How will the establishment of a coffee trading center in Chongqing, which does not produce coffee, change China's coffee industry?

On this basis, Chongqing officially established a coffee trading center on June 16, aiming to make up for the shortcomings of China's coffee industry. For a long time, China's coffee industry "small, scattered, chaotic" problem is serious, due to the lack of pricing power in the international market, has been suffering from "price cycle" trouble, at present, only the global price of Chinese coffee is lower than the New York futures price, causing huge losses to China's coffee farmers.

According to Peng De, Chongqing Coffee Trading Center will build coffee electronic trading platform, coffee cross-border e-commerce platform, coffee industry chain financing credit enhancement platform, coffee trading settlement center and coffee big data center. "The coffee trading center will realize five functions, the most important of which is the price discovery function. On this open and transparent platform, coffee farmers and supply chain enterprises in China and Southeast Asia provide goods and services, which are purchased by buyers through bidding, thus forming reasonable prices. After reaching a certain scale, the trading center will become the pricing center."

At the same time, the coffee trading center will also realize the industrial chain agglomeration function, and the trading center will also realize the three functions of preventing gray trading, financial settlement and resource optimization allocation.

Many industry insiders believe that as long as the role of Chongqing Coffee Trading Center can be fully exerted, Chongqing may become the largest coffee entrepot trade base in China, which will greatly promote the development of the whole industrial chain of coffee planting, trading, processing, warehousing logistics and trade in China, and help China compete for the pricing power and discourse power in the world coffee market."In the international market, coffee is the second largest trade commodity after crude oil in terms of trading volume. It is highly standardized and easy to store and transport. It has strong financial attributes." Peng De, general manager of Chongqing Coffee Trading Center, said that China's coffee consumption has increased year by year, with an average annual growth rate of more than 20%. It is estimated that the domestic coffee consumption market will reach more than 600 billion yuan in 2020.

As one of the major shareholders of Chongqing Coffee Trading Center, the relevant person in charge of Yunnan Hougu Coffee said that although Chongqing is not a traditional coffee planting base, it is adjacent to Yunnan, the largest coffee producing area in the country. At the same time, it is located at the intersection of "the belt and road initiative" and the Yangtze River Economic Belt. It also has three major transportation hubs of water transport, railway and air transport, as well as three major first-class ports and free trade zones, as well as Central Europe, Chongqing and New Europe trains leading directly to Duisburg, Germany. This will help Yunnan, Asian coffee producing areas such as Southeast Asia are closely linked to the European market, which in turn radiates the global coffee industry. In addition, Chongqing has built 13 asset, equity and other factor markets, and the development of factor market is in a leading position in the central and western regions.

In fact, Chongqing has already laid a solid foundation in the field of coffee trade. As early as 2012, Chongqing Energy Group has started coffee trade and signed a strategic cooperation agreement with Yunnan Hougu Coffee in May last year. In July last year, the first "Yuxin Europe" Hougu coffee train loaded with Yunnan coffee departed from Chongqing and arrived in Duisburg, Germany 12 days later. Last year, Chongqing realized nearly 1 billion yuan of coffee trade volume. Although it is not a traditional coffee planting base and is located in six areas, Chongqing recently set up a coffee trading center and claimed to be the largest coffee transit trade base in China. Only half a month after its establishment, Chongqing Coffee Trading Center has shown great attraction and has signed intention agreements with more than 200 domestic and foreign coffee enterprises.

Industry insiders said that the broad prospects of coffee market, as well as Chongqing's unique location, logistics advantages and factor market foundation, are the main reasons for Chongqing to enter the coffee industry, which will promote the development of the whole industry chain of China's coffee industry, and is expected to change the current situation of lack of pricing power, discourse power and weak sustainable development ability of China's coffee industry.

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