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Banana prices heading north

Stored under Caption This!GamesMiscellaneousNewsRecipesRelated EBay AuctionsReviewsVideosVisual Stimulation on May 17, 2007

The price of bananas is again on the rise, but it is not expected to reach the heights experienced after Cyclone Larry struck far north Queensland last year.

The Australian Banana Growers Council says prices became as low as $2 a kilo when supply of the fruit improved in February.

But CEO Tony Heidrich says the cooler weather has since brought a dip in production.

"Bananas are extremely sensitive to changes in either the demand or supply side of the market and that's primarily because everybody in Australia pretty much eats bananas and they eat them on a weekly basis," he said.

"So anytime you see a dip in supply like we're seeing now, you see a corresponding increase in price.

"At the end of the day the banana growers don't set the prices, consumers set the prices and they vote with their feet.

"If the retails are charging more than they think bananas should be worth at that point in time then they simply don't buy them."

Mr Heidrich says banana prices should drop again in August or September.

[News Source]

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