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Category: Fruit / Retail / Human Interest

Consumers split as banana prices vary across suburbs

Monday, 10 Oct 2016 10:55:36 | Jessica Hinchliffe

Banana prices are varying between nearby suburbs in Queensland due to an oversupply. (612 ABC Brisbane: Jessica Hinchliffe)

Across south-east Queensland consumers are scratching their heads trying to figure out why banana prices differ so greatly between suburbs.

Similar to the variances found in petrol prices, the cost of Cavendish bananas can differ by up to $2 a kilo.

More than five million bananas are eaten every day in Australia, making it the number one selling supermarket product.

Comments on the 612 ABC Brisbane Facebook page found the most expensive bananas were on the northside of Brisbane at $3.99 a kilo, and the cheapest were found west at Eight Mile Plans where bananas were being sold for 99 cents a kilo.

External Link: Banana prices in Queensland

Wholesaler Ian Gibbels, who operates from the Brisbane Markets in Rocklea, said an oversupply was allowing retailers to use the bananas as a drawcard.

"The price of bananas are on the way down as we've had a high market over the last few weeks," he said.

"Now we're in oversupply so we have many retailers out there using it as a drawcard to increase their business."

Short winter keeps supply stable

Mr Gibbels said due to a warm winter, there had been a constant supply of the popular breakfast fruit right through the cooler months.

"We've had 12 months of heavy supply now and we've just had a warm winter; we didn't have a short market like we usually do," Mr Gibbels said.

"Now we're going into the next summer and spike.

"The factor that could change this is if we have another cyclone, which would change the price of the market again."

Mr Gibbels said at this time of year when the banana price is low, smaller retailers could on-sell the bananas for as little 88 cents a kilo.

"They could be paying $1 a kilo and then sell them for 88 cents a kilo," he said.

"You have bigger retailers who put their margin on top and that's why you get the different in price."

How do farmers fare?

Despite the price varying between suburbs, Mr Gibbles said banana farmers were receiving a consistent price for their produce.

"The market price remains stable, though. The farmer's not getting anything different as the retailer makes that decision off their own back.

"There's variances in market and size and that's generally only a dollar or two a carton, but the kilo price is up to the retailer.

"At the moment we're in oversupply which is keeping us busy trying to keep up with the fruit coming in ... the consumer wins."

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