Market conditions for bananas have been poor in the last three years. The banana industry is under heavy pressure, but what course should it follow? Will the market reach rock bottom this year or rebound? Looking at the overall condition of banana production in China, there are several regional characteristics. Guangdong production areas are small-scale, the surface area devoted to banana production is decreasing, and production is distributed over numerous plantations; banana production in Yunnan suffers from withering disease and the surface area devoted to banana production is reduced; banana production in Hainan competes with other high-value cash crops and the surface area devoted to banana plantation is decreasing, and banana plantations are gradually moving to to Guangxi. As for Guangxi banana production, the newly added nursery stock of last year already shows a decline. While the domestic production volume of bananas is decreasing, Laos is turning into China's largest banana plantation.
Bananas on the shelves in the supermarket
Chinese banana businesses one by one chose to move banana plantations to Laos in 2014 because the labor cost in China increased and domestic plantations suffered from withering disease. In addition, Laos supported this development with beneficial policies. Laos currently has 2,666 hectares of banana plantations, the majority of which are owned by Chinese.
Bananas
Laos brings a large volume of bananas to the market every year between December and the first half of the subsequent year. It is our understanding that more than 90% of banana production in Laos enters China through Mohan port in Yunnan. In December of last year there was a blockade at Moding customs. High-quality bananas were held up as a result of this blockade and suffered damage. This severely influenced the banana market. As for the domestic market, the Guangxi banana market was depressed last year. It was the worst year in the history of banana sales. More than 90% of banana farmers suffered severe losses. There are two main reasons for this development. First, the depression lasted a long time. Second, the cost price was high. This included transport, labor, and packaging costs which all increased sharply in the previous year.
Mr. Yan Suliang, lecturer at Hainan University Agricultural College, estimates that banana market conditions will make a turn for the better in 2018. The price will be higher than the historical annual mean. The peak price will occur in May. The banana market has gone through depression for years, but the situation where supply exceeds demand is certainly going to change. If only Guangxi, Yunnan, and other places can arrange the time they bring their bananas to the market, so they can avoid a peak season in banana supply, then 2018 will be a year with good prospects for the banana market.
Source: ifreshfair.com