Why Have Yunnan Green Coffee Prices Held High and Steady? How Does This Harvest Season Differ From Last Year?

Lead: This year Yunnan’s coffee cherry procurement price started at about RMB 30 per kilogram and has held high and steady overall, but it is unlikely to repeat last year’s run to over RMB 40. The reason: this year’s drought was concentrated mainly in northeastern Yunnan and had little effect on the main producing areas of western and southern Yunnan; rainfall largely secured coffee growth and there was no major production loss. Add to that the higher planted area stimulated by last season’s high prices, while demand from international giants such as Nestlé, Master, and Kraft keeps expanding — and prices therefore remain elevated.

From October, Yunnan — China’s largest coffee planting, production, and export base — began its busy coffee cherry harvest, which runs through next May. Officials from the Yunnan Provincial Meteorological Bureau noted that this year’s spring drought was not pronounced, but the summer drought was severe and the autumn drought was heavier than normal; after the rainy season ends, drought could continue to develop.

Right now Yunnan’s rainy season has just ended. The Yunnan Provincial Meteorological Bureau recently announced that since the start of the year most of the province has seen below-normal precipitation, reservoir storage is severely inadequate, and drought persists in some areas. However, the drought has not caused much adverse impact on Yunnan coffee. Hu Lu, deputy secretary-general of the Yunnan Coffee Industry Association, told reporters that compared with last year’s province-wide drought, this year’s drought is concentrated in northeastern Yunnan and has little effect on the main producing areas of western and southern Yunnan, where rainfall has basically secured coffee growth.

At present, more than 90% of China’s coffee is grown in Yunnan, and Yunnan beans are mainly supplied to the world’s five coffee giants — Nestlé, Master, Kraft, Newman, and Ikawa. Most Yunnan coffee is exported to Europe and the Americas via Vietnam, which has substantially lifted demand and stimulated Yunnan’s exports. Because Yunnan suffered some frost and drought damage last winter, coffee prices rose sharply in the previous harvest, with beans climbing about USD 1.5 per kilogram.

On this relatively stable planting and harvest picture, Hu Lu predicts coffee prices will stay steady and not reach last year’s highs. “The previous harvest saw large price gains, which led to a lot of new planting, but because market demand keeps expanding, prices this harvest have stayed at last season’s high level. Still, since the disaster was not as severe as last year — which caused major production loss — this season’s procurement price starts at about RMB 30 per kilogram and should not repeat last year’s rise above RMB 40.”

Hu Lu’s view was confirmed by a salesperson at the Yunnan Coffee Factory of Yunnan Agricultural Reclamation Group, who told reporters that freshly harvested Yunnan beans are currently selling for about RMB 33 per kilogram.

Reprint Notice & Disclaimer

1. This article is edited and compiled by coffeeyo.com and reprinted from Coffee Workshop, “Why Have Yunnan Green Coffee Prices Held High and Steady? How Does This Harvest Season Differ From Last Year?” The original copyright belongs to Coffee Workshop and the original author. This reprint is for coffee-industry information sharing only and does not represent the site’s position; all data and views are subject to the original. We thank the original author for their work and sharing.
2. Original: Coffee Workshop, “Why Have Yunnan Green Coffee Prices Held High and Steady? How Does This Harvest Season Differ From Last Year?”
3. If you have questions regarding authorization, attribution, copyright, or any other matter, please contact us promptly and we will verify and cooperate. We also welcome coffee companies and industry media to exchange story leads with us.
4. Contact coffeeyo.com: Tel 400-0000-641 (+86-18288016826) | Email 405854472@qq.com | Address: Jinghong City, Xishuangbanna, Yunnan Province