Issue link: https://read.dmtmag.com/i/658240
STiR tea & coffee industry international 39 In 2015, Bautista and his team were asked to source superior quality cof- fee beans for Nescafé's premium Dolce Gusto brand. "They released a special Yunnan edi- tion with bright acidity, mild aroma and light body," he said. Prior to that, in 2004, something similar was done with Nespresso, which likewise launched a special Yunnan Nespresso edition. "These are two clear examples of the high quality potential Chinese coffee has, but there is still a long way to go to cre- ate a 'name' as an origin in the same way other countries like Colombia have done it," he says. Rapid increase in volume Yunnan's arabica yield has steadily expanded over the past two decades. According to the International Trade Centre, in 2009 there were 26,667 hectares of arabica coffee planted across Yunnan province. By 2015, this had increased to about 124,650 hect- ares, as reported by the local government that year. In the crop year 2014/15, Louis Dreyfus alone purchased around 70,000 bags (60- kg) and projects an increase to between 90,000 and 120,000 60-kg bags for the current 2015/16 harvest. According to Zhang, this projection "captures the trade opportuni- ties resulting from the expected growth in demand for Yunnan coffee since it is avail- able at relatively lower prices than the Centrals for almost the same quality." The company's approximate trade value for Yunnan coffee is anticipated to grow by 10-20% in coming years. Despite this impressive growth, arabica volumes are merely a drop in the ocean considering Louis Dreyfus' global coffee trading volume. "Yunnan arabica currently has a share of slightly more than 1% of the company's total arabica coffee trade in 2015/16. This share is projected to grow to close to 2% with our efforts to increase our Yunnan coffee trade volume in 2016 and beyond," Zhang elaborates. Nestlé purchased 10,962 metric tons of 4C-compliant green coffee in 2014/15. Of this volume, only 1,163 tons was sent to the Nescafé factory in Dongguan to produce "Nescafe 2+1" for local consumption. The rest was exported. The company's purchas- ing target for the current crop year 2015/16 is 11,948 tons, of which 1,910 tons are earmarked for delivery to the Dongguan facility and 10,038 tons for export. "Our target for the upcoming years is to reach 15,000 tons purchased directly from farmers. All this coffee must be 4C-compliant, so our efforts are now to keep working with our suppliers to increase yields and quality alike. Around 80% of that projected volume will be exported," explains Contreras. Murky data Figures from reputable traders like Louis Dreyfus and Nestlé are reliable but research- ing China's burgeoning coffee-growing industry is hampered by difficult-to-obtain sta- tistical data. Attempts by STiR Tea & Coffee to obtain relevant statistics from the Pu'er Coffee Association, the Yunnan Coffee Association, and the Yunnan Agricultural Bu- reau, were ignored. A summary of Yunnan coffee production and exports for the years 2000 to 2015 was available from the International Coffee Organization (ICO), released last year. The precise numbers may be unknown but coffee production in China has indeed escalated rapidly during the past 20 years. This assumption is further reinforced by figures provided by the United Nations' Food and Agriculture Organization (FAO) for the crop year 2013/14, which suggest a total harvest of around 1.9 million bags. If correct, this would effectively make China the world's 14th largest producer of coffee. It occupied the 30th rank a mere 10 years ago. A large coffee drying patio in the mist-shrouded mountains of Pu'er Photo courtesy of Gonzalo Contreras Bautista, Nestlé China Arabica beans reveal different color- ation after subjected to different processing methods Photos courtesy of Torch Coffee Co. Local farmers in Yunnan deliver freshly harvested arabica cherries Photos courtesy of Torch Coffee Co.