What Makes Yunnan Coffee a Niche?
Yunnan is located in the coffee belt and has the perfect altitude ranging from 1000-2000 MASL for coffee production. According to a regional research institution, green bean production has reached 45,000 tons in the 2024 harvest season in Yunnan, with a net growth of 9.4%. Things look positive and full of potential for people who involve in this industry, However, Yunnan coffee remains very rare in the UK’s specialty coffee market that only around 1/10 roasters feature this region in their coffee menu and products. Besides the fact that the total amount of coffee produced in this area is significantly lower than in other major growing and production regions and the fact that most of the Yunnan coffee green beans have been consumed by domestic speciality roasters and coffee production manufacturers, what are the main barriers that prevent roasters choosing Yunnan coffee?
Budget-friendly choice for local roasters but expensive for the rest of the global markets
For roasters based in local areas - China or other countries in Asia, Yunnan coffee beans, especially the Catimor varietal, are a very good choice as the base bean for espresso blend due to the low cost of transportation and relevant trade duties. Bean sourcers also benefit from the convenience to go to the actual growing area to see and select the beans they like, thus the cost can be further reduced via a direct bean-to-cup process.
In recent years, roasters and farms have even collaborated further to produce green beans directly supplied to roasteries, bringing a further layer of guarantee of efficiency, transparency, and freshness. Chinese domestic roasters are proud to have their own collaborative Yunnan farms and coffee estates, which have been considered a significant unique selling point when communicating with Chinese customers.
However, scenes are rather different if we look at the wider global market for green bean trading. Due to the high cost of transportation and customs duty, and we also want to include a fair margin for traders, the sold price of Yunnan coffee green beans internationally can be 150% to 200% higher than their sold price domestically. To maintain price competition, green bean traders and sources had to sacrifice quality for cost, meaning that the majority of the Yunnan green beans, with affordable prices, in the global market have fairly poor quality.
The good ones are too rare to be available for international customers, but what’s available is rather dissatisfactory
As mentioned in the earlier part of this blog, Yunnan coffee is, first and foremost, consumed by the Chinese. Especially for the best-quality ones, newly cultivated and harvested, e.g. Yunnan Gesha, purple leave Caturra, etc., have way higher domestic demand than their production capacity. Yunnan Gesha, for example, reaches a sold price locally (no transport cost or custom duty added) at approximately £120/kg on average for the 2024 harvest season, and these were gone so quickly, like each and every year in the past. Yunnan Coffee then needs to supply the China domestic industry and market, so what’s available for the global market is not necessarily the best ones. And due to the transport cost and customs charges, the price for these won’t be low. Thus, it is really sad but true that Yunnan coffee beans don’t provide the best price-performance ratio in the global market.
Conclusion
So, what makes Yunnan coffee a niche and not a common choice for roasters? What are the main effecting reasons for the current scene?
Production capacity and remaining availability for the global market: Yunnan coffee is, first and foremost, consumed by the Chinese.
Affordability worldwide considering its price-performance ratio: Yunnan beans are a budget-friendly choice for local roasters but expensive for the rest of global markets due to transport costs and customs duties.
Quality: The good ones are too rare to be available for international customers, but what’s available is rather dissatisfactory.
We envision a future in which the best-quality Yunnan coffee is widely available for global coffee lovers, customers, and professionals, with the best quality yet at a reasonable price for a wide range of coffee production. We hope that one day, Yunnan coffee will no longer be associated with “low quality“or “coffee commodity” but will become a more known and common choice for speciality coffee production in the world.
/Author: Shai
