AU: Coles to compensate banana growers

Retail giant Coles has agreed to pay farmers the market price for bananas that would apply post-cyclone Yasi, in order to help compensate them for damaged crops. According to a report of The Australian, Coles increased its banana shelf price to $4.48/kg, after stockpiling bananas before the cyclone hit Queensland. In a statement released on Saturday, Coles further said it has decided not to import bananas. The decision by Coles not to import the fruit appears to be good news for domestic farmers, although consumers still face big price increases. "We had more warning with Cyclone Yasi and so could get more bananas into storage," Coles merchandise director John Durkan said. "Many of our growers also cut their trees down, which means they will regrow much faster than had they simply been knocked down by the cyclone."But he warned that prices for the fruit would rise.