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Chiquita seals Angola and Mozambique banana deals
United States
Friday 07 March 2008
Two long-term strategic deals that will see bananas sourced from Africa to supply key European markets have been announced by international fresh produce group Chiquita.
The US-based company has agreed terms with the private foreign investment ESCOM Group in Angola, and with Matanuska Africa Limited in Mozambique, with commercial exports likely to begin in 2010. The projects are expected to create approximately 6,000 jobs, 3,000 in each country, and contribute an anticipated 20-30 per cent of the group's premium quality fruit volume for European markets, on a tariff-free basis.
Despite the potential for future reductions of import tariff rates on Latin American bananas to the European Union (EU), Chiquita is still expecting African banana sourcing to "remain cost-competitive". Fernando Aguirre, chairman and chief executive officer of Chiquita, said: "We believe that starting banana production in Angola and Mozambique is an important strategic step that will be very cost-competitive regardless of the eventual outcome of the challenges to the EU tariff import regime." The agreements will mark the first time that Chiquita has sourced fresh produce from Angola, with the Agricultural Development Company of Angola, an ESCOM subsidiary, looking to establish banana production in the province of Benguela with an investment of over US$60m (€40m). "These projects will significantly increase our sourcing from tariff-free ACP countries, reaching an estimated 20 to 30 per cent of our European premium bananas," Mr Aguirre continued. "We are also pleased to contribute to economic opportunities in Africa through the creation of new jobs and investment with partners that are committed to sustainable development and corporate responsibility."
Elsewhere, Chiquita has ended its interest in Panama after some 80 years in the country, according to local publication Prensa Latina. The withdrawal follows a delay of several years, in the wake of the purchase of Chiquita's Panamian assets for US$23m by the Multiple Services Cooperative of Armuelles Port in 2003.
The US-based company has agreed terms with the private foreign investment ESCOM Group in Angola, and with Matanuska Africa Limited in Mozambique, with commercial exports likely to begin in 2010. The projects are expected to create approximately 6,000 jobs, 3,000 in each country, and contribute an anticipated 20-30 per cent of the group's premium quality fruit volume for European markets, on a tariff-free basis.
Despite the potential for future reductions of import tariff rates on Latin American bananas to the European Union (EU), Chiquita is still expecting African banana sourcing to "remain cost-competitive". Fernando Aguirre, chairman and chief executive officer of Chiquita, said: "We believe that starting banana production in Angola and Mozambique is an important strategic step that will be very cost-competitive regardless of the eventual outcome of the challenges to the EU tariff import regime." The agreements will mark the first time that Chiquita has sourced fresh produce from Angola, with the Agricultural Development Company of Angola, an ESCOM subsidiary, looking to establish banana production in the province of Benguela with an investment of over US$60m (€40m). "These projects will significantly increase our sourcing from tariff-free ACP countries, reaching an estimated 20 to 30 per cent of our European premium bananas," Mr Aguirre continued. "We are also pleased to contribute to economic opportunities in Africa through the creation of new jobs and investment with partners that are committed to sustainable development and corporate responsibility."
Elsewhere, Chiquita has ended its interest in Panama after some 80 years in the country, according to local publication Prensa Latina. The withdrawal follows a delay of several years, in the wake of the purchase of Chiquita's Panamian assets for US$23m by the Multiple Services Cooperative of Armuelles Port in 2003.
