Chiquita Brands International has announced information on Chiquita banana and Fresh Express retail value-added salad prices and volume for October and November, the first two months of its 2005 fourth quarter, in each of its principal markets.

In the European Union, Norway, Iceland and Switzerland, Chiquita's average banana prices rose 21 per cent on a US dollar basis (27 per cent on a local currency basis) in the first two months of the 2005 fourth quarter, compared to the same period a year ago.

The company attributed the higher average European prices to competition for import licenses, the impact of higher delivered costs for fuel and shipping, and expanded sales of premium-label volumes. The volume of bananas the company sold in its core European markets fell three per cent in the first two months of the quarter, compared to the same period a year ago, as the company sold less second-label fruit.

Across the Pond, average banana prices in the US and Canada rose by just 3 per cent in the same period versus the same period last year. Chiquita attributed the pricing increase primarily to the impact of a surcharge implemented in September to partially offset rising costs for fuel-related products and transportation. Banana volume in the two months fell six per cent, due primarily to the disruptive impact of recent storms, including Hurricanes Katrina, Rita and Stan, on logistics and sourcing.

In the company's Fresh Express retail value-added salads business, volume rose six per cent, as new product introductions, such as reconfigured and relaunched complete salad kits, drove year-over-year growth. Net revenue per case also rose six per cent compared to the year-ago period. Higher cost of sales and market-development spending offset essentially all of the positive impact of the volume and revenue increase.

The volume of bananas the company sold in Asia and the Middle East in the first two months of the fourth quarter rose 42 per cent from the same period a year ago, due in large part to increased sales in Iran and Japan. Banana prices in Asia and the Middle East fell 10 per cent on a US dollar basis (seven per cent on a local currency basis) in the first two months of the 2005 fourth quarter, compared to a year ago, due primarily to lower pricing in Japan.

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