Taiwan addresses oversupply of banana
As it faces oversupply of banana, Taiwan started to up their export to the Middle East. They will be sending 12 tons per week and it has started yesterday.
This is to address the sudden decline in the price of banana which dipped to as low as US$0.033 per kilogram (/kg) in some areas, a huge slash compared to previous years with wholesale prices sitting between US$0.50/kg and US$0.64/kg. The decline in price is due to oversupply in the domestic market.
One of the steps taken early on in April by the Council of Agriculture Executive Yuan (COA) was reducing supply to the domestic market and filtering bananas of bad quality, so they don’t negatively impact prices and should lead to an increase of price.
In an article published in Fruitnet.com, Deputy minister of the COA, Chen Chi-chung, said that arrangements have been made to sell fruit to major supermarket and hypermarket chains, and sales to private businesses have been stepped up.
The average price of bananas at the local wholesale market at the beginning of June was around US$0.34/kg. With measures taken and the export deal made with the Middle East, the price of banana expected to rise to US$0.40 today.