Strategies and Marketing Situation on Agricultural products in Western China ---Based on Coffee beans in Yunnan

Abstract

In 2012, the sale of coffee bean was not very good in Yunnan of China. The purchase price has been declining, and there have been poor sales in some places. The main reasons are expanding of planting area, reduced quality of coffee beans, inadequate processing, and inaccurate market expectation of growers and so on. For coffee beans industry in Yunnan, we should optimize planting layout, control proper planting area, and make efforts to improve the quality of coffee beans. In addition, we can develop deep processing industries, strengthen international cooperation, and expand sales channels. Introduction Coffee bean is a kind of agricultural products. It is the nutlet of coffee tree fruit, which can be made into coffee after being roasted and grinded. Coffee is one of three largest non-alcoholic beverages in the world; it has some beneficial health effects, so many people like it, especially in Europe and the United States. Coffee is very popular, and then coffee bean plant is worth paying attention to. Main countries of coffee beans planting are Brazil, Colombia, Viet Nam and Mexico in the world. China also has coffee beans producing areas, which are mainly in Yunnan province and Hainan Province, Yunnan has a larger yield, and coffee in Yunnan occupies a major position in the market of china. We will investigate the coffee beans market in Yunnan province in recent years, and research marketing strategies of Yunnan coffee beans. Marketing Situation on Yunnan Coffee Beans Yunnan province is located in the Southwest of China. It has suitable growth condition for many agricultural crops, such as tea, tobacco, herbs, wild mushroom and fresh flowers. Because of geography and climate in Yunnan, the conditions are suitable for planting coffee beans, the main producing areas are Pu’er, Baoshan, Dehong region and Red River-producing region. Yunnan coffee beans are exported to Germany, the United Kingdom, Italy, the United States, South Korea, Japan and other countries. The main supplied companies are the top five coffee giants in the world, such as Nestle, Maxwell companies, United States Kraft Foods, Germany Newman and Denmark Catherine IKAM. In recent years, some diversification has taken place in Yunnan coffee beans market, Coffee beans sales price started to rise from 2010, it reached the highest level in 2011, but declined in 2012. In January 2010, the coffee beans price was 18 Yuan per kg or so, around March 2010 the price was 23 Yuan per kg, in October 2010 the price was 28 Yuan per kg or so. In January 2011 the price raised to 31 Yuan per kg, in February 2011 it reached 34.5 Yuan per kg, and later the price rose to 41 Yuan per kg. It was different in 2012, the price has been declining from 31 Yuan per kg to 20 Yuan per kilogram since March 2012, in November 2012 Nestle acquired Arabica coffee beans in Yunnan, and the price given is 17.9 Yuan per kg. Some local coffee beans also were unsalable, for example in coffee commune of Man former tea plantation of Pu’er city and in Empty hiromura of Mans Width township of Long yang district of Baoshan city, in which coffee farmers could only worry about the fresh fruits which have been dried. The purchase price given by Nestle in Yunnan is based on New York Coffee futures prices which offer price 2 times each week, the price is also very transparent. The data on price diversification of coffee beans are given below in recent years: 2nd International Conference on Science and Social Research (ICSSR 2013) © 2013. The authors Published by Atlantis Press 18