Banana stocks on the South African market have improved markedly, mostly as a result of Mozambican production. Growers in Mozambique received rain earlier than their South African counterparts late last year, which has improved yields, although the bunches have suffered water stress and bananas are fairly small and the quality is “not wonderful”, according to a market agent.
After a period of a relative scarcity of bananas, and concomitant high prices, it has fallen from approximately R220 (€15) to R120 (€8.21) and even R100 (€6.90) per 17.5kg box, the latter price just about breakeven for South African producers.
The large volumes of small-sized bananas place pressure on prices. Extra large bananas, particularly preferred by retail groups, get around R120 (€8.21) per box at the moment, about R100 (€6.92) less than a month ago.
Informal traders in general prefer smaller bananas which can be sold for lower prices to a consumer base pinched by the struggling South African economy.
“My feeling is that the high volumes from Mozambique will only be for the next week or so,” says Gerhard Wentzel of RSA Marketing. At the Tshwane market, volumes shot up from 15 000 17.5kg boxes to 50 000 17.5kg boxes over the past three weeks. There was a similar upsurge at the Johannesburg market. “Thereafter, South African volumes will kick in over July and August.”
At the markets, buyer demand has increased as a result of month’s end, when consumers have more money to spend, which moves stock which was last week stuck in a sluggish market.
Southern African banana production is also increasing in the east of Zimbabwe and in Zambia. Mozambique exports its bananas not only to South Africa, but also to Zambia.