Yunnan Coffee Processing Plant Company Limited: A Leader in China’s Coffee Industry 

VIOLET MENGO

Beijing, China

ONE of the highlights of my trip to Yunnan Province was visiting Yunnan Coffee Processing Plant Company Limited, a key player in China’s coffee industry. 

Yunnan produces over 95 percent of China’s coffee, with regions like Pu’er, Baoshan, Dehong, and Xishuangbanna being major growing areas. 

The province is renowned for its high-quality Arabica beans, attracting global brands like Starbucks, Nestlé, and Illy.  

Company Background  

Established in 1992 as a joint project between the Chinese Government and the United Nations Development Programme (UNDP), Yunnan Coffee Processing Plant was China’s first modern coffee processing factory. 

Now a subsidiary of Yunnan Provincial Modern Agricultural Development Group, the company has over 30 years of experience in coffee processing.  

As a vice president unit of the Yunnan Coffee Industry Association, the company helps draft national coffee standards.

Its mission—“Revitalising agriculture with green development and benefiting the country and the people”—reflects its commitment to sustainability and quality.  

Processing Methods 

Yunnan’s coffee processing plants use three main methods:  

1. Washed (Wet) Processing – Common for export-grade beans, involving pulp removal and fermentation before drying.  

2. Natural (Dry) Processing – Cherries are dried whole, producing sweeter, fruitier flavors.  

3. Honey (Pulped Natural) Processing – A hybrid method where some mucilage is left on the beans for enhanced sweetness.  

Some specialty processors also experiment with anaerobic fermentation and other advanced techniques.  

Key Players and Brands 

- Starbucks Yunnan Coffee Project – Partners with local farmers to improve quality.  

- Nestlé Yunnan Coffee Development Program– Provides training and sources beans for instant coffee.  

- Local Brands – ManLao River Coffee(specialty-grade), AiNi Coffee (well-known Yunnan producer), and Sealanda (exporter).  

Challenges and  Future Trends  

Despite progress, challenges remain:  

- Quality Control – Many processors still focus on bulk commercial coffee, though specialty coffee is growing.  

- Sustainability Efforts– Farms are adopting eco-friendly methods like water-saving pulpers and solar drying.  

- Rising Domestic Demand – Chinese consumers are increasingly drinking locally produced specialty coffee.  

Yunnan Coffee Processing Plant Company Limited represents the evolution of China’s coffee industry, blending tradition with innovation. With growing global recognition and a focus on sustainability, Yunnan is set to become an even bigger name in specialty coffee.