Banana supply is moving through its traditional winter low, but resilient demand is helping to keep the market stable, according to Premier Fresh Australia Executive General Manager – Bananas and Trading, Joe Manariti.
“It is positive to see banana demand holding up well through the winter months,” Manariti says.
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The consistency of demand has also meant retailers have had little need to stimulate sales through promotional activity.
“Promotional activity across all retailers has been minimal,” he says.
For growers, however, production costs remain a key concern, with continued volatility in input and freight costs placing pressure on margins.
“Across the growing regions, cost of production remains front of mind, particularly given the continued volatility in key inputs,” Manariti says. “Freight has had the greatest impact, largely as a result of ongoing global events.”
With production costs remaining elevated, the relative stability of retail banana prices continues to create margin pressure across the industry.
There has been no banana-specific government support beyond the broader measures available to the agricultural sector. Manariti says the rapidly changing operating environment has also made it difficult to determine what targeted assistance would be most effective for the industry.
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Premier Fresh Australia produces bananas year-round, with winter conditions currently delivering the expected seasonal reduction in bunch weights. “Bunch weights are certainly down through the winter months, but outside of that, quality is generally positive,” Manariti says.
Premier is also continuing its replanting program at Darwin Fruit Farms following the cyclones that affected the region earlier this year. The resulting reduction in local production has been managed by supplementing Darwin supply with fruit from the East Coast.
“We’re having to draw on East Coast supply to offset the loss of volume in Darwin,” he says.
That flexibility highlights one of the benefits of Premier’s geographically diversified production footprint, although Manariti notes that maintaining such a network requires significant investment.
“There is significant financial investment involved in farming in the Northern Territory, but Premier remains committed to a geographically diversified farming strategy,” he says.
For more information:
Joe Manariti
Premier Fresh Australia
Tel: +61 3 9448 0644
[email protected]
www.premierfresh.com.au