Nestle SA - the world's largest food company by revenue - has announced plans to increase its investment in Pu'er, Yunnan province, in a bid to increase its cultivation of oriental coffee.

A memorandum of understanding signed by Nestle and the Pu'er government, which includes building a Nestle Coffee Farming Institute, a warehousing and testing laboratory and a Nescafe Consumer Experience Center, aims to provide training and infrastructure for local farmers and promote the region's coffee production.

"Nestle has been engaged in Yunnan since 1988," said Heiko Schipper, managing director of Nestle's food and beverage division, on Tuesday.