STiR coffee and tea magazine

Volume 5, Number 2

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40 STiR tea & coffee industry international / Issue 2, 2016 (April/May) Measuring the pH during fermentation Students and instructors at a November 2015 Torch Coffee green bean processing course pose for a group photo. Olfactory testing at Torch Coffee's training facility Theoretical classes at Torch Coffee's training facility, Coffee Quality Insti- tute's Dr. Mario Fernandez serving as guest instructor Photo courtesy of Torch Coffee Co. Photo courtesy of Torch Coffee Co. Photo courtesy of Torch Coffee Co. Challenges aplenty Although Yunnan's outlook is decidedly good, certain challenges must be addressed. One concern for international traders like Louis Dreyfus Commodities is the price risk as a result of market competition. There are also quality risks due to poor harvests, crop disasters or water shortages that frequently afflict even relatively lush and fertile Yunnan. "However, as a well-established global company, we have in place quality control and financial structures to manage and mitigate these risks," assures Young Zhang. Another concern is the threat of spreading coffee plant pests and diseases. The most popular arabica varietals currently cultivated in China are Catimors, which were first promoted by Nestlé back in the late 1980s due to their high yield, their suitability for the agro-ecological conditions of Yunnan and because they are coffee leaf rust resistant. "Let's keep in mind that a few years ago Colombian, Central American, and Mexican coffee areas were dramatically damaged by coffee leaf rust," says Bautista. Apart from the fact that Catimors are resistant to this disastrous fungus, one advantage in Yunnan is the fortunate lack of the coffee berry borer, a beetle that wreaks havoc on plantations. That doesn't mean that the province's valuable coffee crops are immune to pests, the region harbors the coffee berry borer's equally nasty cousin, the stem borer. The stem borer is the main pest afflicting the plants in this region. "At this moment it is still under control and our suggestions [to farmers to contain it] are manual catching, impregnating stems with wood vinegar or burning affected trees," Bautista explains. "But we do not encourage usage of [chemical] pesticides." Will Yunnan ease a global shortage? Yunnan's limited production will help mitigate arabica shortage in the global market but it will not have a major impact. Nevertheless, Louis Dreyfus is confident that the region has at least "an important role to play in contributing to the variety of quality coffee available in the market" and that its global clout as a major supplier can be fur- ther developed. That is why the company will continue to invest in washing, milling and blending facilities in Yunnan to further enhance its quality control standards. The company will also "endorse Yunnan coffee with the well-established Louis Dreyfus name for both quality and performance." Nestlé's Bautista also believes in Yunnan's potential. "The region's coffee farmers are starting to pay more attention to quality and to reach niche markets. It's quite prob- able that this will result in increasing availability of coffee for medium to high quality in the upcoming years," he asserts. Zhang also believes there are good opportunities for potential investors. He cau- tions that rising farming costs in Yunnan could pose a challenge by making the Chinese province's coffee less competitive in the global market but "as the quality of coffee improves, supported by the positive growing and trading environment, it should offer reasonable returns to investors," he said. Photo courtesy of Torch Coffee Co.

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