Bananas are dropping in price due to rising costs

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Bananas are dropping in price due to rising costs

If you are a fruit fanatic, you might be excited to hear that bananas are dropping in price at your local supermarket.

The Australian banana industry is in a pinch, but the same can't be said for banana lovers.

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 hard.

Inderbitzin said that the cost of production is significantly lower than the value we're getting for our produce that we grow and pick and pack 52 weeks of the year.

He said that the current market was unsustainable for banana growers because of rising input costs, especially with changes to minimum wage about to come in.

Input costs have gone up but they've gone up, Mr Inderbitzin said.

Fertiliser prices are in the roof. Chemical prices are up. Fuel prices are the reason the freight is on the rise, and there is a wage increase coming into effect in July.

People are in a hard time right now and the numbers won't stack up. The current cost of living could be a factor behind low banana prices, according to Inderbitzin.

Peter Lahey is a manager from South Queensland Banana Ripeners and said he had seen a drop in sales.

He said that the banana prices have been low for a long time, particularly the last four or five weeks.

An oversupply has driven that but there's also been a lack of demand. There are a few key reasons that may be driving the lack of demand, according to Lahey.

The population is still down. He said that since COVID we have a reduced amount of tourism.

We have also had a lot less students that are in Australia and even business people travelling here.

The numbers haven't recovered from that. The public perception of food prices being higher could also be to blame, according to Lahey.

Inderbitzin said that growers needed the support of the public to get through a tough time for the industry.

He said that prices are extremely low and the cost of living in households has increased.

The story is no different for growers.

We're asking for everyone to get down to the local grocery store, and just keep picking up bananas and keep buying them.