Market Update: Banana Chips

The current weakness in the price of banana chips is brought about by the absence of #China in the market due to the lockdown in the country. However, we believe this will not las long. We forecast, once China returns, prices can quickly jump by .10/lb or higher due to the following reasons:

Slight demand can trigger a rise in the price of raw bananas as it has been lingering at the bottom for quite some time. Farmers have been upset for quite a while.

Not many shipments have entered China since January because of their early Spring Festival (end of January) and continued weak demand after due to Covid cases. They have been out of the market for four months now. We anticipate volume orders when they return.

Price of coconut oil has shot up since the start of the Ukraine-Russia conflict, equivalent now to .08/lb in banana chips' price but could not be reflected in the selling prices of manufacturers due to the weakness of the market. Exporters somehow need to recoup this loss.