EU plans to extend banana import duty

Banana-producing countries in Latin America have reacted angrily to EU proposals to extend the imposition of full import duties on the fruit. The duties will be levied until 2019, three years longer than initially proposed. After that date, the duty will fall from 176 euros to 114 euros per tonne. The European proposal was tabled at World Trade Organisation talks in Geneva.

bananasFormer European colonies, mainly in Africa and the Caribbean, are exempt from paying any duty on exports to the EU. These countries, usually referred to as the ACP countries, fear that stronger competition from American banana multinationals will force them out of the European market. This exemption is denounced as 'preferential treatment' by the Latin American countries and the United States.

Retaliatory measures
Ten banana exporting countries have said they are rejecting the EU proposal. They are threatening to impose retaliatory measures and are demanding that the reduction in duty be introduced in 2016 as originally agreed.

The EU does not feel bound by the original 2008 agreement because, Brussels says, it is conditional on the Doha Round negotiations being concluded. Currently, Doha is stalled, therefore in the EU's view the old agreement does not apply.



Source: radionetherlands.nl

Publication date: 2/25/2009

Solon scores Australia over banana export

A senior administration lawmaker yesterday protested Australia’s alleged imposition of unjustified barriers to prevent Philippine bananas from entering that country. Cotabato Rep. Emmylou Talino-Santos, a member of the powerful Commission on Appointments, urged the Australian government "to stop unreasonably stalling the entry of Philippine banana exports."

Talino-Santo’s province is one of the country’s top producers of the tropical fruit for export. Earlier, the Philippines’ Bureau of Plant Industry (BPI) reported that Australian government has been obstructing banana exports from Manila through the imposition of unusually difficult quarantine controls.

Cotabato and other Mindanao provinces produce bananas that are exported to Japan, the US, South Korea, and the Middle East, primarily the United Arab Emirates. Talino-Santo’s dismissed as "exaggerated and distorted" the risk of possible pest flare-ups originating from Philippine bananas.


Source: tempo.com.ph

Publication date: 2/25/2009

US: Chiquita sell-off is bananas

Chiquita (CQB) reported Q4 2008 results last week which missed analyst expectations due primarily to lower salad sales (more on that), foreign exchange headwinds, and an $8m expense from flooding in Panama and Costa Rica. CQB also took a $375m goodwill impairment charge which made the GAAP number look much worse, however the write-off has no effect on covenant compliance or borrowing capacity.

In response to this weaker than anticipated quarter, the stock had the steepest sell-off in its history, falling -56% in the past two days! This is not a highly levered homebuilder or RV manufacturer, these guys grow bananas, leading me to believe this sell-off is way overdone. Keep in mind that CQB has a solid balance and even paid down $2.7m in debt during Q4 2008. Furthermore, they have no significant debt maturities until 2014 so there should be no concern over liquidity.

What the heck happened?
Sales for bananas were strong at +9%, but the salad part of the “Salad and Healthy Snacks” segment was weak as CQB canceled certain foodservice contracts with customers that were unwilling to accept price increases. Foodservice salad volume was down -25% in the Q, according to last year’s 10-k the foodservice business makes up 30% of Salad & Healthy Snack sales. Retail value-added salads volume declined -4% in the Q. All in all, sales were roughly flat on a yr/yr basis as banana strength and growth from healthy snacks offset the weakness in salads.

Guidance was actually fairly positive in my opinion as management said they expect improved FY 2009 results vs. 2008. If CQB is able to execute I think they will be one of the few companies to show earnings growth in 2009. Given the results and guidance for FY 2009, the market’s reaction seems wildly inappropriate.

CQB is now trading at a compelling valuation relative to peer Fresh Del Monte (FDP) and is generating a FCF yield of +20%. If banana prices and volumes stay relatively constant with where they are now, I think CQB could make $1.17 (vs. $1.12 in FY 2008) in EPS in 2009. Assume a 10X P/E and CQB is an $11 stock. At $11 the stock is trading at 9.4x P/E and 6.3x EV/EBITDA. This estimate does not include any favorable impact from the removal of EU tariffs so that potentially offers even further upside, more detail below. With the stock currently trading at tangible book value (real assets, by the way, such as farms, land, etc.) the downside risk is muted.

* Attractive business, significant growth potential

CQB uses their strong brand recognition to dominate the markets in which they compete with a #1 banana market share in Europe, #2 banana market share domestically, and a #1 packaged salad market share domestically. In addition, CQB is well positioned to benefit from the growth in health consciousness and the new FDA pyramid which recommends 13 daily servings of fruits and vegetables. CQB is leveraging their strong brand by introducing new products that should accelerate the company’s growth rate and achieve higher margins. CQB enjoys competitive advantages such as scale, brand recognition, and supply chain efficiencies.

* Stable demand and “fruit arbitrage”

CQB sells staple products that have steady demand which is attractive during rough economic times such as these. The products are low in absolute cost so any pressure on consumer spending should not have a huge impact. CQB has recently been able to offset cost increases by meaningfully raising banana prices in the US for the first time in 15 years. In addition, CQB has shown the ability to add surcharges (related to Katrina expenses last year) when necessary without damaging demand.

Anecdotal evidence, bananas increased from $.49 per lb to $.59 per lb at my local grocery store (shout out to Harris Teeter) over the past year. This still represents a huge discount to other fruits (apples $1.89lb) and I expect that demand is relatively inelastic at these price levels due to this “fruit arbitrage”. On the call management noted that banana supply/demand remains favorable for banana prices with stable demand and tight supply.

* EU tariff appears to be on the cusp of being overturned

Over the past few years CQB had been pressured by the EU tariff regime change that took effect at the beginning of 2006 which called for the removal of the existing quotas for Latin American producers while simultaneously increasing tariffs for these producers. The law was intended to provide benefits for EU interests in Africa, Caribbean, and Pacific (ACP) regions but appeared to many as a violation of free trade. The tariff per 40lb box increased 135% which effectively added $2.20 in incremental tariff cost to each box imported from Latin America. An analyst that I spoke with estimates the tariff cost CQB $1.00 EPS in 2007.

The legal landscape appears to be shifting in favor of CQB and other Latin American producers. In December 2007 the WTO ruled in favor of Ecuador that the EU was breaking international trade rules by giving preferential treatment to bananas imported from Europe’s former colonies. In May 2008 the WTO ruled in favor of the US complaint against the EU tariffs. These rulings are a big step towards reversing the tariffs. Given that a removal of the tariffs would add roughly $1.00 to EPS and my FY 2009 estimate is at $1.17, a favorable ruling should revalue CQB significantly higher. I think it is likely that the US and Ecuador prevail in overturning the tariff based on the prior WTO rulings and a pretty open/shut case.

At the current stock price of $5.60, CQB is trading at tangible book value and offers an attractive risk-reward profile. The weakness seen in Q4 was self-induced due to exiting their contracts. End demand remains stable and finding companies with earnings growth in this economy is rare.

* Risks
o Natural disaster disrupts operations.
o EU tariffs are not overturned. At this price I don’t think there is any expectation of the removal of tariffs baked into the valuation.
o Banana prices fall back to 2006 levels. This seems unlikely as the reason for depressed bananas prices in 2006 was the removal of the EU quotas which resulted in the market being flooded. Since then these unsophisticated importers have gone out of business leading to a more rational marketplace.


Source: seekingalpha.com

Publication date: 2/25/2009

EU proposal to end banana trade dispute

The European Union has made a fresh proposal to Latin American banana producers in a bid to end a decade-old dispute over the bloc's banana import policies, sources close to the WTO said Monday. In the fresh proposal, the EU has proposed lowering its taxes on banana imports from Latin American countries to 114 euros per tonne by 2019, instead of 2016, prompting swift criticism from the producer nations.

Banana imports to the EU from Latin America are currently subject to taxes of 176 euros per tonne, while imports from mostly poor former European colonies in Africa, the Caribbean and the Pacific region enter the bloc tariff-free. As a result, Latin American exporters have been pushing for this barrier to be lowered.

The latest proposal would envisage lowered taxes but levied three years later than the 2016 deadline Brussels offered last July in a proposal made on the sidelines of negotiations between ministers for a world trade liberalization deal.

The EU has said the July agreement on bananas was tied to overall trade liberalisation negotiations at the World Trade Organisation. Since those talks collapsed, that agreement was therefore no longer valid, according to the EU.

However, Latin-American producers want the EU to honour the July agreement. "We will not accept the introduction of new elements and renegotiations to arrive at something that is completely different and disadvantageous compared to the balanced agreement concluded on July 27, 2008," Guatemala's ambassador Eduardo Sperisen-Yurt told AFP.

The world's largest banana exporters, Ecuador, Brazil, Colombia, Costa Rica, Guatemala, Honduras, Mexico, Nicaragua, Peru and Venezuela, have all rejected the EU's argument and have threatened sanctions against the the bloc. Three of the largest producers with plantations in Latin America are US-based multinationals -- Chiquita, Del Monte and Dole.


Source: google.com


Publication date: 2/24/200

Australia: Banana supplies back to normal

Supplies of North Queensland bananas have returned to normal after weeks of havoc caused by widespread rain and flooding in the tropics. "The industry is very appreciative of the support it has received from consumers during the interruption in banana supplies," said Australian Banana Growers Council president Nicky Singh.

"We expect that banana prices at retail outlets will quickly reflect the increase in available supply as packing sheds and transport operations return to normal,” he told farmonline. "There may be some dullness of the skin due to the weather conditions, but eating quality of the fruit remains excellent."

Singh said that from a logistical perspective, it was a credit to the banana industry's supply-chain partners that they were able to get fruit to market so quickly in what were still very difficult circumstances after the Bruce Highway re-opened.

"Supply from north Queensland was cut to 23,000 cartons during the first week in February but jumped up to 550,000 cartons last week," he said. "The rain caused an average of about 20pc losses in northern plantations due to flooding, water-logging and weather damage, but this will not cause any interruption to future supplies unless there are further weather complications."


Source: foodweek.com.au

Publication date: 2/23/2009

Huge strikes hit banana supplies

Fruitnet.com 18 February 2009

Long-running strikes in Guadeloupe and Martinique have finally started to affect UGPBAN’s activities

The banana-growing islands of Martinique and Guadeloupe in the French West Indies have been virtually paralysed for the past month due to massive strikes against the spiralling costs of living.

Although there have been no strikes in the banana plantations, according to UGPBAN, the islands’ union of banana grower associations, business has recently been affected.

“Activities are starting to be impeded by blockages to the roads leading to the ports, especially in Martinique,” the union said. “Last Saturday, the boat left the Antilles with 44 containers from Guadeloupe and 0 containers from Martinique – less than 20 per cent of usual volumes, which stand at around 250 containers. This was the first boat to havebeen affected by the crisis. Until then, volumes had been quite normal.”

UGPBAN said that it was working with its clients to maintain commercial flows using bananas from other origins, with the priority being the French market rather than exports.

According to reports in the associated press, the strikes in Guadeloupe escalated into rioting on Tuesday, with shops ransacked, vehicles torched and no obvious end in sight.

Banana prices jump amid flooding

Fruitnet.com 18 February 2009

Western Australian banana prices have soared by up to A$3 per kg on January prices as suppliers struggle to move fruit

Flooding in northern Queensland has hit Western Australian (WA) banana supplies, leading to a rapid increase in prices at retailers.

Torrential rains and floodwater has cut off many transport routes, meaning that Queensland growers have struggled to supply the usual 40,000 bananas per week to the region, The West Australian reported.

Bananas were retailing at A$6.99 per kg at Herdsman Fresh this week, with prices at Coles (A$6.95 per kg) and Woolworths (A$5.98 per kg) in Innaloo also up significantly on January's prices of around A$4 per kg.

Herdsman Fresh produce manager Ron Swain told the publication that he expected the situation to ease over the next few weeks as supplies return to normal. "We're paying about A$55 per carton, when we'd normally pay between A$28 and A$20 a carton," he said.

Australian officials have marked the cost of the flooding in Queensland at A$210m, with many areas declared natural disaster zones.

Australia: Banana prices set to fall

You might have noticed banana prices have been a little high in recent weeks, but that's not going to be for much longer.

Far North Queensland banana growers have rejoined the market, after severe flooding stopped the road transport of bananas out of regions north of Ingham.

In Western Australia, Carnarvon grower Chris Collins has enjoyed better prices for his fruit, but reckons it'll drop with a thump as 550,000 cartons hit the market.

"We've probably got $10 to $15 more than what we were getting in the weeks previous," he says.

"I think sort of the top price was about $48 to $50 a carton and it'll probably drop back down quite quickly.

"I mean, 550,000 cartons probably equates to about 45,000 to 55,000 cartons coming into Perth."


Source: abc.net.au

Publication date: 2/18/2009

Dole gives consumers direct line to Costa Rica

An interactive sticker system is being introduced by fresh produce supplier Dole to help reassure consumers over its banana sourcing policies.

Each sticker will feature a unique code that identifies where the bananas were packed. Shoppers can enter the code into the Planet Dole website, which will give them access to information about the grower.

Consumers will be able to zoom into the farm via Google Earth, learn about the farmers who grew the fruit and the social benefits sales of the bananas have paid for.

Dole, the world's largest fresh produce company, would roll out the stickers in Continental European retailers later this month, and was in discussions with UK supermarkets about introducing the stickers here, said Dole vice-president Sylvain Cuperlier.

In a crowded fresh produce aisle, stickers directly on the produce were the best way of communicating information, he said.

The stickers will initially be limited to banana lines from Costa Rica, although Dole plans to extend this to Ecuador and other locations. Other fruit may also be included in the scheme in future.

"We are being more proactive in promoting corporate social responsibility," added Cuperlier. "We want consumers to know more about what's behind the brand. Bananas are a sensitive product in terms of image and consumers are concerned about how they are sourced."

The stickers were part of a strategy to get retailers to work with Dole on joint CSR projects, Cuperlier said. A Norwegian supermarket, for example, had recently contributed $300,000 to a Dole community project in Ecuador. Retailers could contribute towards any of 20 medical, environmental or social projects, he said, adding that the publicity would help boost consumer confidence in their sourcing practices.

Dole was also providing material for children to use in the classroom to explain how produce was sourced and when fruit was ripe, Cuperlier said.


Source: thegrocer.co.uk

Publication date: 2/17/2009

Costa Rica ‘rejects’ EU offer

fruitnet.com 16 February 2009

Export official calls EU banana tariff proposal “insufficient”, although Costa Rica has yet to deliver a formal response

Costa Rica appears poised to reject the latest offer from the European Union (EU) to reduce its controversial banana tariff for Latin American bananas, claiming that the proposal is “insufficient” for the country’s exporters.

The Central American nation’s Ministry of External Trade (Comex) has also claimed that the new offer is “inferior” to a provisional agreement made between the EU and Latin
American countries last year during the failed Doha round of trade talks.

Speaking to Costa Rican daily La Nación, Comex spokesman Marco Vinicio Ruiz described the new proposal as “insufficient and even poorer than the July (2008) agreement”.

News agency EFE earlier claimed that the revised proposal, if implemented, would see a three-phase reduction in the tariff – from €176 per tonne to €148 per tonne this year, followed by a lowering to €143 per tonne in 2010 and a final reduction to €136 per tonne in 2011.

This compares with the original agreement, which would have seen the tariff lowered to €148 per tonne this year, falling to €114 per tonne by 2016.

Ministers from Comex reportedly met late last week with officials in Panama to discuss their response to the EU’s proposal.

Philippines: Banana industry on edge over effects of climate change

Climate change could have a significant impact on the region’s banana production this year.

Anthony B. Sasin, spokesperson of the Pilipino Banana Growers and Exporters Association (PBGEA), said that the weather has a 50% stake on a banana grower’s production target.

The banana industry is regarded as the backbone of agribusiness in the Davao Region, providing direct employment to about 100,000 people and contributing at least $400 million to the country’s export receipts annually.

Mr. Sasin told BusinessWorld that climate change took its toll on production last year based on the association’s production estimates.

The PBGEA report showed that during the first 11 months of the year, production of members last year went down to 1.753 million metric tons from 1.828 million metric tons during the same period last year.

The same report pointed out that an increase in production during the year compared with the same period in 2007 was experienced in only five months.

From less than 30,000 hectares of farms 10 years ago, however, PBGEA members now control an area approaching 50,000 hectares, industry sources said.

Fear of the adverse effects of climate change and the global crisis have forced banana companies to be more cautious in their expansion projects.

Cautious spending

Alex V. Buenaventura, president of One Network Bank, shares Mr. Sasin’s sentiment. Mr. Buenaventura, whose bank runs a supervised financing for banana farming, said that some growers who are clients of his bank have been cautiously expanding their farms because of fear that projected yield might not be met due to weather anomalies..

Last year, the bank released about P569 million compared with P477 million in 2007, or a 19% increase.

This year, Mr. Buenaventura said, the bank will practice more caution in its lending to banana growers.

Mr. Sasin talked about Anflo Management and Investment Corp., which used to run several banana farms.

Two years ago, the company had to pull out its investments in Agusan del Sur after heavy rains hit the plantation site. He estimated the company had lost about P1 billion when it finally abandoned its farms in 2007.

Mr. Sasin pointed out that when Anflo, where he sits as executive vice-president, started its due diligence study of the Agusan del Sur farms, the amount of rainfall was just enough for banana growing.

When the company started operating the farms, however, the rains had become so frequent that production targets were not met.

The Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) has also taken note of the seeming changes in the weather.

Gerry S. Pedrico, chief of the agency in the Davao Region, pointed out that based on the rain pattern, the rainy season has become longer compared with previous years.

"In [the past], our rainy days were evenly distributed making our farms good for any crop. Right now, changes have been slowly taking place," he said, explaining that this has caused problems in farming.

He cited as an example last year when lanzones trees in farms in the city failed to bear fruit because of the extended rainy season. Ironically, this occured during the Kadayawan sa Dabaw, a festival held to celebrate a bountiful harvest.


Source: bworldonline.com

Publication date: 2/12/2009

Flooding damage to Dominican farms RD$300M and counting

Although the authorities still evaluate the farm sector’s losses from the flooding in several zones, in the country’s Northwest and Northeast they surpass RD$300 million.

Agriculture minister Salvador Jiménez said the Government will assist farmers affected by the floods that damaged rice, banana, plantain, vegetables and fruit crops.

After meeting with producers in the Northwest, Jiménez said there’ll be many facilities for farmers to recover form the flooding damage.

Some farm owners asked him to be part of the committee that manages the dams, because they are not taken into account when they are drained.

The provinces most affected by the floods were Santiago, Santiago Rodriguez, Dajabón, Montecristi, Puerto Plata, San Francisco, Espaillat, La Vega and Monseñor Noel.

Overflowed rivers, streams and creeks also flooded thousands of houses in urban as well as rural areas, forcing the evacuation of thousands.

In Santiago the body of Eugenio Garcia, 37, was recovered yesterday, whereas in nearby Altamira a mother and her 10 year old daughter drowned and also a farmer who tried to cross a swelled river.

It’s been more than nine days of downpours in the North, Northeastern and Northwest regions, whereas the National Meteorology Office expects the rains to continue for another 24 hours.


Source: dominicantoday.com

Publication date: 2/12/2009

Dole to reduce carbon emissions

Fruitnet.com 10 February 2009

Multinational seeks to become carbon neutral for all banana supplies from Costa Rica and to cut emissions across supply network

Dole has announced its intention to reduce carbon dioxide emissions across its banana supply network over the coming years and is to concentrate particular efforts on becoming carbon neutral for its banana shipments from Costa Rica.

Speaking at the recent Fruit Logistica trade fair in Berlin, Dole’s director of worldwide corporate social responsibility, Sylvain Cuperlier, told Fruitnet that the group was seeking to reduce emissions for its supplies from Latin America and Asia.

Mr Cuperlier said Dole was focusing much of its efforts on Costa Rica, where the company signed a partnership agreement with the country’s government in August 2008 to reduce carbon emissions at its banana plantations.

“We are already complying inland with this agreement and our objective is to become carbon neutral for all banana shipments from Costa Rica,” he said.

Mr Cuperlier said that Dole was also seeking to reduce emissions throughout its banana supply network, through measures such as using more efficient refrigerants in container ships. By doing this, he explained, the company would be able to save money as well as reducing its carbon footprint.

Dole also used Fruit Logistica to highlight its recent corporate social projects to retailers and producers, such as a ‘Chairs for Trees’ scheme in the Philippines and a school co-funded by Dole and growers in Ecuador, and to offer a range of options for future partnerships.

Russia: suppliers try to increase prices for bananas

Stable demand for bananas and low supply on the Moscow market give an opportunity to increase prices. As of the last week, prices were declared within a range of 0.71-0.75 euro/kg depending on quality. But at the moment, price for bananas totals 0.84 euro/kg. In this connection, specialists forecast decrease of sale rates and price decreasing.


Source: lol.org.ua

Publication date: 2/11/2009

India: Fresh Del Monte signs affiliation agreement

Fresh Del Monte Produce has signed an exclusive, long-term, banana production and purchase agreement with India-based Rise n’ Shine Biotech Pvt. Ltd.

The family-owned, Maharashtra-based firm is a diversified biotechnology, floriculture and horticulture firm involved in banana plantlet research, development and production.

Coral Gables-based Fresh Del Monte (NYSE: FDP) said the affiliation would shorten its shipping routes to banana customers in the Middle East, as well as provide ideal growing conditions for the crop.

Mohammad Abu-Ghazaleh, Fresh Del Monte’s chairman and CEO, said in a statement that the move was consistent with the company’s vision to be a supplier to global markets, especially to the high growth Middle East and Asian regions.

Fresh Del Monte Produce closed up 39 cents to $25.28. The 52-week high was $39.20 on April 25. The 52-week low was $14.75 on Oct. 27.


Source: triangle.bizjournals.com


Publication date: 2/9/2009

Australia: Bananas put on boats to get around floods

North Queensland banana growers have taken the unusual step of putting fruit onto boats to get around the flooded Bruce Highway.

Millions of dollars of fruit has been sitting in storage for the past week, and while the floodwaters are beginning to recede, it could be another two days before trucks can get through.

Clayton Reed, from Blenners Transport, says hundreds of pallets of bananas have been loaded onto a barge destined for Townsville.

"We sent some product to Cairns yesterday afternoon and yesterday morning," he says.

"That got put on a barge last night and it will be in Townsville this afternoon.

"We'll offload there onto some vans and try to get and down through the floodwaters south of there."

An Innisfail banana grower says the flooded Bruce Highway will hinder picking well into this week.

Doug Phillips says a big backlog of fruit needs to get to market this week.

"The sooner it can start to move the sooner we can get back to normal operations," he says.

"There is a lot of fruit still sitting around which needs to get out, so I guess it's going to take a bit of time to clear that even when they do get through.

"It will have some impact for another week or so I'd say."


Source: abc.net.au
Publication date: 2/9/2009

Ecuador banana exporters warn against EU trade deal

Ecuador should not bother negotiating a free trade deal with the European Union until there is an acceptable cut in the EU's banana import tariff, the country's leading banana exporter group said on Thursday.

Ecuador, the world's largest banana exporter, has led pressure from Latin America for the EU to stick to a tariff-cutting deal negotiated in July on the sidelines of a Geneva meeting of ministers seeking a breakthrough in the WTO's Doha round.

When the WTO talks collapsed, the EU walked away -- saying the banana deal had to be part of a wider Doha agreement. The Latin Americans continue to insist that it is a separate pact.

In the meantime, the European Commission, which negotiates foreign trade on behalf of the EU's 27 member countries, has been pressing forward with talks aimed at securing free trade agreements (FTAs) with several Latin American countries.

Eduardo Ledesma, Executive Director of the Association of Ecuadorean Banana Exporters, said bananas had become a symbol of how Europe intended to treat Ecuador's developing economy.

"If the EC refuses to respect Ecuador's WTO-protected rights on bananas, one of the country's largest export products, no other sector of Ecuador's trade should expect any better in a new FTA," he said in emailed comments obtained by Reuters.

"Until the EC can show that it will honour our existing WTO rights and agreements on bananas, it makes no sense to pursue new trade agreements with the EC," Ledesma said.

In November, the WTO's top court ruled again against the EU in what has turned into the world's longest-running trade dispute. The following month, Ecuador said it could exercise its right to slap sanctions on the EU if the row was not settled.

"Ecuador has already said that if the EC tries to dilute the July agreement it will take retaliation and other legal measures against the EC to protect our WTO rights," Ledesma said.

Under the July deal, the EU would have cut its banana import tariff of 176 euros ($225.7) per tonne to 114 euros by 2016, with an initial cut next year to 148 euros.

That angered rival exporters from former European colonies in the ACP group of countries whose bananas enter the EU with no duties as part of their long-standing trade perks with the bloc. African producers, like Cameroon, were particularly annoyed.

"This dispute cannot be solved by less relief than the EC already promised to Ecuador last July. Fewer bound cuts or longer phase-in periods will not move us forward and are nothing but cover-ups," Ledesma said.


Source: forexpros.com

Publication date: 2/9/2009

Dole Fresh Fruit work force to drop 13%

By Dawn Withers, thepacker.com

(Feb. 3, 11:39 a.m.) Dole Fresh Fruit Co., Westlake Village, Calif., announced Feb. 2 it’s cutting its global work force by 13%.

Dole communications manager Bil Goldfield said the cuts are primarily from the recent sale of the company’s floral business. Other cuts have been made through attrition and the sale of some of Dole’s Latin American banana holdings.

The cuts take Dole’s work force to 76,000.

Del Monte signs deal with Rise n’ Shine

Fruitnet.com 06 February 2009

Fresh Del Monte Produce has signed a long-term banana production and purchase agreement with India’s Rise n’ Shine Biotech

Global banana giant Fresh Del Monte announced yesterday it had signed an agreement with Indian company Rise n’ Shine Biotech for a long-term production and purchase deal.

Rise n’ Shine is one of India’s biggest horticulture biotechnology operators, and according to a Del Monte press release is a leader in banana plantlet research and development.

In return for access to Rise n’ Shine’s production sources, Fresh Del Monte will give the biotech company technical assistance to improve quality.

“We are very excited to have signed a multi-year, exclusive banana production and purchase agreement with Rise n' Shine India,” Fresh Del Monte’s CEO Mohammad Abu-Ghazaleh said in the press release.

“India’s geographic location offers the benefits of more efficient shipping to the Middle East and production quality because of shorter transit time and ideal growing conditions.”

The first shipment of Del Monte branded fruit from the deal is set to head for the Middle East this June.

UGPBAN unveils new logo

Fruitnet.com 09 February 2009

With the unveiling of a new logo and strategy, the banana group has put the ghost of Hurricane Dean firmly behind it

At Fruit Logistica in Berlin last week, the Union des Groupements de Producteurs de Guadeloupe et Martinique (UGPBAN) unveiled its new orange logo, which is designed to increase the visibility of bananas from these islands and win new market share.

This latest move follows the concerted efforts that have already been made since Hurricane Dean devastated the two islands’ banana plantations in August 2007 and builds on the already excellent image of these bananas in French consumers’ eyes.

According to the group’s Sylvie Latour, 71 per cent of French consumers prefer this origin. She also said that the French link with the islands and the bananas’ highly recognised taste were “a solid base on which to go far”.

The new signature of the group, Banane de Guadeloupe & Martinique, is now far easier and quicker to say, she added, and would appear on stickers on all the group’s bananas. “We must position ourselves as a brand and an origin,” she said.

“We must produce bananas differently from the rest of the world,” continued managing director Philippe Ruelle, “on a social level, a safety level and an environmental level.”

The group added that it would begin sourcing bananas from new origins, including Cameroon and the Dominican Republic. A grand communication campaign is also planned for 2009/10, including animations at point-of-sale, posters, internet games and competitions, a newsletter and a new website.

Latin American banana deal in the pipeline

fruitnet.com
Carl Collen | 04 February 2009 | Print | Download | Comment | Share

Costa Rican officials are anticipating that a new EU banana deal will be in place by February

Costa Rican foreign trade minister Marco Vinicio Ruiz has revealed that Latin American banana exporting countries are anticipating a new EU banana deal to be agreed in February.

According to Insidecostarica.com, a deal to end the long-running dispute is also anticipated by Ecuador - one of the most vocal exporters against the EU's banana import tariffs on Latin American bananas.

"It's been said in this same week that the EU will make an offer, will do something, in February," Mr Ruiz said. "I definitely believe that the EU wants to solve the problem."

Latin American nations have previously complained to the World Trade Organisation that current EU import tariffs unfairly favour ACP countries.

Australia: Banana prices may rise

Banana prices could rise in the coming weeks as a result of flooding caused by the remnants of ex-tropical Cyclone Ellie. The Bruce Highway is cut in three places between Cairns and Townsville, stopping hundreds of semi-trailers from delivering fruit to southern markets. Ninety per cent of Australia's bananas are grown in North Queensland.

Australian Banana Growers Council vice-president, Cameron Mackay, says supply may not meet demand. "They're going to struggle to get enough fruit into the markets there," he says. "They were quite light on with loadings leading into this period, and it's certainly not going to help with trucks struggling to get out of the north."


Source: abc.net.au


Publication date: 2/4/2009

Costa Rica’s key players in fresh produce unite in strength for the first time with a country stand

Costa Rica at Fruit Logistica 2009

Costa Rica’s bananas, pineapples, papayas and tropical roots and tubers are present for the next three days in Berlin at the 17th edition of FRUIT LOGISTICA, one of the most important European fresh produce fairs.

Europe is the second biggest market for Costa Rica’s agricultural products. Four key players of the Costa Rican fresh produce industry, in cooperation with Procomer, the Foreign Trade Corporation of Costa Rica, will be exhibiting their products at FRUIT LOGISTICA, namely:
CORBANA, the Costa Rica banana producers association
Nutrifresh de Costa Rica, the producer of new hybrid papaya called ‘Pococi’
Nayudel SA, a key pineapple exporter
B&C Exportadores, a specialist in tropical roots and tubers
Due to the fact that the agricultural sector accounts for 21.8% of Costa Rica’s total export revenue and almost half of total agricultural exports go to Europe, participation at the FRUIT LOGISTICA 2009 is crucial for Costa Rica as a country. More importantly, bananas and pineapples are Costa Rica’s second and third most valuable exports respectively, after microprocessor components. In total, all products exhibited at FRUIT LOGISTICA 2009 (bananas, pineapples, papaya, chayote, cassava, malanga and tiquisque) generated a significant €1,023.43 million in foreign currency receipts last year and constituted 64% of total agricultural exports.

Germany is a very important market for Costa Rican agricultural products as it is Europe’s second largest importer of Costa Rican agricultural products: German imports equal 20% of total European imports of Costa Rican agricultural produce. More than half of these imports are bananas and pineapples. In Germany, consumer expenditure on fruit per capita grew almost a quarter (24.4%) since 2003. Thus, fresh fruit supply is increasingly important for Germany. German consumption of fruit totalled €11,930.5 million in 2008 with an average annual growth rate of 4% since 2003.

Costa Rica Bananas, the World’s Best Bananas

CORBANA (the National Banana Corporation of Costa Rica) is a public non-governmental entity that promotes and develops Costa Rica’s banana industry under the slogan ‘World’s Best Bananas’. Its main objectives are to foster the sustainable development of the banana industry, to advise the government in the area of internal policies likely to affect the banana industry and to carry out research in the agricultural sector. For CORBANA, the quality of bananas is not measured just by their taste but also by the social and environmental conditions of their production. In 2008, global exports of Costa Rican bananas reached €517.6 million.

Papaya Pococí, a Novelty in Tropical Fruits

Nutrifresh de Costa Rica produces papaya and is currently exporting 80% of its production. At FRUIT LOGISTICA, Nutrifresh de Costa Rica will be introducing a new hybrid variety of papaya called Pococí, which was developed by the University of Costa Rica and is unknown to the European consumer. Due to its exquisite taste, this new variety of papaya has been very well accepted by Canadian consumers. In 2008, Costa Rican exports of papaya amounted to €847,270,000.

Quality Pineapples

Nayudel S.A. will be exhibiting its quality pineapples, which have been certified with high-standards labels such as FAIR TRADE, ISO 9000, ISO 14000, FDA ORGANICA, EUREP GAP and Rainforest Alliance. In 2008, Costa Rican exports of pineapples increased to €436.9 million. The European Union represents the second biggest market for Costa Rican pineapples and absorbs almost half of all exported Costa Rican pineapples. Of these exports, approximately 8% went to Germany.

The Passion for Tropical Produce

B&C Exportadores specialises in tropical roots and tubers. Among its main exports to Europe are chayote, cassava, malanga and tiquisque, which are EUREP GAP- and BASC-certified. Global exports of these exotic tropical products generated € 66.6 million in 2008.

“Having these four influential players united at this trade fair is very important for Costa Rica because Europe is a key market for our fresh produce and FRUIT LOGISTICA is therefore the place to be,” said Mr. Zacarías Ayub, Commercial Director of Procomer Europe.

Location: Costa Rica stand, Hall 25, Stand B-03 at the Messe Berlin, Messedamm 22, 14055 Berlin Germany.

About Procomer

Procomer is the official Trade and Promotion Office for the export of Costa Rican products and services. Procomer is represented in Latin America, the United States, Canada and Europe. The office falls under the expert guidance of the Ministry of Foreign Trade and helps all local manufacturers communicate with foreign countries regarding exports.

www.procomer.com
www.corbana.co.cr
www.canapep.com
www.nutrifreshcr.com
www.bycexportadores.com

Publication date: 2/4/2009

Chiquita and Rewe form eco-partnership

Fruitnet.com 02 February 2009

Companies join GTZ in agreeing to protect bio-diversity of area close to Chiquita's banana plantations in Bocas Del Toro, Panama

Fresh produce company Chiquita has formalised a partnership with German retailer Rewe aimed protecting bio-diversity in the San San Pond Sak area of Panama's Bocas Del Toro province, close to the former's banana plantations.
The announcement was made on World Wetlands Day (2 February), marking the anniversary of the adoption of the 1971 Convention on Wetlands dedicated to the protection and conservation of what are regarded as unique and fragile environments.
Initially, the two companies will purchase and donate 120ha of pasture land located in the protected area in order to restore the area's natural habitat and also protect endangered manatees and sea turtles, in cooperation with local and international NGOs.
The San San project will be conducted in cooperation with the Panamanian authorities and civil society organisations such as local residents association Aamvecona and Panamanian environmental authority ANAM.
"This collaborative approach is crucial in helping the project achieve its aims, to deliver significant benefits both for the community and the environment in a place where abundant bio-diversity is threatened and human activity can either conserve or devastate the fragile tropical environment," the companies said in a joint statement.
Community initiatives will include developing environmental education programmes and creating additional income opportunities for the local community.
At the official announcement of the agreement, in the presence of several thousands Rewe employees, the company's CEO expressed his satisfaction at having forged a new commitment to sustainability within the company: “I am delighted that we are announcing this innovative project when we are also launching Rewe’s company-wide commitment to sustainability," he said.
The initiative follows in the footsteps of the Nogal Nature & Community Project, a pilot project begun in 2004 in Costa Rica as a public-private partnership between Chiquita, Swiss retailer Migros and development group GTZ aimed at protecting bio-diversity with community involvement.
The Nogal project was established in 2003 and three years later the Costa Rican government passed a decree making it an official wildlife refuge.
“In this new initiative we can apply the lessons learned during our years of working with the Rainforest Alliance certification programme, as well as valuable experience gained from the Nogal Nature & Community Project," said George Jaksch, senior director of corporate responsibility and public affairs at Chiquita. "Of particular relevance is the understanding that long term conservation of endangered species and ecosystems is not possible without the support and participation of the local community. We are privileged to be a partner in this new endeavour and will make every effort to ensure we meet the objectives we have established.”
The partnership foresees an initial commitment of three years, during which several initiatives are expected to be developed. An environmental education programme to be coordinated with the Panamanian ministry of education has already been planned and will extend to more than 20 primary and secondary schools in the region, as well as to local communities and Chiquita employees.
Local community leaders are also currently involved in the design of a programme to create and support small businesses. Some of the identified opportunities include handicraft based on local customs and traditions or support activities to eco-tourism.

US: Plantains are fruit you treat like a vegetable

It may resemble a banana, but you're probably not going to want to gnaw on one raw.

Though closely related to bananas, plantains (often called cooking bananas) more often are treated like a vegetable, in part because they are too starchy to be eaten raw.

Common in tropical cuisines, plantains are high in potassium (higher, in fact, than bananas). They are used at all stages of ripeness, but it's best to purchase them green and let them ripen as desired at home at room temperature.

Green plantains are hard and the flesh is starchy, which means they can be cooked and enjoyed much the way you would a potato -- boiled, baked, roasted or fried.

When plantains become softer and start to yellow, the flesh begins to turn orange, but keeps its starchy flavor and texture. At this stage, it is best used it in soups and stews.

Once the skin has turned completely black, the flesh becomes sweet. The completely ripened fruit can be baked as a dessert or broiled, sauteed or fried as a sweet side.

Source: courier-journal.com

Publication date: 2/2/2009

Philippines: Banana farms in Mindanao ‘expanding’ despite crisis

While many industries in Mindanao have started laying off workers, banana plantations remain on an expansion mode.

"The expansion is being done cautiously," said Anthony B. Sasin, spokesman of the Pilipino Banana Growers and Exporters Association (PBGEA), a group composed of over a dozen companies that ship out to foreign markets at least $400 million worth of fresh bananas annually.

The cautious stance, he said, is because during a financial crisis, banks become stricter in lending to growers, including big plantation companies.

This could have an adverse impact on the industry if the crisis drags for more than a year, Mr. Sasin said.

Expansion, on the other hand, is due to local exporters’ penetration of two major export markets: Iran and Russia.

The bulk of the country’s Cavendish bananas, or up to two-thirds of the country’s production, goes to Japan, the rest to the Middle East, Southeast Asia, and China.

PBGEA firms directly employ 100,000 workers and employees and support a bigger number of jobs in downstream industries.

The group controls over 40,000 hectares of plantations mostly located in the Davao region.

Firms generally sign annual supply contracts with importers in advance, significantly shielding them from losses if shipments are cancelled.

The expansion plan was confirmed by Gil M. Dureza, head of the Board of Investments in southern, central and western Mindanao.

A company, which he did not identify, has been scouting for 3,000 hectares of land fit for banana plantation.


Source: bworldonline.com

Publication date: 2/2/2009

Costa Rica expects EU offer on bananas next month

Costa Rica expects the European Union to make a new offer on bananas next month in an attempt to resolve the world's longest-running trade dispute, Foreign Trade Minister Marco Vinicio Ruiz said on Friday.

Settling the row would end a decades-long dispute that has poisoned relations among dozens of countries and remove an obstacle to an overall deal in the World Trade Organisation's Doha round to free up global commerce.

It would also help foster trade ties between Europe and Latin American countries grouped in the Central American Customs Union, which is negotiating a trade deal with Brussels.

"It's been told (said) in this same week that the EU will make an offer, will do something, in February," Ruiz told Reuters after arriving in the Swiss ski resort of Davos for the World Economic Forum following talks in Brussels.

"I definitely believe that the EU wants to solve the problem," he said.

Ruiz said officials from Ecuador, the world's biggest banana exporter, had heard the same thing. He met officials from Ecuador during his trip to Brussels.

Costa Rica is the coordinator at the WTO of the tropical products countries, a group of mainly Latin American farm exporters.

The EU's banana import regime offers preferential access to its markets for the African, Caribbean and Pacific (ACP) countries, a large group of mainly poor developing countries that are mostly former European colonies.

Under WTO pressure, Brussels has tried to reform the system, but the Latin American countries say it is still unfair.

The two sides reached a deal on the sidelines of a meeting of ministers last July seeking a breakthrough in the Doha talks.

But the ACP countries and the EU producers in the French Caribbean and Spanish Canary Islands objected to the deal. When the July talks collapsed, the EU walked away, saying it was linked to a Doha agreement.

The Latin Americans say it was a separate pact.

Obstacle to broader deal

The bananas row could block the broader trade deal because Doha proposals would allow both slower tariff cuts on produce from poor ACP countries and steeper cuts on tropical produce from the Latin Americans.

The two groups need to decide which produce goes on which list. The Latin Americans have dropped some products that were under contention, but bananas remain a target for both groups.

Pressure on the EU to settle the dispute grew in November when the WTO's top court ruled yet again against the EU. Ecuador said last month it could exercise its right to impose trade sanctions on the EU if the row is not resolved.

The dispute is an embarrassment for the EU, which supports the rules-based trading system represented by the WTO.

Under the regime introduced in 2006, Brussels charges a tariff of 176 euros a tonne on Latin American bananas while letting in ACP fruit duty-free.

The WTO ruled this was discriminatory and said the previous EU regime, which admitted a quota of 2.2 million tonnes of Latin American bananas with a tariff of 75 euros a tonne, was still in force.

Last July's deal would have cut the tariff to 148 euros this month with further cuts to 114 euros by 2016.


Source: uk.reuters.com

Publication date: 2/2/2009