>>reporter: and that's why the yunnan government says it's prepared to invest 450 million dollars in the industry, which is regards as a sure fire way to boost rural incomes.>>mackie: the government's calculations rely on coffee having a widespread appeal, not just among the country's urban middle class.that said, the big brands are getting involved with the authorities to help develop the industry, with starbucks planning to operate a base farm, research and production facilities plus offer training to local farmers. and domestic coffee producers intend to move up the value chain as the industry expands. >>reporter: dehong hogood is evolving from being a bean supplier to nestle to developing its own brand of powdered instant coffee. a state of the art 10,000 ton annual capacity production line should be fully operational in 2012. the company is now preparing to become china's first listed coffee producer, so as to fund further expansion. >>xiangru: japan and south korea have long held tea culture traditions. but their coffee consumptionis also remarkable. so we do believe that in fu