Coffee industry professionals now are selecting their suppliers in the coffee growing region of Yunnan Province in southwest China.
Yunnan produces 98 percent of Chinese coffee, as the region meets the requirements for coffee farming. At the same time, there are large altitude gaps and a diverse climate, with coffee plants growing on the slopes mountains and hills. Experts say that while this environment may make it more difficult to grow and harvest coffee, it also gives the beans diverse flavors.
"Let's talk about the advantage of Yunnan [to produce coffee beans]. There are two aspects. One is biodiversity. There is also a very good microclimate environment. So, we can produce different and premium coffe beans," said Hou Jiazhi, a coffee agronomist.
A suitable environment attracts entrepreneurs to grow coffee here. Wei Shuihua, a young man from Zhejiang, is now in his third year of coffee farming in Yunnan.
"I sell my coffee bean through my Wechat official account. Basically, my input-output can be balanced. I could make my ends meet in the first year and make some small profits in the second year," said Wei.
Through cooperation with companies, Yunnan's coffee industry has matured. Alfonso Troisi, Senior Vice President of Coffee Business Unit, Nestle Zone Greater China, said the company has been investing in Yunnan and supporting the development of the industry since 1988.
"Yunnan produces basically Arabica coffee and a lot of specialty coffee today. We're proud that Nescafe has contributed to the start of this journey. We'll continue supporting not only the quality production, but also the export. Because for farmers, the most important is stability. Today, 70-80 percent of what we purchase from here is actually exported thanks to our network," said Troisi
After more than three decades of cultivation, Yunnan's coffee production has become stable and qualified, attracting a growing number of consumers and baristas in search for exceptional coffee sources.
"A lot of baristas are very proactive in coming here. They come directly to the origin to find the beans they want or to collaborate with coffee farmers to produce experimental batches, which are suitable for them to compete [in barista competition] or to look for beans with more market potential," said Zhao Xinrui, a media person who focuses on the coffee industry.
Bei La, founder of the Food & Beverage Innovation Forum (FBIF), said she wanted to expand her raw material supply chain here not only because she was optimistic about the coffee growing industry in the region, but also because she was hopeful about the promising coffee market in China, as China's coffee consumption has soared in recent years, with an impressive annual growth rate of more than 10 percent.
"Because the retail side of business has become very mature, many coffee producers are now focusing on the upstream raw material supply chain. They want to seize the opportunity as soon as possible, so that their product and pricing competitiveness can be more attractive. We have high expectation for coffee market in the future. We estimate that by around 2030, coffee market size in China may reach around 1 trillion yuan (about 138 billion U.S. dollars)," said Bei La.
Coffee industry professionals flock to Yunnan for premium bean suppliers
