Why strawberry prices in Australian supermarkets have hit rock bottom
Australia’s supermarket shoppers were shocked over the weekend to find local strawberries selling for as little as 90c to $1 per punnet.
But the supermarkets and strawberry farmer representatives told The New Daily the bargain fruit isn’t the signal for a new price war.
Supermarkets have long been accused of hurting farmers with their $1 per litre milk price war. But fear not, the cheap strawberries are brought to your tables courtesy of an oversupply of the fruit in Queensland.
Strawberries Australia president Sam Violi told The New Daily that poor weather early in Queensland’s strawberry season led to an oversupply in the current market.
“You’ve got Queensland coming to the end of the season and because they grow in their winter, there was poor weather early on,” Mr Violi said.
“So that means the Queensland peak has been late and, with Western Australia coming online for its season, it means there is an overlap and therefore an oversupply.
“Usually one state ends and another state takes over.”
Mr Violi and Western Australian Strawberries Australia representative Jamie Michael said the supermarkets were not bullying growers into a price war.
“I have noticed that strawberries are retailing at a smaller price, but there is no evidence of an overall decrease in return for growers,” Mr Michael told The New Daily.
“I think supermarkets are being pretty fair to the growers.”
Mr Michael confirmed that retail prices were “depressing” because of the Queensland oversupply.
Mr Violi was unable to predict when prices would return to normal, but said he and other growers were concerned at how the oversupply would play out.
A punnet of strawberries cost about $1.40 to produce, he said.
“I am pleased the supermarkets are selling rather than marking them up because that would make it harder for the grower to move the product,” Mr Violi conceded.
Supermarkets defend prices
Woolworths confirmed to The New Daily the strawberry price drop was because of the Queensland production glut.
A Woolworths spokesperson said the supermarket could also not predict when prices would return to normal.
“Due to the crossover [between the Queensland and WA seasons] there is more fruit readily available,” the Woolworths spokesperson said in a statement.
Coles did not directly confirm that the Queensland strawberry oversupply was causing the price drop.
“With peak seasonal conditions for them [strawberries] in Queensland right now, we are selling punnets at great prices,” a Coles spokesperson told The New Daily. “By selling them quickly, we can also ensure they don’t go to waste.”
The New Daily approached IGA for comment but did not receive a response by the time of publication.
Both Coles and Woolworths faced a firestorm of criticism earlier this year when milk processors dropped their prices paid to farmers.
Many farmers and industry representatives blamed Woolworths and Coles for encouraging a climate where milk was devalued, because of their $1 per litre retail price.