Sales of Chinese grown coffee to Starbucks rise

When you think of the major coffee growing nations of the world, China might not be the first country that springs to mind. However despite being a relatively small producer on the global stage, the amount of coffee being grown within Chinese borders is increasing and has found a fan in the American retail giants Starbucks.

Since the start of 2014 Starbucks has imported around 14,000 bags of arabica from Chinese plantations, almost five times the amount that was brought in during the course of 2013. These figures come from the shipping intelligence company PIERS.

Of course given the sheer scale that the Seattle chain operates on 14,000 bags is barely a drop in the proverbial ocean. But, this burgeoning relationship between Starbucks and Chinese coffee growers will be an interesting one to monitor in the coming years – partly because it is something ‘different’, and partly because it could signal the start of China’s ascension to being a coffee superpower.

Analysts believe that the jump from 2,600 bags in 2013 to this year’s figure is predominantly down to Starbucks’ desire to crack the retail market there. With cities such as Shanghai, Beijing and Guangzhou booming at the moment, the potential for profits is huge. And as the popular of China consume more and more coffee – and become more knowledge about it – the desire for home-grown varieties should increase.

However, the majority of the beans – even those that are destined for sale in China – have to be exported to America before being shipped back to Asia. Despite having a growing presence in the country, Starbucks do not have a dedicated roasting facility in China and therefore need to move the beans around to locations that do. In our view, this is a problem that needs to be rectified if Starbucks’ growth in the region continues in the manner it has done over the past couple of years.

China’s main coffee growing area is located in the province of Yunnan in the south of the country, and beans produced there are beginning to get noticed.

“Given what’s going on in Central America with leaf rust and the drought in Brazil, you want to look at other options,” explains Craig Holt, a specialist importer.