Banana imports are near record highs and market import volume may continue to rise

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In recent years, China’s domestic banana planting area has been continuously reduced, and the overall production has shown a downward trend, which has led to a continuous increase in banana imports, resulting in a continuous upward trend of dependence on imports of domestic bananas, and further reducing the market share of domestic bananas.

Banana imports remain high in April
In April 2022, China’s banana imports reached 222,100 tonnes, an increase of 3.07% from March and a year-on-year decline of 1.87%; the cumulative import from January to April was 742,800 tons, a year-on-year increase of 10.41%, the highest level in the past nine years. The volume of banana imports in April remained at a high level, just behind last year for the past 9 years, reflecting the current situation of high demand for banana imports in China.

Vietnam becomes China’s largest banana import trading partner
After entering April, Vietnam’s banana imports increased further, accounting for 42.47%, and it was the main trading partner for two consecutive months. This is followed by bananas from the Philippines, accounting for 28.30%, and other countries such as Cambodia and Ecuador accounting for 29.23%. Since April and May coincided with the period when a large number of bananas from Vietnam and the Philippines were in the market, a large number of bananas from both countries arrived at the ports, and the advantages of geographical locations led to an increase significant import. volume.

The supply of national bananas has decreased and the supplement for imported bananas
In recent years, affected by various factors such as Panama disease and land shortages, the national banana planting area has been gradually reduced, and production has also shown a general downward trend, which has become the main reason for the continuous growth of the banana. imports. At the same time, the quality advantage of imported bananas also lays the foundation for the rapid expansion of its market share.

Beside this, China’s banana imports increased from 1,039,100 tons in 2017 to 1,863,500 tons in 2021, with the highest increase of 79.34% and a compound annual growth rate of 12.39 %. Therefore, imported bananas to some extent compensate for the reduction in domestic banana production and meet domestic market demand.

Banana imports will continue to increase in the coming years
In the short term, in the next two months, Hainan’s domestic banana supply capacity may be relatively limited due to the slight reduction in planting area, and imported bananas will remain the main source of supply. In addition, the recent devaluation of the RMB is not conducive to banana imports, but the price of domestic bananas is currently at a high level. The volume of banana imports from May to June is expected to continue to increase year-on-year. In the next few years, the volume of banana imports into China will continue to increase, mainly due to the following reasons:

First, domestic banana acreage and production will continue to decline. Many negative factors such as Panama disease and land policy continue to exist, so the land available for banana cultivation in China will continue to decrease. Domestic banana production will continue to tighten simultaneously, freeing up more market share for imported bananas.

Second, the quality of local bananas has declined, and the quality of imported bananas has a clear comparative advantage. In recent years, the quality of domestic bananas has been uneven and unstable. The quality of some banana orchards in Guangxi and Hainan is acceptable, but the quality of banana orchards in most producing areas is average. In response to Panama disease, domestic banana plants will gradually switch to virus-resistant plants, the taste of bananas will decline, and the quality gap with imported bananas may widen, which will help imported bananas to occupy more ground in domestic market in China.

Third, affected by rising costs, the price of domestic bananas will gradually rise. In recent years, the price of banana seedlings has continued to rise, and the cost of labor and land rent has also continued to rise. The cost of indoor banana planting is expected to continue to rise. The overall cost will increase the price of bananas produced in China and facilitate the entry of cheap imported bananas into the country.

Source: ncwxjt


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