US supermarkets raise banana prices for first time in more than 20 years

Trader Joe's, one of America's largest supermarket chains, recently raised the price of bananas - its most popular product - for the first time since 2001.

On March 25, the US supermarket chain Trader Joe's announced that it had recently increased the price of bananas from $0.19 to $0.23 per fruit. This increase is equivalent to more than 20%. This is the first time they have raised the price of bananas since they began selling them individually in 2001.

"We only change prices when costs change. And after keeping bananas at $0.19 a piece for more than two decades, we realized it was time for a change," a Trader Joe's spokesperson told CNN.

In the US, bananas are also an affordable food for most people. According to a 2023 report by the Food and Agriculture Organization of the United Nations (FAO), demand for bananas in the US in recent years has been bolstered mainly by low prices.

Although food prices in the US have not risen as sharply as they did two years ago, stores here still keep some items low to compete. For example, the supermarket chain Costco still sells hot dogs for $1.50.

Bananas in a Trader Joes supermarket in the US. Photo: Trip Advisor — Bananas in a Trader Joe's supermarket in the US. Photo: *Trip Advisor*

The FAO report shows that retail prices for bananas here will remain virtually unchanged in 2023. This is due to fierce competition among chain stores, with bananas being the main product. Bananas will be sold at low prices to attract customers to come here and buy more expensive products.

According to the US Bureau of Labor Statistics, banana prices in the US are expected to remain stable between February 2023 and February 2024, at around $1.20 per kilogram. However, CBS quoted experts at the World Banana Forum in March warning that climate change and rising temperatures could still push banana prices up in the future.

Bananas are Trader Joe's most popular product, so much so that they are ranked as the most popular item among customers. In a 2018 radio show, then-CEO and President of Trader Joe's, Dan Bane, told the story behind this highly successful and unique business decision.

"Before, we also sold bananas by weight, like everyone else," he said. However, since the store doesn't have a scale, they weigh and package them for customers in advance. The smallest package contains about four to five bananas.

However, a conversation with a customer later changed the way they sold the product. "I was watching customers shopping at Sun City (Arizona). A girl came up to the banana counter, looked at the bananas, but didn't buy any. So I asked, 'Excuse me, ma'am, I saw you looking at the bananas, but you didn't buy any. Why?' She replied, 'Sir, I'm sure I don't need four bananas,'" he recalled.

"So the very next day, we decided to sell each fruit individually. And the price of 19 cents has been the same ever since," he said.

Ha Thu (according to CNN, Reuters)

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