Hello! Welcome to this edition of CBN Perspective. I’m Stephanie Li.

I still remember the first time I tasted coffee from southwest China’s Yunnan province. It was a crisp, sunny morning in Dali, a historic city with stunning natural scenery and colorful Bai ethnic culture.

At a random coffee stand, I bought a simple Americano with local blends. As I took my first sip, I paused. There was something different, something special about this coffee. It had a delicate sweetness, a hint of florals, and a depth I hadn’t quite experienced before. That was the moment I knew: Yunnan coffee wasn’t just good, it was world-class.

But there’s a problem. When you think of the world’s biggest coffee-growing regions, Yunnan might not immediately spring to mind.

As more and more people in Chinese cities are starting their day with a freshly brewed cup, it is their compatriots on the other end of the country who are growing, washing, and drying the beans needed to make China’s coffee boom possible.

In the undulating highlands of southwest China, Yunnan’s distinctive natural environment, characterized by low latitudes, high altitudes, large day-night temperature fluctuations, and fertile, slightly acidic soils, creates conditions reminiscent of the world’s renowned coffee-growing regions. These attributes have allowed small-grain coffee to flourish, earning the province a growing reputation among coffee connoisseurs.

Little did one know, the history of coffee cultivation in Yunnan actually dates back 130 years. Now its coffee-growing regions span six prefectures and cities, including Pu'er, Baoshan, Lincang, Dehong, Xishuangbanna, and Nujiang.

By 2024, the province's coffee plantations covered 1.27 million mu, yielding an annual output of 146,000 tons - both accounting for over 98 percent of China's total coffee cultivation area and production.

For decades, however, Yunnan’s coffee was primarily sold as low-cost raw material to international brands. 

The turning point came with the harsh reality of shrinking profit margins. Prices for the most basic type of coffee have dropped so steeply in recent years that many Yunnan farmers have found it isn’t worth the effort. Since peaking in 2014, the total area of farmland devoted to coffee cultivation in the province has shrunk considerably.

Forced to find a way to make a profit, some farmers in the province have instead turned to growing beans for specialty coffees, which have more flavor — and higher prices. They have done so with remarkable success. 

Yunnan’s revival hinges on three pillars: quality, policy, and innovation. Now the province has designated 1.05 million mu of land as optimal growing zones for specialty coffee, promoting the cultivation of premium varieties such as Geisha and Typica.

New products, such as freeze-dried powder and cold brew concentrates, are gaining popularity, particularly in Vietnam’s ready-to-drink market, where consumers applaud the coffee’s smooth, richly nuanced flavor accented by a hint of fruity acidity.

Advances in processing technology have further bolstered Yunnan’s coffee industry. The specialty coffee ratio in Yunnan has risen from 8% in 2021 to 31.6% by 2024, while the deep-processing rate for coffee beans has surged from 20% in 2021 to 80% in 2024.

Crucially, strong policy support has also driven up Yunnan coffee's sustained growth. For instance, Baoshan has launched a project called the “Thousand, Hundred and Ten thousand Project,” aiming to create 100 coffee estates, connecting 1,000 coffee shops on one end and 10,000 coffee farmers on the other. The local government believes this approach will nurture a strong and sustainable industry chain. 

Yunnan is also ramping up efforts to train coffee professionals across the entire industrial chain. In 2024, Yunnan Agricultural University launched China's first undergraduate program in coffee science and engineering.

With the joint efforts of the government, growers and entrepreneurs, Yunnan's coffee industry is on a fast track to high-quality development, putting China's coffee on the map among international players. 

For years, coffee lovers have looked to Latin America and Africa for the best beans. And Yunnan coffee remained a well-kept secret, enjoyed mainly by locals and specialty coffee enthusiasts.

Now Yunnan coffee has started appearing in cafes from New York to London, often featured in single-origin espresso shots or delicate pour-overs.

A report by the International Coffee Organization believes that China has the potential to have a bright and formative future in coffee, noting its firm integration into the global coffee value chain and its own unique place within the global coffee industry.

Data from Kunming Customs show that in 2024, Yunnan exported 32,500 tons of coffee – a remarkable year-on-year increase of 358%. The coffee was shipped to 29 countries and regions — including the Netherlands, the United States, and Vietnam. 

The province’s expanding global presence is further bolstered by efficient logistics, such as the China-Europe freight train service, which ensures European consumers receive their coffee orders in as little as 15 days.

Pu’er, often dubbed “China’s coffee capital,” plays a pivotal role in the supply chain, providing raw beans for industry giants such as Nestle, Starbucks, and Luckin Coffee.

According to Starbucks’ website, since establishing a farmer support center in Yunnan in 2012, the company has worked closely with local growers to refine cultivation techniques and improve bean quality, expanding the reach of Yunnan coffee internationally.

In addition to meeting Chinese domestic demand, the premium beans are exported to markets across Asia, Europe, and the U.S., with Starbucks even offering a Yunnan single-origin coffee in its Chinese product lineup.

The online marketplace has taken notice as well. Some have begun sourcing Yunnan beans for their specialty blends, recognizing the region’s potential to stand alongside the greats. 

On Amazon, Yunnan coffee varieties are selling briskly, with many customers commending the beans’ exceptional quality and distinct character.

It’s no longer just a hidden gem, but a rising star in global coffee market.

From humble beginnings with commercial beans to a thriving specialty coffee scene, Yunnan's coffee industry is brewing success after decades of exploration.

Back in Dali, that first cup of Yunnan coffee now feels like a prologue. What was once a local secret is emerging as a global narrative—one of resilience, innovation, and terroir.

From the hands of Bai farmers meticulously handpicking cherries to the precision of roasters in Kunming, every step reflects a commitment to quality that’s rewriting China’s role in the coffee world. With China's coffee culture thriving, the best is yet to come.

Executive Editor: Sonia YU

Editor: LI Yanxia

Host: Stephanie LI

Writer: Stephanie LI

Sound Editor: Stephanie LI

Graphic Designer: ZHENG Wenjing, LIAO Yuanni

Produced by 21st Century Business Herald Dept. of Overseas News.

Presented by SFC