Pu’er Coffee

 The mood among coffee farmers in Yunnan is as bright as the local sunshine. “In the old days, when winter came, you’d see the same scene everywhere — farmers driving beat-up pickup trucks, wearing worn-out sandals. Now they show up in shiny leather shoes, driving Mercedes, BMWs, even Toyota Prados,” said a local industry executive when asked about how farmers’ incomes have changed. Located between the Tropic of Cancer and Tropic of Capricorn, the region between 25° north and south latitude is known as the world’s “coffee gold belt.” Latin America, Africa, and Asia’s best coffee-growing regions all fall within this zone. Yunnan Province is the only area in China within this golden belt, blessed with ideal growing conditions that make it one of the best places in the country to produce high-quality coffee. Among its regions, Pu’er stands out as the heart of China’s coffee production — accounting for over 60% of Yunnan’s planting area and total yield, earning it the title of “Chin...

 Since 2025, the international coffee market has continued to operate at historically high levels. In 2024, Arabica coffee futures repeatedly broke record highs, and the resulting price volatility rippled through the entire supply chain. Domestic small and medium-sized roasters faced increasing cost pressure, while several retail brands began adjusting prices in the end market. Against this backdrop, the light-asset model that relies solely on external procurement has become increasingly unsustainable. For leading Chinese coffee brands, early investments in vertically integrated supply chains have proven essential—“building factories and securing the source” has become the core defense against market fluctuations. 01. Leading Brands Double Down on Deep Supply Chain Integration Luckin Coffee began its “new coffee infrastructure” initiative in 2021 and has since completed a comprehensive network: a coffee cherry processing plant in Baoshan, Yunnan, and two major roasting bases in ...