Cambodian Banana Exports Down 13% In Q1 2022 Due to COVID-19 Outbreak in China

Published 2022년 5월 3일

Cambodia exported 423,168mt of fresh bananas in 2021, up by 27.02% from 2020. China was the top buyer at 376,961mt accounting for 89.08% of total export volume in 2021. The resurgence of COVID-19 in China in mid-February 2022 disrupted Cambodian banana exports. Cambodia exported 103,626mt of fresh bananas in Q1 2022, down 13.46% compared to the nearly 120,000mt exported during the same period of 2021. With increased lockdown measures and sustained enforcement of China’s strict zero-covid policy on fresh produce imports, exports of Cambodian bananas are not expected to recover in Q2 2022.

Cambodia exported 423,168mt of fresh bananas in 2021, up by 27.02% from 2020. China was the top buyer at 376,961mt, followed by Vietnam (45,193mt), Japan (533mt), and Singapore (480mt). China is by far the largest export destination accounting for 89.08% of total export volume in 2021. Cambodia historically exported bananas to Vietnam from which it was re-exported to China. Cambodia was cleared to export bananas directly to China in August 2018 since which direct exports have grown significantly and China has become the dominant export destination.

Source: Cambodian Ministry of Agriculture, Forestry and Fisheries

After successfully entering the Chinese market, the planting of banana orchards in Cambodia has grown at a rapid pace. There are no quota restrictions on the direct export of Cambodian banana products to the Chinese market, driving the growth of banana plantings and export in Cambodia. This has attracted a large number of domestic and foreign investors to invest in the Cambodian banana industry, resulting in the continuous expansion of the banana planting area and the expected increase in production and export for 2022 and beyond.

Cambodian exporters did not experience any serious challenges exporting bananas to China during the initial COVID-19 pandemic, as the product meets quality, sanitary, phytosanitary, and other relevant standards. However, the outbreak of COVID-19 in China in the middle of February 2022 in the form of the highly contagious omicron variant has decreased Cambodian banana exports. Cambodia exported 103,626mt of fresh bananas in Q1 2022, down 13.46% compared to the nearly 120,000mt exported during the same period of 2021. China imported the vast majority at 98,530mt while Vietnam imported 5,096mt over this period.

The overreliance on the Chinese market heavily affected Cambodian banana exports when Chinese port regulations were strengthened, causing closures and long delays at ports of entry. New COVID-19 cases continued to surge throughout April 2022 with China stepping up lockdown measures in major cities such as Shanghai and Beijing in an effort to curb the spread of the virus.

With increased lockdown measures and sustained enforcement of China’s strict zero-COVID policy on fresh produce imports, exports of Cambodian bananas are not expected to recover in Q2 2022. In fact, Q2 2022 export volumes are expected to be below 2021 volumes for the same period if Cambodia does not find alternative markets or China does not lift lockdown restrictions and relaxes import procedures at borders.

The lower import volumes of bananas by China have also resulted in major discrepancies between supply and demand at local markets. This is not only true for bananas but for the majority of fresh fruit. The lack of supply in the face of high demand has resulted in fruit prices to skyrocket during April 2022. The price of bananas in China has increased to a ten-year high of USD 0.83/kg. Unless China eases restrictions at borders for fresh produce, fruit prices will remain high and countries such as Cambodia which rely on China for banana exports will continue to experience depressed export volumes.