Yunnan Dehong Hougu Coffee (云南德宏后谷咖啡有限公司) is aiming to expand from its current status as a coffee supplier to a major Chinese coffee brand over the next three years. The company announced on Tuesday that it intends to become China's first listed coffee producer by 2011, according to a Reuters report.

The company, which is reportedly restructuring itself and hiring accountants and lawyers for its listing, is best known for being a supplier to Nestle, but in recent years its own branded products have been appearing around Yunnan. Hougu instant coffee vending machines selling brewed coffee and cappuccinos can be found throughout Kunming.

"We're transforming from a coffee grower to a branded coffee maker and seller," Reuters quoted Hougu Vice President Deng Gang as saying. "Nestle is still our client and we're still too small to compete with it."

Hougu said it hopes to raise 3 billion yuan (US$437 million) by going public, which it intends to use for expansion. Although China's coffee market is small on a per capita basis, it is growing around 20 percent yearly, according to Starbucks, which announced that it would begin sourcing coffee beans from Yunnan in September of last year.

Yunnan is China's largest coffee producing region – its coffee beans have been a favorite of locals and travelers in the province for years, but the outside world is only just starting to wake up to its unique flavor and market potential.

Image: www.ynbrd.yn.gov.cn

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Just weeks after China implemented a nationwide ban on free plastic bags, Yunnan province is once again putting itself at the forefront of the country's environmental movement – this time with a total ban on production, sales and use of plastic bags across the province next year.

According to a Xinhua report, the ban will begin January 1, 2009 and will cover plastic bags of all thicknesses, as opposed to the current national ban on plastic bags thinner than 0.025 millimeters. The report said that throughout Yunnan, 'truly environment-friendly shopping bags' will be provided free or for a fee to customers at supermarkets, department stores, shopping outlets, hotels, restaurants and other venues.

Prior to the nationwide ban on free plastic bags that went into effect on June 1 of this year, Yunnan had already earned a reputation for being one of China's most environmentally conscious provinces with plastic bag bans in the popular travel destinations of Shangri-la (Zhongdian) and Lijiang.

In Shangri-la and Lijiang, local residents quickly adapted to not using plastic bags, switching to reusable, biodegradable bags after experimenting with newspaper and woven baskets.

In addition to addressing the problem of 'white pollution' – the plastic and polystyrene pollution that can be found throughout China – Yunnan is also emerging as one of the more progressive provinces in terms of developing solar energy resources.

Both the cities of Shilin and Dali will soon boast some of China's – and Asia's – largest solar power projects, and Kunming, where half the city's residents use solar energy to heat their water, was named China's 'Solar City' by the Worldwatch Institute.

The Kunming municipal government is also reportedly considering developing the city into a production base for degradable plastic bags.

Image: hb.newssc.org

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