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Banana Prices Rise After Cyclone Hits

From the massive rises in oil prices and even bananas, it seems that the weather in today`s world is affecting a lot more then just being able to go outside. When Hurricane Katrina hit the US last year it brought with it enough havoc to increase the nations debt substantially as well as increase oil prices for everyone in the country. The recent Cyclone to his Australia has done equal damage to the country, however, it seems that the whole world will have to face the consequences of rising banana prices.

Market analysts believe that the world will soon see a dramatic rise in the price of bananas, after Cyclone Larry destroyed an estimated 80 percent of Australia`s crop farms. According to The Australian Banana Growers Council, growers have already begun laying off workers, with job losses in north Queensland expected to be as high as 4000. With prices currently at $3 for a kilo of bananas in local stores, experts warn it could double to $6 in a very short time.

Officials say Cyclone Larry destroyed plantations warehouses containing more than 200,000 tonnes of fruit worth $300 million. The Australian Banana Growers Council believes that the majority of the industry`s production would be "in ruins" for at least a year. Council chief executive Tony Heidrich says, "They`re certainly going to go up and go up dramatically. But I think they will hit a point at which buyer resistance comes into play. I think $6 a kilo is realistic and I wouldn`t be surprised to see them go higher as time goes on."