China Makes Breakthrough In Coffee Exports

(KUNMING) -- China will export coffee directly to the United States in April, according to a deal signed between the ECUM Coffee Group and Yunnan Hogood Co. Ltd..

In a statement Saturday, Hogood said it will export 240 tonnes of coffee beans per month to Atlantic (USA) Inc., a member of the Denmark-based ECUM Coffee Group.

Before this deal, Chinese coffee reached foreign consumers via international coffee suppliers, such as Nescafe and Starbucks.

Jon H. Stefenson, director of marketing at the ECUM U.S. subsidiary, said packages of the company's coffee products will carry marks indicating the plantation origin as Yunnan.

Yunnan Hogood, which is based in Dehong Dai-Jingpo Autonomous Prefecture, is one of the largest coffee suppliers in China.

It has contracted 30,000 rural households to grow coffee. By the end of 2008, it had 5,333 hectares of contracted land.

Xiong Xiangru, chairman of the board of Hogood, said the company aimed to gradually reduce its dependence on supplying beans to foreign coffee brands. Instead, he wants to focus on promoting the company's own brand of products.

Currently, the world's top five coffee suppliers, including Nescafe, Maxim, Maxwell and Kraft have purchased beans from Yunnan. The province accounts for 98 percent of China's total coffee output, according to Xiong, president of the Yunnan Coffee Association.

Nescafe is the largest buyer of Yunnan coffee. Its purchase in Yunnan reached 8,000 tonnes last year.

Starbucks offered last month to use Yunnan coffee beans in its global procurement system.

"World consumers may have already tasted Yunnan coffee, before they recognize the coffee's plantation origin," said Xiong.

According to figures from the provincial forestry bureau, Yunnan had 23,000 hectares of coffee plantations last year. Its total coffee output was 28,000 tonnes.

Coffee planting only has a decade of history in China because many people prefer tea. However, coffee's popularity is increasing.

Zhou Yuetuan, a farmer of the Dai ethnic group, said her family earned more than 20,000 yuan (2,900 U.S. dollars) last year planting coffee.

And that is exactly the point - are we suppose to believe, with automation and other advances in automation and production, that a US manufacturer cannot build a toaster that sells for $20? Not even in a “non-union” state?

Actually, what I believe it comes down too -

If “Company X” can make a gadget that would sell for $20, and make $3 per unit in profit after all expenses, but could make the same gadget in China, selling it for $20, but making $3.01, they will make it in China. There is zero patriotism in a company discarding American workers for a penny. And yes, I realize that one penny multiplied by a million of those gadgets equals $10K... But lets say they make a whole $1 more in profit - $1 million. Is it worth that to end America’s productivity and ability to MAKE OUR OWN STUFF, not to mention killing entire towns, and weakening our economy?

I am all for capitalism, but when the idea of “free trade” works only one way - to bring the US down - then something is terribly wrong.

And while it isn’t only their fault, I blame Wal-Mart for a great deal of the current situation. When Sam was alive, he made a point of “buying American” and encouraged consumers to do the same. While he pursued low prices and value, He also knew the importance of keeping Americans working, and American industries alive. Wal-Mart at that time, helped save several manufacturers.

But the Sam died. And the family decided to take the company all the way the other direction - and now the company motto (publicly advertised) “Low Prices Always”... That is the only concern. And now, Americans are programmed to only pay attention to price. AS most of us can attest - you usually get what you pay for. There are a handful of Chicom products that actually seem to provide value for the $, but for the most part - it is only about being the cheapest, at any cost... Disposable mentality... Buy something that is 25% cheaper, but then have to replace it twice as often... that just doesn’t make fiscal sense... but that is what we have become.

I will get off my soap box and go have a cup of coffee... NOT CHI-COM!!!

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