Chiquita Brands has signed deals with African countries for the export of up to 30% of its bananas to the company’s core European markets.
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Projects with Angolan firm ESCOM and Matanuska Afriaca in Mozambique are expected to create 3,000 jobs in each country and strengthen the diversity of Chiquita’s sourcing of bananas.
The first commercial exports to Europe, expected in 2010, will provide fruit exempt from European tariffs that Chiquita pays on bananas exported from Central America to Europe.
“We believe that starting banana production in Angola and Mozambique is an important strategic step that will be very cost-competitive regardless of the eventual outcome of the challenges to the EU tariff import regime,” said Fernando Aguirre, Chiquita’s chairman and chief executive.
Chiquita reached a deal with ESCOM to develop banana production in Angola. ESCOM is a member of the Espirito Santo Group, and already operates in such areas as mining, real estate and energy in Angola. The deal is contingent on governmental approvals in Angola.
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By GlobalDataIn addition, Chiquita recently entered into an agreement with Matanuska Africa for a similar project that is already underway to develop banana production in Mozambique.
While Chiquita will not provide capital for either project, the company will support the projects with its knowledge in farm development, training workers, logistics, marketing and distribution to European markets.
