Analysis of Chinas banana Industry
Marketing strategy of a foreign Company in China
This essay describes the current situation of the banana Industry in China, as well as the factors which influences the change of the National and International market situation based on latest examples. As the Chinese Market supplied an enormous amount of bananas every year, numerous importers need to comply with the demand. How the situation in China has changed in recent years, what role plays Chiquita in this strongly growing industry and which marketing strategies are being implemented. All of the mentioned before will be analysed and evaluated on the following pages.
Bananas are the most traded fruit worldwide and the fifth most traded agricultural product. In China bananas are the fourth fruit listed as the most important in the tropical corps industry.
The Banana is a perennial plant that replaces itself. Bananas do not grow from a seed but from a bulb or rhizome. The time between planting a banana plant and the harvest of the banana bunch is from 9 to 12 months. The flower appears in the sixth or seventh month. Bananas are available throughout the year, they do not have a growing season.
Bananas are grown in tropical regions where the average temperature is 80 F and the yearly rainfall is between 78 and 98 inches.
In fact , most bananas exported are grown within 30 degrees either side of the equator.
Plantations are predominant in Latin America and they require huge investment in infrastructure and technology for transport, irrigation and packing facilities. Smallholder production is less capital intensive and more labour intensive. High present is this system mainly in the Eastern Caribbean because, due to some factors, it is not possible to use the plantation system.
Banana growing is very labour intensive, involving clearing of jungle growth, propping of the plants to counter bending from the weight of the growing fruit. As well as an intensive use of pesticides , the product process involves covering banana bunches with polyethylene bags to protect them from wind and to maintain optimum temperatures.
After nine months the bananas are still green. The bananas are inspected and sorted at the packhorse. The standards, quality and maturity are dependent on the country their exported too. If bananas do not meet these standards they are usually sold locally at a much lower price.
China is the second larges producer of Bananas. The worlds leader in producing bananas is India. Around 413,000 hectares of land were cultivates with bananas in 2010. The productions was about 9.885 MT, according to FAO provider by the Hainan Institute of tropical Agriculture.
This number is every year differently to regarded, because of the natural causes (frost, cyclones and disease). The banana production in China has grown rapidly since the 1980s with the area cultivated more than tripling 1990 to 2012 and production more than quadrupling in the same period.
In China are five provinces account for the vast majority of production with:
Guangdong producing 2.8 MT
Guangxi 1.9 MT islands of Hainan 1.5 MT
Yunnan 1.2 MT
Fujian 0.7 MT
The perennial danger of damage from low temperatures means that producers on the mainland have to time their crops to minimize the risk of damage. this means that, although there is some variation , different regions aim to harvest at particular times to meet seasonal markets.
Through the large consumption of bananas and the restive increasing population, China hast to import bananas from other countries. The main importing countries to China are> Ecuador, Costa Rica, Philippines.
The majority of imported goods arrive at the port of Shanghai. From there the bananas are transported to many other areas of the country. Not only big markets and bulk purchaser but also small shops and privet purchaser obtain…