Harvest heralds start of banana price crash

BANANA prices are set to drop sharply, as the industry's north Queensland heartland bounces back from the February cyclone.

Paul Johnston, banana farmer

BANANA prices are set to drop sharply, as the industry's north Queensland heartland bounces back from the battering it took from a monster cyclone in February.

Premier Anna Bligh yesterday led the cheers - echoed by families across the country - with confirmation that the $450 million industry had "turned the corner" and was ramping up production.

Three-quarters of the nation's output of bananas was hit by the category-five Cyclone Yasi when it ripped into coastland south of Cairns on February 3, with winds of more than 250km/h.

About 85 per cent of the crop is produced in Queensland's far north, and with quarantine regulations prohibiting imports, prices spiked to $15/kg. The impact on family budgets drove up the consumer price index, which measures inflation, by 0.2 per cent in the June quarter.

Woolworths in inner Brisbane posted prices yesterday of between $2 and $2.31 each for bananas, which equates to the going retail rate of $8-$12/kg quoted by industry body the Banana Council. Depending on the variety, there is usually five or six bananas to the kilogram.

The good news is that supplies are set to increase dramatically over the coming weeks as warm weather ripens crops. For grower Paul Johnston, 36, the cavendish palms regrowing on his 250ha spread south of Tully can't produce quickly enough.

Having lost the entire crop when Yasi struck, he was immensely relieved to send 1000 cartons of fruit to market last week, and is hoping to push that up to 10,000 cartons a week in the lead-up to Christmas.

Asked how much Yasi had cost him, Mr Johnston said ruefully yesterday: "I don't really know. It would have to be in the millions."

Australian Banana Growers' Council president Cameron MacKay said production would return to about 80 per cent of pre-Yasi levels by November, and so should retail prices. Banana lovers could expect to pay $3-$4/kg at the checkout.

"We'd like to thank consumers for their patience and understanding during this time of regrowth - production levels are certainly on their way up and this is good news for everyone," Mr MacKay said.

Ms Bligh said restoration of supply would make "Australia's favourite fruit" affordable again.

Ninety-five per cent of production was affected in the peak banana-growing belt between Innisfail and Cardwell when Yasi crossed the coast.