Shares in two of the world's leading fresh produce companies, Chiquita Brands International and Fresh Del Monte Produce, have reportedly risen after BB&T Capital Markets analyst Heather Jones suggested that bananas, a major product for both US-based companies, will become more profitable due to a tightening of supply out of Latin America.
As reported by Associated Press, Jones noted that banana exports from leading supplier Ecuador were more than 10 per cent lower year-on-year and at their lowest level for five years, mainly due to poor weather and an apparent lack of investment due to "weak pricing".
She also said that Chiquita's recent efforts to take costs out of its business would result in an improved financial result next year, while for Fresh Del Monte she suggested the company's balance sheet positioned it to consider banana or banana production assets.
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