Coffee economy thrives in SW China's Yunnan

By the end of 2024, the coffee plantations in southwest China's Yunnan Province covered over 1.26 million mu (84,000 hectares), with output of coffee beans exceeding 140,000 tonnes—accounting for over 98 percent of the country's total coffee production.

Livestreamers promote products of Shicheng Coffee, a coffee brand of a company in southwest China's Yunnan Province. (People's Daily Online/Cai Shujing)

The province exported coffee to 29 countries and regions, including the United States, the Netherlands, and Vietnam.

"We receive orders almost every minute," said Duan Jiexiang, general manager of Yunnan Time Agriculture Development Co., Ltd., which sells its own coffee brand, Shicheng Coffee, through livestream sessions held in the Kunming economic and technological development zone in Kunming, capital of Yunnan.

The company's coffee processing factory in Kunming operates at full capacity, focusing on the deep processing of green coffee beans.

"Last year, the business volume of our company's Kunming factory reached nearly 5,000 tonnes, with sales totaling about 180 million yuan ($24.53 million)," she said.

Photo shows a view of Yunnan Coffee Factory located in the Kunming economic and technological development zone in Kunming, southwest China's Yunnan Province. (People's Daily Online/Cai Shujing)

With Yunnan being the most important coffee-growing region in China, the Kunming development zone supports the deep processing of coffee beans, operations of cafes, and the integrated development of the coffee industry and tourism.

China's first modern coffee processing plant—Yunnan Coffee Factory—is located in the Kunming development zone.

"More than 100 years ago, the French planted China's first coffee tree in Yunnan. Since then, coffee has taken root and flourished in this traditionally tea-drinking region," said Zhang Jiwei, deputy general manager of Yunnan Coffee Factory Co., Ltd.

Capitalizing on its favorable natural conditions, the province has consistently worked to optimize coffee varieties and processing techniques, improving the overall quality of Yunnan coffee.

Photo shows coffee beans on display in Yunnan Coffee Factory in Kunming, southwest China's Yunnan Province. (People's Daily Online/Cai Shujing)

Yunnan has rolled out measures to promote the coffee industry, offering policy guidance in areas such as variety improvement, fresh fruit processing, deep processing, coffee estate development, and brand building.

The Yunnan Provincial Department of Agriculture and Rural Affairs has designated 1.05 million mu of land as optimal growing zones for specialty coffee, promoting the cultivation of premium varieties such as Geisha and Typica. By the end of 2024, the specialty coffee ratio in Yunnan had risen from 8 percent in 2021 to 31.6 percent, while the deep processing rate for coffee beans had surged from 20 percent in 2021 to 80 percent.

Photo shows a view of the processing factory of Shicheng Coffee located in the Kunming economic and technological development zone in Kunming, southwest China's Yunnan Province. (People's Daily Online/Cai Shujing)

By the end of 2024, the prices of green coffee beans and specialty coffee beans averaged 41 yuan and over 67 yuan per kilogram, respectively.

The booming coffee economy in Yunnan has led to an average per capita income increase of more than 5,000 yuan for nearly 1 million coffee farmers across the province.

China's coffee market is expanding rapidly. By 2023, the country had about 160,000 coffee shops, with Shanghai ranking as the city with the most coffee shops in the world.

Liu Yingzhen, general manager of the internet marketing center at Yunnan Zhongfei Food Co., Ltd., now often travels to other provinces for business.

"We can clearly see the rising popularity of Yunnan coffee very directly. A cup of pour-over coffee made with premium Yunnan coffee beans even fetch a higher price than imported beans," Liu said.

"Although the freshly ground coffee market is thriving, the instant coffee market remains substantial. Based on our research, we've developed star coffee products with high repeat purchase rates," Liu added.

Liu also noted that the company has partnered with Yunnan Agricultural University to develop coffee with new flavors.

Photo shows an automated production line of instant coffee in the Kunming economic and technological development zone in Kunming, southwest China's Yunnan Province. (People's Daily Online/Cai Shujing)

Photo shows star coffee products of Yunnan Zhongfei Food Co., Ltd. (People's Daily Online/Cai Shujing)