Published January 13, 2016
Bananas are heavy-hitters of the food world. The average American eats 25 pounds of bananas per year, putting the tropical fruit at the same level as staples like eggs and milk. The popularity of bananas seems has inspired a price war between retailers, causing the price to drop significantly in the past year despite worries about the future availability of the fruit.
In 2014, the average price per pound of bananas was $.60. One year later, the average is $.58. Analysis of the food retail market in the Chicago area shows that stores use low banana prices to try to capture customers from rival businesses. When the Mariano’s chain of grocery stores wanted to capture new customers in Chicago, it started selling bananas for a ridiculous $.29 per pound. Although this technique can currently be used successfully, the era of plentiful cheap bananas may soon be coming to an end.
It’s kind of astonishing that bananas are so cheap in America to begin with. They have to be grown far away in tropical climates and only stay fresh for about two weeks after picking. The fruit’s massive popularity was the only thing that allowed prices to be so lo. Now, however, a fungal disease threatens to destroy the trees that provide 95 percent of the world’s banana crop. Bananas could soon go back to being an exotic and hard-to-find luxury.
Read the full article here: The Banana Gauge: How do Banana Prices Affect Food Retail?
The Strange Power of Banana Prices
Bananas are heavy-hitters of the food world. The average American eats 25 pounds of bananas per year, putting the tropical fruit at the same level as staples like eggs and milk. The popularity of bananas seems has inspired a price war between retailers, causing the price to drop significantly in the past year despite worries about the future availability of the fruit.
In 2014, the average price per pound of bananas was $.60. One year later, the average is $.58. Analysis of the food retail market in the Chicago area shows that stores use low banana prices to try to capture customers from rival businesses. When the Mariano’s chain of grocery stores wanted to capture new customers in Chicago, it started selling bananas for a ridiculous $.29 per pound. Although this technique can currently be used successfully, the era of plentiful cheap bananas may soon be coming to an end.
It’s kind of astonishing that bananas are so cheap in America to begin with. They have to be grown far away in tropical climates and only stay fresh for about two weeks after picking. The fruit’s massive popularity was the only thing that allowed prices to be so lo. Now, however, a fungal disease threatens to destroy the trees that provide 95 percent of the world’s banana crop. Bananas could soon go back to being an exotic and hard-to-find luxury.
Read the full article here: The Banana Gauge: How do Banana Prices Affect Food Retail?
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