Drought or "death of thirst" hidden worries of expansion behind the disorderly competition of ten thousand mu coffee in Baoshan, Yunnan Province

The continuing drought has hit the coffee industry in Baoshan, Yunnan Province, one of China's largest coffee producers. According to a survey data of Longyang District Hot work Station in Baoshan City, at present, only in Longyang District, the affected area of coffee has reached 66395 mu, and 16321 mu of coffee is facing no harvest.

In addition to the impact of the drought, the low price of coffee also worries many farmers. A reporter from the Daily Economic News learned in the interview that there have been cases of cutting down coffee trees and planting vegetables and other crops in many areas. A number of local industry insiders mentioned that if coffee prices remain low, there is likely to be large-scale felling of coffee trees in the next two or three years.

At the same time, although Baoshan is one of the areas where coffee is grown earlier, the local coffee industry is also facing a lag in development, even being surpassed by rising stars such as Pu'er and Dehong in Yunnan Province.

People in the industry generally believe that the lack of the leading role of leading enterprises has become one of the factors restricting the development of Baoshan coffee industry. Behind this, there is also a phenomenon of disorderly competition among local enterprises, such as bargaining with each other, and even inferior quality.

Ka Nong suffered heavy economic losses

In late March, a reporter from the Daily Economic News came to Baoshan. In a coffee garden in Lujiangba, Longyang District, Baoshan City, the reporter saw that even though it had just rained in the morning, the land was still very dry and many trees in the coffee garden had withered. Several farmers are digging ditches to water the coffee trees.

"drought has an impact on local coffee cultivation, and a large area of coffee trees have died in Kulao Village, Lujiang Town, and the drought is more prominent." A relevant person in charge of Baoshan Agricultural Bureau said.

From March 12 to 19, 2013, Longyang District Hot work Station investigated 57 villages and 385 village groups in six townships, including Mangkuan Township, Lujiang Town, Yangliu Township, Pupiao Town, Wama Township and Wafang Township, six coffee production enterprises, five professional coffee planting cooperatives, four farms in Lujiang, Xincheng, educated youth, Dahongpo, and provincial rejing institutes. After investigation, Longyang District found that because of 150 days of drought and little rain. The coffee industry has been seriously affected, the affected area of coffee continues to spread, the affected area has reached 66395 mu, the affected area is 40284 mu, 16321 mu of coffee is facing no harvest, and farmers have suffered heavy economic losses.

Zhang Huachang, deputy director of the hot work station in Longyang District, who is in charge of the research, said in an interview with reporters that the drought led to the failure of more than 10,000 mu of coffee in Longyang District, which had a great impact. According to the relevant statistical methods, if the output loss is 70% or more, even if the harvest is lost, not all of them are confirmed to be dead. A loss of production between 30% and 60% is defined as a disaster, and less than 30% is a disaster.

A deputy director of the Longyang District Agriculture Bureau surnamed Chen said that Baoshan has experienced several consecutive years of drought, and generally speaking, the drought has a great impact on coffee trees planted on sloping land. On the one hand, it is not convenient to irrigate, on the other hand, the soil layer is thinner. And the drought will affect the revenue of coffee for two years, there may be no profit in the first year, and it will take a year for production to recover.

Most of the coffee in Baoshan is planted in Longyang District, and most of Longyang District is in Lujiang Town. However, the reporter did not get statistics on the affected area of coffee except Longyang District in the interview.

Xinzhai Village, Lujiang Town, known as "the first Village of Coffee in China", has a coffee planting area of more than 10,000 mu. A villager surnamed Duan in Xinzhai village told reporters that he had grown 18 mu of coffee this year, but due to the drought, the coffee had less fruit and a general harvest this year.

Xie Xianwen, general manager of Xinzhai Coffee Co., Ltd., one of the larger local coffee enterprises in Baoshan, told reporters that it is estimated that this year's drought has reduced coffee production in Baoshan City by about 6000,000 to 7,000 tons. The current total output of coffee in Baoshan is about 25000 tons.

Growing coffee is not as profitable as growing vegetables.

The relevant person in charge of the Baoshan Municipal Bureau of Agriculture said that at present, there are two problems in coffee cultivation in Baoshan: first, the drought is prominent and the infrastructure is poor; in addition, due to poor infrastructure, there are also deficiencies in technical promotion, and the promotion of coffee varieties with both high yield and good quality is also a bottleneck at present.

As for the solution to the drought problem, he said, "various government departments have also done something around the coffee industry to improve infrastructure." Sprinkler irrigation equipment in Xinzhai has been completed, and the government has invested 20 million yuan in one village in Xinzhai. In addition, the government is building a reservoir in Lujiang Dam, which can divert Lujiang water to the coffee garden in the future, which will bring about a fundamental change to the coffee industry in Baoshan.

During the interview in Xinzhai village, the reporter also saw that some workers were installing irrigation pipes, and many irrigation facilities had been built in the coffee plantations on both sides of the road.

But the low price of coffee has made many farmers more worried.

It is understood that the purchase price of local coffee in Baoshan this year is mostly about 15 or 16 yuan per kilogram. In 2010, it could reach 30 yuan per kilogram, that is to say, the price is only about half of the original price.

Depressed prices have also affected the interests of many farmers. Of the 18 mu of coffee fields surnamed in Xinzhai Village, 10 mu were contracted at a price of 50,000 yuan for 20 years. He told reporters that the price of coffee is relatively low, but labor costs are on the rise, and the current wage has reached 50 yuan a day, which makes coffee cultivation "quite unprofitable."

The reporter learned that even in areas where coffee cultivation is dominant in Lujiang Town, many people have found that growing coffee may not be as profitable as growing vegetables, or even going out to work.

The above-mentioned person in charge of the Baoshan Municipal Bureau of Agriculture said that after the transportation is convenient, many people find that growing vegetables can make money, because when the price is good, the output value of one mu of vegetables can reach 20,000 yuan.

In fact, in 2002, when the price of coffee beans dropped sharply, many coffee farmers could not accept the low price and cut down coffee trees to plant sugar cane, tea and other crops one after another.

A coffee farmer who has been growing coffee in Lujiangba for more than 20 years told reporters that he had cut down coffee trees and planted other cash crops around him.

Yang Zhengqing, secretary of the party committee of the Longyang District Agricultural Bureau, said that there were also cases in Longyang District in which farmers cut down coffee trees to grow other cash crops, but this situation was rare, with an area of less than 100 mu destroyed.

A number of industry insiders said in an interview that generally speaking, coffee growers can withstand a price downturn of 2 to 3 years, but if they exceed this time, there may be large-scale tree felling.

The survey data of Longyang District Hot work Station show that Longyang District has an existing coffee planting area of 169885 mu, with a planned planting area of 2872.5 mu in 2013, with an actual planting area of 1223.5 mu, accounting for 42.59% of the planned planting area, accounting for 18.62% and 43.73% of the planting area and implementation area, respectively, with a low conversion area of 5506.4 mu, an overturned area of 2635 mu and 7.26 million seedlings.

Zhang Huachang said that of the 2635 mu of land destroyed above, most of the trees that have been cut down are older coffee trees, some are used to plant new coffee seedlings, and some farmers are used to replant bracts.

The development lags behind the disorderly competition in the current industry.

Although Baoshan coffee was planted earlier, its development has lagged behind even compared with other places in Yunnan province.

According to the Yunnan Coffee Industry Development Plan (2010-2020), the planting area of Pu'er City will exceed that of Baoshan, while Dehong will be on a par with Baoshan. But in fact, the coffee industry in Pu'er, Dehong and other places is developing very rapidly.

According to the report of Pu'er Daily, by the end of 2012, there were 650000 mu of coffee in Pu'er, with a production of 270000 mu, with a coffee output of 36500 tons and an output value of 900 million yuan. In addition, Pu'er City has proposed that by 2016, the planting area of coffee in the city will reach 1 million mu, with an annual output of 700000 mu, an annual output of 100000 tons of coffee beans, and a total output value of more than 10 billion yuan. Not only that, international giants such as Starbucks and Nestl é also make large-scale purchases in Pu'er.

Dehong Prefecture also claims to have a coffee planting area of 260000 mu and the largest coffee processing production line in the country.

The above-mentioned person in charge of the Baoshan Municipal Bureau of Agriculture told reporters that both Pu'er and Dehong are rising stars in coffee cultivation, and local leaders also attach great importance to it. The scale of Pu'er is larger than that of Baoshan, while Dehong benefits from leading enterprises such as Hougu Coffee.

The reporter learned in the interview that while the development of the coffee industry in Baoshan City lags behind, there are also chaotic phenomena such as disorderly competition in the industry.

A number of people in the local coffee industry in Baoshan said that there are many people in Baoshan who make coffee, but most of them are scattered, chaotic, and small, without forming a community, not forming a brand, and people outside do not know which one is good, thus forming disorderly competition, wasting resources and not making the best use of their due value.

The above-mentioned person in charge of the Baoshan Municipal Bureau of Agriculture said that the core problem facing the Baoshan coffee industry is that there are no decent leading enterprises in Baoshan. It has more than a dozen production enterprises, including a total of more than 30 circulation enterprises, but they all make a small fuss, which does not bring much impetus to the coffee industry in Baoshan. According to previous statistics, 80% to 90% of the coffee industry in Baoshan sold raw materials.

According to local sources, local enterprises in Baoshan also undercut each other's prices. When facing the big customers who buy from outside, if A quotes 10 yuan to get the order, B may bid 9.8 yuan to grab it, and then C may quote 9.3 yuan again and rob it at a lower price, which will eventually lead to no one making money. And after some people get the order at a low price, they may even shoddy the products, which will have a negative impact on the whole industry.

Xie Xianwen, general manager of Baoshan Xinzhai Coffee Co., Ltd., suggested that the government should guide local enterprises, form a joint force, standardize operation, and not engage in vicious competition within. And should also take into account the interests of farmers, taking into account all aspects. If Baoshan coffee can be integrated to make, it should be able to achieve an output value of not less than 10 billion yuan. But now there is only no more than 1 billion yuan, and this year it may only be about 500 million yuan.

Chen Xinxue, president of the Baoshan Coffee Chamber of Commerce, also called on the government to pay attention to the coffee industry in an interview with the Daily Economic News.

Extended reading

The planting area of Baoshan coffee has expanded rapidly in recent years.

Since coffee was planted in 1952, the planting area of coffee in Baoshan has experienced several fluctuations.

Data show that in 1969, the planting area of Baoshan coffee was nearly 670 hectares (1 hectare = 15 mu). Due to the influence of the market, it gradually shrank to 200 hectares in the early 1980s. It developed gradually in the middle and late 1980s. Under the influence of the international market price in the mid-1990s, the market price of coffee reached its peak, with a price of more than 30 yuan per kilogram. Baoshan coffee cultivation heated up again and reached 6667 hectares by the end of the 20th century. However, due to the low international market price, as well as the extensive initial processing technology of local coffee, poor product circulation and other factors, the market price of Baoshan coffee fell to a trough, falling to 6 yuan per kilogram. By 2003, the planting area of coffee in the city was about 5333 hectares (about 80, 000 mu), with an output of 5809 tons, accounting for 42.3% of the output of the province.

How big is the coffee planting area in Baoshan at present?

According to statistics obtained by the reporter from the Baoshan Coffee Chamber of Commerce, in 2011, the planting area of coffee in Baoshan City was 223700 mu, with an output of 25000 tons, and the agricultural output value was 662 million yuan; in 2012, the planting area was 256700 mu, and the output was about 38700 tons. The estimated agricultural output value is about 725 million yuan.

However, the reporter learned from the Baoshan Municipal Bureau of Agriculture that the planting area of Baoshan coffee was 150000 mu in 2012, with an output of less than 20, 000 tons. Compared with the above data of Baoshan Coffee Chamber of Commerce, there is a big difference in both planting area and output.

In response, a person in charge of the Baoshan Municipal Bureau of Agriculture said it was not clear why there was a difference between the two. However, a person in charge of a local coffee enterprise in Baoshan told the reporter that the planned coffee planting area of 1 million mu in Yunnan during the 12th five-year Plan has already reached and exceeded the amount reported now, but in fact, the planting area may not be reached, and the reported area is watery all over the country. For example, only 100000 mu have been planted in some places, but it may be 130000 mu or even 200000 mu. Instant Coffee

In any case, the coffee planting area of Baoshan City has experienced a considerable expansion in recent years. In the Yunnan Coffee Industry Development Plan (2010-2020), Yunnan has listed Baoshan as one of the coffee bean production bases in the province. the coffee planting area in Baoshan has grown to 200000 mu by 2015 and 300000 mu by 2020.

A document from the Baoshan Coffee Chamber of Commerce pointed out that the arable land in the Baoshan hot area is 1.278 million mu, and the coffee planting area currently accounts for only 37.02% of the cultivated land in the hot area, so Baoshan coffee production still has great potential and space for planting and development.

According to the above plan, the coffee planting area of Yunnan Province will also usher in a large-scale expansion. It is estimated that by 2015, the planting area of coffee in the province will grow to 1 million mu, with an area of 800000 mu, with an annual output of 96000 tons of coffee beans, with a total output value of more than 17 billion yuan. By 2020, the planting area of coffee in the province will be stable at about 1.5 million mu, with an annual output of 200000 tons of raw coffee beans and a total output value of more than 34 billion yuan.

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