The Chinese banana market is experiencing a severe downturn this year following a period of heavy investment in local production that has resulted in a supply surplus, reports a local trader.
This coincides with strong production from Laos, where Chinese banana firms have also invested heavily to boost volumes for the Chinese market, says Simon Zhang, head of China-based banana distributors Pan-Pacific Trading and PacWest Trading.
Banana volumes into China from the Philippines are down due to El Nino weather conditions, however this has not lifted market prices, he says.
As for other banana sources into China, Pan-Pacific is buying very limited volumes from Ecuador for its high-end supermarket customers, says Zhang.
Mexican banana imports are not an option for the company for the foreseeable future, he adds.
Mexico is currently trying to gain access to China for its bananas.
