Banana prices in the production areas of Yunnan, Laos, and Myanmar all showed a decline at first and then stabilized last week. The supply volume from production areas in Guangdong and Guangxi is limited and the price fluctuations are less obvious there. After a brief period of adjustment, the average price of bananas in Chinese production areas settled below 3.3 yuan [0.49 USD] per kg. Only a few production areas in Xishuangbanna, which escaped the effect of colder weather, sell bananas for more than 3.5 yuan [0.52 USD] per kg. Although Laos is still in the lead, even their top-quality bananas sell for less than 5 yuan [0.74 USD] per kg.
We are still in the period leading up to Chinese Spring Festival [February 5th, 2019], and trade is normally flourishing as visiting traders hurry to secure their supply. This year, however, the holiday quiet seems to have come early. Many traders wait for better prices and some have temporarily suspended purchasing. The trade volume in production areas does not meet with expectations.
People in the industry point out that the root cause for this situation is the weak consumer market for bananas. Visiting traders are less willing to stockpile bananas. Furthermore, many banana farmers try to sell their stock before the Spring Festival when labor and transport are in short supply. This weakens their asking price. The banana price is likely to remain relatively stable without great increases or decreases as consumer demand remains limited.
Source: ncw365.com