Ecuador
Spike in Ecuadorian Banana Spot Price in W43 (Oct 26)
In W43, spot prices for Ecuadorian bananas increased to USD 12.2 FOB for the 13.5kg box and USD 15.25 FOB for the 18.14 kg box. The price increase occurred due to a high banana demand in W43 to fill vessels in bulk with banana boxes and from some multinational companies. In addition, cold weather is still affecting Ecuadorian banana fields causing low volumes of fruit to remain.
Fewer Banana Shipments to Europe and the US Affect Low Turnover (Oct 26)
Banana exports from Ecuador, accumulated from January to September 2022, stood at 256.59 million boxes, 8.98% less than what was exported in the same period of 2021, according to the Association of Marketing and Export of Ecuador Banana (Acorbanec). According to the report, 24,061,822 boxes of bananas were exported to this market last, indicating 16.04% decrease, while shipments to Europe totaled 67,345,042 boxes, 12.6% less. There was also a decline in markets with less volume such as East Asia, with 11.36%; Eastern Europe with 51.44% (especially Ukraine) and Africa, where the drop was 37.41% (especially Algeria). Russian market fell by 0.04%. The lower sales are attributed to several factors, including lower production , due to the cold and lack of maintenance in certain crops.
Philippines
Aerial Spray Cycle Affects Philippine Cavendish Banana Prices in W43 (Oct 27)
The onset of the rainy season in the Philippines, from June to Q4 2022, affects the Sigatoka Leaf disease control. The Sigatoka Leaf disease control is done by doing Aerial Spray of anti-fungal chemical solution. Reducing the spray cycle to 5-7 days intervals (from 10-15 days) will add more costs to the production of a 13.5kg banana box and will result in a 30-35% sales price of Cavendish Bananas. Other factors contributing to the price increase include fuel cost and farm inputs such as fertilizer, plastic bags, and other chemicals. The FOB offer for exports in W43 is USD 9.20 per 13.5kg box of RHA (Regular Hand class A). This offer is valid until W52 of CY2022.
Philippine Cavendish Banana Increases Their Prices in W43 (Oct 25)
The price of Philippine bananas ranged from USD 8.50-9 per 13.5kg/box in W42 and from USD 10-10.50 per 13.5kg/box in W43. Prices on these ranges are expected to last until May 2023 due to the high demand due to lower production in China and lower shipments from other countries as a result of the pandemic and the container shortage.
Vietnam
Increasing Prices of Vietnamese Bananas in the Second Half of October (Oct 29)
The price of Vietnamese banana exports increased continuously in the second half of October due to high demand from China. The domestic production of bananas is not enough to cover the demand, so the small farmers are holding their supply to ensure sales at a higher price predicted in the upcoming weeks. Therefore, Vietnamese and Chinese traders have difficulty collecting bananas in the Dong Nai area, which has the most banana quantity in Vietnam. The CIF prices for Vietnamese bananas stood as follows:
China
- CIF price in W41: USD 8.5 per 13kg box
- CIF price in W43: USD 9.5 per 13kg box
South Korea
- CIF price in W41: USD 10 per 13kg box
- CIF price in W43: USD 11 per 13kg box
France
Banana Prices in France Are Falling in W42 Despite a Full Vessel Being Blocked in Ivory Coast (Oct 25)
Banana prices from all origins are currently decreasing in France. Buying prices were at USD 13.60/18.14kg in the middle of W42, and decreased to USD11.80-12.80/18.14kg at the end of W42. The spot prices for bananas were not affected and continued to decline despite a full vessel blocked in the Ivory Coast, a major exporter of bananas to France.
Italy
Banana, From Commodity to “Fruit of Refuge” (Oct 24)
The economic crisis is reshuffling the cards of the agri-food industry worldwide and the banana market , the most consumed fruit in the world, cannot help but be affected. Banana is a product with unique organoleptic and taste characteristics, which has always been considered a commodity due to the low selling price and easy availability. It never fails on the tables of Italians who consume 600,000 tons per year, with a per capita quantity of more than 10 kg (about 60 fruits per person). Bananas are simple to consume and represent a natural recharge of energy and important minerals such as potassium, so much so that they become a must for sportsmen all over the world. The banana, therefore, has an irreplaceable role in the diet and, due to the crisis and the rising prices of other products, it could rise to the role of "refuge fruit" for all those who want a healthy product, but have to deal with a ' rising inflation. Unfortunately, the increase in production costs is also overwhelming the operators in this sector who, all over Europe, are asking for an adjustment of the price lists of 20-30%, a price increase that would not represent, in any case, an unsustainable commitment for the consumer, in consideration of the reduced unit value of the product.
Japan
Japanese households spend an average of 4,387 yen (29.9 USD) on bananas/year, so there are still many opportunities to expand Vietnam's banana market share in Japan. According to statistics from Japan Customs, the import value of Japan's banana variety (HS 0803) in the first eight months of 2022 reached 728,700 tons, worth 80.2 billion yen (539 million USD). 3 million USD, down 3.3% in volume but up 4.9% in value over the same period in 2021. The average price of imported bananas reached 110,000 yen/ton, up 8.5% over the same period last year. 2021. Japan imported the most variety of banana from the Philippines market in the first 8 months of 2022, reaching 557,000 tons, worth 80.2 billion yen (418.1 million USD), down 0.6% in volume, but increased by 5.2% in value over the same period in 2021. The proportion of bananas imported from the Philippines market accounted for 77.8% of the total import volume. Japan imported bananas from Vietnam reached 5,700 tons, worth 687.9 million yen (4.6 million USD), up 20.1% in volume and 37.7% in value compared to that of Vietnam. same period in 2021.
Wholesale Banana Prices Increase in Japan in W42 (Oct 24)
In W42, the price of wholesale bananas increased in Japan. According to an intermediate wholesaler, the purchase price is 30-40% higher compared to September. Importers are adjusting the prices of upcoming orders due to the weakening of the Yen.
Poland
Green Banana Prices in Europe for W42 Decreased Compared to W41, Due to a Market Oversupply (Oct 26)
The FOT spot prices for green bananas decreased in W42 compared to W41 due to oversupply in Rotterdam. In W42, FOT prices for Premium Fyffles bananas and Premium Bonita bananas from Costa Rica, Colombia, and Ecuador stood at USD 14.42/18kg and USD 13.93/18kg box, respectively. Class 1 bananas from Costa Rica and Colombia were priced at USD 11.44-13.43/18kg box. Apparently, there is a low supply of bananas of Guatemalan, Mexican, and Colombian origin. The market is forecasted to stay the same or undergo a slight uptick by the end of W42. Given the recent price decline, importers decided to reduce the loading volume, which can cause market prices to go up substantially in 2-3 weeks.
Oversupply is partially caused by the decrease in sales in the supermarkets. One Polish retailer reported a 30% YoY decrease in banana sales in September 2022, indicating general inflation as a reason. Thus, retailers want to back off from their signed time-locked fix volume and price programmes until the end of Q4 2022 to drive buying prices down. Retailers are also convincing suppliers that a national billboard campaign will be launched to boost banana sales and promise to get back to normal conditions once the produce starts to leave shelves as fast as beforehand.
Fresh Fruit and Vegetable Sales in the Polish Wholesale Market in W42 at an Average Volume (Oct 25)
The wholesale market sales for fresh fruit and vegetables in Poland remained at an average and stable level in terms of volume in W42. The most demanded product seems to be mandarin, followed by Turkish lemon. As of October 23, prices in the Bronisze Wholesale market are as follows: USD 18.55-19.58/18kg box of Banana, Ecuador origin.
United Arab Emirates
The Price of Cavendish Bananas in the UAE Market Is Fluctuating Due to Shipping Line Issues (Oct 25)
Bananas from Ecuador, the Philippines, and India did not perform well across the UAE market due to sudden price fluctuations and shipping line problems that left buyers in uncertainty. In W42, the Ecuador origin banana price stood at USD 16.33/13kg, the Philippines origin stood at USD 14.70/13kg, and the Indian origin stood at USD 7.35/13kg. As per previous trends, it is normal to have low banana prices in the summer, after which the trend shifts to a stable price until the winter, when merchants cover their losses and turn to profitability. However, in 2022, the situation was aggravated by the unreliable shipping line service, in which temporary spikes in banana prices caused by late arrivals were then driven down by overlapping shipments. As a result, Indian banana prices have reached an unbelievable low level. Exporters should therefore reconsider the strategy.
Brazil
Banana Lower Supply in the North of MG Increases Demand in Linhares (Oct 28)
The prices of dwarf silver bananas increased in Linhares (ES) this week (24 to 28/10). According to producers consulted by Hortifruti/Cepea, the occurrence is due to the low supply in the North of Minas Gerais, which led buyers to look for more fruit from the North region of Espírito Santo. Thus, even at the end of the month, the market heated up. Top quality dwarf silver was sold at an average of R$ 3.46/kg in Linhares, a value 10% higher than the previous week.
Banana Prices in Brazil Are High in October (Oct 26)
Banana prices are high in the North of Santa Catarina in October (1st to 21/10), especially for the runt, which has values a little higher than the coastal silver. The first quality dwarf was sold for R$ 2.50/kg in the period and the coastal silver of the same profile for R$ 2.42/kg. The respective increases are 150% and 142% compared to October last year, in terms of nominal.
United Kingdom
Costa Rican Bananas Cost €1.16 in W42 (+2%) (Oct 26)
The current average weekly price of Costa Rican bananas was £1.01 (€1.16), an increase of 2% from last week. Bananas from Panama cost £1.05 (€1.20) per kg, a stable price compared to last week. Bananas from Guatemala were sold for £0.95 (€1.09).
