Bananas have been unusually inexpensive this fall. Normally the retail price remains in the ¥200-¥230 per kg range (1 banana is about 150 grams) year-round, and the average price for all of 2011, according to the Ministry of Internal Affairs, was ¥218. However, the ministry recently conducted a survey of 42 retail outlets in Tokyo and found that from January to September of this year, the price was slightly less than ¥210, and at the end of September it suddenly dropped to ¥197. Then, in early October, it fell further to ¥192 and has stayed there ever since. It’s the lowest price for bananas since 1979, and importers and wholesalers don’t like it at all. According to Tokyo Shimbun, smaller importers are hoping that the larger importers will limit their supply since it appears the price drop is due to a continual flood of bananas into the market.
Why the sudden price collapse? Apparently, it has to do with political situations on two fronts. China is, for all intents and purposes, currently carrying out an embargo of Philippine bananas due to a diplomatic flareup between the two countries over control of an island in the South China Sea. Though there are no formal sanctions involved, China recently reinforced inspections for diseases and pests that have resulted in banana shipments from the Philippines being held for extended periods of time in Chinese ports. Consequently, they are in danger of spoiling, so a lot of the bananas originally meant for the Chinese market have been coming to Japan.
China is the second biggest producer of bananas in the world (after India, which consumes 80 percent of its product), but several years ago the country signed a free-trade agreement with the Philippines, and bananas are one of the latter’s few big export crops. Another major banana market for the Philippines is Iran, which is currently under the shadow of a genuine U.S.-led embargo owing to Iran’s nuclear development program, so some of the bananas that the Philippines were planning to ship to Iran are now also going to Japan.