Prices go bananas at 70-yr high
"We are expecting [banana] prices to come down towards the end of this week." Antoinette Laird, Foodstuffs
Bad news New Zealand: It took just one broken-down boat to push the price of your favourite fruit to a record high.
Bananas have hit their highest price in nearly 70 years due to a supply shortage. Prices spiked 22 per cent in July to $3.51 a kilogram.
The previous peak was $3.23, in March this year, according to Statistics New Zealand.
‘‘Banana prices were at their highest since the series began in 1949, reflecting a supply shortage from Ecuador,’’ Statistics NZ consumer prices manager Matt Haigh said.
‘‘Kiwi households spend an average of $88 a year on bananas, making them the most popular fruit. Over the past three years, Ecuador has overtaken the Philippines as the main supplier of bananas to New Zealand.’’
Food prices rose 1.3 per cent in August 2016, partly influenced by the record high banana prices.
Countdown spokeswoman Kate Porter said a ship from Ecuador broke down in late August, and there was a price increase during the resulting shortage.
But she said a new shipment of bananas arrived in the country not long after and brought the price back down.
Bananas are $2.99 a kilogram this week at Countdown.
Antoinette Laird of Foodstuffs, which operates the Pak’n Save and New World supermarket chains, agreed the boat issue was to blame.
‘‘We are expecting prices to come down towards the end of this week and return to normal, which ranges from $2.99 per kilogram to $3.49,’’ she said.
‘‘Price fluctuation is normal due to a variety of reasons, but it is essentially down to supply and demand. Customers recognise that prices for produce can vary and we remain focused on getting the best prices we can for our shoppers.’’
Economist Gareth Kiernan, of Infometrics, said there was not a lot of pressure on overall food prices. ‘‘It was a strong month but there doesn’t seem to be a general upward trend.’’
He said while dairy prices were rising internationally, and there was growth in meat prices, the strong New Zealand dollar was helping to offset that.
Kiernan said he did not expect to see the dollar lose any of its international purchasing power in the near future.
‘‘The spike in dairy may come through in six months’ time but it would have to be sustained and I’m not sure how robust that is at this stage.’’
Countdown said earlier this week that prices dropped in its stores for the 13th consecutive month in August.
It tracks the most commonly purchased items including meat, produce and dairy items.
Countdown’s general manager of merchandise, Chris Fisher, said New Zealand shoppers had benefited from the lower milk price during August, with significantly cheaper dairy products than this time two years ago.
Major decreases include a 13.7 per cent drop in yoghurt, a 10.3 per cent drop in butter, a 7.7 per cent drop in cheese and a 5.9 per cent drop in milk.
There was a 6 per cent drop in deli products, a 5.7 per cent drop in health and beauty items, and a 2.8 per cent drop across other food and beverage items.
But broccoli prices were up by 12.2 per cent and capsicums were up 5 per cent, largely due to weather conditions.