The Chinese banana market began to recover in early February after nearly one year of depression. The supply volume still exceeds demand, but the price is stable. Mr. Xia Zuxiang, chairman of the board at Shanghai Sofia International Trade Co., Ltd. recently talked about current conditions in the Chinese banana market.
According to manager Xia: "The bananas from Hainan entered the Chinese market one month later than in previous years because the temperatures were relatively low. There is still a small volume of Hainan bananas left on the market, but frost damage has affected their appearance and the purchase price in production areas is only around 0.7 yuan [0.11 USD] per 0.5 kg."
"As for Southeast Asian bananas, most of the market supply comes from Vietnam and Cambodia. Most of the banana plantations in those regions are managed by Chinese investors. All of their production volumes are destined for the Chinese market. Their prices are relatively stable. Both Vietnam and Cambodia have expanded the overall surface area devoted to banana plantation this year. The overall production volume increased by as much as 20%-30%," said manager Xia.
"As for South American bananas, the bananas from Southeast Asia have a distinct market advantage. The market position of South American bananas is weakening. The Chinese import volume of South American bananas declined by 20%-30% this year."
"The Philippines suffered from the outbreak of Covid-19 and some of the smaller plantations do not have the resources to cope with this challenge. That is why the product quality of their bananas declined. Chinese importers consequently reduced their order volumes. But larger brands operate their plantations as before and their product quality is stable. These bananas are as popular in the Chinese market as they have ever been. The current price of bananas from the Philippines is around 8-9 USD per box of 13.5 kg."
When asked about market trends in the next few weeks, manager Xia answered: "Domestic bananas will enter the Chinese market in large volumes in early May. That is when the import from Myanmar and Laos will decline. At the same time, Vietnam will enter the rainy season and that will reduce their export volume. The market in north China primarily imports bananas from Cambodia, but the market in south China mainly imports Vietnamese bananas. Market supply still exceeds demand. When the weather will grow warmer, the number of people who eat bananas will decline, and so the price will fall."
Sofia International Trade Co., Ltd. is specialized in the green banana trade, but the banana market is constantly changing and the company has to respond to uncertainties.
"In order to avoid the biggest risks and maintain a good price, last year we constructed banana warehouses with accompanying processing facilities in Nantong, Yangzhou, Suzhou, and Shanghai. We also set up sales booths in the wholesale markets of first- and second-tier cities throughout China. While we continue to develop our original green banana trade, we also engage in the direct sales of yellow bananas. We work hard to provide comprehensive services from the production area to the end market. We have devoted ourselves to product quality in the middle of these challenging times and aim to provide after-sales services to our clients, so that both clients and consumers can enjoy a satisfying experience."
For more information:
Mr. Xia Zuxiang - Chairman of the board
Shanghai Sofia International Trade Co., Ltd.
Tel.: +86 13601718690