Information on banana market developments in China

1. China's banana production and supply situation:

According to production and technical data of the Chinese banana industry, China's banana planting area and output have recently decreased by 25%; from about 430 thousand hectares and an output of 12 million tons in 2015 to more than 320 thousand hectares, an output of 9 million tons in 2016.

According to climatic and soil conditions, China's banana growing areas are mainly concentrated in southern Chinese localities including Guangdong (about 130 thousand hectares), Yunnan (about 80 thousand hectares), Guangxi (about 66 thousand hectares), Hainan (about 20 thousand hectares), Fujian (about 13 thousand hectares).

In addition to the domestic banana supply, China imports bananas from some neighboring countries such as Vietnam, Laos, and Myanmar. The average import price fluctuates around 4 Yuan/kg depending on type and quality.

2. Import situation and price fluctuations of bananas in China recently:

According to China Customs statistics, the amount of bananas imported from Vietnam in 2017 reached nearly 51 thousand tons, with a turnover of 24.3 million USD. By the end of January 2018, the amount of bananas imported from Vietnam was 5,132 tons with a turnover of 2.8 million USD.

China's banana import turnover recently

China's imported banana prices from 2013-2017

Source: China Customs; 

(current exchange rate of 01 yuan is equivalent to about 3,600 VND)

The retail price of banana products in China since the beginning of 2018 has been unstable, specifically from January to February, the price fluctuated from 3 - 3.5 yuan/kg. After the Lunar New Year, the price of bananas has decreased by about 40%, to about 1.5 - 2.5 yuan/kg. Imported bananas alone have a higher retail price than domestic bananas.

In provinces bordering Vietnam such as Guangxi and Yunnan, retail banana prices also have similar fluctuations. Before and after Tet, prices are quite high, around 4 yuan/kg; In early March, the price plummeted by about 40-50%, to just over 2 yuan/kg. At the present time, the retail price of bananas in Guangxi has returned to about 4 yuan/kg.

As of March 13, 2018, the price of bananas imported from Vietnam, Laos and Myanmar in the Yunnan region increased slightly, an increase of 0.1- 0.2 yuan/kg. Particularly in the Hekou and Kim Binh areas (bordering Lao Cai and Lai Chau), prices range from 2.1 - 2.8 CNY/kg for good quality bananas and from 1.7 - 2.1 CNY/kg for average quality bananas.

3. Annual supply and price of Chinese bananas:

Supply and prices of bananas in the Chinese market usually follow the following rules:

– From January to February: bananas are often priced due to the influence of consumption demand during the Lunar New Year. Retail banana prices range from March to 05 Yuan/kg, with high quality or imported bananas the price may be higher.

– March: banana prices on the market usually decrease due to increased supply from localities specializing in banana cultivation such as Yunnan and Hainan as the weather gradually warms; Besides, supplies from Myanmar and Laos are also in season.

– April – May: Prices are usually stable and may increase slightly because at this time demand for bananas is quite stable. From mid-May onwards, bananas in Yunnan, Laos, and Myanmar are at the end of the season; The supply of high-quality bananas to the market reduced and was mainly from Hainan.

– From June – September: This time Hainan is at the end of the season, the Guangdong and Fujian regions replace as the main supply; Because this is the rainy and stormy season, banana prices fluctuate according to weather developments; Farmers also tend to try to harvest early before the rainy season.

– From September – November: This period is mainly banana supply from Guangxi. With highly rated quality due to not being affected by yellow leaf disease or weather, the price of Guangxi bananas is relatively high and stable. However, despite the issuance of a number of support policies for the farming industry, Guangxi's banana growing area in 2018 is expected to still decrease by about 40%.

– December: from December to the beginning of the next year, is the time when the supply and types of fruits (including bananas) in China are lacking due to the cold weather, so prices usually increase.