Coffee Prices Skyrocket: Why Yunnan Farmers Remain Anxious
If you visited Pu’er, Yunnan, this spring, you would have found the coffee farmers beaming with joy. The price of green coffee beans has been climbing for a year; from 38 yuan per kilogram at the start of 2024, it rose to 66 yuan per kilogram by May—a growth rate that has outpaced even that of gold.

In this way, Yunnan’s coffee has been a passive participant in a price rollercoaster. As recently as 2018, green beans hit a historic low of just 13 yuan per kilogram. Seven years later, by May this year, they had soared to 66 yuan per kilogram, reaching an all-time high.
For an ordinary coffee farmer living in Pu’er, Yunnan, the fluctuations of coffee beans as a primary agricultural product are unpredictable. Who could have imagined that just five or six years ago, coffee was a loss-making cash crop, valued less than rubber or rice?
I. Yunnan Coffee Breaks Free from its History of Low Prices
For a time, the price of coffee cherries in Yunnan was so low that it often failed to cover the labour costs of planting and harvesting. To offset these economic losses, some farmers resorted to dishonest means to increase the weight of their crop, such as mixing stones or sand into the cherries, or soaking them in water—or even injecting them—to add weight.

Ever-shifting domestic and international market demands, coupled with an unstable climate, have impacted the quality and yield of coffee, leading to frequent fluctuations in the purchase price of cherries—sometimes changing from one day to the next. When prices were high, farmers would hike their prices on the spot at the trading markets. This was partly a reaction from farmers who felt they had no bargaining power, but it also added to the chaos of the trading markets.
Because coffee prices remained stagnant for so long, farmers’ enthusiasm for planting was severely dampened. In many villages in Pu’er, young people abandoned their family coffee plots to find work in Pu’er city or the provincial capital, Kunming, to support their families. When the cherries ripened, there was a shortage of hands to pick them. Chen Si, a farmer from Lao Xu Zhai in Manlian Village, Nanping Town, Simao District, recalls: “When bean prices were low, hiring workers to harvest was a losing game; it was better to just let the beans rot in the fields.”
In 2010, influenced by international futures prices, the purchase price of Yunnan green beans skyrocketed to 41 yuan per kilogram, with profit margins exceeding 200%, setting a historical record. This sparked a coffee boom in Pu’er; in the same year, the planting area in the region surpassed 300,000 mu, and production leaped to the top in Yunnan.
Chen Si remembers that when prices were first low, local farmers chopped down their coffee trees to plant tea. Later, as coffee prices climbed, everyone scrambled to switch back to coffee. Those working away from home returned, and even property developers sold their buildings to plant coffee.

II. Proactively Responding to Price Fluctuations
Familiar with the mountain geography and climate, Brother He found a river valley in Manxieba Village, Nanping Town, Simao District. The mountaintops are covered in collective forests that conserve water, and the Qingshui River flows down the slope into the valley, providing a refreshing coolness even under the blazing sun. Brother He leased over 50 mu of land, stretching from the mountainside to the valley floor, signing a 50-year lease. He built a house and grew vegetables in the valley, relying on solar power for electricity. Along with his coffee, he raised chickens and geese under the canopy and built pigsties, creating what is now a self-sufficient ecosystem. Nourished by the valley’s microclimate and organic manure, Brother He’s coffee trees have always flourished.

However, unstable coffee prices meant that Brother He’s plans were often disrupted. From 2018, coffee prices plummeted again, with Yunnan green beans hovering between 13 and 15 yuan per kilogram—lower than the cost of cultivation and harvesting. Many farmers chopped down their coffee trees to plant tea or fruit trees, or simply abandoned the land, leading to a significant reduction in Yunnan’s coffee planting area. Simultaneously, speculative capital withdrew, and young people returned to the cities for work, leaving their hometown coffee fields behind, largely unmanaged.
It wasn’t until 2021 that coffee demand recovered and prices finally corrected. At the same time, global coffee hubs such as Brazil and Vietnam suffered from droughts, frosts, and pests, causing production to drop and driving up prices. The average price of Yunnan green beans rose from 15 yuan per kilogram in 2018 to 29 yuan per kilogram by the end of 2021. With the impact of extreme weather, price volatility intensified in 2024, and by this year, the price of Yunnan green beans has broken through 60 yuan per kilogram.
Local farmers in Pu’er have also shown their own initiative, trying various ways to improve the quality and price of their beans.
One method is to engage in deep processing themselves.
Brother He and his wife began processing their own washed beans a few years ago. Having dealt with coffee for over a decade, he can now judge the drying level of a bean simply by taste and texture.
Using the same batch of cherries, if Brother He only sells the raw fruit, the purchase price is only 8–10 yuan per kilogram. By producing his own natural and washed beans, he can sell the resulting green beans for 40–50 yuan per kilogram.

The washed beans produced at Brother He’s estate are now ordered directly by coffee trading companies and community coffee shops in Shanghai. Other estate owners also purchase washed beans from Brother He in bulk for further processing and final roasting. “The coffee market is doing well now, and they plan to sell my coffee in the US,” Brother He says.
The era of low prices for Yunnan coffee has come to a temporary end. However, much like production regions abroad, Yunnan has frequently suffered from natural disasters. In the face of these challenges, what can Yunnan coffee farmers do in advance?
III. Exploring Ecological Transformation
Three years ago, Ziling and Xiaohouzi, the founders of the LOHAS Community Lab, came to Pu’er, where climate change had already become a pressing and difficult problem.
Coffee trees blossom when the rainy season arrives; the flowering period is short, usually lasting only two to three days. Once the blossoms fade, the trees begin to fruit, and when the rainy season ends, the fruit enters the ripening and harvest phase.
They discovered that in recent years, the climate in Pu’er has become unpredictable, with extreme weather appearing frequently. The coffee growth cycle is particularly susceptible to rainfall. Over the past three years, the first rain of the year in Pu’er has consistently arrived early; last year, it shifted from March–May to February–March, causing the coffee trees to blossom prematurely. However, the rain remained intermittent, and buds that formed early were prone to drying out in March and April, severely impacting the fruiting rate. After the rainy season officially began in late May this year, the rainfall was so heavy and prolonged that some side branches of the coffee trees could not bear the weight of the fruit and required poles for support to prevent them from snapping.
At the LOHAS Community Lab, Ziling and Xiaohouzi experimented in a test plot on the coffee estate, planting aggregate grass, mung beans, marigolds, rye grass, Sudan grass, October blue beans, bamboo beans, and bentgrass. They sow these plants during the rainy season and mow them during the dry season to use as green manure. This covers the soil and increases the fertility of the coffee trees. This green manure can replace chemical fertilisers, improving the soil and making the coffee trees stronger and more resilient to climate change.

However, the shift in rainfall patterns in Pu’er also affected their green manure planting. In May 2023, the rainy season was delayed, leaving the green manure to face over a month of drought. By the time the rain finally arrived in late June, the green manure had been completely wiped out. The first year’s green manure plan ended in failure; fortunately, weeds grew in the field, which could be mowed for cover, though the fertility was far below expectations.

Climate change has brought more than just changes in rainfall to coffee farmers. High temperatures and drought can also lead to large-scale reductions in yield. A few years ago, Chen Si began intercropping fruit trees in his coffee fields to serve as shade trees. During periods of high temperature and drought, these shade trees lower the field temperature and protect the coffee trees from being scorched. This provides an extra layer of insurance against pests and disasters while enhancing the biodiversity of the farmland. In addition to coffee, the land also holds over ten mu of terrace tea plants.
Liao Xiugui, now in his 80s, was once an agricultural technician. Since the 1980s, he has guided farmers in Pu’er on how to grow coffee and founded the Xiaoaozi Manor. He believes that a stable microclimate and ecological planting methods can also improve coffee quality. He plants shade trees on the highlands of the estate, leaves grass to cover the soil in low-lying areas, and incorporates coffee husks back into the land as fertiliser, improving the soil through deep plowing. “For over 20 years, the estate has never used chemical herbicides, and pest control is done by hand. Walking through the estate, you can hear insects humming and birds singing everywhere. We haven’t feared the droughts of the last two years; because the ecosystem is well-constructed, the land’s ability to resist drought and retain water is strong. The flavour of the coffee beans has actually become more pronounced.”

Of course, there are simpler methods. Many farmers use plastic mulch to retain soil moisture during droughts. However, Ziling believes this does not solve the problem of soil erosion and introduces plastic pollution, meaning it is by no means a long-term solution.
Large-scale monoculture, bare-soil planting, the heavy use of chemical fertilisers, pesticides, and herbicides, and the use of plastic mulch are all conventional planting methods that seem most “cost-effective” in the short term. Yet, old experience has shown that coffee trees, as perennial woody crops with high flavour requirements, may not be able to survive healthily in the long term with these short-term fixes. Some experts, social organisations, and farmers have begun to experiment with more environmentally friendly and ecological coffee cultivation methods.
After three consecutive years of setbacks and exploration, Ziling believes that current coffee planting lacks controllable technology or fixed time nodes; all attempts feel like blind men feeling an elephant. They plan to install weather stations in the experimental and control plots of the coffee estate to monitor rainfall, air humidity, temperature, and soil moisture. Meanwhile, they will sow green manure seeds one month before the rainy season to observe whether fluctuations in morning and evening temperature and humidity help the seeds germinate earlier. Furthermore, they are adjusting fertiliser application timings and types to enhance nutrient supply during critical stages of flowering and fruiting.

IV. Who will accompany Yunnan coffee farmers on their specialty coffee journey?
How can scientific research, the market, and policy assist farmers in better tackling the challenges of climate and market volatility? Foodthink will continue to follow the Yunnan coffee industry and the stories of its farmers.

Except where noted, all images were taken by the author
Editors: Auntie Xiong, Xiao Dan
