Chiquita Brands International has reported significant year on year increases in banana prices in all markets for July-August 2008 on volumes that were flat overall.
Banana prices in the company's core European markets were up four per cent year on year on a local currency basis, or 18 per cent on a US dollar basis. Volume sold in the core European markets was down five per cent for the period, due to “the constrained industry-wide volume availability”, the company's “cancellation of some lower-price contracts that were no longer sufficiently profitable in a rising cost environment”, and its continuing strategy to focus on its premium quality product and price differentiation rather than market share.
"We are pleased that banana pricing remains favorable as we continue our pricing discipline to help offset higher industry costs," said Fernando Aguirre, chairman and chief executive officer. "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."
In Chiquita’s trading markets, which consist primarily of European and Mediterranean countries that do not belong to the European Union, pricing rose 41 per cent year-over-year. Its volume in this region declined 15 per cent, reflecting industry-wide supply shortages.
