We have bananas, but the strawbs are pricey

Sydney Morning Herald

Saturday January 29, 2011

Paris Cowan

GREENGROCER Steve Borsellino was "buying spinach for $3 a bunch and selling it for $2.99".The owner of Borsellino Bros at Petersham said small fruit and vegetable retailers were taking a hit from both sides because of supply shortages caused by the Queensland floods.He was facing higher wholesale prices on some products but was under pressure to keep his prices down to compete with the supermarket chains.Prices had risen not only for flood-affected produce. "Produce that is grown in NSW is expensive now as well because supply is short across the board," he said.Wholesalers at Sydney Markets in Flemington seemed to be doing a bit better. The Moraitis Group, a supplier of fresh produce to Woolworths, has doubled the price of strawberries, and owner Nick Moraitis said he had concerns about lettuce, one of the crops grown in the devastated town of Gatton. The wholesaler had found cost-effective sources for almost everything else.At the Moraitis banana stall, Chaise Pensini had good news for mums and dads who will pack school lunches on Monday when classes resume for 2011."Bananas have not been affected," he said. The lunchbox staple is grown in Innisfail in north Queensland, and the crop was left untouched bar a temporary cut to delivery routes.The Australian Banana Growers Committee also highlighted the strength of the banana supply and said retailers had no reason to charge more than what was standard for this time of year.Yesterday Moraitis Group was selling 13-kilogram cartons of green bananas to Woolworths for $18 ($1.38 a kilogram). The supermarket was charging $4.48 a kilogram in its Sydney city store. A nearby Coles was charging $3.98 a kilogram."I really hope they're not using the floods as an excuse to charge higher prices," said the committee chairman, Cameron MacKay, who feared that unreasonable increases could hurt demand, cutting returns for growers.AFFECTEDLettuce, especially bagged salad mixBroccoliCelerySweet potatoesCauliflowersLycheesNOT AFFECTEDBananasPotatoesPineapplesTomatoes

© 2011 Sydney Morning Herald

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