Volcafe said on Tuesday it will set up local operations to export beans grown in Yunnan province, in China. To this aim, the Swiss-based coffee division of commodities house ED&F Man has signed a joint-venture deal with China’s Simao Arabicasm Coffee Co (SACCO), a Yunnan coffee company.
China produces more than 1 million 60kg bags of arabica coffee every year, mainly the hybrid Catimor variety of Arabica beans. Most of the crop is sold abroad.
“Chinese mild Arabica is still relatively new to the world coffee scene, but its improving consistency means it is rapidly growing in acceptance with global roasters,” said Jan Kees van der Wild, global head of commodities at ED & F Man.
Nestlé has been involved in the Chinese coffee farming industry since the late 1980s, investing in the sector alongside the Chinese government and the United Nations Development Programme.
Since then, Starbucks opened a processing mill and a farmer support centre, providing technical assistance to farmers.