Chiquita Brands International has reported significant year-on-year increases in banana prices across all markets for July/August 2008 on similar sales volumes to last year.
“We are pleased that banana pricing remains favourable as we continue our pricing discipline to help offset higher industry costs,” said Fernando Aguirre, chairman and CEO. “Volume remains roughly flat overall, reflecting continuing industry-wide supply constraints across much of Latin America, which has substantially raised the cost of sourcing high-quality fruit.”
North American banana pricing was up 33 per cent, including surcharges, while volume sold in the region increased 2 per cent. Prices in the company’s core European markets were up 4 per cent year-on-year on a local currency basis, or 18 per cent on a US dollar basis. Chiquita said sales volumes in Europe dipped 5 per cent for the period due to supply constraints, its decision to cancel some lower-priced contracts that were no longer sufficiently profitable in a rising cost environment, and the company’s continuing strategy to focus on its premium quality products and price differentiation rather than market share.
In Asia Pacific and the Middle East, pricing rose 12 per cent year-on-year on a US dollar basis, while volume sold increased 17 per cent. This was due to improvements in weather conditions and farm productivity in the Philippines, the company said.
In the company’s trading markets, which consist primarily of European and Mediterranean countries that do not belong to the EU, pricing rose 41 per cent, while sales volume fell by 15 per cent, reflecting industry-wide supply shortages.
Separately, Chiquita has opened a new research centre in Salinas, California. The James R. Lugg Global Research and Innovation Centre, named in honour of the Fresh Express executive vice president for science and quality, will incorporate the company’s trial farms, pilot manufacturing plant, consumer test kitchen and a retail merchandising laboratory where value-added products will be created and tested.
“We are proud to advance our commitment to innovation by enhancing our strong research capabilities at the Lugg Centre, which will enable us to continue our strategic focus on global innovation efforts,” said Mr Aguirre.
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