China and the changing economic geography of coffee value chains

For the past three centuries, the economic geography of the global coffee sector has been characterized by the supply of beans from tropical countries for consumption in North America and Europe, with various modes of value chain coordination enacted by lead firms to ensure reliable and affordable supply. This pattern is now fundamentally changing, with growth in coffee consumption in emerging markets, including China, exceeding that in established markets. But China is not only a growing consumer market, it is less well known that rapidly increasing agricultural production in Yunnan province of southwest China has also inserted the country as an important source region for coffee, and this has been pivotal in facilitating the emergence of Chinese lead firms in the sector. This article presents the emergence of China, and Chinese firms, at a critical juncture for the structure and governance of the global value chain for coffee. The processes through which this is occurring are outlined, and the implications for regional development prospects across Southeast Asia are discussed. We argue that the changing economic geography of coffee value chains, and their increasing driven-ness by Chinese actors, is starting to reshape the regional coffee industry in profoundly new ways