Chongqing: changing the pattern of World Coffee Trade

The mountain city of Chongqing, which is not along the border, does not rely on the sea, and does not produce a single coffee bean, unexpectedly challenges the pricing power of the world coffee industry, creating the largest coffee trading platform in the country and the third in the world. In the short period of ten months since its opening, Chongqing Coffee Trading Center has achieved a cumulative spot coffee transaction volume of 5.268 billion yuan. What is the power to make this seemingly "whimsical" dream come true step by step?

Borrow the open spring breeze of "Belt and Road Initiative"

In the interview, as the actual major shareholder and manager of the coffee trading center, Feng Yue, chairman of Chongqing Energy Investment Group (hereinafter referred to as "Chongqing Neng Investment Group"), told reporters that in addition to being forced by the supply-side reform of enterprises, what is more important is to build an open spring breeze with the help of "Belt and Road Initiative" and the Yangtze River Economic Belt.

In the past year, General Secretary Xi Jinping and Premier Li Keqiang respectively praised Chongqing and made it clear that Chongqing was strategically positioned as an inland international logistics hub, port highland and inland open highland. Chongqing is considered at the level of globalization and regional economic integration. Chongqing, connecting the east to the west and connecting the north and south, is at the three strategic connecting points and will undoubtedly play a more important role in geopolitics and economy.

The people of Chongqing, who are hot and tough by nature, also live up to expectations. In the process of integrating into the global market system, they have gradually set up an urban core function system that serves the central and western markets and the international market. It includes open platform systems such as Liangjiang New area, China (Chongqing) Free Trade Zone, Zhongxin (Chongqing) demonstration project, and three "three-in-one" open port systems of railway, waterport and airport. The open channel system represented by the "Chongqing New Europe" international railway and the golden waterway of the Yangtze River, and an open policy system with streamlining administration and delegating powers, service investment facilitation, trade facilitation, and in line with international standards.

The blueprint for making China's coffee industry bigger and stronger is on paper.

Yunnan Dehong Hougu Coffee Co., Ltd. (hereinafter referred to as "Dehong Hougu Coffee"), a leading Chinese coffee company that smells business opportunities, hit it off with Chongqing Neng Investment Group, which is looking for transformation and upgrading.

Dehong Hougu Coffee has more than 20 years of experience in international trade and has accumulated a lot of international customer resources, while Chongqing Neng Investment Group has also worked hard in the international market for a long time. The combination of strong and strong forces is a grand blueprint for making China's coffee industry bigger and stronger. Chongqing Coffee Trading Center was established on June 16, 2016. it will build China's largest coffee electronic trading platform, coffee (cross-border) e-commerce platform, coffee industry chain financing credit platform, China Coffee Exchange settlement Center and Coffee big data Center.

But can Chongqing, which is not along the border and not near the sea, afford such ambition? Will it be like some trading centers, finally changed, deviated from the original intention? Feng Yue analyzed that many people believe that coffee trading should be based on coffee production, which is a misunderstanding. New York and London do not produce coffee, but they are world-famous coffee trading centers. Brazilian coffee sells well all over the world, but due to the limitations of finance, trade and other factors, there are not enough conditions and foundation to become a world-class coffee trading center.

"China is forming a large coffee consumption market, which is growing at a rate of 20% a year," Feng said. As far as Chongqing is concerned, it is not only close to Yunnan, a major coffee producing province, and Southeast Asia, which accounts for 1/3 of the world coffee output, but also can radiate China through the golden waterway of the Yangtze River, the ASEAN international road logistics channel, and so on. It can also connect places such as Vietnam, the overseas supplier of coffee raw materials, and can also be transported directly to Europe through the 'Yuxin Europe' international train. " Feng Yue calculated an account: the journey from Chongqing to Duisburg, Germany, by "Yuxin Europe" is more than 11000 kilometers, which takes only 13 days, which is 30 days less than river-sea combined transportation and 4 times cheaper than air transportation.

Strive for the pricing right of coffee in the world

The next step of Chongqing Coffee Trading Center is to make full use of the spot basis, continue to attract planting, processing and trading enterprises through platform transactions, and increase trading volume through in-depth cooperation with relevant enterprises in Southeast Asia, Vietnam, Indonesia and Singapore. gradually change the domestic coffee industry small, scattered, chaotic status quo, strive for coffee pricing power, the development of the service industry.

At present, coffee trading is mainly dominated by developed countries in Europe and the United States. as a national bulk commodity, the pricing power of coffee is controlled by them. the domestic price of coffee of the same quality is 15 cents lower than 20 cents per pound, and there is a difference of several thousand yuan per 10 tons. Yunnan coffee planting and processing industry, which plays an important role in coffee production and sales, is greatly restricted. Industry insiders said, "due to the lack of their own standards and voice, the price of Yunnan coffee of the same quality traded in the international market is 2 times lower than that of Colombian coffee."

The establishment of Chongqing Coffee Trading Center can provide Chinese coffee farmers with channels for information release, fair bargaining, public trading and capital guarantee, solve the problems of asymmetric information, weak price discourse, lack of promotion platform, and effectively increase farmers' income. promote the healthy development of domestic coffee industry. By radiating the coffee market in China, Southeast Asia and even the whole Asia, we may be able to make a comeback for the pricing of Chinese coffee.