Flavor Profile of Chinese Domestic Coffee Beans: Yunnan Catimor Typica Arabica Coffee Beans

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The Dilemma of Chinese Coffee Beans

For a long time, domestic coffee beans produced in Yunnan have been fragrant and inexpensive yet largely overlooked. They are exported at low prices, repackaged and branded by global coffee giants, then sold back to China. The "high quality, low price" situation of domestic coffee beans once again reflects the predicament of Chinese agricultural products having products but no brands.

The "Coffee Paradox"

In recent years, China's coffee market has emerged remarkably. According to the "2017-2021 China Coffee Industry Investment Analysis and Prospect Forecast Report" released by China Investment Consulting Network, China's coffee consumption grows by approximately 20% annually, indicating significant market potential for coffee consumption.

On the other hand, China's upstream coffee market faces an awkward situation: China's annual coffee bean production is currently about 140,000 tons, mainly exported to European and American countries, with Yunnan coffee accounting for 98%. Meanwhile, the Chinese market consumes about 140,000 tons of coffee annually, primarily imported from abroad.

This means that Chinese-grown coffee beans travel around the international market, return to China as ground coffee powder, and are branded with premium names like Starbucks, Costa, Blue Mountain, and Colombia, with prices multiplying several times. In fact, these foreign coffee giants basically compete to purchase raw materials in Yunnan.

Through the case of Yunnan coffee, we can glimpse a broader picture: compared to the strong presence of "Made in China" consumer goods and daily products worldwide, China's agricultural product exports remain relatively backward, lacking prominent brands and showing distinct characteristics of having products but no brands. Looking at China's import and export trade structure, we can see that our country's agricultural products are mainly exported to Japan and other Asian countries, without truly achieving global popularity.

Three Reasons for Popularity in Asia

First is the vast territory and strong diversity - from frigid to tropical zones, almost all agricultural products can be produced, which is clearly incomparable to other countries.

Second is the relatively close physical distance between Asian countries and China. Unlike industrial products, most agricultural products are not suitable for long-term storage and storage also incurs costs. Therefore, it's more cost-effective to consume in nearby markets rather than transporting to distant Europe and America.

Third is the relatively similar dietary habits between Asian countries and China. Historically, they have been more influenced and nurtured by Chinese culture, plus there are many overseas Chinese in Southeast Asia who also bring Chinese ingredients and cooking methods.

For European and American countries, agricultural foundations and dietary habits differ, making the challenge obviously greater. Based on these points, Chinese agricultural products can easily sell well in Asia but struggle to go global.

Insights

On one hand, not all Chinese agricultural products exported to other countries will sell well; we need to achieve "having what others don't." On the other hand, neighboring Asian countries have different demands for agricultural products, so we need to highlight specificity and leverage comparative advantages.

Expert Opinion

Zhai Liushuan
Professor, School of Economics and Management, China Agricultural University

"In encouraging agricultural product exports, our country must first categorize products and not blindly encourage all agricultural exports. We should choose products that foreign countries don't have, because they are rare and thus valued higher abroad, can earn money, and have higher added value. The second point is to choose the right regions. Currently, Asia is our main target market, but trade barriers in Asian countries are still quite numerous, requiring more consideration of trade barriers, though of course the national level must also find solutions. Additionally, we need to expand into larger markets."

Green Competitiveness

Agricultural products imported from New Zealand and Japan to China are almost all branded, and they have higher standards in craftsmanship, packaging, and quality safety, and people are willing to pay for them, selling at high prices of nearly 100 yuan per jin (500g) in Chinese supermarkets. This is also known as "green competitiveness."

The experience of developed countries in creating agricultural products with "green competitiveness" is precisely worth learning from. First, China is transforming from a major agricultural country to a strong agricultural power, and we need to create agricultural product brands with higher international recognition. Second, our agricultural products' market share in Asian markets is approaching saturation, and there is an urgent need to expand into larger international markets.

Product Safety Awareness

In the process of Chinese agricultural products going global, strengthening food safety awareness and proactively aligning with international standards is the top priority that farmers need to consider. This requires good control of the entire supply chain, avoiding food safety issues, improving supply efficiency, and better meeting foreign demands.

Logistics and Distribution

Logistics and distribution cannot be controlled by individual enterprises. Logistics itself has public characteristics, and the state can invest in it. This allows for quick domestic responses when foreign customers place orders.

Integration of Primary, Secondary, and Tertiary Industries

In promoting agricultural product exports, improving the organization of Chinese agriculture becomes even more necessary. Only through better integration of primary, secondary, and tertiary industries and better coordination of production, supply, and marketing can we effectively avoid blindness in the production环节 when it comes to meeting international market demands - not only large enterprises and distributors know, but farmers also know.

Brand Building

Although "Made in China" consumer products were sold well in Europe and America ten years ago, they have always struggled to capture more added value due to lack of brands. While the proportion of our country's agricultural product exports is gradually increasing, we still lack well-known national famous brands, resulting in weak competitiveness and low added value. Nearby Japan serves as an excellent example - although agricultural products have high import dependence, Japan has successfully created many high-quality, high-priced, world-renowned brands.

Expert Opinion

Zhai Liushuan: Professor, School of Economics and Management, China Agricultural University

"Japan is a typical major agricultural importing country, but despite this, it still has several world-renowned brands. For example, beef, apples, and rice all sell well globally. Why? Because of branding. China currently mainly lacks big brands. Chinese agricultural product brands are mostly still at the level of regional brands, such as Luochuan apples, Yantai apples, and Wuyi tea, without truly becoming national brands."

"Don't build brands blindly - it's not that we have so many good things that can all be exported immediately. We haven't heard of Japanese pears, but when talking about Japanese pears, we also think they are good. Why? Because Japanese Fuji apples are so good, how could the pears be bad? So we must concentrate on creating one brand that can represent traditional Chinese culture and has Chinese elements, and other smaller brands can follow along to share the glory."

Brand building cannot be achieved overnight, but precisely because it is difficult, its value is all the more precious. Of course, brand formation is not limited to the product itself - it is also closely related to China's national soft power and voice in the world.

Domestic Coffee Bean Brand Recommendations

The domestic coffee beans roasted by FrontStreet Coffee - Yunnan Small-grain Typica coffee - are fully guaranteed in both brand and quality. More importantly, they offer extremely high cost performance. Each package is 227 grams and costs only about 69 yuan. Calculating at 15 grams of coffee beans per cup, one package can make 15 cups of coffee, with each cup costing only about 5 yuan. Compared to cafés selling coffee at dozens of yuan per cup, this is truly a conscientious recommendation.

FrontStreet Coffee: A roastery in Guangzhou with a small shop but diverse bean varieties, where you can find various famous and lesser-known beans, while also providing online store services. https://shop104210103.taobao.com

Important Notice :

前街咖啡 FrontStreet Coffee has moved to new addredd:

FrontStreet Coffee Address: 315,Donghua East Road,GuangZhou

Tel:020 38364473