"Supply and demand in the Chinese banana market have both recovered in the last few weeks. Market supply greatly increased and the prices gradually returned to regular levels." This is according to Mr. Xia Zuxiang, member of the board of Shanghai Suofeiya International Trade Co., Ltd. Mr. Xia recently talked about current conditions in the Chinese banana market.
"The price of green bananas from the Philippines is currently 6 USD per box (of 13.5 kg). Once these bananas arrive in China, the market price for grade A bananas is around 70 yuan [9.80 USD] per box, while the price of grade B bananas is around 60 yuan [8.40 USD] per box. That is almost 40% lower than last month," said manager Xia. "Looking at the overall conditions, there are two main reasons why the banana price has not been very high in the last few weeks. The import volume of bananas from Cambodia, Laos, and Vietnam expanded in recent weeks. The production volume of Hainan bananas also grew. At the same time, the market supply of other seasonal fruits becomes more varied as summer approaches and market demand for bananas therefore declines. These two developments combined create a situation where market supply exceeds demand, and this puts pressure on the price."
"The outbreak of Covid-19 is already under control in China and the situation is fast improving. However, we are still implementing strict measures in our banana plantation in Davao, the Philippines.
"Banana production and banana exports from the Philippines have been quite regular in the last few months, because the banana is the most important export product for the economy of the Philippines. We import around 80-90 shipping containers of bananas per week," said manager Xia. "Because of the Covid-19 pandemic and the various quarantine measures, many importers are unable to visit the production areas and inspect the bananas. The Philippines therefore exports fewer bananas to visiting traders without fixed contracts."
When asked about market developments in the next few weeks, Mr. Xia replied: "The Chinese banana market will not experience great fluctuations in June. The supply from Hainan, Laos, and Vietnam will decline in July, while the bananas from Guangxi will only enter the market in late August. Banana supply will be relatively small during this one month period. I expect prices to show a steady rise during that time."
When talking about domestic consumer demand for bananas, Mr. Xia explained, "The overall surface area devoted to banana plantation in China gradually declined over the last few years, while the import volume of bananas from Vietnam and Cambodia continuously grows. Chinese consumers have increasingly high standards for the product quality, flavor, and freshness of bananas.
"Many large-scale banana companies have started to import cutting-edge, innovative equipment such as banana heating rooms and automated processing lines. Although the Chinese banana industry has greatly improved the level of plantation technology as well as the average product quality, domestic bananas still do not compare to imported bananas from the Philippines or Vietnam."
For more information:
Mr. Xia Zuxiang - Board member
Shanghai Suofeiya International Trade Co., Ltd.
Tel.: +86 13601718690