UK: Current exchange rate may cause increase in banana cost price

The fruit and vegetable sector in the UK is facing a period of uncertainty with the drop in the pound and Brexit looming on the horizon. The banana is a staple in shopping trolleys throughout the UK and is often said to be used by supermarkets to get people in the stores. Are consumers still going to be able to afford this wholly imported fruit?

"Fixing prices with growers is business as usual," according to one importer. "The drop in the pound has made it a little bit more complicated that normal, but conversations are ongoing."

He said the current exchange rate situation is likely to cause some cost price increases. Whether retailers choose to increase retail prices will be a matter for them to decide.

When asked if there were difficult times ahead, he replied: "Business always has its challenges, there are a few more complications than normal just now and it remains to be seen if it will become more complicated or if we continue as usual."

Demand for bananas is stable at the moment, although the Kantar figures show some general decline across the year, but the general market place is showing marginal growth in volumes, despite the very strong competition of products such as berries.

"Banana supply is reasonably good at the moment," explains the importer. "There was concern that hurricane Matthew may cause damage to plantations in the Caribbean, but although it did cause a lot of damage elsewhere, the Caribbean was spared."

Price is not the only consideration when sourcing bananas he said, "Relationships with the growers and the reliability of the shipping services also factored in."