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3. Results

3.3 Successful strategies

3.3.2 Raising quality standards

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according to the crops that can be cultivated in each altitude. The lowest elevations, which in Pu’er are 370 meters above sea level, correspond to lands where vegetables and fruits are grown; rubber tree is cultivated in the next section of the mountain; coffee, that requires high elevations and humidity, is grown in lands from 900 to 1,400 meters above sea level; above 1,400 meters, tea in planted. The rest, the top of the mountain, is forest that can not be used for agricultural purposes. An informant of the Coffee Association explains that “while the rest of the sections may change and mix, the part dedicated to the forest does not move” (B01).

With this graphic representation, government officials attempt to emphasize that, even though coffee can be grown in higher altitudes, the rules of Pu’er local government do not allow it.

Whether it is by replacement, change of crop, or use of rotation and waste lands, the government of Pu’er has projected the fast expansion of the land available for coffee for the next decade. Some statistics suggest that currently the land cultivated with coffee represents only around 30 percent of the total area available for development (Li, Li & Luo, 2011, p. 73).

This means that many resources are yet to be used, and that Pu’er can produce more coffee that would potentially satisfy a greater share of the domestic market. Yet this affirmation contrasts with environmentalist voices that insist on the depletion of resources in the Pu’er-Xishuangbanna region (S02; S03).

3.3.2. Raising quality standards

All coffee-producing countries that experienced a growth of their coffee sales took a further step into the improvement, revaluation and sophistication of their product: a turn to quality. In Pu’er, this step is fairly underdeveloped but it is now part of the main strategy of the government and companies to climb up the technological ladder and eliminate prejudicial perceptions. While many locals claim that the natural conditions of the land of Pu’er create a coffee of great aroma and high quality (Du, 2007; Li, 2009; Zhu, 2012; Pu’er Coffee Office, 2013b; G02, March 18, 2014), they also acknowledge the urgent need to reach higher standards. Sometimes, farmers mix good and bad, ripe and unripe beans due to lack of training on bean size and shape criteria (Li, 2009) or to “cash in” when coffee prices are higher (“Yunnan’s Caffeine Rush”, 2012). Many lack the knowledge on basic breeding systems and pest and disease control techniques, or lack the technologies necessary to control quality and improve yield (Li, Li & Luo, 2011). In general, all authors identify three main obstacles to the development of coffee industry: backward technology and limited research,

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unclear or total lack of quality standards, and primitive techniques for primary and secondary processing (Li, 2009b; Li, Li & Luo, 2011; Pu’er Coffee Office, 2013). They point out two main areas of improvement, —technology and training— to achieve the final goal of raising quality standards. With the combined efforts of government, universities and firms, and encouraged by guidelines and government assistance, the improvement of quality standards is currently one of the main strategies for success (B10, March 24, 2014).

Climbing up the technology ladder

The first task is to improve the technology used in coffee production. Broadly speaking, there are two main agents in charge of the introduction and promotion of technology in Pu’er: the local government and multinationals. For the past few years, the government of Pu’er has supported technology refinement through policies and economic subsidies to farmers, firms and universities. In order to push forward coffee cultivation techniques, the government issued the measures “Regulations for High-Yield and High-Quality Cultivation of Yunnan Arabica Coffee” (Yunnan xiaoli zhong kafei gaochan youzhi zaipei guicheng tu) and

“Analysis and Measures to Combat Frost Damage on Coffee in the Pu’er City Area, Yunnan Province” (Yunnan shen Pu’er shi diyu kafei hanhai fenxi yu duice) (Pu’er Coffee Office, 2013, p. 11). The economic contribution of the government can range from the provision of basic materials like fertilizers, pesticides and new seeds, to assisting companies on the purchase of machinery, as well as funding private and university researches on seed modification and better farming techniques. For instance, the local government established a demonstration farm to research on ecological cultivation, production techniques and bio-control (Pu’er Coffee Office, 2013, p. 12). Moreover, the government has helped farmers with the technology and training necessary to prevent, control and alleviate the effects of natural disasters like frost or diseases like the coffee leaf rust. In many cases, the government channels this help through companies or universities.

Visitors that arrive to the Yunnan Vocational College of Tropical Crops through its muddy unpaved street would never imagine that inside one of those gray buildings there is a stylish coffee shop classroom and a very modern processing-cupping classroom. These facilities are part of the recently established coffee major that is proving to be very successful among the students. One of the professors in charge of this major explains how the high demand on coffee professionals led to this innovative specialty in which students learn all steps of coffee production, including seeding, cultivation, harvesting, processing, trading, cupping, serving

and even managing a coffee store. The first generation graduating from this major established only three years ago is now mostly working in Pu’er as coffee traders, cupping professionals, or agronomy consultants. Due to the collaboration of the university with companies in Pu’er, many of the students were offered internships in companies like Aini. He shows visitors the cupping room where students learn to pick only the best beans, process them and brew a fine coffee that later other classmates will taste and score. He proudly declares that this major

“will make a difference in the study of coffee and in the training of future coffee professionals” (S01). The university and the government work in close cooperation. Many times after a natural catastrophe, the government commissions them to analyze the disaster and the dimension of the damage in order to calculate compensations and prepare adequate training. In turn, the government provides assistance to develop the curriculum and upgrade the facilities. Thanks to the close partnership or the government with main companies in Pu’er and with the College of Tropical Crops this degree is taking off very smoothly. This coffee major and growing university research aims to help solve the lack of a younger and well-trained labor force to operate the modern technology needed (Zhu, 2012).

Trainings and better practices

Currently in Pu’er there are three companies conducting extensive farmer trainings and quality follow-ups: Nestlé, Starbucks and Aini. Nestlé was the first coffee enterprise to arrive in the region and they are pioneers on training and quality development. In more than 25 years, the Swiss company has invested on teaching farmers how to grow coffee using more ecological, time-saving and economic techniques. Nestlé offers free technical assistance to all farmers no matter whom they intend to sell their coffee beans to. This strategy not only benefits them create a “trust relationship between Nestlé and the farmer” (B06), but also benefits the entire coffee producing community in Pu’er, that will see sales rise because of the improved product. They are constantly looking for new strategies, partnerships and services to help the farmers. At the time of this research, Nestlé was offering coffee farmers fertilizers below market price, especially for their 4C certification members. They have a team of agronomists working every day in the fields. They provide farmers with brochures and booklets containing easy-to-understand information about good and bad farming practices and hygiene. Nestlé distributes free of charge a handbook on basic coffee growing compiled by Nestlé and published in 2011 by the China Agriculture Press (Nestlé (China) Ltd., 2011).

During the visits to coffee plantations, Nestlé’s agronomists detect malpractices, record them and use that information for workshops held at the procurement center. In the workshops,

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they point out those problems they have seen during the visits to alert farmers and teach them the correct technique. A very similar quality control training course is taught inside Starbucks-Aini’s training center in Munaihe. Members of the joint-venture teach basic farming skills to coffee growers once every month or two. Starbucks and Aini’s experts show farmers samples of beans of different shapes and sizes, and ask farmers which type they think is the correct for a good quality coffee bean. According to them, farmers show a lack of basic knowledge on many aspects of coffee growing (B07). Farmers consider those trainings extremely helpful, and admit to have attended other meetings organized by Nestlé and Aini.

For them, it is a strategy to examine potential buyers while learning more about a plant that is new to them (F02).

Finally, another step towards quality control is the adoption of techniques on sustainable farming and certification programs (Du, 2007). This strategy is yet to be widespread in Pu’er coffee cultivation, but multinationals like Starbucks and Nestlé, or local companies like Aini, Beigui and Manlao River are becoming more a more specialized in this type of agriculture.

The government is now encouraging farmers to reduce harmful pesticides, engage in multi-cropping farming, and managing water resources for a better quality coffee that also protects the environment. Manlao River, a company that only produces organic coffee, insists that the quality of coffee beans in Yunnan would increase considerably if farmers adopted ecological farming techniques and better management practices (B03).