Banana prices rise as Brexit bites

Published: 30 Nov 2016

Banana prices rise as Brexit bites

Unfavourable exchange rates force four major supermarkets to increase banana prices in past two weeks. 
Banana prices have risen for the first time in five years, with loose bananas up 4p per kilo at Asda, Morrisons, Lidl and Aldi. 
Aldi was the first to increase prices two weeks ago, and was quickly followed by the other three retailers. 
Barring a couple of short-lived price rises related to temporary production shortages, banana prices at Britain's major retailers have remained at or below 68p per kilo since 2011. 
The recent price rises appear to be related to the rising cost of imports linked to the post-Brexit devaluation of the pound. Bananas are generally bought in dollars, making the weakness of the pound problematic. 
This has forced supermarkets to renegotiate their arrangements with suppliers, but some retailers are now starting to struggle to absorb these costs. 
Asda, Morrisons, Lidl and Aldi - which are currently sourcing their bananas from Costa Rica, Cameroon, Colombia and Belize respectively - have all increased the price of a kilo of loose bananas from 68p to 72p - a rise of six per cent. 
Aldi has also changed the pricing on its packs of bananas, switching from 68p for 1kg to five bananas for 72p. This amounts to an even more significant price rise than in loose bananas since five bananas often weigh less than 700g, the Guardian reported. 
Tesco, Sainsbury's and Waitrose, meanwhile - all of which source their bananas from Colombia at this time of year - have kept their prices at 68p. Likewise, M&S Food, which is getting its supply from the Ivory Coast, has stuck with the 68p price tag.

Further Information

For further information, please visit http://www.fruitnet.com/fpj/article/170729/banana-prices-rise-as-brexit-bites?utm_source=Banana+prices+rise+as+Brexit+bites%3B+Sainsbury%E2%80%99s+win

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