China: Banana market withering

In the last days, the prices on the banana market have clearly been going down. In an analysis of the first half of November, the average banana price in China is 3.5 RMB per kg. That is a drop of 12.5% compared to the monthly segment and a decrease of 22.2% compared to the year before. The average price for bananas imported from Hong Kong is 6 RMB per kg. Compared to the monthly segment, it is a decrease of 25% and it is also 40% less than the same period the year before. The daily trade volume of both imported and domestic bananas is over 50 tons, which means an increase of 25 compared to the same period last year. 

The downward trend of the banana price is clearly influenced by an international trend. The Philippines, a main banana producing country, and the volatility of their policies towards China influence the trend of the banana price directly. In the past period, a large overstock from the Philippines was exported to China after relations between the two countries improved. Not is it a large volume of bananas, but the price is also a lot more beneficial than last year. This directly causes the bananas produced in China to closely follow in the downward trend of the banana price. Secondly, the volume going on the market has increased. The autumn season bananas of Guangdong, Guangxi are also gradually ready for harvest. The considerable amount of Chinese bananas are going on sale all at the same time. This presses down the trading price.

Estimations say that this round of downward pricing trends will last until the end of the month. When the time comes, the prices will go up again as the import volume of bananas stabilises. The price of Chinese bananas will also go back up to a more reasonable price range. 

Source: www.jinhua.gov.cn