SOURCE: Jing Zang, Produce Report
From June onward, especially after the Dragon Boat Festival, banana prices in China typically decline owing to an influx of other seasonal fruits. However, in June of this year, farm gate prices for bananas increased compared with May across major producing regions, with the exception of Hainan.
Guangxi saw the highest increase of 42.7%, with an average farm gate price of 3.55 Chinese yuan ($0.49) per kilogram in June. Meanwhile, the average farm gate price in Guangdong was 2.80 yuan ($0.39) per kilogram, up 3.7% from the previous month. In Yunnan, the average price was 3.16 yuan ($0.44) per kilogram, an increase of 17.9%. In Fujian, the average price was 1.96 yuan ($0.27) per kilogram, up 6.5%. By contrast, the average price in Hainan fell to 3.46 yuan ($0.48) per kilogram, a decrease of 9.3% compared with May.
On the consumer market side, data from the Market and Information Department of the Ministry of Agriculture and Rural Affairs show that the national average daily wholesale price of bananas in June ranged from 5.57 yuan ($0.77) per kilogram to 5.71 yuan ($0.79) per kilogram. The peak for the month was 5.74 yuan ($0.79) per kilogram on June 28, an increase of 0.17 yuan ($0.023) per kilogram from the previous month’s peak. In June, the average retail price of bananas in China was 7.89 yuan ($1.09) per kilogram, up 2.1% from the previous month.
The increase in banana prices seen in June was primarily attributable to a lower supply of domestic bananas, which began in May and led to a seasonal shortage. In an effort to achieve higher prices, bananas originally scheduled to reach the market in May and June were harvested earlier. As a result, domestic banana production in January, February, March and April increased by 8.6%, 18.3%, 32.3% and 25.3%, respectively, compared with the previous year. Thus, by mid-May, many banana orchards had already completed their harvest.
Banana cultivation in China is primarily concentrated in Guangdong, Guangxi, Yunnan, Hainan, Guizhou and Fujian. However, with the exception of Hainan, other major producing provinces witnessed a decline in banana output in May.
From November 2023 to April 2024, the banana market remained sluggish, which reduced the willingness of traders to import bananas and created more space for domestic bananas. According to data from the General Administration of Customs of China, China’s banana import volume in May 2024 was 146,000 metric tons, with an import value of $80.11 million. Compared with the same period of last year, the import volume decreased by 19.3%, while the import value declined by 32.3%. Compared with the previous month, the import volume dropped by 22.7% and the import value fell by 17.9%.
In May 2024, all three of China’s main banana suppliers experienced a decline in exports. Vietnam was China’s largest supplier, with an export volume of 41,725 metric tons, down 47.1% from the previous month. The Philippines ranked second, with an export volume of 39,622 metric tons, a decrease of 8.3%. Cambodia was third, with an export volume of 21,481 metric tons, representing a decline of 12.9%.