Tropical fresh produce importer Fyffes has revealed it is looking to expand further this year and may consider potential acquisitions should the right opportunities arise, having successfully strengthened its position in the European fresh produce market during 2009.
Speaking exclusively to Eurofruit Magazine, Fyffes chairman David McCann confirmed the company was in a position to make acquisitions but only provided the right opportunity were to arise.
'We have significant net cash resources, and on top of that, while the banking markets are not as generous as they used to be, within fairly conservative parameters we are still able to borrow a significant amount to execute transactions,' he said.
Mr McCann added: 'We have an appetite to develop and form partnerships, alliances and agreements with companies out there. We have the cash, so if a bit of restructuring is needed we can play a good role in that.'
As the fresh produce industry continues to grow, consolidation would continue to be 'absolutely a priority', Mr McCann suggested.
'In terms of consolidation, it’s essential in our industry that there are well-organised, cost-effective players to service customers, and that there aren’t too many of them,' he argued. 'That way everyone can get the job done properly and make a decent living out of it.'
He continued: 'Consolidation is generally a good thing and certainly I would advocate it. Hopefully we will find ways to execute transactions towards consolidation over the next year.'
One of Fyffes most recent acquisitions, a pineapple plantation in Panama, reflects the company's desire to be a producer as well as an importer-supplier, a desire which Mr McCann said was now more keenly felt than it was some years ago.
'Our view is that there is a role in our business in being a farmer, so for that you need the land – you can either own the land or you can rent the land, and that’s something you have to decide upon, probably in each situation,' he noted.
As a consequence, Fyffes assessment of the importance of producing as well as importing has changed, Mr McCann revealed.
'We don’t have an ambition to go out and acquire great tracts of land, but equally if it’s wise in terms of a particular product or a need to be in a particular country then we are willing to buy land and to be a producer, which we probably weren’t willing to be 10 years ago,' he said.
The full interview with Fyffes chairman David McCann appears in the January 2010 edition of Eurofruit Magazine.
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