Banana price comes down to regular levels

Chinese banana supply grows

The distribution volume of bananas in the Chinese market is growing because banana production in the Philippines is recovering and many Chinese banana production areas are entering the market one after the other. The price is gradually coming down to more reasonable levels. Mr. Xia Zuxiang, board member of Shanghai Suofeiya International Trade Co., Ltd., recently talked about current conditions in the Chinese banana market.

"As for the import of bananas, the production volume of bananas from the Philippines was greatly reduced in the period between February and the middle of March because weather conditions were not favorable. The price increased to 14-15 USD per box of 13.5 kg because market demand far exceeded market supply. Visiting traders fought to get their hands on sufficient supply. The production volume of bananas from the Philippines gradually recovered in April and the price came down to normal levels.

"The current price is 9-10 USD per box. The price is expected to stabilize at 10 USD per box in the coming few weeks," said manager Xia. "Our banana plantation in the Philippines is located in Davao. Since the COVID-19 pandemic spread overseas, our factory workers are required to wear face masks and there are strict measures to limit interaction with outsiders. Bananas are an important economic product for the Philippines. The impact of COVID-19 on banana production and export has been limited. We currently import around 60-80 shipping containers of bananas from the Philippines every week. That is more or less the same as in previous years."

"The domestic bananas from production areas in Hainan and Yunnan already arrived on the market in the beginning of April. Bananas from production areas in Guangxi and Guangdong will follow in June. The weather is growing warmer and this is followed by a growing market demand for bananas. The price of domestic yellow bananas is 90 yuan [12.73 USD] per box, which is 10 yuan [1.41 USD] less than the price of bananas imported from the Philippines. Consumers will be able to afford buying bananas as the relationship between supply and demand becomes more balanced and the price therefore more reasonable."

Suofeiya Trade is specialized in banana import. The company owns banana plantations in Vietnam and the Philippines. "China previously imported bananas only from the Philippines and South American countries. Two years ago, however, bananas from a growing number of Southeast Asian countries entered the Chinese market. The overall surface area devoted to banana plantation in Vietnam and Cambodia underwent significant expansion, and so the Chinese import of bananas from these countries greatly increased," explained manager Xia.

When asked about consumer trends, Mr. Xia replied: "The overall surface area devoted to banana plantation in China declined in the last few years, while the import volume from Cambodia and Vietnam expanded. Chinese consumers have increasingly higher requirements for the product quality, taste, and freshness of bananas. Many larger banana companies have begun to import advanced selection equipment such as banana heating rooms and automated processing lines. The Chinese banana industry has made great improvements in terms of plantation management technology as well as product quality, but Chinese bananas are still behind bananas from the Philippines and Vietnam."

For more information: 

Xia Zuxiang - Board member

Shanghai Suofeiya Trade Co., Ltd.

Tel.: +86 13601718690 

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