In line with a seasonal shortage of top-quality bananas, the Mintec price of Chinese bananas rose by 10% to CNY 5.82/kg in the 10 weeks to 10th March. While bananas are a staple fruit in China, with the rise of Chinese living standards, the demand for low-quality bananas is rapidly declining and there is growing consumer interest in top grade bananas from overseas markets.
A shortage of superior quality bananas has led to a rebound in Chinese banana prices in 2021, following a largely negative trend in 2020, amid Covid-19.
The Chinese market is mainly supplied by the Philippines, Vietnam and Cambodia. Any movement in price in these respective markets is usually mirrored in the Chinese market. Domestic supply of lower quality bananas has slowed down in recent weeks, due to relatively cold weather. This has led to bananas from Hainan, China’s top banana producing province, to enter the market at least a month later than last year. This provides further bullish price impetus to the Chinese banana market.