The fluctuation of banana pricing is due to supply and demand reduced supply means too few bananas on the market which results in higher prices. Reduced demand means more bananas on the market causing a reduction in prices.Many factors must be kept in mind when examining the banana industry supply is never certain due to floods hurricanes and disease. Production costs vary as bananas are energy intensive to produce. Upon being picked bananas are shipped by train truck and ship upon arrival in the U.S. the containers must be offloaded from the ship and sent by train and truck to their final destination. All transportation must be done in tandem with refrigeration to reduce the amount of spoilage. With the recent high cost of fuel transportation costs rose dramatically. All the above factors directly affect the production and distribution costs.