Banana prices have been rising continuously this year, and an important factor is the decline in banana supplies compared with last year. Take Guangxi, one of the main growing regions for bananas, as an example. Data from the Agricultural Production Guidance Station of Guangxi Autonomous Region shows that since 2017, the growing area of bananas in Guangxi has been declining year by year, from 1.6 million mu at the peak to around 1.2 million mu this year.
As the weather turned hot, bananas entered what is traditionally the low season for consumption. Some traders have already closed their business and plan to start trading after the weather turns cooler. It is predicted that banana prices will remain high in the future. The supply of bananas at the place of origin is not large, and many parts of Hainan have already entered the middle and late season. The volume of supplies from Guangdong are not large either, and crops from Guangxi only just became available. There are also small supplies from Laos. Although the bananas are currently in their off-season, due to the supply at the place of origin, the farm price of bananas will remain relatively high for some time.
Source: Agricultural Finance Net Banana Expert