Banana prices expected to hit bottom before year-end

Since the beginning of this year, Dongguang banana purchase prices started to drop gradually. The price at the moment is just 0.5 Yuan per 0.5 kilo, equal to approximately a quarter of the prices of last year and the year before. This is due to the increased banana production in South China over the last few years. The Dongguang banana prices of this year are historically low, for some farmers the price is lower than the cultivation costs.

Donguang banana growing areas started to decrease from 2400 hectares (36661 mu) in 2012 to 2100 hectares (31704 mu) last year. The output dropped from 51883 tons to 43439 tons. In 2013 and 2014 the purchase price peaked at 2 to 2.5 Yuan per 0.5 kilo, which caused banana farmers to be optimistic. The banana output and quality improved significantly. The output and growing areas of Dongguan are decreased, but is still substantial in other regions.

Grass-roots agricultural technicians believe that the price of 0.5 Yuan per 0.5 kilo is still within the normal fluctuation range. The lowest banana purchase price was only 0.3 Yuan per 0.5 kilo. The Machong banana price already hit its lowest point and will slowly rise again. The Machong banana price can climb up to approximately 1 Yuan per 0.5 kilo to 2 Yuan per 0.5 kilo.

Source: Nanfang Daily