North America was a bright spot for Chiquita Brands International in April and May, while regulatory changes impacted its European market.
However, the average price of bananas fell 10 per cent compared with the same period last year in the European Union, the company’s biggest market.
Chiquita said that regulatory changes allowing new competitors into the market contributed to the decline, as well as a tariff rate of €176 per metric ton of Latin American bananas, more than double the previous rate.
The decrease in volume is due to the sale of more premium-grade bananas and fewer of the lower-margin, second-label fruit, according to the company.
Banana prices in the US jumped 10 per cent during April and May, after renegotiated contracts and a fuel-related surcharge imposed in January.
Storms and hurricanes in late 2005 contributed to a volume decrease of 11 per cent, but Chiquita said it expects the supply to reach normal levels by the third quarter.
Banana prices in the Asia pacific and Middle East markets remain stable, with a one per cent increase, while volume rose 15 per cent due to growth in markets outside Japan.
Chiquita’s Fresh Express salads business saw a six per cent volume increase in the two-month period, and net revenue per case was up three per cent.
