly. So far, the planting area of coffee in Yunnan has exceeded 1.5 million mu. According to normal estimates, the total output of coffee in Yunnan will exceed 120000 tons during the 2014-2015 harvest season. The industry predicts that the domestic coffee consumption market will enter a blowout era around 2018. However, Yunnan coffee industry has begun to take shape and still faces many problems to be solved urgently.

Generally speaking, the development of coffee industry in Yunnan started relatively late. Compared with the development of coffee industry in other countries, it is still in the initial stage of development. Over the years, the development of Yunnan coffee industry is lack of standardization and guidance, and has always been lack of discourse and pricing power. In order to better promote the development of Yunnan coffee industry, in the past two years, Yunnan coffee industry participants have made active efforts to promote the construction of Yunnan coffee spot trading center.

In the past week: on the afternoon of July 9, led by Pu'er Municipal Government, Yunnan Jinyuan Flower Industry Co., Ltd. and Pu'er City Investment Company set up a "Yunnan Coffee Trading Center" project team in Pu'er City; three days later, on the afternoon of July 12, more than 20 coffee enterprises set up a preparatory committee for "Yunnan Coffee spot Trading Center" in Kunming.

The purpose of planning to establish a coffee trading center is to stabilize prices, so that Yunnan coffee industry will not suffer too much impact when international coffee prices fluctuate greatly. However, a number of participants pointed out that there may only be one trading center in the future, and if there are multiple trading centers, it will lead to more "internal friction" in the coffee industry in Yunnan, which is already a small industry. Xu Guangyuan, a professor at the School of Economics at Yunnan University, also said that the two centers may cause market disorder and affect coffee prices, suggesting that the government should play a coordinating role on this issue.

Different parties have also expressed different attitudes towards where the spot trading center should be built.

At this meeting, Yunnan Coffee Industry Association and many participating enterprises said that Yunnan Coffee spot Trading Center was set up in Kunming in terms of traffic conditions, location, talent, capital, warehousing and climatic conditions. it can be said that Yunnan Coffee spot Trading Center has been set up in Kunming. It will not only help Yunnan to turn the advantage of coffee resources [- 0.07%] into economic advantage, help to turn the good climatic conditions of Kunming into economic advantage, but also take into account the interests of the main coffee producing areas in Yunnan Province. On the other hand, the view supporting the establishment of Yunnan Coffee spot Trading Center in Pu'er holds that Pu'er is the largest coffee producing area in Yunnan, with 386 registered coffee enterprises. now it has become the main coffee producing area with the largest planting area, the highest yield and the best quality in the country and the main distribution center of coffee trade, and it is the core area of coffee in China. It can be said that Pu'er has all the conditions to become a spot trading center. Cao Ronggen, chairman of Jinyuan Flowers, said at the opening ceremony that the center has set up a strong team of experts, planning, construction and operation throughout the country and the province. it involves transaction mode, quality system construction, product processing, financial services, logistics warehousing model and so on.

It is reported that at present, the two major platforms have not yet been approved by the Yunnan provincial government, which also means that it remains to be seen where the spot platform is officially settled.