Bananas are mostly sold either through wholesale markets in Brisbane, Newcastle, Sydney, Melbourne, Adelaide and Perth or direct to some of the major retailers.
Growers send their bananas to wholesalers based in these markets. Some wholesalers sell only bananas while others provide a range of fresh produce as well as bananas. Most markets start trading early, 1-3am and finish trading at around 9am. Our local retailers have most likely purchased their bananas and are back at their shops when we are arriving at work.
Every morning the markets are visited by thousands of buyers who are retailers (chainstores and independents), providores and food service companies who supply fresh produce to other businesses. It is not uncommon to see restaurateurs and the odd celebrity chef selecting the best seasonal produce for their establishments.
This gathering of buyers and sellers at the wholesale level creates transactions based on their individual requirements and prevailing market conditions.
At the wholesale market the price of bananas is ultimately determined based on that time-honoured marketing rule of supply and demand. If there is a large supply of bananas the markets will attempt to stimulate demand by reducing the price to sell the available abundant supplies.
On the other hand if supplies of bananas are short the price increases as buyers have to effectively bid up prices to get the produce they require for their own customers.
When growing conditions are best and supplies plentiful, prices will be at their lowest. As supplies fall away due to growing conditions, increases in prices will be experienced, but unless there is a major disruption to supplies, banana prices are always quite affordable when compared to most other fruits.
This is why the price of a 13kg carton can fluctuate considerably, which in turn will be reflected in the retail price per kilogram.
The cartons of bananas are now off to your local retailers, restaurants, fruit barrows, wherever you can buy a banana! Others are off to be processed into products such as banana cakes, smoothies and muffins.
