Price of Australian bananas to rise amid looming shortage

Australians are being warned to brace for a banana price hike as a shortage looms. See why it’s happening and what to expect.

A national banana shortage is expected in coming days after north Queensland floods severed transport routes out of the state.

Southern states including New South Wales and Victoria rely on supply from north Queensland which accounts for over 90 per cent of the country’s banana production, normally transported along the Bruce Highway.

But monsoonal rains have caused flooding in areas from Cairns to south of Mackay resulting in multiple road closures along the vital transport route.

Communities inland are now bracing for similar conditions as the monsoon moves west from the coast.

Floodwaters seen at Ingham, Hinchinbrook, south of Cairns on Wednesday. Picture: Cameron Bates

HOW ARE SUPERMARKETS MANAGING THE CRISIS?

Supermarket giants Coles and Woolworths are both working to manage the supply shortage, which is expected to affect different regions at different times but starting as early as next week.

“Due to the floods in Far North Queensland, key delivery routes for bananas have been impacted,” Woolworths said in a statement.

“For a short time, customers may notice less bananas nationally on the shelf. We are working hard to return supply to normal as soon as possible.”

With vital supply routes cut off by floodwaters, banana stocks cannot be transported out of Queensland. Picture: iStock

Coles said it was too early to gauge the full impact on supply as alternate supply routes could still be impacted by flood waters: “We are working closely with our Queensland banana suppliers to get bananas to the rest of the country as supply routes begin to re-open.

“We have managed to get some bananas out already, and are continuing to work hard to find available routes for more banana deliveries.”

An aerial view of the flood affected area in Ingham from an Australian Army CH-47F Chinook helicopter. Picture: Bradley Darvill

HOW WILL IT IMPACT BANANA PRICES?

With supply disrupted, the cost of bananas is also expected to spike as happened in 2011 when Cyclone Yasi’s devastation caused bananas to reach $14 a kilo.

The Bureau of Meteorology has warned north Queensland residents to prepare for more heavy rainfall in the coming days, with the rain band expected to push even further inland, putting the routes trucks are currently relying on at risk.

Local reports have also suggested that some farmers have been forced to cull crops affected by the floods.

Originally published as Price of Australian bananas to rise amid looming shortage