Chiquita Brands International has announced that it is withdrawing from a proposed agreement to enter Angola's banana industry, along with the company's national partner Escom.
The US fresh produce giant has opted to pull out of the project on the grounds that it had failed to acquire suitable land for growing and exporting the fruit, according to Reuters.
Escom said that the land that had been purchased as part of the deal was too far from the centre of the port city of Lobito.
'We had to relocate to an area further away from the centre of Lobito and Benguela than we wanted,' said Escom chief Helder Bataglia this week. 'This made the project less feasible.'
He said that the global economic situation had been a factor in the decision, which has been made following a two-year study period by Chiquita and Escom.
'Because the banana is a commodity, we cannot ignore international prices,' Mr Bataglia added. 'When these affect our profitability our only option is to quit.'
Despite the collapse of the agreement, Escom will continue to look for new business opportunities with Chiquita in the banana sector, he confirmed.
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