Fyffes said on Wednesday it is looking for higher prices across all markets.

The Irish multinational said its 2008 earnings before interest and tax (EBIT) are targeted to be at the upper end of expectations announced in its previous trading update last August, at around €15 million (£13.7m). Year-end cash balances are expected to amount to €33m.

The company issued the following statement: “Looking ahead to 2009, there has been a significant adverse movement in exchange rates in recent months as a result of the strengthening of the US dollar, particularly relative to sterling." The group expects further cost inflation in 2009 with higher fruit and shipping costs only partly offset by lower fuel costs. Fyffes is seeking significant increases in selling prices in all key markets.

Fyffes is targeting an adjusted EBIT for 2009 in the range of €14m-€18m, based on an expectation of achieving the necessary increases in average selling prices. The adjusted EBIT excludes amortisation charges, the group’s 40 per cent share of the results of Blackrock International Land plc and exceptional items.

Meanwhile, Fyffes' fresh produce distribution arm Total Produce has moved to counter Indian press reports that its joint venture company in the sub-continent is having to scale back expansion plans.

Khet-Se Agriproduce, Total Produce’s Indian joint venture, with the Tata Group was reported in the Indian media to be under pressure as Ratan Tata, the high-profile chairman of Tata Group has been locked in talks to try and win a financial rescue plan from the UK government to cover losses at Jaguar Land Rover, the car manufacturer it bought for €1.8bn in March 2008.

Reports indicated that plans for expansion at Khet-Se to open 50 distribution centres over three years have been halved. But a spokesman for Total Produce said the figures quoted bear no relevance to reality. “The bottom line is that one distribution centre opened in May last year and we are expecting Khet-Se Agriproduce and there have only ever been plans to open just another one this year,” said the spokesman. “The one centre that has opened so far is doing well, but the plan has always been to do this on a trial basis.”

Kapil Mehan, executive director at Tata Chemicals, told Indian journalists that Khet-Se has already started distributing fruit to major retailers including Wal-Mart India and plans to export to Europe using Total Produce’s supply chain infrastructure are not altered.

Mehan told the press: “India, in the next five to 10 years, will [become the world's] largest grape and banana exporter so there is big potential in the business.”

Tata homed in on Total Produce as its jv partner earlier this year because of its credentials in fruit distribution as well as the accompanying IT support systems.

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