Chongqing municipality, southwest China, is building the country’s largest instant-coffee factory, which is scheduled to be completed in 2018, local authorities said Wednesday [23 November 2016]. The factory will cost 1 billion yuan (145 million U.S. dollars) and produce 10,000 tonnes of freeze-dried coffee, 2,000 tonnes of liquid coffee concentrate and 3,000 tonnes of baked coffee beans per year, said Chongqing State-owned Assets Supervision and Administration Commission…Full Article: ECNS.cn Nov 2016

Key Points

  • Chinese coffee cultivation takes place in Yunnan (primary grower), Hainan Island, Fujian, and Guangxi Zhuang Region, while instant coffee production is centered in Guangdong Province.
  • From 1998 to 2015, Chinese coffee imports increased from 13,900 MTs to 59,200 MTs.

ChinaAg Comments

  • In November 2016, it was reported that Yunnan Province produces 130,000 MTs of coffee annually on 120,000 hectares of land, accounting for 99% of China’s total coffee output.
  • 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 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 March 2015, Nestle China destroyed tons of instant coffee in its Dongguan, Guangdong province, factory due to poor demand. During the same month, construction on the Nescafé Coffee Center (NCC) began and was expected to be completed by October 2015.
  • In 2013, Yunnan Province produced almost 100,000 MTs of coffee or approximately 98% of China’s total output. 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 Switzerland’s Nestle is a major purchaser of Pu’er beans (south of Dehong).
  • In 2012, China produced approximately 70,000 MTs of green (raw) coffee.
  • In 2011, the Chongqing-Germany intercontinental railway began operations. As of June 2016, 45% of all exports shipped by rail were loaded at Chongqing.
  • 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.

Hong Kong Trends

Similar Posts by ChinaAg

Spread the word. Share this post!