Feeling the pinch at the checkout? Bananas are coming down in price
There has never been a better time to eat bananas, with several factors resulting in them dropping to near-record low prices. But while it is good news for consumers, farmers are struggling to turn a profit.
JimMin
If you are a fruit fanatic, you might be excited to hear that bananas are dropping in price at your local supermarket.
Key points:
Banana growers and wholesalers say the price of bananas has dropped significantlyOne grower says a reduced demand for bananas could be driven by an increase in the cost of livingHigh production costs mean growers are feeling the impacts of lower prices more stronglyBut while it is great news for banana lovers, the same cannot be said for the Australian banana industry, with growers feeling the pinch.
Paul Inderbitzin is a banana grower from Lakeland in North Queensland, as well as a representative on the board of the Australian Banana Growers Council.
He said the recent low prices made operating a banana farm very tough.
"The value that we're getting for our produce that we grow and pick and pack 52 weeks of the year is significantly lower than the cost of production," Mr Inderbitzin said.
He said rising input costs meant the current market was unsustainable for banana growers, especially with changes to the minimum wage about to come in.
"Input costs have done nothing but go up," Mr Inderbitzin said.
"Fertiliser prices are through the roof. Chemical prices are also up. Freight is obviously through the roof due to fuel prices, and [there is] the wage increase on top of all that, which is coming into effect in July.
"The numbers will not stack up and people are in really hard times right now."
Mr Inderbitzin said the current cost of living could be a driving factor behind low banana prices.
Not enough buyers
Peter Lahey is a manager from banana wholesaler South Queensland Banana Ripeners and said he had definitely seen a drop in sales.
"The banana prices have been low for some time, particularly the last four or five weeks," he said.
"That's been driven by an oversupply but there's [also] been a real lack in demand."
Mr Lahey said there were a few key reasons that may be driving the lack of demand.
"The population is still down. I think since COVID, we definitely have a reduced amount of tourism," he said.
"Also backpackers, we've also had a lot less students that are in Australia and even business people travelling here.
"So definitely those numbers have not recovered from that."
Mr Lahey said the current public perception about food prices being higher could also be to blame.
Consumer support requested
Mr Inderbitzin said that growers ultimately needed the support of the public to get through a tough time for the industry.
"From a grower point of view, [prices] are extremely low and the cost of living in households has increased," he said.
"The story is no different for growers.
"What we're really asking for is for everybody to get down to the local grocery store, and just keep picking up bananas and keep buying them."
