China: Limited banana supply keeps prices climbing
According to Sannong Zhongguo, at the beginning of October production areas in Guangxi and other places brought large volumes of bananas onto the market. This year, the banana prices have not been good and many banana farmers sold their product at a loss. However, one month later, and the price of bananas from that same region have suddenly showed a large increase. This completely turned around the previous decline in prices and the price is still climbing.
The sudden price increase for bananas started from the second half of November. Initially 0.5 kg cost 0.51 yuan [0.08 USD], which increased to the current price of 1.52 yuan [0.23 USD] per 0.5 kg. That is an increase of 200%. The current price increase for bananas is a result of insufficient supply. The volume in production areas and countrywide is not large, which limits the supply.
It is estimated that in the coming 20 days these circumstances of limited supply will not improve. Only in early December will there be a clear increase in the supply of bananas from such production areas as Ruili and Xishuangbanna in Yunnan. The overall supply this year, however, will not reach the same level as last year around the same time. There will not be a clear improvement in the limited supply. In addition, the New Year and Spring Festival will influence the price of bananas, which will remain high for a long period.
Publication date: 12/7/2017
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