“Prices in the winter, which is off-season for bananas, usually don’t increase. However, over recent weeks, prices have been changing rapidly, from ‘freezing point’ to ‘retaliative increases’ at one point,” Xia Zuxiang, director of Shanghai Suofeiya International Trade Co., Ltd. said.
“Earlier, when the season in Guangxi had not yet ended, bananas from Vietnam, Cambodia, Myanmar, and Laos poured into China. Volumes from the Philippines still played a leading role, resulting in oversupply in the market, which led prices to fall continuously. Take bananas from the Philippines as an example. Two weeks ago, their prices in China dropped all the way from 60 yuan to 50 yuan. The main reasons for the price increases over recent weeks are mainly as follows. On the one hand, affected by cold snaps, the quality of locally grown bananas from Guangxi, Yunnan, and those from Laos has declined, and the volume of good-quality supplies in the market has decreased. On the other hand, there are rumors that a large part of the crops produced by Philippine companies have been exported to the Middle East, and the volume shipped to China has decreased. Meanwhile, affected by the overall supply and demand of the Asian market and the weather, the Chinese market suddenly experienced a shortage,” Xia said. “Wholesale prices of locally grown yellow bananas have risen from 55-60 yuan/box (grade A, 13.5kg) a few weeks ago to the current 75-80 yuan/box (grade A, 13.5kg). "
"About 70-80% of Chinese companies do non-fixed purchases (purchasing products with prices that follow market rules, and the purchase volume is not fixed) in the Philippines. With the decrease of volumes produced in this country, prices have risen, from 5-6 US dollars/box two weeks ago to 9 US dollars last week. "
Shanghai Suofeiya International Trade Co., Ltd. specializes in banana import and trade. The company has its own banana plantations in Vietnam and the Philippines. When talking about the market expectations over the next few weeks, Xia said, "I don't think prices will drop in the short term, but they are not expected to increase too fast. The color and quality of imported bananas are better than those grown locally. Perhaps the price of imported bananas will increase during the Spring Festival, while the market of locally grown ones depends on the changes in the supply from production areas at that time. "
More information:
Company: Shanghai Suofeiya International Trade Co., Ltd.
Contact: Xia Zuxiang (Director)
Phone: +86 13601718690