Chiquita reaches strategic African sourcing agreements
Chiquita reaches strategic African sourcing agreements
New long-term agreements in Africa will help Chiquita Brands International overcome European duty issues, which have plagued "dollar" banana suppliers for many years.
Chiquita, based in Cincinnati, announced March 4 long-term strategic associations in Africa for the export of bananas to the company's core European markets from Angola with ESCOM, a member of Grupo Espirito Santo, and from Mozambique with Matanuska Africa Limited.
According to a Chiquita news release, the projects in Angola and Mozambique allow Chiquita to further strengthen the diversity of its geographic sourcing portfolio, and to provide, upon project completion, an expected 20-30 percent of the company's premium-quality fruit volume for European markets, on a tariff-free basis.
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 to Latin American bananas that are exported to the European Union.
The first commercial exports to Europe are expected in 2010, after planting anticipated to begin later this year.
Chiquita, based in Cincinnati, announced March 4 long-term strategic associations in Africa for the export of bananas to the company's core European markets from Angola with ESCOM, a member of Grupo Espirito Santo, and from Mozambique with Matanuska Africa Limited.
According to a Chiquita news release, the projects in Angola and Mozambique allow Chiquita to further strengthen the diversity of its geographic sourcing portfolio, and to provide, upon project completion, an expected 20-30 percent of the company's premium-quality fruit volume for European markets, on a tariff-free basis.
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 to Latin American bananas that are exported to the European Union.
The first commercial exports to Europe are expected in 2010, after planting anticipated to begin later this year.