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Price of import bananas is rising

Chinese banana industry continues slow season as temperatures remain high

The Chinese banana industry entered its slow season in June when temperatures went up. Supply volumes from production areas in China and abroad remain small, which pushes the price up. The prices of import bananas all show an upward trend.

Data from the General Administration Customs China (GACC) shows that China imported around 154,200 tons of bananas in June, with a total value of 88,985,199 USD, which means the import price per ton was around 577.19 USD. That is a decrease of import volume by 16.29% in comparison with May, but an increase of import volume in comparison with June last year. The combined import volume in the period from January to June grew by 6.83% compared to the same period in 2020.

The average price of import bananas was around 577 USD per ton in June, which is much higher than in 2020, but lower than in 2019. The price increased by 12.04% compared to June last year, and by 3.22% compared to May this year. Many production areas in Laos, Myanmar, and the Philippines all enter the final stage of their production season. Supply is limited, but the product quality of bananas is still relatively high. And because Chinese market supply of bananas is low, the price goes up.

Data from GACC also shows that China primarily imported bananas from the Philippines. In June the Philippines supplied 45% of the Chinese banana import volume. The unique geographical conditions in the Philippines make the country well suited for banana plantation. The product quality of bananas from the Philippines is high and the bananas are sweet. In addition, the use of fertilizer and other agricultural chemicals is limited by industry standards, and the product quality of bananas from the Philippines is high grade.

However, because of the high transport cost, the profit margin is very small. And that is why bananas from the Philippines gradually lose their hold over the Chinese market to Cambodia and Vietnam. Cambodia was the second-largest supplier of import bananas for the Chinese market in June, with 22% of the overall import volume. The overall surface area devoted to banana plantation in Cambodia is expanding. China approved the import of Cambodian bananas two years ago, and since then the trade volume has exploded. Third and fourth on the list were Vietnam and Ecuador, with a respective 19% and 10% of the banana import volume in China in June.

Some Chinese banana plantations are finishing their season, while others are starting their season. Supply conditions are uneven, but overall supply is small. The limited supply volume props up the price of bananas in the Chinese market. However, as the temperature remains high, the slow season continues for buyers and sellers alike. The remaining supply from Yunnan is small. And market demand is slightly higher than market supply.

In Hainan a growing number of banana plantations have opened for the new season, but there are big differences in product quality, and therefore big differences in price. Supply from production areas in Guangdong is slowly growing. The overall price there is steady and quite strong. Production areas in Guangxi supply a small volume, but their product quality is very high, so visiting traders are eager to buy. The prices of Chinese and import bananas are expected to slightly fluctuate in the short term, while overall conditions steadily improve.

Source: My Steel Net

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