Banana multi-national Chiquita is to start exporting bananas from Mozambique and Angola to Europe in 2010.
The company announced today that it had reached a deal with specialist African investment company Escom for its Angola project and Matanuska Africa Ltd for the Mozambique project, as part of a major diversification in the company’s global sourcing.
Each project is expected to create 3,000 jobs and provide 20 to 30 per cent of Chiquita’s premium fruit volume for the EU market, benefiting from the tariff-free status of both former Portuguese colonies.
“The decision to expand Chiquita’s African presence was based on the company's assessment that sourcing from Africa would continue to be cost-competitive, even if there are future significant reductions in the import tariff rate applied on Latin American bananas imported into the European Union,” Fernando Aguirre, Chiquita chairman and ceo said in a statement. “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. We are confident that by leveraging our technical knowledge with the expertise of our new partners, whose core business is based on a strong history of operating success in Africa, we will ensure the reliable production of high-quality, Chiquita-branded fruit. These projects will significantly increase our sourcing from tariff-free ACP countries, reaching an estimated 20 to 30 per cent of our European volume of premium bananas. 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.”
The agreement signed today in Benguela, Angola, marks the debut of Chiquita in Angola and of Escom in the agricultural sector. Contingent upon necessary governmental approvals, the Agricultural Development Company of Angola, a subsidiary of the Escom group and the Angolan company Hipergesta, will establish banana production in the province of Benguela, with an investment of more than $60 million provided by the Agricultural Development Company of Angola. In addition, Chiquita recently entered into an agreement with Matanuska Africa Limited for a similar project that is already underway to develop banana production in Mozambique.
While Chiquita will not provide capital for either project, the company will support them with its expertise in farm development, good agricultural practices, training of local workers, logistics, marketing and distribution to European markets of premium Chiquita branded product. Both operations have committed themselves to meeting Chiquita's high standards of environmental, labor, social and food safety performance. The first commercial exports to Europe are expected in 2010, after planting later this year.
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