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Yunnan Coffee Industry: Arabica Coffee Bean History and Quality

June 8, 2017
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How Did Arabica Coffee Take Root in Yunnan?

Yunnan sits on a low-latitude plateau with elevations mostly between 800 and 1,600 meters, a climate close to Colombia's. SCAA experts have cupped Yunnan beans alongside high-altitude Central American lots and found the quality competitive. The province now accounts for more than 99 percent of China's coffee planting area and output, with export earnings second only to vegetables and tobacco.

The crop arrived in 1892, when French missionary Tian Deneng planted the first coffee seed at Zhukula Village in Binchuan, Dali. Four stages followed: trial planting, agricultural reclamation exploration, multinational group investment, and industrial chain improvement. In 1952, technicians from the Mangshi branch of the Yunnan Agricultural Experiment Station brought back over 70 kilograms of fresh fruit for trial planting in Lujiangba, Baoshan, where adaptability and quality proved strong.

Yunnan is located on a low-latitude plateau, with a climate similar to Colombia and elevations mostly between 800 and 1,600 meters, providing an ideal growing environment for specialty coffee. After multiple cupping comparisons by SCAA experts, the quality of Yunnan coffee beans has been confirmed to rival that of high-altitude producing regions in Central America. From 1892, when a French missionary planted the first coffee seed, to today, Yunnan coffee has gone through four stages: trial planting, agricultural reclamation exploration, driving by multinational groups, and improvement of the industrial chain. Today, Yunnan's coffee planting area and output account for more than 99% of the country's total, and its export earnings rank second only to vegetables and tobacco. This article will review the development trajectory, producing region distribution, policies, and product strategies of Yunnan coffee, and introduce the unique characteristics of small-bean coffee.

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History of Yunnan Coffee

Yunnan's climate conditions are quite similar to those of Colombia, with elevations in most areas between 800 and 1,600 meters, making it very suitable for producing specialty coffee. After multiple rounds of cupping comparisons, SCAA experts confirmed that the cup quality of Yunnan coffee beans is enough to compete with coffee from high-altitude producing regions in Central America, and its quality is superior.

●Stage One: In 1892, French missionary Tian Deneng went to Zhukula Village in Binchuan, Dali, to preach and planted the first coffee seed there. In the spring of 1952, technicians from the Mangshi branch of the Yunnan Agricultural Experiment Station brought back more than 70 kilograms of fresh fruit from Nongxian Village and conducted trial planting in Lujiangba, Baoshan City. The results showed good adaptability and excellent quality, and afterward the planting scale gradually expanded. During the period of Sino-Soviet friendship, Baoshan coffee welcomed an important development opportunity, with products specifically supplied to the Soviet Union.

●Stage Two: From 1978 to 1988, most units in the agricultural reclamation system began trial planting. This stage was volatile and also a period of exploration. In 1988, in order to weaken the influence of South American coffee planting bases on coffee prices, Nestlé shifted its attention from Brazil, the world's largest coffee-growing country, to Pu'er, which is at the same latitude as Cuba, the hometown of coffee.

●Stage Three: From 1988 to 2008, after Nestlé entered Pu'er, Yunnan coffee entered a stage of stable development, which lasted about 20 years. The stimulus from multinational groups finally revived Yunnan's coffee planting. In addition, as China's urban middle class gradually grew, coffee became a new lifestyle for urban white-collar workers. More multinational groups such as Maxwell and Starbucks also came to Yunnan one after another.

●Stage Four: After 2008, the previous 30 years of relying solely on primary agricultural processing and planting for export transitioned to a stage that both maintained agricultural exports and accommodated industry and brands, continuously building and improving the industrial chain.

Since companies such as Nestlé pioneered the history of purchasing coffee raw materials in Yunnan, Yunnan coffee planting has entered a period of transition from traditional agriculture to modern agriculture, and also a period in which the expansion of international trade and the tapping of potential domestic markets proceeded in parallel.

As the domestic coffee market and industrial chain continue to mature, Yunnan's coffee planting area has continued to increase and output has continued to climb. At present, coffee planting in Yunnan Province has covered 35 counties and districts in 9 prefectures and cities, including Pu'er City, Baoshan City, Dehong Prefecture, Lincang City, Wenshan Prefecture, and Xishuangbanna. By the beginning of 2016, China's coffee planting area exceeded 1.8 million mu, with total output of 140,000 tons, accounting for 1.5% of global total output. Among this, Yunnan's coffee planting area was 1.77 million mu, with total output of 139,000 tons, accounting for more than 99% of the country's total. Local Yunnan coffee enterprises such as Hogood and Lingfeng welcomed good development opportunities.

As a hub connecting the international corridor to South Asia and Southeast Asia, Yunnan Province is located at the gateway for major world coffee producers such as Vietnam and Thailand to enter and exit the "China-ASEAN Free Trade Area." The surrounding countries have a regional coffee output of more than 2 million tons, accounting for one quarter of global coffee output. Yunnan's "bridgehead" advantage in coffee trade and markets is very prominent.

In 2015, with the successive launch of the "Dianxin'ou" and "Yuxin'ou" China-Europe international freight trains, Yunnan coffee achieved parallel sea and land transportation of foreign trade goods, driving "blowout" growth in Yunnan's coffee export trade. The province's coffee foreign exchange earnings exceeded US$400 million, accounting for 80% of China's total coffee export earnings, nearly doubling from the previous year. Coffee raw beans and deep-processed products are exported to many countries and regions such as Western Europe, the United States, Japan, and South Korea.

At present, nearly 60% of Yunnan's coffee output comes from Pu'er. By the end of 2015, Pu'er City's coffee planting area had reached 755,700 mu, with output of 57,900 tons, and coffee was exported to more than 30 countries and regions in the Americas, Europe, and Asia. Dehong Prefecture, as the "Hometown of Chinese Coffee," has developed its coffee area to 189,300 mu, with output of 17,700 tons. By the end of 2015, Lincang's coffee industry had built a coffee base of 491,000 mu, with output of 16,900 tons. Baoshan, as the earliest region in Yunnan Province for industrialized coffee planting, had also developed to 187,700 mu by the end of 2015, with output of 28,000 tons.

It is understood that Yunnan's hot-zone area suitable for coffee planting is about 5 million mu. Looking back to 2008, Yunnan's coffee planting area was 350,000 mu, with output of 28,000 tons. In just 8 years, output increased fivefold. As China's largest coffee export base, coffee export earnings rank third, after vegetables and tobacco. Yunnan's estimated coffee output in 2016 will reach 150,000 tons, with a favorable price trend. Coffee has become one of Yunnan's top ten star agricultural products for the next generation.

In the field of specialty coffee, Front Street Coffee has long paid attention to the Yunnan producing region and recommends washed Yunnan small-bean coffee. Its flavor profile shows nutty, chocolate, and brown sugar sweetness, with soft acidity and moderate body, suitable for pour-over and espresso blending.

The above content is compiled by CoffeeHunters, a coffee news website.

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