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China: banana oversupply

Farmers in Southern China worry about the sales price of bananas. In Guanxi, a main banana producing region, farmers are loosing 0.2 Yuan per 0.5 kg (one catty) as a result of strong competition on the market. Current prices hover around 0.6 Yuan per 0.5 kg (one catty), whereas the cost price is as high as 0.8 Yuan per 0.5 kg.

Banana production has increased by 30% in the current season. The increase is due to positive weather conditions and a 20% increase in banana plantations.


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