Aldi price cuts kill WA ‘Spud King’ Tony Galati’s banana dreams

TONY Galati’s dream of giving WA a self-sufficient, $50 million a year banana industry is over, after he closed down his banana operations following aggressive price cuts from Aldi.

Mr Galati warned that more farmers were likely to leave the sector because of the German discount retailer, echoing similar claims from food entrepreneur Dick Smith.

Mr Galati, who owns the Spudshed chain of supermarkets, accused the retail giant of taking a loss on some fruit and vegetables to attract customers to their broader range of home-brand products.

He claimed Aldi regularly sold bananas for $1.70 a kilo, and as low as 99¢ a kilo, even though it cost at least $2 a kilo to produce. Mr Galati said Aldi’s avocados, which often sold for $1 each, were also well below the cost of production and claimed Coles and Woolworths were forced to match the prices to compete for customers.

Mr Galati said he leased his 60ha banana farm in Kununurra to another farmer six weeks ago, after realising he could not compete with Aldi’s aggressive price cuts.

It ended a dream he had held for several years to kickstart a banana industry in Kununurra.

Source: Banana dream over for WA ‘Spud King’ Tony Galati after Aldi price cuts | Perth Now