Why China's Banana Production Has Been Subject To Instability?

DOUGLAS, Scotland - May 20, 2015 - PRLog -- In 2013, China's banana production was estimated at 12.4 million tonnes, which was the peak production level recorded from 2007 to 2013. In value terms, it reached 12.1 billion USD in 2013, which was 2% less than the year before. Despite a consistent production trend, the industry was subject to considerable instability deriving from both natural causes, such as frosts, cyclones and disease, as well as from market fluctuations, largely driven by rumors and speculations.

China's banana production is predominantly concentrated in five provinces: Guangdong, Guangxi, the Island of Hainan, Yunnan and Fujian. However, the devastation caused by Fusarium Wilt (or Panama B disease), coupled with encroachment into agricultural land in the Pearl River Delta region had a severe impact on production in Guangdong.

Despite the fact that harvested area of bananas showed stable growth over the last five years, with an average annual increase of 5.7%, growth of yield was more modest, only 1.7%. In 2013, the yield stood at 279,2 thousand Hg/Ha.

Between 2007 and 2013, China's banana exports grew by 2.8% per year, amounting to 8.0 million USD in 2013. In physical terms, they reached 11.0 thousand tonnes in 2013, which was 3.1 thousand tonnes more than the year before.

Source: http://www.indexbox.co.uk/news/Why-Chinas-Banana-Producti...