China’s Import of Bananas in 2022 Marked Lower Volumes and Higher Prices

Published 2022년 12월 16일

Covid-19 lockdowns in China continue to hamper trade, with bananas being no exception. Banana import volumes decreased by 13.91% YoY and 15.04% MoM in October 2022, with 105K MT of bananas imported for the month, according to the data from China’s customs. In the same month, China’s suppliers of fresh bananas were the Philippines, Cambodia, and Vietnam. The average price of fresh bananas in October was USD 0.62/kg, which increased 13.91% YoY. Another factor contributing to the price increase in the domestic market was the weakening of the RMB against the US dollar. China's currency, hovering near record lows against the dollar, plummeted to a record low of CNY 7.189 per dollar on October 22, representing a drop of 13% since the beginning of 2022.

In October 2022, the volume of imported bananas was 105K MT, 13.91% lower YoY and 15.04% lower MoM, while in the same month, the value of imported bananas was USD 65.57M, according to China customs data. Comparing the period from Jan-Oct, the total import volume in 2021 was 1.86M MT, while in the same period in 2022, the cumulative imported volume amounted to 1.57M MT. While the volume of imported bananas was lower, the average price was higher by 15.69% YoY and 2.57% MoM at an average of USD 0.62/kg in October 2022.

Source: Tridge

Covid-19 lockdowns, which caused logistics disruptions, were the main reasons for the decline in import volumes. On another point, the CNY depreciation against the USD influenced the price hike in the domestic market. China's currency hovered near record lows against the dollar, plunged to a record low of CNY 7.189 per dollar on October 22, reaching a downfall of as much as 13% since the beginning of 2022.

Regarding the structure of trading countries, in October, China's largest supplier of bananas was the Philippines, the second was Cambodia, while Vietnam rose to third place.

More on Vietnam's export of bananas can be found at Vietnamese Bananas Are Gaining Ground in East Asia . On November 23, the General Administration of Customs of China (GAC) announced that fresh bananas from Indonesia would be allowed to be imported into China, following specific import regulations. Bananas must be in an unripe green state and come from permitted growing regions in Indonesia. The Indonesian Agricultural Quarantine Agency and GAC also established the quarantine pest list and the approval procedure for orchards and packing plants. Good Agricultural Practices (GAP) and Integrated Pest Management (IPM) is required in China's banana production.

Additionally, the Indonesian Agricultural Quarantine Agency must take a random sample of 2% of bananas destined for China to check for pests of concern.

In the past two years, the share of Philippine bananas in the Chinese market has gradually dropped due to factors including Panama disease and global logistics. The influence of China's internal preventive and control efforts is also a factor, making port shipping difficult. One of the most crucial ports for the entry of Philippine bananas into China is Shanghai Port. Although it can function normally during prevention and control, the total volume of containers has decreased due to complicated traffic regulations hampering the entry of bananas. Despite the lack of refrigeration for its agricultural products and the tightening of China's quarantine regulations, Cambodia can remain among the top three importers of Chinese bananas. Since 2019, when China allowed the import of bananas from Cambodia, quantities have increased, while at the same time, Chinese companies expanded plantations in Cambodia and invested in exporting infrastructure.