Persistently stagnant coffee bean prices in the New York futures market have dragged wholesale coffee bean prices in the southwestern province of Yunnan, a major coffee-bean production site in China, to nearly the cost of production. At 15 yuan (US$2.46) a kilogram, some farmers are being driven to cut down their coffee bean trees…Full-text article: WantChinaTimes Nov 2013

Key points

  • Yunnan province has three main coffee growing regions, with Dehong (bordering Burma) and Pu’er (bordering Burma, Laos, and Vietnam) being the most developed
  • Dehong Hogood Coffee Company is the primary buyer of Dehong coffee while Nestle is a major purchaser of Pu’er beans

ChinaAg Comment

  • From 1997-2011, Chinese coffee production increased an average of 19% annually, while yields increased from 0.5 to 1.8 MTs per ha. Despite increased output, coffee yields have remained somewhat stagnant since 2004 when yields peaked at 1.8 MTs per ha. In 2012, Yunnan province accounted for 90% of China’s coffee production.

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