SOURCE: ncw365.com
TRANSLATION: Freshplaza
Conditions in Chinese banana production areas have not been great in the last few weeks. The production volume is growing as more and more bananas ripen, but the product quality is uneven. The speed of market supply is currently quite low. In some production areas there is a shortage of workers to package the bananas, the transport cost is high, and visiting traders are not eager to purchase. There is a lot of pressure on the banana market, but the sales volume remains low. Banana farmers are impatient. Medium-quality bananas are sold for any price these days. That is why the price of bananas continues to fall. The price of top-quality bananas, however, remains strong.
Guangdong is one of the most important banana production areas in China. The banana price there visibly declined. The production areas in Guangdong are entering their peak supply period. The production volume of bananas is growing. However, there is not enough transport available because of the pandemic, and visiting traders are scarce. In addition, there is a shortage of workers to package the bananas. Overall, production areas are struggling with delivery. The market only grows weaker over time. Banana farmers do not hesitate to lower their prices in order to sell. At the same time, other fruits in the market put pressure on the price of bananas. The price can hardly rise under these conditions and will likely remain low for the foreseeable future.
As for import bananas, the price of bananas in production areas in Laos steadily declines. The sales volume of ripe bananas is extremely limited, as a result of preventative measures. There is a back log in most border ports. The transport cost is high. The cost price of cardboard boxes is high. The order volume is low. And some of the visiting traders have moved to Guangdong and Guangxi instead.