Australia: banana price falls — but not in the shops

Supermarkets are suspected of profiteering by failing to pass on big reductions in the wholesale price of bananas to shoppers. Prices paid to WA growers have halved — to just below $80 a carton in the past few weeks — from record highs paid in the wake of cyclone Larry which devastated Queensland’s banana crop in March.

Eastern States growers are receiving $80 to $110 a carton and some in NSW are getting as much as $125. But bananas were still selling for an average $12 or $13 a kilo at major supermarkets and some independents in Perth yesterday. It is understood some Perth stores may reduce prices to $6.99 a kilogram as early as next week. Bananas normally retail at about $3 a kilo when supply is steady.

Prices for Carnarvon growers jumped from $25 to $150 a carton after the natural disaster crippled banana plantations in north Queensland. However, they are expected to return to a stable $40 per carton in the longer term. Tom Day, chairman of Sweeter Bananas Co-operative, the peak body for WA growers, was surprised that shop prices had yet to fall.

“If that is what they are selling for, then supermarkets have certainly not passed on the benefits of the lower (wholesale) prices,” Mr Day said. He said WA growers hoped to capitalise on Queensland’s misfortune by encouraging WA consumers to continue supporting local producers. Australian Banana Growers Association chairman Patrick Leahy said while production in Queensland had reached 75,000 boxes in recent weeks, it remained well down on the average 400,000 weekly haul.

He said demand was still outstripping supply as Queensland growers staggered their replanting program to avoid flooding the market. He denied growers were holding stock back from the market, claiming wet weather had stalled fruit picking for at least another four to six weeks. A Woolworths spokeswoman said its supermarkets primarily stocked Queensland bananas, which were not expected to return to full supply levels until February or March next year.

Source: thewest.com.au