Chongqing, a municipality in southwestern China, might have seemed like an unlikely place for a coffee trade center before the city announced the establishment of the Chongqing Coffee Exchange in June. But now it hopes to become the world’s third-largest coffee futures market, after New York and London…Full Article: July 2016

Key Points

  • In June 2016, the Chongqing Coffee Exchange was established. According to a representative of Dehong Hogood (Yunnan-based coffee producer) quoted in December 2015, the exchange’s spot transactions will total somewhere between 100,000 MTs and 200,000 MTs in 2016. Dehong Hogood reportedly accounts for roughly 50% of China’s coffee exports.
  • In 2011, the Chongqing-Germany intercontinental railway began operations. As of June 2016, 45% of all exports shipped by rail were loaded at Chongqing.

ChinaAg Comments

  • In July 2015, Dehong Hogood began exporting coffee via the Chongqing-Xinjiang-Europe railway link (Chongqing – Lanzhou, Gansu province – Urumqi, Xinjiang region – Alataw Pass – Kazakhstan – Russia – Belarus – Poland – Duisburg, Germany). The rail journey takes 14 days, saving the coffee company 30 to 35 days when compared to its old export (sea) route via Guangzhou, Guangdong province.
  • In 2013, Yunnan Province produced almost 100,000 MTs of coffee or approximately 98% of China’s total output.
  • In 2012, China produced approximately 70,000 MTs of green (raw) coffee.
  • Coffee production in China is focused on Yunnan province, which accounted for more than 90% of China’s output in 2012. In 2009, Guangdong province halted coffee production, while Hainan Island produces ~440 MTs annually.
  • Established in 2007 in Yunnan province, Dehong Hogood‘s coffee plantations total 6,667 hectares, comprising approximately one-third of the coffee planting area in China. Hogood produces 30,000 metric tons of coffee berries (primarily Arabica coffee) annually, most of which is exported to Europe and Korea. The company also produces and sells roasted coffee, including whole bean, ground coffee in bags for exporting and instant coffee in fractional bags for retail.

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